VoIP systems are unlike landlines that only work with a desk phone in your office; you can make and take business calls on VoIP using your laptop, tablet, smartphone (through an app), and some regular phones. Plus, because all VoIP calls go through the internet instead of traditional phone lines, businesses save loads of money—especially on long-distance or international calls. Most providers offer unlimited minutes at no additional cost!

You save money and utilize advanced phone features that otherwise would be unavailable. This includes call waiting, caller routing, auto-attendant, multiple phone numbers, and more from a business VoIP provider. That’s why most small businesses and enterprises are switching from traditional providers.

VoIP vs. PSTN

PSTN (Public Switched Telephone Network) is the traditional landline phone network that has been in use for decades. Calls made over PSTN are Analog voice signals that are converted to digital data and then back to analog voice signals at the receiving end by a process called Codec. In the case of VoIP, the voice signal is converted to digital data only once, using sampling, and sent over the internet as packets. This reduces the degradation of sound quality with PSTN due to multiple conversions.

Global telephony trends suggest that most of the physical infrastructure supporting PSTN will be shut down in the next few years. New Zealand and Australia are planning to finish phase-outs of their old telephone systems by the end of this year; customers have barely any time to switch over to IP-based systems.

By 2025, the United Kingdom will have switched off its PSTN, and all its phone lines and connected services will be digital. Ten additional European nations will join by the end of the next decade. This worldwide movement away from the PSTN is coupled with advances in contemporary telephony technology that allow customers more outstanding options to adapt in the future.

VoIP offers digital opportunities to enhance your communication experience. You could, for example, integrate customer relationship management software that would give your team the ability to access pertinent information about a caller before even answering the phone.

And, in contrast to PSTN, you gain value-add services with no extra charge. For example, your staff could immediately access the caller’s name and account history when your business takes an incoming call. You can even fuse VoIP with your business’s systems to ease efficient data transfer and tracking.

What’s more, VoIP is less expensive than PSTN since it makes calls using an internet connection. Because calls are made utilizing existing internet infrastructure, no extra costly hardware or facility installation is needed. You won’t need to buy new desk phones or run wires through your office building or home; instead, you can purchase and utilize VoIP numbers in just a few minutes with nothing more than an internet connection. Unlike the PSTN, there’s no requirement to wait for a service technician to install hardware; everything you’ll require is already available online.

VoIP, SIP, SIP Trunking, and PBX: the Key Differences

SIP (Session Initiation Protocol) is a signaling protocol that controls voice and video calls over an IP network. It is the most common protocol for VoIP calls, although there are others (like H.323). On the other hand, SIP trunking is a type of VoIP that uses SIP to connect an on-premises PBX (private branch exchange) system to the public internet.

PBX is a telephone system used within a private enterprise. A PBX can be either on-premises or hosted in the cloud. Cloud PBX systems are hosted in the cloud and provide many of the same features as an on-premises PBX system, but they’re easier to set up and manage. The critical difference between VoIP and PBX is that VoIP calls are made over the public internet, while PBX calls are made over a private network.PBX systems can be either analog or digital, but VoIP PBX systems are always digital.

In short, VoIP calls utilize internet technology to support voice calling, and Session Initiated Protocol (SIP) is the set of ‘rules’ used to make those calls and connect multimedia sessions. The main distinction between SIP and VoIP? With VoIP, you can solely transfer voice data over the web. In contrast, a SIP trunk can transfer packets of multimedia information, including text messages, voice, or even video. They also function in different mediums.

VoIP calls happen only over the internet or an internal private network, while a SIP trunk can transfer data packets over any network. This includes the ISDN (physical phone network), a VPN, or even the internet.

SIP trunking is a part of the network your calls run on. The protocol is kept in the phone exchange you’ll have at your building and on the equipment of your network provider. You can even request a direct connection to your network provider for more security if you work with sensitive data. VoIP calls, however, are directed from one central location by a separate provider who manages all traffic.

Top Features of VoIP

Many features come with VoIP phone systems, but some of the most popular ones are:

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