VoIP or Voice over Internet Protocol, is a phone service that operates over the Internet. It creates a digital signal from an incoming or outgoing call. After this, it converts that signal to reach members who are not using VoIP. This cloud-based solution allows you to receive calls from a VoIP phone, any phone with a VoIP adaptor, mobile hotspot, or computer.
One of the most exciting and clear differences between a cloud PBX provider and a standard telephone system is software. Your IT staff will find a host of new software tools to help monitor and manage the system. But what catches most business operators' eyes are two key capabilities that software provides: back-end integration and softphones. The latter is exactly what the name implies, a phone that's rendered entirely in software allowing any compatible device to become a phone as long as it has an internet connection, a speaker, and a microphone. More on that below.
The problem there is that VoIP traffic is much more sensitive to network bumps and potholes than most general office traffic. That translates to conversations breaking up or cutting out entirely, difficulty connecting over Wi-Fi, or (worst case) dropped and lost calls. If your business is small and your network is essentially contained in one or two wireless routers, then your configuration and testing headaches might be fairly small (though still there). But for medium and larger networks, these tasks can not only be complex, but also time consuming, which translates into added cost in terms of man-hours.
It gets even better! Calling internationally using VoIP is far less expensive than using a traditional landline phone company. Every region of the world, from Afghanistan to Zimbabwe, has its own combination of technological development, geographic obstacles, regulations, and taxes. Cell phone carriers, much like VoIP providers, have their own network, which is why it usually costs more to call international cell phones. If a VoIP provider has a significant presence in a country, it’s likely that landline calls will be unlimited with an international package. For example, if you are using Vonage Word, calling from the U.S. to a landline in Germany is included, but it costs US$.0061 per minute to call a cellular phone. If you are using ViaTalk World, you can call both German cell phones and German Landlines for the same rate – free up to 1200 minutes per month. Don’t forget that with every VoIP provider, if you call within their own network, calls are always free no matter where you are in the world. With the development of SIP, you can easily make and receive free international calls from your home using VoIP.
VoIP or Voice over Internet Protocol, is a phone service that operates over the Internet. It creates a digital signal from an incoming or outgoing call. After this, it converts that signal to reach members who are not using VoIP. This cloud-based solution allows you to receive calls from a VoIP phone, any phone with a VoIP adaptor, mobile hotspot, or computer.
While there are still a few other legacy protocols around, and a few non-SIP standards, such as H.232, SIP is what's used for the vast majority of modern VoIP phone systems. The most common use I've seen for H.232 has been in dedicated video conferencing systems. SIP, meanwhile, handles phone service, video conferencing, and several other tasks just fine, which is why its use is so widespread. Where it has trouble is with data security, but more on that in a bit.  
Sometimes things don’t go exactly according to plan and it’s good to have all your bases covered. Check if the company you’re signing with has a money-back guarantee and to what extent they back up their promises. You should also favor one that has multiple avenues for customer service—around the clock if possible—and read online reviews about the customer service the company provides.

E911 (Enhanced 911) is a little different to traditional 911 services and is something that you should be aware of. With E911 you need to provide your home address, and this information gets passed to the emergency services if you dial 911. The concerns are that if you have a power outage or an Internet outage then you will not be able to dial 911. If you have a cell phone then you can dial 911 from your device. If you are ONLY reliant on VoIP for your phone service you should be aware of this situation.

Be aware, however, that there are significant security implications regarding the use of mobile softphones on employee-owned devices. While it's possible for your employees to simply download the appropriate software from their respective app store, your IT department should be involved with allowing access while also confirming that necessary security steps are taken. Also be aware that there are important reasons not to allow soft phone installations on private devices of any type because you may not be able to remove that phone client if the employee leaves the company, and because local laws may impact how much control you have over the use of the device.
VoIP endpoints usually have to wait for completion of transmission of previous packets before new data may be sent. Although it is possible to preempt (abort) a less important packet in mid-transmission, this is not commonly done, especially on high-speed links where transmission times are short even for maximum-sized packets.[18] An alternative to preemption on slower links, such as dialup and digital subscriber line (DSL), is to reduce the maximum transmission time by reducing the maximum transmission unit. But since every packet must contain protocol headers, this increases relative header overhead on every link traversed.[18]
The relevant EU Directive is not clearly drafted concerning obligations which can exist independently of market power (e.g., the obligation to offer access to emergency calls), and it is impossible to say definitively whether VoIP service providers of either type are bound by them. A review of the EU Directive is under way and should be complete by 2007.[citation needed]
Some of that software is running on the provider's servers, but parts of it will be running on your devices, whether that's a PC a mobile phone or a VoIP phone. It's this software layer that provides the rich feature fabric, which along with its lower price, is what's drawing residential customers to the technology. Some of the more popular advanced features you'll find available in a residential service, include:
A telephone connected to a land line has a direct relationship between a telephone number and a physical location, which is maintained by the telephone company and available to emergency responders via the national emergency response service centers in form of emergency subscriber lists. When an emergency call is received by a center the location is automatically determined from its databases and displayed on the operator console.
One advantage of the traditional landline services is that electrical power is sent over the telephone wires so your phone service is isolated from your house power. This meant that your phone service would continue to work if your house power went out. However, with VoIP, power is used not only for the ATA, or the IP phone, but it is also used for your Internet modem and router devices. No power also typically means no Internet service.
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