Knowledge & News

VoIP Phone System - What is VoIP and how can it help my business?

What is VoIP?

VoIP (or Voice Over Internet Protocol to give it its full name) is an internet-based communication method that is used by many businesses. Sometimes known as IP telephony, internet telephony, or broadband phones, VoIP has improved communication for businesses across the world.

Put simply, VoIP relates to phone calls that are made through the internet and IP-networks rather than through a traditional PSTN (Public Switched Telephone Network) landline or mobile network.


VoIP was pioneered by VocalTec in the mid-90s who created the ‘InternetPhone’ which allowed users to speak to each other over the internet. The fact both users needed to be on the same software and a lack of call quality meant that uptake was slow, with under 1% of calls using VoIP in 1998.

By 2003, VoIP calls represented 25% of all voice calls due to the rise of ethernet broadband and therefore, improved quality. In 2005 Skype launched video chat into their software which paved the way for communication platforms such as WhatsApp and Zoom. As technology improved, it was also around this time that businesses started to turn to VoIP to improve their communication.

How does VOIP work?

VoIP works by converting analogue voice signals into digital and sending them as data over broadband. There are several ways people can access VoIP and therefore a VoIP set-up can look quite different based on the technology being used. Some of the most popular ways to access VoIP telephony include:

  • Computer VoIP

Programs such as Google Hangouts or Microsoft Teams allow users to talk to other users with the right software installed on their computers. Some programs such as Skype can also be used to call a regular landline or mobile number

  • Mobile VoIP

Communication apps such as WhatsApp allow users to make calls via the internet

  • VoIP Telephony

Businesses are increasingly turning to VoIP due to the numerous benefits this offers compared to traditional telephone lines. The functionality for converting these signals can either be within the phone itself or by using separate hardware - such as an ATA (Analogue Terminal Adaptor) – called VoIP gateways

Whatever you are looking for, speak to us today and we can help advise on the best solution for you and your business based on your requirements.

What are the benefits of VoIP for businesses?

Many businesses use VoIP due to the benefits on offer. From cheaper calls and clearer sound, VoIP can be a great option for many businesses.

  • Costs

As VoIP uses the internet for calls, this circumnavigates the need for installing multiple lines which means that calls are often significantly cheaper than landlines, and sometimes even free. This can be particularly useful for international calls, which can be a huge cost saving for many businesses

  • Quality

The rise in broadband speeds has also improved the quality of VoIP, especially with fibre optic lines, which is critical for many businesses. Gone are the days of distorted lines or unclear conversations, with VoIP lines offering great clarity whether you are making calls locally or internationally

  • Reliability

VoIP also comes with increased reliability. Whilst VoIP is dependent on your internet connection, the flexibility of VoiP also means that calls can be forwarded to other devices such as laptops or mobiles if there are any local outages. This means that important calls no longer need to be missed

  • Flexibility

VoIP phones allow users to multitask, improving office operations and staff efficiency. Businesses can organise and prioritise missed calls, have text transcriptions emailed to them from previous voicemails, or forward voicemails to others at the click of a mouse, especially with cloud-hosted VoIP

VoIP makes conference calling simple for many businesses. In a typical office environment, there is a need for teams to make multiple calls at the same time and VoIP is a perfect option for businesses who don’t want the disruption or costs of installing multiple phone lines. Whether businesses are hosting multiple callers or using video conferencing, VoIP is a great option for many businesses

Our Opinion

VoIP is a fantastic, cost-effective choice for many businesses. Especially as business becomes increasingly global. The majority of businesses would likely benefit from VoIP telephony both operationally and financially.

Our team at Wemtech would be happy to discuss your requirements and potential solutions. Please feel free to get in touch if you are considering improving or updating your current telephone communications.

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