What is a VoIP Call?

What is a VoIP Call?

A VoIP call translates audio into data packets and transmits those packets over the internet and then converts the packets back into audio at the other end of your phone call. So why would you switch your phone system to use VoIP? Let's take a look at why Voice over IP can help your business save money.

The Difference Between a Traditional Call and a VoIP Call

Traditionally voice calls travel through copper lines over the PSTN (Public Switched Telephone Network). The PSTN then directs your calls to its destination through a variety of paths.  (Think of the olden day's where switchboard operators were frantically plugging in wires to connect phone calls).  When a call is made over a regular phone line, electrical circuits along the copper network are opened up which connects you to the person you dialed. This method ties up that specific copper path until someone hangs up. This means no one else can use that path while your call is connected. The longer the distance the more circuits are tied up which is why long distance is so expensive.

In contrast, VoIP routes call over the same network as your internet.  With VoIP, your voice is broken down into data packets that are then sent to the phone you are calling. These packets don’t have to stay together on their journey to the other end. Similar to internet data, the packets can take completely different routes to get where they are going. Once they reach their destination they are reconstructed in the perfect order and out pops your conversation. All this happens in milliseconds.

So Why is VoIP Cheaper?

VoIP has several advantages over traditional phone systems but most businesses are drawn to the updated technology by its cost-effectiveness. Here is why VoIP is less expensive compared to copper lines:

Minimal Long Distance Cost

Since VoIP calls do not tie up circuit paths like traditional calls, service providers can allow more simultaneous calls on their network.  This increased call volume drives the cost per long distance minute down. Most VoIP providers now offer unlimited long distance as a standard feature. If your business makes an extensive amount of long distance calls, VoIP could save your business hundreds or thousands of dollars a month.

No Need to Have a Separate Network

If you have an internet connection, there is no separate infrastructure needed. VoIP uses your existing broadband to make calls. Having to only manage one network in your business will save you money on hardware and IT costs.

To see if VoIP could help save your business money call InCom at 208-299-9000 to discuss your needs or click here to request a quote.




PSTN, VoIP, Internet, Cost Savings


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CTC has been helping Idaho businesses with their communication needs for over 100 years. We would love the opportunity to serve you.