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The Beginner’s Guide: What is VoIP and How Does it Work?

Margo Ovsiienko
The Beginner’s Guide: What is VoIP and How Does it Work?

“What is VoIP and how to start using it?” is one of the questions asked by companies who are planning to move their employees to a remote work environment. However, it’s not only the remote work possibility VoIP technology offers, but also a great way to cut costs, even if you prefer to work in a hybrid team or stay in the office. So what is all the buzz around VoIP?

In this article, we will give a simple explanation of what VoIP technology is, how it works, and, most importantly, what’s in it for you.

In case you are looking to move from an office phone to a VoIP and make remote work possible, we are giving all the clues you need to get started with VoIP. Let’s dive into it!

What is VoIP?

VoIP stands for Voice over Internet Protocol and this technology enables connecting with customers over phone while using Internet connection instead of telephone services. So how does VoIP work in simple words?  

How does VoIP work?

On your end, it first uses a compressed digital signal and then sends it over the Internet. On the receiver’s end, VoIP technology is used to uncompress the sound and get it heard in headphones.

The reason why so many companies are choosing VoIP over traditional telecommunication is cost effectiveness. Telecommunication companies usually charge high fees to perform calls from different countries. Thanks to VoIP technology, your company can reduce the cost by using the Internet instea. 


When can you use VoIP?

Moving office equipment home is one of the biggest remote work challenges that prevents teams from switching to a fully remote mode of work. Office phones and copper lines are one of such devices. With VoIP technology, your team doesn’t need phones anymore – Internet connection and laptop are enough to make a call. As a result, everyone can work fully remotely.

Why should you use VoIP?

There are a few reasons that make VoIP a much more attractive solution than a traditional phone. We have already mentioned the cost as one of the key factors to consider. However, you should not forget VoIP also offers more flexibility and even more expense reduction. You no longer have to provide your employees with a phone device and require them to be on site – in the office to manage calls. 

This way, you can hire customer support specialists from anywhere in the world – also from the countries where it is cheaper to find people with the skills your organization is searching for. You suddenly get access to a much wider talent pool! 

An additional benefit to this is being able to provide customer support in all time zones. For example, if you are offering printed products in the US, but want to expand your services to Australia, you can get your Australian customer support agents to use VoIP making support available during standard working hours in Australia.

With VoIP, you can also scale your customer support strategy that often entails an increase in the count of customer support agents. You can simply add another person to your VoIP infrastructure in a glimpse of an eye; the cost for doing it is nowhere near the cost incurred from buying a new phone and paying monthly operating expenses of having an additional landline. 

The available VoIP features

Apart from the standard functionalities of landline, VoIP can offer much more when it comes to additional benefits. Here are just some features you can use when moving to VoIP. In some cases, they can substitute other online tools you are using in your organization. As a result, it can generate more savings for a company.

  • Forwarding calls
  • Holding calls
  • Call waiting
  • Transferring calls
  • Blocking calls
  • Voicemails
  • Organizing a video conference
  • Transferring voice to text
  • Transferring fax to text
  • Bridging a conference
  • Auto attendant

How to choose the right VoIP system? 

Choosing a VoIP system is a serious decision as often your customer satisfaction rate and sales depend on it. As a result, it can define your company growth for years ahead. When looking around for a solution, you have to consider multiple factors for choosing a VOIP service. Keep an eye on these key elements of a perfect VoIP system when making your research.


  • Cost effectiveness and something you can afford, so it doesn’t eat out your profit margin.
  • Necessary features that will make it easier communicating in a remote team for the people using the VoIP tool.


  • Scalability and if your chosen VoIP solution can grow as business grows.


  • Security and the vendor that ensures world-class security protocols.
  • Simple integration with your existing systems – something that requires only low-code development or no development at all.


What equipment do you need to use a VoIP system?

If you are looking to implement your customer support strategy remotely, VoIP is one of the easiest tools to do so. The equipment you need to start using a VoIP system depends on the method of using VoIP. Here is some explanation to how VoIP works on different devices and what additional equipment you will need to get started.

1. VoIP and computers

You will need the following to start using VoIP on your PC:

  • a PC or laptop
  • Internet connection
  • VoIP software
  • microphone
  • headset or speakers

You don’t have to buy any additional equipment – there is everything you need in your computer already such as microphone and speakers. If you want to have external add-ons such as more professional headphones, you can of course purchase such, but other than that it is easy to get started with VoIP using a PC or laptop only.

2. VoIP and smartphones

In the case of smartphones, you don’t really need any additional equipment to get started except for Wi-Fi connection.

3. VoIP and an adaptor

Here is what you need to get started using VoiP with an adapter: 

  • VoIP adaptor
  • a compatible phone
  • a compatible router (if plugged into a router)

As you see, when just starting using VoIP or introducing it company-wide, there is no need for extensive investment in new equipment or home set ups. If you employees have access to any of the three options we described above, they will be able to start using VoIP right away.

Wrapping up

Introducing VoIP software has a lot of advantages such as reducing expenses and a possibility to work remotely. You don’t need a lot of equipment to start using VoIP and it offers many more features than a standard landline. To test out VoIP in your company you only need access to the Internet and laptop or smartphone. So why not give it a try? 

Margo Ovsiienko
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