What is a VoIP Phone and How Does It Work?

VoIP phones are a new, modern, and advanced solution for making and receiving calls using an IP (Internet Protocol) network. Also known as IP phones, they can be physical devices similar to traditional desk telephones or softphones, VoIP applications which you can use on devices like smartphones, tablets, laptops, etc.

Hardware-based phones and software-based phones are the two types of VoIP phone systems where hardware-based have their own physical device, and software-based run on an operating system of another device.

1. Hardware-Based VoIP Phone

Hardware-based VoIP phones are physical devices that work over the internet. They include physical features such as a microphone, speaker, touchpad, and display for caller ID and user inputs. For example, Yealink W76P, Grandstream GXP 1620, Polycom VVX 350, etc.
 

2. Softphones

Softphones are VoIP software or applications that allow you to make and receive calls over the Internet. It allows you to manage calls from anywhere and on any device with an internet connection, whether desktop, cell phone, or tablet. They can also be web-based.

Softphones don’t have their own dedicated physical devices. Instead, you install them in another device’s operating system to make internet calls and texts. Many VoIP providers, including Calilio, RingCentral, and Nextiva, offer softphones for VoIP phone service.

VoIP phones convert analog voice into digital signals and transfer them through the Internet, and upon reaching the destined device, the digital signals are converted back into audio voice.
 

Step 1: When the call connects and you speak into a VoIP phone, your analog voice is converted into electrical signals. These signals are then digitalized into binary digits of 1s and 0s.

Step 2: The digitalized voice data is converted into smaller units called packets. Each packet contains a small portion of voice data and information about the destination device.

Step 3: The small packets are transmitted over the internet to the recipient's device.

Step 4: After it reaches the destination, the received packets are rearranged in the correct format to recreate the original digitalized voice.

Step 5: The rearranged digitalized voice is then converted back into the analog voice and is played on the receiver's phone.

VoIP phones use the Internet for calls, saving you a lot of money and supporting remote work for flexibility. The key benefits of VoIP phones are listed below.
 

Cost-effective
Getting VoIP is cost-effective as it doesn’t require extra hardware like copper wires, switches, etc. Also, softphones use your existing devices, like laptops, cell phones, tablets, etc, excluding the need for new devices, making phone systems much more cost-friendly.

Flexibility
Unlike traditional phone systems tied to one specific line, you can host your VoIP phone system anywhere. Also, you can manage calls from any device connected to the Internet, no matter where you are. It makes it easy to relocate your business with your existing phone system.

Advanced Features
Some of the main features of these IP phones include advanced conferencing calls, call analytics, auto attendant, business text messaging, etc. These phones also provide video conferencing (support video calls for many team members at once), which is unavailable in traditional phone systems, making your business calls more efficient and productive.

Scalable
VoIP phone system is also scalable to meet your changing needs. For example, if you want to use new features or open a new business branch and expand your VoIP network, you usually don’t have to pay extra.

Multitasking
Beyond making calls, VoIP phones allow you to send and receive SMS and share documents, images, and videos simultaneously.

If you are considering getting a hard phone, then get it from retail and online stores like Amazon but if you are looking for a software-based VoIP phone, connect with a VoIP provider for a softphone.

Softphones are much more reliable than hardphones as you don’t need extra hardware. You just need to install the VoIP software/apps on your phone or desktop to make and receive calls over the internet.

Calilio is a VoIP phone system that offers a range of communication features at a low cost, giving you the best value for money. Sign up today to get a cloud-based VoIP phone.

The cost of getting VoIP phone service varies depending upon the type of VoIP phone system you use. Setting up a traditional VoIP phone system is costly - it involves purchasing a separate device ranging from $50 to $100. Also, if you have no internet connection, you’ll have to install this system, which can take up to $50. You can also get leasing options for such phones, which can charge you up to $5 to $20. You can also opt for cordless Polycom VVX and Yealink to save money on wire charges.

Choosing softphones is the most affordable way to use VoIP service. The cost of getting a cloud-based VoIP phone system also varies with your chosen service provider and VoIP plan. VoIP phone service from Calilio starts from $12 per month only if billed annually.

VoIP phones offer flexibility, cost savings, and advanced features that traditional phone systems simply can’t match. Whether you choose a hardware-based VoIP phone or opt for a softphone, the benefits are undeniable—reduced costs, seamless communication from any device, and enhanced scalability to meet your business’s growing needs.

Calilio’s cloud-based phone system makes it easy to get started with VoIP phone service, offering powerful features like call forwarding, voicemail, and video conferencing at a fraction of the cost.