How Does VoIP Work? : VoIP Features and Benefits

How Does VoIP Work?

We understand how traditional phone lines work but how does VoIP work? Traditional phone lines communicate via analog signals. As you speak into a phone, your voice is transmitted as an analog message. It is then picked up by the other phones receiver as an analog signal and relays the sound of your voice.

VoIP signals utilize a combination of analog signals and digital signals. With VoIP, when you speak into a phone it’s received as a digital signal. That digital signal is sent via the internet to the receiving phone. There, it is picked up and changed into an analog signal and your voice is heard.


How Does VoIP Work | VoIP Features and Benefits | How Does VoIP Work Diagram


This may sound like a load of “who cares”, but this small fact makes VoIP possible. Having your voice transmitted as a digital signal and then changed to an analog signal makes it possible for your VoIP phone to act like a normal phone. Meaning, if you call a landline, or cell phone, your phone will behave as any normal phone would.

If VoIP phones were unable to change that digital file back into an analog file that would mean that VoIP phones could only communicate with other VoIP phones. Therefore, in order to make VoIP phone’s practical, they need to be able to convert the digital signal into an analog signal.


This short video answers the questions “What is VoIP” and “How does VoIP work?”

Follow this LINK to learn more about what VoIP is and its applications for business. Also, this LINK is to a free in-depth course that dives deep into VoIP and answers the most common questions about switching to VoIP.


VoIP vs Traditional Landlines

People are often skeptical of new technologies and hesitant to change from what they know. This is the common concern people have when switching to VoIP. From a user standpoint, landline phones and VoIP phone seem very similar but they are actually very different where it counts. Here are some of the main differences and similarities between VoIP and landline phones:

Feature VoIP Landline
Setup cost Low High
Running cost Low High
KBPS Needs 10 KBPS Needs 64 KBPS
Multimedia Transmit voice, video, and any form of multimedia just like you do on the internet No support for multimedia; only voice
Scalability Easy and inexpensive to scale as your business grows Additional phone sets and wired phone lines needed in order to scale. Not easy-to-scale
Add-ons Large number features available at no additional cost (call waiting, forwarding, call parking, etc.) Limited options for add-ons, most of which cost extra
Outages Internet should be functional at all times, but calls can be forwarded to a secondary device during a power outage Usable during a power outage
Call pricing Free VoIP to VoIP calls. International and mobile calls typically charged at a nominal rate No free PSTN to PSTN calls. All calls are charged
chart from:


Technology is always progressing. This is the same with phone systems. VoIP is an advancement upon traditional telephone lines. It’s cheaper, more reliable, has more features, greater audio quality, is scalable, and really is superior in every way. It’s not a question of should you switch to VoIP, but when are you switching to VoIP? Want to learn more about VoIP? Follow this link to contact Executech and ask how you can get your 1st month of VoIP FREE.

VoIP Features and Benefits

One thing that separates VoIP phone systems from traditional landlines, is the abundance of features that come with your VoIP phone. With a traditional landline phone you can make and receive calls, and that’s about it. Since VoIP phones use the internet, they’re able to have many more features. Below are some of the key features and benefits of VoIP phones:

How Does VoIP Work | VoIP Features and Benefits | How Does VoIP Work Diagram



Businesses save an average of 50-75% when switching to VoIP from a landline. It usually costs a business around $50/month per user for landline phone systems. Most VoIP providers start their pricing around $25/month per user.


VoIP phone systems are incredibly scalable. With landlines, businesses are limited by the number of phone lines that have been run through the building. With VoIP, you can easily add or remove users instantly. This allows a business’ phone system to move and grow with them. This also makes it very easy to relocate and move offices without having to change phone numbers.


VoIP phone systems make remote and mobile work easy. Many employees are mobile workers or remote workers or have a home office setup. With landlines, you would need a separate phone number for each one of these locations. However, with VoIP you’re able to have one phone number that you can select to be available on multiple devices in multiple locations.

Additional Features

VoIP phone systems also come with a multitude of possible features that you can choose to have with your plan, including:

  • HD Conference Calling
  • HD Audio
  • Three-Way Calling
  • Caller ID
  • Call Waiting and Transferring
  • Call Forwarding
  • Voicemail to Email transcription
  • Digital Faxing
  • Voicemail Access Via Web Browser
  • Redial or Return Call
  • And many more

Switching to a VoIP phone system will provide you with a phone system that fits the modern age. Read this article to find out more about VoIP features and benefits.

How Does VoIP Work | VoIP Features and Benefits | How Does VoIP Work Diagram


Finding the Right VoIP Provider

VoIP technology isn’t a new thing. The first VoIP phone call took place in 1973, and thanks to reliable and fast internet speeds, VoIP is available nearly anywhere. Naturally, there are many different VoIP providers available in your area. Here are some things to consider when choosing your VoIP provider:


It goes without saying that there will be price differences between providers. It’s important to factor into your cost analysis the price of equipment, setup, as well as the monthly user fee’s. Every provider will price their services differently and some may include some equipment and setup charges in with the price of their service. In other words, read the fine print of what you’re getting.


Every provider is going to offer different VoIP features and in different package or plan models. Before you start getting bids from VoIP providers, determine what VoIP features are most important to you. Sometimes VoIP providers will be able to slightly adapt their plans to fit your needs, but you need to know what you do and don’t need beforehand.


As with any industry, some companies are simply better than others. Quality service is always going to be worth more. Don’t settle with whoever is going to offer the lowest price, because often the lowest price means the lowest quality service. Do some research online, and talk to other business leaders you may know, to find some recommendations for good VoIP providers. This will help you find the VoIP provider that’s the best fit for you.

Executech- Making VoIP Work For You

Managed IT Utah | Outsourced IT Utah | IT Services Utah | Managed Services Utah

Executech is the leader in outsourced IT in the Western United States and has over 100 highly skilled technicians who can help you find the best phone system for you and your business. Even though VoIP phone systems are much easier than landline phones to install, installation still takes time and know how. Therefore, it’s always most efficient to use a managed service provider (MSP), like Executech, to help you transition to VoIP.

Executech works with every major VoIP provider in the West and can help you find the plan and provider that works best for you. Also, often MSP’s can get you a lower rate for your service than if you were to go to the provider directly because of agreements between the MSP and VoIP provider.

Executech is offering your first month of VoIP for FREE! Follow this link to learn more.

Find out if VoIP is right for your business with an expert consultation or free assessment for VoIP related IT Services in Seattle, IT Support in Spokane, or  Managed IT Services in Utah or Oregon.

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