What Does VoIP Stand For? What is VoIP?

What does VoIP Stand For?

VoIP stands for Voice over Internet Protocol (pronounced ‘voyp’). Simply put, VoIP is a way to make and receive phone calls over the internet (digital) instead of traditional phone lines (analog). By bypassing telecom companies, VoIP calls are much cheaper. Cell phones, computers, & office phones are compatible with VoIP technology. While most offices use VoIP, residential customers are just beginning to transition.

The acronym VoIP may look unfamiliar, but it’s probably a lot more present in your everyday life than you’d think. It stands for Voice Over Internet Protocol, a type of phone technology that connects users over a digitally-based network.

If you’re still confused, we don’t blame you. IP telephony is easy to use, but a little harder to understand. That’s why we’ve written this blog, exploring what VoIP stands for and what it means for you. Let’s dive in and start breaking down the acronym VoIP to further your understanding.

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Up until the 1950s, an operator would have to manually connect two sides of a phone call.

When you make a phone call, your voice is converted into a signal that travels across the network until it reaches the person you’re speaking to. VoIP phone systems convert your voice into a digital signal, allowing it to travel across internet networks rather than traditional phone lines.

These audio signals travel as digital data packets, small bits of data sent several times a second from you to the other caller. A good way to think of this process is to picture small packages containing your voice traveling across the network to the person you’re speaking to.

Automatic electronic switches replaced human switchboard operators in the early 1950s.
Automatic electronic switches replaced human switchboard operators in the early 1950s.

Internet protocols are defined as a set of rules that allow and facilitate orderly digital communication. Basically, these protocols ensure your voice data packages reach the right person at the right time. Once your digital data packets arrive, they are then reconstructed to create the sound of your voice and the words you’re saying, all in the right order. If you’ve ever used Google Voice, Apple’s FaceTime, or WhatsApp to make a call, you’ve used VoIP!

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Best of all, since VoIP services are digital, you can use your internet business phone system with a variety of devices and in almost any location. The technology also allows you to send larger amounts of data over the network, offering both audio and video capabilities on the same system.

Today, VoIP phone systems are facilitated by the same servers that drive the internet.
Today, VoIP phone systems are facilitated by servers that make the internet work.

Cost is always one of the top factors in a business decision. When using a VoIP system, you no longer need to worry about the equipment required for a traditional PBX (wired) system. You won’t need telephone lines, an on-site server, or a bunch of expensive equipment. Instead, you can just use the internet infrastructure you already have.

Virtual phone systems also eliminate the costs and annoyances of traditional phone lines. You can transmit numerous calls on the same VoIP line, saving time and reducing your ongoing system costs. The calls you make, both domestic and international, are also cheaper, giving your company more reach without stressing your budget.

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When you get a business phone number on a VoIP system, you can use valuable features that provide better experiences for your customers and employees. Enjoy business call menu options that make your company feel as large and professional as enterprise-level businesses. Connect your virtual business number to an app on your phone for greater flexibility. No matter your need, voice over IP systems can help you do more, often without paying more.

Today, people are often on-the-go. Whether you’re on a business trip or taking care of a family emergency, VoIP connectivity allows you to communicate to customers and team members from any location with internet service. This digital technology cuts your ties to the office, allowing you to connect through your tablet, phone, or computer without issue.

If your voice over internet protocol system is equipped with business call routing, you can use this feature to further extend your communication capabilities. Route your calls to personal devices, home phones, or even colleagues who work remotely. You can also determine how your calls are routed through this system. Professional VoIP phone systems empower business owners to route calls to employees with ease and control. For example, you can send customer calls to your team in the following ways:

    • Simultaneously
    • Dial-by-name
    • Dial-by-extension
    • Round-robin
    • Sequentially

No matter where you are, you can maintain your productivity and connections.

If your office has to close due to lost power, extreme weather, or an unforeseen pandemic, you need a way to stay available to customers. Using the routing options mentioned above, you can make sure callers always reach a member of your team. You can also check voicemails and make calls, keeping business uninterrupted and open, even when your location is not.

Ready to turn your business phone system into a powerful asset? Try our virtual business number service for free by signing up today.

Small Business Resources

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Small Business Podcasts
Books for Business Growth
Small Business Mobile Apps
Top Entrepreneur Forums
The 30-Second Elevator Pitch
Perfect Voicemail Greetings
Add Click-to-Dial To Your Website
What is VoIP? How Does it Work?
Guide to Small Business Software
What is a Virtual Phone System?
How to Share a Team Phone Number
Toll-Free vs. Local Business Number
Learn the Parts of a Phone Number
Inspirational Small Business Quotes
Mastering the Art of the Cold Call

A special high five to Emily Finlay for her outstanding research and contributions to this article. We love working with and supporting like-minded entrepreneurs who are passionate about business success strategies. Thank you Emily! ❤️

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