What is a VoIP phone?

A VoIP phone can be defined as a telephone, be it a smartphone or a landline that uses the internet as the transmission medium for calling. VoIP gets its name from using Internet Protocol for transiting voice data. 

It can take the form of dedicated software or a piece of hardware that can connect to the internet for calling. Similar to traditional landlines or even a smartphone, any VoIP device would have a microphone and a receiver into which the user can speak. The device converts the voice signals into data packets that are transmitted across the internet to the destination. The data packets are reassembled at the destination to form the voice data that the user can listen to.

VoIP is not any new technology in the telephony space. However, there is so much knowledge gap existing in the space. Here is what you can know more about in the sections below:

How does VoIP work?

A VoIP phone works just like a traditional phone. However, instead of analog cables, VoIP uses data signals for voice data transmission. As a result, it does not require any telephony hardware like PBX boxes, cable junction boxes, etc. that are usually part of a traditional telephone system setup. 

Also, while traditional telephone connections require a connection from a telephone carrier, for VoIP you will need an active internet connection. It is not necessary that this connection is dedicated to VoIP calls. The same network that the office or your home uses for internet browsing can be used for VoIP calls. Also, VoIP requires minimal bandwidth making it easily accessible for all types of internet connections. 

Further, a single VOIP connection is sufficient to distribute calls to a PC, laptop, smartphone, or VoIP-enabled desk phone. This versatility makes VoIP the ideal choice for businesses that want to have the best remote connectivity and in-office connectivity. You can use your existing phone numbers or buy new virtual phone numbers to use VoIP for everyday operations. 



working of voip phone working of voip phone

Packet switching: The transmission technology behind VoIP

Under the hood, VoIP uses a technology called packet switching for voice data transmission. Packet switching works by converting voice signals into data packets. These data packets are then distributed over the network. The sequence of packets is scrambled in the process to avoid any intruder eavesdropping on the message. 

These data packets are usually the size of kilobytes making it possible to send them across any ordinary internet connection, including mobile data. Also, the data packets are sent across the network by identifying the best possible network path that is fast and efficient. It is this choice of a faster network that gives superior voice quality for VoIP calls. 

voip phone system packet switching voip phone system packet switching

Difference between VoIP phones and traditional phones

Feature VoIP phone system Traditional phones
Also known as IP phone or softphones On-premise, Analog phone system, landlines, desk phones
Connectivity Broadband internet Physical cables
Bandwidth requirement 10 kbps 64 kbps
Capabilities Voicemail, software integrations, mobile apps, etc. Incapable of handling voicemail or integrations
Server system Cloud or hosted PBX On-premise PBX hardware
System updates Over-the-air or software upgrades Manual installation and maintenance
Installation Using a PC, laptop or smartphone. Mostly DIY. PBX, circuit boxes, handsets, line connections and copper wires. Technical personnel assistance is also required. 
Best suited for All scale and types of enterprises.  Best for closely located and always physically available teams.

Benefits for small businesses

Benefits of VoIP for small businesses

Small, medium, and large enterprises — all kinds of businesses can benefit from using VoIP as their primary mode of telephony communication. 

Latest telephony technology

Landlines and analog phones have reached their end of life. In today’s digital world, it is necessary to have a truly cordless and digital telephony setup, which is what VoIP is offering. With VoIP, rest assured that your business will remain immune to technological changes in the telephony space for at least the next decade, if not more.

Global coverage

VoIP offers virtual phone numbers with which a business can have phone numbers in any country or State. This benefit can be availed even if the business does not have a physical office. This helps create global coverage for the business without having to incur costs for setting up physical offices. 

Operational flexibility

VoIP is built for the remote work era. It does not require employees to remain at their office desk to handle calls. Also, VoIP requires minimal maintenance compared to traditional landlines which gives great operational flexibility. 

Cost savings

Traditional phone systems are capital intensive in nature. They require huge upfront investments in procuring and setting up telephony hardware like PBX boxes, cable junction boxes, individual desk phones, and so on. For a small business operating with a shoestring budget, this could be quite a burden. VoIP eliminates the need for all of these which ensures that there are tangible cost savings. 

Superior voice quality

VoIP offers superior voice quality, thanks to packet switching. There are minimal jitters in voice quality, call drops or even connectivity issues. As a result, your business conversations would be smoother and more refined than with traditional telephone lines. 

Instant capacity expansion

From a functional point of view, accessing VoIP is akin to an email. It is easy to add a new user, remove a user, or even edit the access controls of a user. Even buying or removing virtual phone numbers is easier with VoIP. All this leads to instant capacity expansion, a much-wanted trait for businesses on a high-growth trajectory. 

Features of VoIP

Features of a VoIP phone system for business usage

As a cloud-based phone system, VoIP has a well-equipped arsenal of features that can help business manage their phone systems better. What follows is a list of basic features that most VoIP phone system providers provide for their users. 

Virtual phone numbers

With VoIP, you can buy and manage virtual phone numbers in other countries and states even if your business does not have a physical office there. It makes global business coverage easier. Also, you can add or remove phone numbers easily without relying on third-party service providers.

Automated call routing

No more manual routing of calls to extensions. VoIP brings to your phone system automated call routing that works with the precision of a software program. You no longer need a receptionist to handle incoming calls. The whole routing process is conducted based on programmed rules. 

Call masking

Want to protect your privacy while placing calls to multiple customer phone numbers? Call masking lets you mask your outgoing phone number with a proxy number. You can also have all shared lines appear to be originating from a single masked phone number. 

Call queue management

When call density spikes, which it often does, VoIP can step in and manage the call queue. It uses intelligent routing to assign calls to available agents or forward the user to voicemail if required. Also, rules can be set to forward calls to IVR menus before they are routed to agents.

Shared lines

Shared lines allow businesses to branch out several phone numbers from a single phone number. It lets multiple agents use the same number to call customers and also for customers to call back the business without any complication around phone numbers. 

Real-time dashboard

Every business owner and call center supervisor needs to have a bird’ eye view of their telephony operations. Since VoIP functions almost like software, it also comes with a real-time dashboard where all call center-related metrics are displayed.

The feature list of a VoIP system does not end with that. Check out more VoIP phone system features.

Freshdesk Contact Center VoIP phone

Why choose Freshdesk Contact Center VoIP phone for your business

Freshdesk Contact Center is a launch-ready VoIP phone system for businesses. It runs on the cloud making it possible to scale capacity as your business grows. Further, you can buy virtual phone numbers from 100+ countries without having a physical presence.

Compared to several other VoIP services, Freshdesk Contact Center comes packed with a long list of telephony features that will give your business an upper hand when it comes to running telephony operations. 

laptop freshcaller laptop freshcaller

FAQs about Freshdesk Contact Center (Formerly Freshcaller)

Is my business eligible for voip phone system?

Every business that uses telephony is eligible to use VoIP.  However, certain countries have legal restrictions in using VoIP services. Please write to us at support@freshcaller.com to see if your business domicile qualifies to use VoIP. 

Can I keep my old phone number?

Yup. Freshdesk Contact Center lets you port-in or carry forward your existing phone numbers from your legacy phone system, another cloud telephony service or any other telephony service. Learn more about number porting.

How much does a VoIP system cost?

Freshdesk Contact Center pricing works in three ways. First, you will have to buy agent licenses. Depending on the plan you choose, the agent license fees will vary. Second, you have to buy phone numbers. You may also port-in phone numbers from your existing system. Third, you have to buy phone credits to be able to make calls. Inbound and outbound call charges will be debited to your phone credits. 

Please visit our agent licensing pricing page and call rates pricing page to get a complete picture of agent license cost and call rates. 

Should I get rid of my landline?

Not necessary. You can still handle inbound and outbound calls with your existing phones while using Freshdesk Contact Center dashboard for managing call flows, teams, and so on.

Can I use a VoIP phone like a regular phone?

Yes. When it comes to calling or operating, a VoIP phone is no different from a regular phone. A VoIP phone offers all the features of a traditional phone and some more. It is the transmission of voice data that makes a VoIP phone different from traditional telephones. 

Can I use VoIP on a mobile?

Yes. VoIP calls can be made from mobile devices including smartphones and tablets. You can use mobile data or WiFi connectivity to place calls. 

What equipment do I need?

The laptop, mobile, tablet or personal computer that you are already using would suffice. What you need is a device that can connect to the internet will suffice as an equipment to use Freshdesk Contact Center. You do not need any extra telephony equipment.

What software is required for VoIP?

VoIP does not require a dedicated app for calling. Its basic requirements are a device that can connect to the internet and perform telephony operations. A dedicated app might be required if you are using VoIP calling as part of a dedicated call center software or telephony software, where the app manages calling operations.

What is the quality of the call like?

By default, the use of VoIP for call transmission ensures that the call quality is superior to analog-based PSTN connections. Ensure that you use a broadband internet connection that doesn’t have speed issues. You do NOT need a dedicated internet connection for high quality calling. 

Is VoIP cheaper than a landline?

Most often, yes. However, since landline costs are based on pricing plans and offer rolled out by carriers from time to time there could be occasional instances when a landline could cost as equal as a VoIP phone. However, when it comes to calling quality and reliability, VoIP is certainly superior. 

Is a cloud-based VoIP phone system secure?

Yes. Freshdesk Contact Center in specific is a GDPR compliant VoIP phone system. Specific features like call recording require you as a business to seek consent from the caller before initiating recording. You can find our Freshworks GDPR policy here

Freshdesk Contact Center: The preferred VoIP phone for businesses

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