What is VoIP? The Ultimate Guide for Dummies

What is VoIP - VoIP for Dummies

What Is VoIP?

You may have been hearing the term VoIP and wondering:
“Well, what is VoIP?”

VoIP stands for Voice over Internet Protocol. This simply means that your phone system is run via your internet connection as opposed to expensive phone lines. This new technology has meant that you can enjoy the best parts of having a phone system, streamlining your communications but without expensive copper wiring. Due to its benefits, its quickly becoming the future for businesses and consumers alike.

VoIP provides an inexpensive, cost-effective way for businesses to set up a phone system that can easily grow and change with their developing business. Often, a range of other features can be added for minimal cost due to the flexibility of VoIP systems.

How Does VoIP Work?

VoIP does not function like a typical traditional phone system. Instead of setting up a connection in real time (like you would between two wired phones), VoIP uses an internet connection to deliver voice communications over digital networks. How VoIP works is this way: data “packets” (that is to say, your voice plus information such as your’s and your partner’s IP addresses) are sent back and forth at unbelievably fast speeds. This is so quick (fractions of a second) that it allows for a conversation experience identical to that of a wired phone. The difference is, by sending these data “packets”, there is a capacity to send far more information than ever before. Combine this with faster broadband speeds and improvements in technology it now means that VoIP is understandably becoming the logical choice for home and business.

How Does VoIP Work in a Business?

VoIP phone systems are becoming the choice in phone systems and there are a number of reasons why

Low Cost

Businesses are always looking for the best option for the lowest price and this is where VoIP becomes really popular. Due to the lack of line rentals and associated phone costs, you can save up to 50% on your phone bills. It’s also possible to find providers who offer services without lock-in contracts, allowing you more freedom in your business. It allows you the option to grow your system without worrying about the cost of new contracts or large investments in expensive phone lines. The cost of each call is minimal, due to the lack of overheads, and can save your  business money whilst not sacrificing performance – the best of both worlds!

More Features for Reasonable Cost

In a traditional phone system, including desirable features can be expensive – for many prohibitively so. This simply isn’t the case for VoIP phone systems. You can now enjoy a range of simple services such as voicemail, call divert, fax-to-email or even recorded greetings. If you’re feeling ambitious, you can even include more sophisticated features such as call menus, call recording and storage, time-of-day auto scheduling and “follow me” features that allows clients to contact those on the road (or in another country!). These features are not expensive and can help provide a level of professionalism and freedom to your business.

Bigger or Smaller As You Need It

Your VoIP system allows you to make changes simply with a click of a button or a quick phone call. You can add new extensions, new users or new services in a matter of minutes. Compare this to a traditional phone system in which these changes take weeks, sometimes months!

The ability to change the scale of your phone system is one of the key strengths of a VoIP phone system. Seasonal changes, regular growth or changes in the economy don’t have to be disasters for your phone system. . It’s simple to expand your phone system when needed and then reduce it down to the essentials when business is quieter, all for limited costs.


What is VoIP? Going beyond the technical for a moment, VoIP is a phone system that allows you to run your business the way you want to. It’s a high quality, flexible and cost-effective tool to allow you to take control of your communications. There is a reason for why VoIP systems are becoming a popular choice for business.