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Instead of using telephone lines, all communication data is turned into packets and sent over the IP network. The IP network your business uses could be your Internet connection, a direct IP connection to your telephone service provider or a combination of both. The important part of the IP connection is that there is guaranteed quality of service (QoS) from your telephone service provider’s network to your office network. Note that if you are using the Internet to connect to your telephone service provider, QoS is not possible.
Placing calls over traditional phone lines means that a line is taken up by the two callers using it to communicate. Since there are only so many lines that can be installed, calls placed over landlines, especially if they are long-distance, are expensive. But using the Internet to relay call data circumvents this problem, making domestic and long distance calls cheaper overall.
In fact, businesses that use VoIP are often given the ability to make domestic and domestic long distance calls for free. If the phone number that is chosen for the business is in the United States, for example, providers often allow all calls within the "lower 48" in the United States for free.
Instead of using telephone lines, all communication data is turned into packets and sent over the IP network. The IP network your business uses could be your Internet connection, a direct IP connection to your telephone service provider or a combination of both. The important part of the IP connection is that there is guaranteed quality of service (QoS) from your telephone service provider’s network to your office network. Note that if you are using the Internet to connect to your telephone service provider, QoS is not possible.
Placing calls over traditional phone lines means that a line is taken up by the two callers using it to communicate. Since there are only so many lines that can be installed, calls placed over landlines, especially if they are long-distance, are expensive. But using the Internet to relay call data circumvents this problem, making domestic and long distance calls cheaper overall.
In fact, businesses that use VoIP are often given the ability to make domestic and domestic long distance calls for free. If the phone number that is chosen for the business is in the United States, for example, providers often allow all calls within the "lower 48" in the United States for free.