What Does VoIP Phone Service Mean?

Getting into the world of VoIP can be intimidating for some, particularly if you select to educate yourself about the technology and not just relying on the vendor blindly. Even if you think the provider is very trustworthy and you are certain that it is the best option for your company.

What Is the PSTN?

In order to understand how VoIP works, it is very important to know that the technology on which voice communications have depended for decades. The traditional technology is nothing but Plain Old Telephone Service known as POTS. Before the popularity of mobile phones and wireless technology, each calls whether local or long distance had to travel over the Public Switched Telephone Network (PSTN). PSTN depends on the circuit switches to connect calls. It used to be everywhere, was easy to use and needed nothing more than a phone and a copper line.

PSTN met the needs of users for a long time. However, over a couple of decades as the internet have revolutionized everything including processes and workflows the needs cannot be met with just PSTN.

Everything has changed with the Internet

Unfortunately, when there was no innovation with POTS the companies had to keep two different networks, each with separate protocols, standards, and implementation. Since the phone networks are not based on IP technology; it couldn’t be interoperable with the modern applications, software, and systems.  Now a day’s majority of businesses have well-developed data network that facilitates the staff to do work quicker than it was ever possible.

Nevertheless then, the Internet Happened.

Now the important question:

Why VoIP?

The basic difference between VoIP and other communication technologies is that VoIP is based in Internet Protocols which are the same set of standards that power the internet worldwide. Since VoIP is based in IP world; it is interoperable, remote and needs very low maintenance. Whenever a business shifts to VoIP it begins to recognize the cost savings that come with it. The financial advantages may not be apparent but if two different networks are merged into one it means a lot less work for the company.

What Is VoIP Phone Service?

For organizations which use POTS, the services are provided to them by a telephone operator or carrier. On the contrary, the organizations which use VoIP services are provided through a third party provider either by the cloud or by dedicated SIP trunks. These providers are known as ITSPs (Internet Telephony Service Providers).

When phone service is delivered to the cloud through equipment which is located at the office of provider it is known as Hosted VoIP. It is the most ideal and implemented kind of VoIP phone system, for both customers and every business. Nonetheless, big companies might prefer to customize and control their own devices through on-premise solutions. This choice gives a less total expense of the ownership and charges per call, however, needs higher initial investment and expertise.

Through VoIP phone systems all the calls are made to and from the business are routed by the internet rather than the circuit-switched PSTN. Then the voice data is transformed into voice packets which are identical to the way email and other media files are handled. This technology of packets offers multiple benefits to its users:

  • One of the benefits is that voice packets do not need a separate protocol, infrastructure, and standards. Hence, there is no requirement to invest in and maintain two networks.
  • Every single packet has the source and destination data in it like an electronic envelope. These individualized packets don’t need to follow the same route during a call. If a line is down then another route can be used.
  • The packet-based technology allows a lot of information that can be carried over the network as compared to PSTN.

advantage of voip over pstn

How Is VoIP Better than PSTN

VoIP phone system provides users with unique benefits with better and advanced features along with a lot of cost saving for their company as compared to the old PSTN system. However, there are two distinctive characteristics of VoIP which support all other several features, interoperability, and portability.

VoIP is based on similar standards as the other enterprise software so it can be integrated with those solutions. For instance, your business website can include a phone number that can be used by your clientele to contact the customer support service through the browser without having the need to use a phone.

VoIP systems portability works in two ways, first calls can be made via the same device from anywhere and several devices are able to share the same number to make and receive calls. Second, portability is a key to the way staff and companies work in a connected world. Business process and workflow do not need to be restricted to a certain time zone or a location. Due to these two characteristics, VoIP is a suited solution for all types of businesses and it is dedicated to taking benefits of further innovation in the long run.