Since the beginning of telecommunication, phones have used 'circuit-switched technology' to send and receive calls. This technology uses hard phone lines to transmit calls from one telephone to another
The limitation with circuit-switched technology is that it requires a significant amount of bandwidth for each call, and it only supports limited types of calls (i.e. telephone to telephone/fax/modem). The hardware needed to run traditional circuit-switched networks is very expensive. The higher cost of the hardware and the inefficiencies of using dedicated bandwidth for individual calls has caused many telephone companies to use parts of the Internet to connect PSTN calls. You may have already received or made calls using VoIP technology without knowing it.
VoIP stands for Voice Over Internet Protocol, which is the process of using the internet to transmit phone calls. The voice stream is broken down into packets, compressed, and sent toward its final destination by various routes as opposed to establishing a 'permanent' connection for the duration of the call.
VoIP has a number of advantages over conventional phone lines. VoIP is more cost effective, has a versatility unmatched by conventional phones, and can adapt to any home or business with the right plan.
By utilizing internet technology to transmit calls, VoIP is able to operate at a much lower cost than conventional phones, making for much lower prices for the consumer. Additionally, if you have a high-speed internet connection, you can piggy back your VoIP service on your internet service for a fraction of the cost of conventional phone bills.
VoIP phones offer multiple kinds of telecommunication types, from video calling, to chatting, to easy and inexpensive long distance calling. These services can aid office communication, or let you see the face of your friend in a different country.
Use at the office or in your home
The versatility of VoIP allows you to use VoIP service at home, but its also a great system for your office. You can have multiple lines for your employees at a fraction of the regular cost.