What is Voice over IP? A simple guide to VoIP for business

Voice over IP (VoIP) is a way of making phone calls over the internet instead of over a traditional phone line. Your voice is turned into small data packets, sent across your internet connection and turned back into sound at the other end. That’s the short answer to “what is VoIP?”

So why does it matter? Picture this. A customer calls your office at 4pm. Your colleague who usually answers works from home on Fridays. With an old phone line, the call rings at an empty desk. With voice over IP, it rings on her laptop, her mobile or her desk phone at home. The customer gets an answer and never knows the difference.

That is what voice over IP calling is really about: being reachable, wherever your team works.

 

Voice over IP: what is it, exactly?

Here’s a simple voice over IP definition: VoIP is technology that lets you make and receive phone calls using an internet connection. You will also see it called voice over internet protocol telephony, IP telephony or internet calling. They all mean the same thing.

The “IP” stands for Internet Protocol. That is the set of rules computers use to send data to each other. With VoIP, your voice over internet becomes just another type of data, like an email or a video stream.

You don’t need special knowledge to use it. You pick up a phone, or click a button on your screen, and you call. Same as always.

 

How does voice over IP work?

Every voice over IP call follows the same basic steps:

  1. You speak into your phone, headset or laptop.
  2. Your device turns your voice into digital data.
  3. That data is split into small packets and sent over the internet.
  4. At the other end, the packets are put back together and turned back into sound.

All of this happens in a fraction of a second. With a good internet connection, the call sounds just as clear as a regular phone call.

When you call someone on a normal landline or mobile, your VoIP provider connects the call to the public phone network, usually through a SIP trunk. So you can call anyone, and anyone can call you.

 

What do you need for VoIP?

Less than you might think. Most voice over IP systems work with:

  • A stable internet connection
  • A device to call from: a desk phone, a softphone app on your computer, or an app on your smartphone
  • A VoIP provider that handles your numbers and call routing

There’s no big phone system in a cupboard to look after. With a cloud phone system like Xelion, everything runs online. Updates happen in the background. You manage your settings from a browser.

 

Benefits of voice over IP for your business

So what are the benefits of voice over internet protocol in everyday work? Here are the ones you will notice first.

Work from anywhere with the same number. You call from the office, from home or on the road. Customers always see your business number, not your personal mobile.

You decide where calls go. Set up call queues, hunt groups and an auto attendant (IVR). A caller presses 2 for support and lands with the right team. Outside office hours, calls go to voicemail or a colleague on call.

See who’s available. Presence status shows who is on a call, in a meeting or free. You transfer a call without guessing.

Grow or shrink easily. New starter on Monday? Add a user in a few minutes. No engineer visit, no new cables.

Insight into your calls. Reports and a live wallboard show how many calls came in, how long people waited and how many you missed. You spot busy moments and plan your team around them.

Ready for the PSTN switch off. The UK’s old copper phone network is being switched off. Business voice over internet protocol is the natural next step, so moving now saves you a rush later.

 

How Xelion makes VoIP practical

Plenty of providers offer VoIP: voice over IP calling is everywhere these days. The difference is in how easy it is to manage.

Xelion is a cloud phone system we build ourselves, and you get everything with one licence. No separate modules to add for call queues, call recording or reports. You see what you pay for.

A few things you can do with Xelion:

  • Answer calls on any device. Use the Windows app, the mobile app, a browser or one of the voice over IP phones on our certified hardware list.
  • Match callers. Link Xelion to your CRM, and you see who’s calling and what you discussed last time before you even pick up.
  • Work with Microsoft Teams. Call from Teams with your normal business number.
  • Coach your team. Listen in, use call whisper to give a quick tip, or review call recordings for training.
  • Stay in control. Change call forwarding, opening hours or a queue setup yourself. No support ticket needed.

Want more channels? With Xelion Plus, you can add options such as WhatsApp Business, so customers can reach you the way they like.

And you’re in safe hands. Xelion has 38 years’ experience in business telephony and works with more than 20,000 companies. Our software is GDPR compliant, and we sell through accredited partners who know your business and set everything up for you.

 

 

Frequently asked questions 

What is voice over IP in one sentence? It is a way of making phone calls over an internet connection instead of a traditional phone line. Your voice travels as digital data.

Your device turns your voice into data packets. These travel over the internet and are turned back into sound at the other end. Your VoIP provider connects calls to regular landlines and mobiles too.

A voice over IP phone is a phone that connects to the internet instead of a phone socket. It can be a physical desk phone, or a softphone: an app on your computer or smartphone.

Yes. Your number isn’t tied to a physical line or building. You can take it with you when you move office and use it from home or on the road. In most cases you can also keep your current number when you switch to VoIP. Read more about how VoIP numbers work.

With a stable internet connection, yes. Voice over internet protocol (VoIP) technology has improved a lot, and call quality is usually as good as a landline, or better.

It is a business phone system that runs on VoIP. It handles your numbers, users, call routing, queues and reports. With Xelion, it all runs in the cloud, so you don’t need hardware on site.

Yes. You can start with a few users and add people as you grow. You don’t need an IT department to manage it either: most settings take a few clicks. Take a look at our guide to VoIP phone systems for small business.

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Ready to make the switch?

Now you know what voice over IP is and how it works. The next step is seeing it in action. Request a demo and we’ll show you how Xelion handles your calls, your team and your customers. Or contact us and we’ll put you in touch with an accredited Xelion partner near you.

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