What is a VoIP Phone and How Does It Work?

Want to upgrade how you talk without spending loads? Then try VoIP phone to make calls using the internet. Forget old phone lines! Now it is time for an update.

With VoIP, you can chat from anywhere, even on your laptop or phone. It saves cash and makes you trendy. Here, you will also get some of the latest features like call waiting.

So, if you want to learn more about VoIP phones then this blog is for you. Here, I will share information about what it is and its working process.

You will also learn about the benefits and equipment that you need for VoIP phones. Let’s begin the discussion with the definition of VoIP phone.

What Is VoIP?

Voice over Internet Protocol (VoIP)  phone is different from the old-fashioned phone lines. It uses interest to make calls. So, with VoIP, you can make calls using laptops or tablets. You can also make the calls from anything with a special app.

VoIP may sound costly but believe me! It is very affordable. Many VoIP providers even give you unlimited minutes without extra charges, which is great for your wallet.

VoIP offers cool features like call waiting, routing, and auto-attendant. You can also have multiple numbers and send instant messages. That is why many businesses are switching. VoIP is easy, cheap, and keeps you connected.

So, if you are looking for a better way to make calls, VoIP might just be the answer you have been searching for.

Also Read: What Does SOS on iPhone and How to Use It?

How Does a VoIP Phone System Work?

Converting your voice: When you talk on a VoIP phone or your computer’s mic, your voice gets turned into digital data. It translates your words into computer language.

Digital data packets: Following this transformation, your digital voice is fragmented into small packets.  It is similar to how messages are enclosed in small envelopes.

Traveling over the internet: These packets then travel through the vast expanse of the internet. They traverse through the digital highways, swiftly making their way towards the intended recipient.

Routing and codecs: Upon reaching their destination, specialized software may compress these packets to optimize space utilization. Subsequently, it determines the appropriate route for your call, akin to a digital traffic controller managing the flow of data.

Converting back to voice: Once the compressed packets arrive at the recipient’s device, they are reconstructed and transformed back into sound waves. This process is related to deciphering computer language into human language.

Hearing the other person: Finally, the person hears your voice coming from their phone or computer speakers. It is like having a chat in real life, just done over the internet.

So, Why VoIP Phones?

VoIP phones are a modern fix for businesses. Here you don’t have to face the hassle of old phone systems. With VoIP, calls ride the internet, so no more dealing with phone lines or bulky gear.

Moreover, VoIP packs in handy features that old PBX systems lack. You can call from anywhere using your internet, even with computer apps. And guess what? You keep your old number, no need to change it.

Setting up VoIP is a cinch, whether you are starting fresh or switching from PBX. Just plug in your phones, adjust settings, and you’re set. And if you like your old PBX, there is a way to link it to VoIP.

So, why VoIP phones? They’re simpler, more flexible, and just plain better for business.

Also Read: Who Called Me From This Phone Number -Unlocking Caller Details

6 Benefits of VoIP Phone Systems

Let’s learn about the benefits of VoIP phone systems:

Cost Savings

VoIP cuts down calling costs for businesses. While regular phones may seem cheaper upfront, VoIP is actually more affordable in the long run. It’s cheaper to maintain, upgrade, and hook up with other apps. Plus, long-distance and international calls are a steal, charged at local rates.


VoIP phones are top-notch in mobility and scalability. Unlike old systems, you don’t need new lines when you move offices. Adding more phones is easy if you have good internet. Softphones let you answer calls from anywhere.


VoIP plays nice with other business apps. For example, it pairs smoothly with your CRM software. This also makes it easy to check call records and stats.

Lower Monthly Costs

VoIP means lower monthly bills for both local and international calls. Most providers throw in unlimited local calls for free and charge peanuts for international chats. Plus, you’ll save on repair and maintenance costs compared to traditional phone services.


With VoIP, your phone moves with you. Where you go, your phone will be with you.  Answer calls from anywhere. There is no need to stay at the office.

Advanced Features

VoIP systems come packed with cool features like conference calls, virtual receptionists, and voicemail transcription. They make communication a breeze and could save you even more money compared to old-school phone services.

VoIP Phone Equipment

For VoIP phones, you need some equipment to use it properly. Let’s learn about VoIP phone equipment here:

VoIP Desktop Phones

VoIP desktop phones are wireless phones that work smoothly with IP tech, letting you talk without being tied down to a socket like old-school phones. These phones have all the usual functions you’d want, like conference calling, do not disturb, and call waiting.

VoIP Headsets

VoIP headsets offer convenience and comfort, allowing employees to communicate hands-free. With a headset, users can talk comfortably without holding a phone or relying on computer audio. These headsets are especially useful for call center agents or employees who spend long hours on the phone.

Modem and Router

The modem and router are very important VoIP hardware pieces. These link your devices to the internet. The modem connects you with your internet service provider.

On the other hand, the router directs data where it needs to go in your network. They keep your VoIP phones connected smoothly to the internet.

Analog Telephone Adapter (ATA)

To use regular phones with your VoIP setup, you need an Analog Telephone Adapter (ATA). It changes your phone signals into digital ones, so they can work over the internet. This is vital for businesses shifting from old phone lines to VoIP.

IP Phone

An IP Phone, or VoIP phone, hooks up to the internet with an ethernet cable. It doesn’t rely on old-fashioned phone lines for calls. These phones are packed with cool features and fit right into your VoIP system. They’re a must for businesses to update their communication tools

Also Read: How to set up voicemail on iPhone? – Explained process

What Type of VoIP Phone Does My Business Need?

There are some types of VoIP phones. Let’s explore some types of VoIP phones for your business.

Hardware-Based VoIP Phones

If your business prefers traditional phones, go for hardware-based VoIP phones. They look like regular desk phones with features like speakerphones and touchpads. They offer call transfer, and multiparty calling, and can even handle video calls.

Software-Based VoIP Phones (Softphones)

For flexibility, try software-based VoIP phones, known as softphones. These apps run on computers or mobile devices, mimicking traditional phones. You’ll need a headset for calls, but they offer features like video conferencing and messaging.

Converting Analog Phones

Use an analog telephone adapter (ATA) to convert antelope phones. Plug the phone into the ATA, connecting it to your network. Now your analog phone works over the internet, no new hardware is needed.


In the end, VoIP phones offer businesses a smart, cost-effective way to manage communication. With VoIP, you’ve got choices: use hardware phones, or software ones, or convert your old analog phones. It’s all about flexibility, features, and saving money.

VoIP makes talking easier. It lets you move freely and stay connected with your team and customers without spending too much. So, if you’re considering improving how you communicate at work, VoIP might be the perfect solution.


How do VoIP phones operate?

VoIP phones take your voice, turn it into digital signals, and send them over the internet. This lets you make calls using your internet connection instead of regular phone lines.

Do VoIP phones rely on the Internet?

Yep, VoIP phones need the internet. They change your voice into digital signals, squash them down, and send them over the internet to the person you’re chatting with.

Can VoIP function without the Internet?

Yep, VoIP can still work without the internet. If your internet goes down, it automatically forwards calls to mobile numbers. So, you can use any mobile device for VoIP calls, even if your internet is out.

What do VoIP phones need?

VoIP phones require either a computer with software and a microphone or a special phone that connects directly to your broadband.

Can VoIP operate on Wi-Fi?

VoIP can run on Wi-Fi. Many companies prefer it over regular phone lines because it’s usually cheaper. Employees can use their smartphones for VoIP calls when connected to Wi-Fi.