What is the meaning of VoIP and how does it work?

What is the meaning of VoIP?

The meaning of VoIP is "Voice over internet protocol."  VoIP is the technology that converts your voice into a digital signal, and then sending the information over an IP network, allowing you to make a call directly from a computer, a VoIP phone, or other data-driven devices. Simply put, it’s phone service delivered over the internet. To accomplish this, the analog voice data is encoded using codec. The inverse process is initiated when it comes time to switch the signal back to analog. 

This means you get phone service using the internet, just as a traditional landline phone used cables. 

VoIP is a great tool that allows businesses to connect any of their devices, smart phones, laptops, and on-premise phone systems and store data on the cloud. Many VoIP service providers include SMS, email, video conferencing, and push-to-call features so businesses can create a mobile office to stay connected when it matters most.

You may also hear it referred to as IP telephony, internet telephony, broadband telephony, or broadband phone service.

In order for a VoIP phone system to work, it has to be able to route calls between users/the outside world. In a cloud based phone system  a virtual PBX is used to accomplish the job. What this means, is your business VoIP phone service provider is running a large PBX operation through a data center, and when you pay them they slice off a bit of their operation. 

You're part of a larger PBX with that business VoIP service provider's customers. Most business VoIP service providers use multi-tenant segmentation, so your PBX will appear dedicated to your organization specifically. This engine will handle all routing calls on your VoIP network.

Yet, for many businesses who need VoIP phone service, the need to route calls to their PSTN and other "analog" phones in use. This may require a PSTN gateway, or an On-premise hybrid PBX where a telephone switch is on-site. Most PBX's look similar to other servers in your data center, which an attachment to handle local and analog phones. 
Many businesses avoid On-premise PBX's due to associated costs with maintenance and technical knowledge necessary. Another reason small businesses looking for VoIP phone service go with Cloud-based VoIP opposed to On-premise is the Cloud-based VoIP service has more advanced features. Some Cloud-based PBX's can accomplish PSTN connection without additional on-site hardware requirements.


This may sound complicated to some, but turning your PBX into a software solution creates additional flexibility and integration you can't accomplish otherwise. Traditional VoIP providers provide additional VoIP service capabilities that are managed from a unified console.

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How does VoIP work?

VoIP phone systems work by converting analogue voice signals to digital signals, which are sent as data packets over a broadband line. This method of delivering communications is a lot cheaper than traditional phone lines.


Depending on what VoIP service package you decide on for your business, you may no longer have to pay for calls based on distance, what country you're calling and the duration of your conversations.

There are a few configurations you could use for your cloud-based phone system:

Phone + VoIP Adapter: With a special adapter, (SIP Trunking) you can use VoIP and cloud-based calling from on-premise devices. These adapters plug into a phone socket in the wall, or directly into your router.


Computer: True Dial offers VoIP service applications you can download to your laptop or desktop computer so businesses can implement a full unified-communications strategy.

Smart Phone: You can download True Dial's app which will allow you to make voice calls. Click Here for more info on how VoIP works.​​


What are the key benefits of a VoIP phone system?

​Lower Costs: One of the benefits to using a VoIP phone system can cut your phone bill by up to 40%. You only pay for how much internet you use, opposed to traditional phone payment plans. With service providers like True Dial, your spending is much more efficient.

Increased Enhanced Connectivity: Using a Cloud-based VoIP phone, you increase your productivity by automating redundant tasks. Your whole team is connected at the push of a button, which increases the efficiency and flexibility of your business.

Increased Reliability: Cloud-based service providers typically offer server redundancy, so if a server fails, additional servers pick up the overflow of data, increasing the reliability of your phone system. 

Easy to Use, Feature Rich VoIP SystemTrue Dial offers businesses tons of amazing features like Mobile Office applications, and integratabtle VoIP solutions. These features allow businesses to a take their office anywhere, increase productivity, and streamline operations.

  1. On-premise & Cloud-based VoIP

  2. Mobile Applications

  3. Contact Center & IVR

  4. Integrated Solutions

  5. SIP Trunking​

Flexibility: Virtually limitless cloud communications configuration possibilities to configure how you setup your hosted PBX and VoIP solution to make and take calls. 

Get 150% more vs. our competition: True Dial's "Essentials" package offers 150 more minutes for the same price as RingCentral™️​'s "Phone" package.

Do I need VoIP Phone service?
What businesses should use VoIP? Do I need VoIP?

All different kinds of businesses use VoIP and Cloud-based phone service providers. From start-ups to enterprise level corporations, a hosted phone system gives you the ability to instantly connect your clients, employees, and everyone in between.

Connect multiple devices across your entire business to unify your communications. Check out this article to discover the best business VoIP phone service provider for you.