VoIP (Voice over Internet Protocol) is technology that lets you make phone calls over the internet instead of a traditional phone line. Instead of a copper wire, your voice is converted into data and sent over your internet connection. A “VoIP phone” can be an app on your computer or mobile, or a special desk handset – and for most businesses it is now cheaper, more flexible and more feature-rich than an old landline.
What is VoIP and how does it work?
When you speak into a VoIP phone, your voice is converted into small digital data packets, sent across the internet to your provider, and delivered to the person you are calling. The whole process happens in milliseconds, so a good VoIP call sounds just like a normal one. Because the call travels over the internet rather than the phone network, VoIP sidesteps the per-minute charges and hardware of traditional telephony, and adds software features a landline never could.
A VoIP phone comes in three forms: a softphone (an app on your computer or phone), a hardware VoIP handset (a desk phone that plugs into your network), or an adapter that turns a regular phone into a VoIP phone.
What is a VoIP phone, a VoIP system, and VoIP calling?
A VoIP phone is any phone that makes calls over the internet instead of a traditional phone line. It can be a physical desk handset (a SIP phone), a softphone app on your computer, or the app on your mobile. Unlike a landline phone wired to the copper network, a VoIP phone connects through your internet router.
A VoIP system (also called a cloud phone system or business phone system) is the service behind those phones. It gives a business its numbers, voicemail, call routing, an auto attendant, team messaging and apps, all managed by a provider in the cloud rather than from a box in your office.
VoIP calling, and the VoIP calls it produces, simply means placing and receiving calls over the internet. The audio is converted into data packets, sent over your broadband connection, and turned back into sound at the other end, which is why VoIP calls cost far less than traditional calls, especially long-distance and international.
VoIP vs landline
| VoIP | Traditional landline | |
|---|---|---|
| Cost | Lower – often flat per-user pricing, cheap international | Higher – line rental + per-minute charges |
| Features | Voicemail-to-email, call routing, video, SMS, analytics | Basic calling only |
| Flexibility | Call from anywhere on any device | Tied to a physical location |
| Setup | Software-based, minutes to set up | Engineer visit and wiring |
| Reliability | Depends on your internet | Works in a power/internet outage |
Benefits of VoIP
- Lower cost: flat per-user pricing and cheap or free internal and international calling, with no line rental.
- Rich features: voicemail-to-email, auto-attendants, call routing, video meetings, business texting and CRM integrations built in.
- Work from anywhere: your number follows you across desk phone, laptop and mobile – ideal for remote and hybrid teams.
- Scales instantly: add or remove users in software, no new wiring.
What are the downsides of VoIP?
VoIP is honest work only if your internet is solid. Because calls travel over your connection, a slow or unstable network means choppy audio, and a power or internet outage takes the phones down unless you have a mobile app or failover. For most modern businesses with reliable broadband these trade-offs are minor – but they are real, and worth planning for.
Who should use VoIP?
VoIP suits almost every business today: small businesses wanting a professional phone without the cost, remote and hybrid teams that need to call from anywhere, sales and support teams that want CRM integration and call analytics, and anyone replacing an ageing landline. If you are choosing a system, our VoIP for small business guide is the best place to start.
How to get started with VoIP
Getting started is simple: pick a provider, choose or port a number, and download the app – most systems are live the same day. To choose the right one, compare the leading options in our best business phone systems guide, check the cheapest VoIP plans if budget is tight, or try a free VoIP service to test the water first.
Why would someone have a VoIP phone?
People use VoIP phones because they are cheaper than a landline, work from any device and location, and include software features like voicemail-to-email, call routing and CRM integration that traditional phones do not offer.
What is the purpose of a VoIP phone?
A VoIP phone lets you make and receive calls over the internet instead of a phone line. Its purpose is to give businesses a flexible, feature-rich phone system at a lower cost, with the freedom to call from anywhere.
Can I use a VoIP phone as a regular phone?
Yes. A VoIP phone works just like a regular phone for making and receiving calls – the difference is invisible to the person on the other end. It simply routes the call over the internet instead of the traditional phone network.
Can I use my phone as a VoIP phone?
Yes. Most VoIP providers offer a mobile app that turns your smartphone into a VoIP phone, letting you make and receive business calls on your existing device using your business number.
Do you need internet for VoIP?
Yes. VoIP runs entirely over your internet connection, so you need broadband or mobile data to make and receive calls. A wired connection gives the most reliable call quality, and if your internet or power goes down, calls can be set to forward automatically to a mobile.
Is VoIP free?
Making VoIP calls between users of the same app is free. A business VoIP service with its own phone number, routing and apps is not free, but it is cheap: plans start around $10 to $20 per user per month, and some providers offer limited free tiers.
Is VoIP the same as WiFi calling?
No. WiFi calling uses your normal mobile number and carrier, just routed over WiFi when the cell signal is weak. VoIP uses a separate internet-based phone service and number from a provider, with business features like routing, voicemail and an auto attendant that WiFi calling does not offer.
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