ip telephony

What Is IP Telephony? How It Works

by Gotmenow

Any phone system that sends and receives voice data via the internet is referred to as IP telephony. IP phones connect to the internet via a router and modem, as opposed to traditional telephones, which require landlines to transfer analogue signals.

In 1995, the first IP phone that was accessible to the general public entered the market. Yet, it was unreasonably expensive and had poor audio quality when compared to a regular phone system.

The technology for internet-based phones has advanced significantly since then. HD sound quality, lower operating costs, and cutting-edge corporate phone capabilities are now available with IP telephony.

How Does IP Telephony Work?

IP telephone systems transmit voice communications over the internet using the Internet Protocol (IP) or other digital protocols.
By using an IP PBX system, data is exchanged digitally via a LAN before being converted to analogue speech signals and transmitted to the PSTN.

Unfortunately, IP PBX is no longer the preferred option due to expensive hardware and installation costs.
The most widely used IP telephony option is hosted VoIP. It enables companies to benefit from cutting-edge PBX functionality without having to install hardware on-site.
This is an explanation of how the VoIP system functions:

Your IP phone transmits digital data to your provider via the internet while using hosted VoIP. All cloud-related call routing, call queue management, and other tasks are handled by your provider.
A classic IP PBX can be linked to a contemporary VoIP service via SIP trunking to access missing functionality.

Advantages of IP Telephony for Companies

The market for commercial telecommunications is being overtaken by VoIP telephony. For at least one location, VoIP phones are used by more than 79% of American firms.
Why are so many companies switching over?
There are a few main advantages.

1. 60% less expensive than landlines
To begin with, VoIP is far less expensive than conventional commercial plans.
Compared to a comparable corporate landline plan, switching to an unlimited VoIP service might result in savings of up to 60%.
For instance, Nextiva Basic starts at $20 per line per month and offers unlimited calling to the US, Canada, and Puerto Rico.

2. More Functionality without Additional Hardware
Also, IP telephony gives your company access to sophisticated services without the need to purchase additional hardware.

For example:

  • Advanced Call Routing
  • Auto Attendant
  • Call Queues
  • Call Pop
  • Call Recording
  • IVR
  • Instant Messaging
  • Video Conferencing

Nextiva offers advanced business plans that come with all of our VoIP services, or you can upgrade your plan to add what you really need.

Advantages of Intercom Systems

3. Simple CRM and other business tool integration
VoIP also makes it much simpler to integrate voice conversations with other company technologies, such as your CRM.
For many firms, IP telephony and VoIP are a no-brainer due to their ability to centralise data and deliver consistent customer support across numerous channels (at a reduced cost).

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