VoIP (Voice over Internet Protocol) means making and receiving phone calls over an internet connection instead of a traditional copper phone line. Your voice is turned into small packets of data, sent across the internet and turned back into sound at the other end, usually in a fraction of a second.
How a VoIP call works
When you pick up a VoIP desk phone, open a softphone app or answer on your mobile, the device connects to your provider’s cloud phone platform over the internet. The platform knows which numbers belong to you, which people should ring, and what should happen if nobody answers. Calls to ordinary landlines and mobiles are passed to the wider phone network, so the person you call does not need VoIP themselves.
What you need
- A reliable internet connection. Each call uses well under 100 kbps, so stability matters more than raw speed.
- Something to talk on. An IP desk phone, a headset with the desktop app, or the mobile app on your smartphone.
- A VoIP provider. They supply your numbers, the phone system in the cloud and support.
What a VoIP phone system does
A business VoIP system replaces the old phone system box in the office (often called a PBX). Everything it used to do now happens in the cloud, and usually more:
- ring groups, queues and call transfers
- “press 1 for sales” menus (virtual receptionist)
- voicemail sent to email
- call recording and call reporting
- opening hours and holiday routing
- the same business number on desk phones, laptops and mobiles
Why businesses are switching
There are three main reasons. First, the UK’s analogue phone network is being switched off, so copper lines are going whether you plan for it or not (see our PSTN switch-off guide). Second, VoIP lets your team take calls anywhere, which suits hybrid working. Third, there is no on-site hardware to buy or maintain, and changes like adding a user take minutes.
Is VoIP call quality good enough?
On a decent business broadband connection, VoIP calls are usually clearer than old landline calls, because they can use HD voice. Poor quality is almost always caused by a weak connection or a busy home Wi-Fi network, both of which can be fixed.
Next steps
If you are weighing up a switch, read switching to VoIP: a step-by-step plan, or see our VoIP phone systems and start a free 14-day trial.