VoIP or Voice over Internet protocol, is a modern means of making phone calls, which works by

converting the speaker’s voice into a digital signal and transmit it through the Internet.

You can use VoIP in a lot of ways. You can use a specialized VoIP-enabled phone, or you can simply plug

in your regular phone to a digital adapter. VoIP works even if you do not have a phone. Just dial directly

from your computer using a microphone and a headphone set or using your smart phone.

VoIP are one of the best phone mediums when it comes to saving costs for both personal and business

use. Instead of calling from a costly old-school telephone system, you can do the same for a fraction of

the cost.

Take a look at some of the best ways you can save money by simply switching from traditional phone

systems to hosted VoIP:

1. Lower Charges with Enhanced Quality

VoIP naturally costs less as the calling feature is built on your existing internet connection. Technically

speaking, your traditional phone line is replaced with the SIP trunk.  This saves up to 50% on your

monthly phone bill. Apart from lower prices, VoIP provides far better service and quality.

2. Remote Usage

VoIP is a ubiquitous technology; meaning that phones can work from virtually anywhere. This way

businesses can hire employees remotely, while providing them phone services. Ultimately, you can

reduce phone infrastructure and network costs, along with real estate and utility expenses drastically.

3. Reduce Installation and Maintenance Costs

VoIP does not involve any complex infrastructure needs compared to other telecommunication

technologies. There’s typically no setup fees for moving an old phone number to a VoIP provider. For

maintenance, your provider looks after customer support and uses web-based dashboards to make any

configuration changes to your system.

4. Cheap International Calls

Typical landline technologies get more expensive for long distance calls. But when it comes to VoIP,

distance doesn’t really matter. This is chiefly because VoIP calls travel over the internet, all calls are

technically local calls. Not only that, the call quality will be the same no matter where you are.

5. Premium Features Come Standard

VoIP subscriptions come with features that are typically not available with old-fashioned telephone.

These features include text messaging, voicemail to email, auto attendants, conferencing, one-click

calling, mobile apps, and more.

VoIP – Hardware and Software Infrastructure

VoIP requires some key infrastructure components to be installed at both your provider’s side as well as

at your home. Although there’s a lot of stuff that your provider needs to have deployed to run their

operations, here are a couple of components that they need to have to ensure that you get reliable

quality service:

Servers and Hosting: These are installed in enterprise class servers that are hosted in Internet Data

Centers (IDC). The servers and hosting makes sure that you get an always-on service with quality


Bandwidth Optimization and Tunneling Software: This is installed on the server side to improve overall

quality of VoIP, even when the internet bandwidth is not adequate to support VoIP calls.

Here are some of the hardware components that you may need to have installed at your home:

Desktop phone and Adapter: You can use your existing landline phones with the help of a simple

adaptor to connect them to the internet. An adapter would cost you around $50. Also, you can purchase

specially designed VoIP phones, however they may cost a little more ($75-$250).

PC and Smart devices: To make VoIP phone calls, you can use a computer or other internet-connected

devices, such as smartphones and tablets using your provider’s VoIP app. Your smartphone is then called

a ‘softphone’.