What Is VoIP? An in-depth guide to Voice over Internet Protocol

What is VoIP, and why does it matter?

Let’s take a look at what Voice over Internet Protocol actually is and what you need to think about if you’re considering switching to a VoIP-based communications system.

While there’s no doubt that this technology can bring a whole host of benefits to the modern workplace, choosing a provider is a big decision, so it’s important not to rush it.

If you’re interested in Dialpad's Ai-powered customer communications platform, talk to one of our specialists and request a custom demo.

What is VoIP?

What does VoIP stand for? The answer is Voice over Internet Protocol.

You might have also heard VoIP referred to as “Voice over IP” or “internet telephony”. Essentially, it all boils down to the same thing—it’s the name for the technology that powers internet phone applications.

Unlike traditional phone systems, VoIP doesn’t use copper landlines to transmit voice signals. Instead, all you need is an internet connection.

That means you don’t require a dedicated phone to use it. You can make calls from any internet-enabled device, such as a desktop or tablet.

VoIP phone numbers are also super straightforward to assign, so signing up to a VoIP service takes no time at all.

How does VoIP technology work?

But what is a VoIP phone system, and how does it work exactly? From the user’s point of view, it’s really simple. You sign up with a VoIP provider, pay a monthly subscription, and they assign you a virtual phone number.

Then, you sign into the platform and start making calls. Generally speaking, you don’t pay separately for call time, since the only limiting factor is the bandwidth of your internet connection. 

Take Dialpad as an example. You can place VoIP calls as part of the service, either through the Dialpad app or directly from your browser.

A look at the technicalities

It’s now worth taking a moment to understand how VoIP works and how it’s different from traditional landline systems. That means we need to talk about VoIP vs. PBX (Private Branch Exchange).

Legacy landline office phone systems were typically PBX-based. In other words, they used wired telephony infrastructure that’s physically located in the building. This links into the standard phone lines provided by telecom companies like BT through the analogue Public Switched Telephone Network (PSTN). 

Conversely, VoIP systems don’t need a dedicated landline. Instead, they use software that converts analogue voice signals into digital packets and transmits these over the internet. 

When these packets reach their intended destination, software at the other end converts them back again, so your dulcet tones come through loud and clear.

What do you need for VoIP calling?

Getting started with a VoIP phone system is super straightforward. All you need is a subscription to a VoIP platform, an internet connection, and a device to make calls with.

A communications platform and subscription

First and foremost, you'll need to set yourself up with a VoIP phone service. This could either mean a dedicated, cloud-based phone system or a communications platform that includes calling among its features.

When looking into the possibilities, you want to consider how easy the platform is to use. Also, ask yourself what kind of features your organisation needs.

For instance, if you’re in a growth phase, you might want to add a large number of new users regularly. So, does the platform you’re thinking about let you do this for yourself, or will you need to contact customer support every time?

In Dialpad, for example, you can handle this yourself via the admin dashboard.

An internet connection

Given that the vast majority of companies already have a business-grade internet connection, this one shouldn’t be too tricky to tick off the list. As long as your connection is reliable and has sufficient bandwidth, you’ll be all set to go.

Internet-enabled devices 

Another great thing about VoIP is that you can use it with virtually any internet-connected device that picks up audio. That could mean dedicated VoIP phones, but it doesn’t have to. A desktop, laptop, or tablet connected to a microphone will do the job just as well.

If you want to use desk phones, you still can, of course. VoIP phones are designed for use the usual way, with all the familiar functions built in. The only difference is they link to your online VoIP service via a Wi-Fi or Ethernet connection.

Principal differences between a VoIP service and traditional landlines

It’s important to be aware that VoIP technology differs from traditional landline-based services in several crucial ways:

Technology and infrastructure

Firstly, and most obviously, their underlying technology and infrastructure are different. With traditional landlines, voice signals travel along copper wires in analogue form.

VoIP software applications, on the other hand, convert audio signals into digital packages and send them over an online connection to be decoded at the other end.

Installation and setup

Installing a traditional landline system means putting a large amount of wired infrastructure in place on site. Every time you want to add a phone number, you need to install more wires and equipment.

That’s not the case with VoIP solutions, which you can set up and scale fast thanks to the fact they only need an internet connection to operate.

Device compatibility

One of the biggest VoIP benefits is that this technology is device-agnostic. 

Unlike landline systems, which can only be used with phones, VoIP services work on phones, tablets, laptops, desktop PCs—you name it. That’s because it’s the software itself that’s central to the process rather than the device it runs on.

Future prospects

Another vital thing to bear in mind is that landlines are being phased out in the UK. Telecom companies across the country are gradually replacing the old copper-wire PSTN infrastructure with fibre-optic cables.

In fact, the old system is slated to be decommissioned permanently in 2025 or 2026—which isn’t all that far away now. 

So, from a practical point of view, switching to using VoIP makes a lot of sense—especially when you consider the advantages it offers.

Advantages of VoIP over landline-based setups

Let’s now drill down into those VoIP advantages in a little more detail:

Ease of setup

Firstly, VoIP systems are incredibly easy to set up and configure. Quite literally, all you need is a high-speed internet connection. Your VoIP service provider will typically take care of everything else.

Less management and maintenance requirements

Once you’re up and running, there’s no need to budget for costly maintenance routines or infrastructure upgrades like you’d have to with an on-premises PBX system. As your phone service is internet-based, it’s simple to manage from a dashboard in an app.

Greater scalability

Unlike wired landline systems, VoIP services can also assign virtual phone numbers with no need to install additional equipment. This means you can move fast to add new users or remove existing ones depending on your staffing needs at any given time. 

Ergo, you’ll never be left footing the bill to maintain infrastructure you have no use for or waiting days or even weeks for new lines to be put in.

Better flexibility and suitability for remote work

As VoIP systems are based online, you can use any internet-connected device to access them. This is ideal for remote and hybrid workforces since your team members can log in regardless of where they’re working from.

The result is that staff are no longer chained to their desk phones; they can call from virtually anywhere on the company number.

Futureproof

Given that traditional landlines are on the out, one of the best ways of futureproofing your business phone service is to use a more modern communications solution. VoIP is part of this—but it isn’t the whole story.

With Dialpad, you get a genuinely holistic collaboration platform that not only includes VoIP calling as standard, but gives you features like video conferencing and instant messaging as part of your package.

Simple, cost-efficient pricing

Being able to predict your costs is fundamental to running any business. With traditional landline phone systems, however, it’s not always possible to know in advance exactly how much your phone bill will be. The final amount generally depends—at least in part—on how heavy your usage is.

That’s not as true of VoIP systems, which are priced monthly per user, meaning costs are often more predictable.

What about the disadvantages of VoIP?

Of course, no technology is perfect, and that’s as true of VoIP as it is of anything else. So, there are a couple of potential drawbacks it’s important to be aware of.

The most obvious is the fact that VoIP is dependent on an internet connection to work. If you’re unlucky enough to suffer an outage, this means you won’t be able to make any calls.

Similarly, if your connection is glitchy, you might find your calls start lagging a bit. The technology has come on leaps and bounds since the days when latency was a common problem, but it can still be an occasional issue if your internet isn’t what it should be. 

That’s why it’s really important to make sure you have a high-quality internet connection in place and to choose a VoIP provider that prioritises call quality.

Must-have features of a VoIP phone system

Of course, any business VoIP phone system worth its salt should come with certain basic features as standard. Make sure the one you choose includes:

Call forwarding

Call forwarding functionality is a business staple, as it’s essential for making sure you never miss any crucial incoming calls. That said, with some phone systems, it’s not always the easiest of features to use.

The last thing you want is to sign up to a VoIP provider only to find they make it difficult to add forwarding numbers to your system. You may be surprised to hear this, but it does happen.

Luckily, you don’t need to worry about that with Dialpad, where call forwarding—like many things—is a straightforward matter. You can add up to five call forwarding numbers directly from your online dashboard.

Call routing

Another element to check in advance of committing to a VoIP service is how easy it is to adjust your call routing options. This is particularly important for businesses that experience a high volume of inbound calls.

You need to be able to configure your system to ensure callers are getting through to the right operative. It’s simply a question of good customer service.

Some providers make this more straightforward than others. For instance, with Dialpad, you can change your IVR settings in the dashboard fast:

Virtual phone numbers

Virtual phone numbers are the bread and butter of any VoIP system. However, that doesn’t necessarily mean you’ll get much choice about what numbers you can use. 

You might decide you’d like to have 0808 numbers, for example, to give your customers the chance to call you for free. If so, you’ll need to choose a provider that lets you set up those freephone numbers.

Customisable caller ID

Fully customisable caller ID is also a great benefit to any workplace—particularly those with a lot of staff who work remotely. It means you can use your own personal phone to make business calls without revealing your private number (the business one shows up instead).

In the Dialpad app, you can choose which number displays when you place a call or send a text message.

Desktop and mobile apps

There’s no two ways about it; dedicated apps are a must for any modern VoIP system. You have to be able to control and configure your setup quickly and easily, whether you’re in the office or out and about.

Whatever VoIP provider you decide to go with, don’t make a commitment before taking their app for a test drive.

What if you need more? Additional features of Dialpad’s AI-powered collaboration platform

As great as a VoIP phone system is, it’s not as good as it gets. If you’re looking for a truly cutting-edge business communications solution, Dialpad’s AI-powered communication platform provides you with a whole host of additional features and functionality:

Truly unified communications

The modern workplace is a complex environment. You need to be able to interact with your clients and colleagues across a variety of channels.

That means being able to handle voice calls, video conferencing, texting, and instant messaging.

Now, you could decide to add all these capabilities individually—but why do that when there’s no need to? With Dialpad, you get a genuinely unified communications solution that includes everything in a single package.

Let’s face it, it’s much easier to keep track of costs when you’re only paying for one tool rather than seven or eight. It’s also much more straightforward to train your team to use a single platform rather than a confusing array of different ones.

Built-in AI

Dialpad Ai makes your life easier in a number of crucial respects when it comes to your business communications.

For starters, it can transcribe calls and voicemail messages in real time, which is great for meticulous record-keeping as well as for training purposes. And that’s just the beginning.

How would you like your customer support reps or contact centre agents to get a bit of help with tricky questions (also in real-time)? 

If that sounds appealing, you can set Real-Time Assist cards to pop up when certain words are mentioned in-call. This is a great way of keeping the conversation on track and empowering your staff to deliver the best customer service time after time.

Integrations with your other business tools

If you’re thinking about switching to a new communications platform, another key consideration is how well it’ll integrate with the tools you already use on a daily basis.

After all, there’s no point in upending what already works. You’re aiming to make your communications ecosystem more connected, not less.

With Dialpad, this isn’t a problem. You can take advantage of a wide array of integrations from day one. Whether you want to bring AI-powered workflows to your Salesforce account or ease collaboration using Google Workspace, you’ll find you’re in good hands.

There are so many integrations available via Dialpad that we can’t list them all here, but some of the most popular include:

• Salesforce

• Zendesk

• Microsoft Teams

• Clio

• Slack

• Zapier

• Google Workspace

• Microsoft Dynamics 365

Other considerations when choosing a communications platform or VoIP provider

Of course, the range of features isn’t the only thing that matters when choosing a VoIP or communications platform. There are other considerations you’ll need to bear in mind before coming to a final decision:

Support during implementation and beyond

What kind of support does the platform you’re considering come with? You need to have confidence that the vendor will be by your side whatever happens. Hopefully, implementation will go smoothly, but if a complication does arise, it’s crucial to deal with it in a timely fashion.

For instance, Dialpad offers 24/5 web and chat support worldwide on the most basic Standard plan. There’s then 24/7 phone support if you go one level up to the Pro plan. No matter which plan you're on, too, there’s always the online help centre.

Uptime and security

Not all vendors are the same when it comes to guaranteeing uptime and providing top-tier security features. Both of these, though, are vital factors for modern companies that do business via the cloud. Time is money, and downtime—whether planned or not—is bad news.

Luckily, thanks to its unique split-cloud architecture, the Dialpad platform excels in terms of uptime. 

It’s a similar story when it comes to security. All calls over the Dialpad VoIP network and in-transit web requests are encrypted using TLS. At rest, your application data is stored using AES 256-bit on the Google Cloud Platform.

In addition, all permissions on the platform are role-based. This means you retain full control over access to features at the company, office, department, or user level. You can also adjust permissions at a granular level for integrations if you prefer.

Speaking of integrations, it might interest you to know that Dialpad uses native authentication and authorisation mechanisms to ensure permissions and data are accessed through verified protocols such as OAuth.

Track record in your industry and existing client testimonials

They say the proof of the pudding is in the eating. In other words, if you want to know how good a platform is, ask the people who already use it. Whatever choice you make, it’s critical to research what existing customers are saying about a product before committing to it yourself.

For example, did you know that over 30,000 brands have now switched to using the Dialpad platform? That’s a whole lot of companies voting with their feet.

Any VoIP vendor worth their salt will be very happy to provide testimonials from current clients, so make sure to ask for them.

Ready for an AI-powered collaboration platform built on VoIP capabilities?

If you’re considering making the switch from on-premises telephony to VoIP, why not take the opportunity to go one step further and fully futureproof your business communications?

Dialpad offers a genuinely unified solution powered by the latest in AI technology. It’s a fully customisable platform that you can adapt to your needs as you see fit.

From instant messaging to video conferencing to telephone calls, Dialpad’s AI-powered collaboration platform consolidates all your communication channels into one user-friendly app that you can access from any desktop or mobile device.

Request a custom demo or sign-up for a free trial.