What Is VoIP And Why Do You Need It For Your Business?

Communication is key for any business, whether it’s with customers, partners, suppliers or employees. But traditional phone systems can be costly, complex and inflexible, limiting your ability to communicate effectively and efficiently. That’s when VoIP starts calling, and it’s time to pick up the phone.

Voice over Internet Protocol (VoIP) is a technology that allows you to make and receive phone calls over the internet instead of using traditional phone lines. VoIP offers many benefits for businesses of all sizes, including cost savings, flexibility, scalability and enhanced features. In this post, we will explain how VoIP works and how Lumen voice solutions meet your business communication needs.

How VoIP Works

VoIP converts your voice into digital packets that can be transmitted over the internet. You can use VoIP with any device that has an internet connection, such as a computer, a smartphone, a tablet or a VoIP phone—a hardware-based online phone resembling a traditional receiver set, or another name for a software-based “softphone” that accesses calling through the main device’s internet connection. You can also use VoIP with your existing phone equipment by connecting it to a VoIP adapter that plugs into your router or modem.

To use VoIP, you need a VoIP service provider that can route your calls to and from the internet. There are different types of VoIP service providers, such as:

1. Hosted VoIP: A hosted VoIP (or hosted voice) service provider manages and maintains the VoIP infrastructure for you in the cloud, and you pay a monthly fee based on the number of users and features you need. You don’t need to invest in any hardware or software, and you can access your VoIP service from anywhere with an internet connection.
2. SIP trunking: A SIP trunking service provider connects your existing phone system to the internet, and you pay for the number of channels (simultaneous calls) and minutes you use. You need to have a compatible phone system and a SIP trunking adapter, but you can keep your existing phone numbers and features.
3. On-premises VoIP: An on-premises VoIP service provider installs and configures the VoIP infrastructure on your premises, and you pay for the initial setup and ongoing maintenance costs. You have full control over your VoIP system, but you also need to have the technical expertise and resources to manage it.

There are also various technologies that integrate VoIP into their system—for example, what’s known as a “cloud phone.” So, what is the difference between VoIP and cloud phones? They are both technologies that enable voice communication over the internet, but they have some key differences. VoIP is a generic term that refers to any method of transmitting voice data packets over an IP network. Cloud phones are a specific type of VoIP service that uses a cloud-based platform to provide advanced features and functionality, such as call routing, auto attendant, voicemail and analytics. Cloud phones are usually offered as a subscription-based service by a provider, such as Lumen, that manages the infrastructure and maintenance of the system.

Why VoIP Is Better Than Traditional Phone Service

In a world of digital communication, VoIP offers many advantages over traditional phone service. One major advantage is its cost efficiency. Companies investing in workplace collaboration technologies, such as Lumen^® Next-Gen Voice solutions, are projected to see over $190 average first-year cost savings per employee¹, as you don’t need to pay for separate phone lines, long-distance charges or extra fees. You can also save on equipment, installation and maintenance costs, especially if you choose a hosted VoIP solution.

Businesses have different needs, and VoIP can adapt to those variations as well. You can easily add or remove users, extensions and features without affecting your phone system. You can also use VoIP with any device and location as long as you have an internet connection. This means you can work from home, on the road, or in multiple offices with the same VoIP service.

Not only is VoIP deployment catered to your business, but VoIP will grow with you from there. VoIP allows you to scale your service up or down without any limitations or disruptions. You don’t need to worry about running out of phone lines, bandwidth or capacity, as VoIP can handle significant volumes of calls and data.

VoIP can improve your business communication and productivity, as it offers many advanced features that traditional phone services don’t. Some of these features include:

1. Voicemail to email: You can receive your voicemail messages as email attachments so you can listen to them from any device and never miss an important message.
2. Call forwarding: You can forward your calls to another number or device so you can always stay connected and reachable.
3. Call recording: You can record your calls for quality assurance, training, or compliance purposes, and store them in the cloud or on your device.
4. Video conferencing: You can conduct video meetings with your colleagues, clients or partners, using your VoIP device or a web browser.
5. Auto attendant: You can create a professional greeting and menu system that can direct your callers to the right person or department without the need for a receptionist.

VoIP has made a big impact across industries with its flexible and scalable design. It’s particularly advantageous for retail call centers, powering real-time communication during high-volume periods. Healthcare providers can also benefit from secure and reliable communication across distances, as VoIP can enable remote consultations and interactions between different sites. And in the public sector, government agencies such as the state of South Dakota and Pima County already rely on Lumen^® Next-Generation 9-1-1, a high-performance platform designed for advanced emergency call services and public safety continuity.

There are plenty of ways VoIP can support your business. The next step is finding the provider to best support your needs.

Why Lumen Offers The Best VoIP Solutions For Your Business

We host a diverse portfolio of VoIP services, including Lumen^® Voice Complete^®, Hosted VoIP, SIP Trunking, Next Generation 9-1-1 and more. Lumen^® Next-Gen Voice solutions offer many benefits for your business—especially reliability, quality, security and expert service.

In 2023, we earned the Competitive Strategy Leadership Award in VoIP access and SIP trunking.² Recognized for our strategy innovation and customer impact, we are a distinguished provider of multiple cloud-based business phone systems that can help you transform your organization’s communication.

Our service limits interruptions using repetitive and resilient network infrastructure, backup power sources, and disaster recovery plans. You can also benefit from our service level agreements (SLAs) that guarantee high availability, uptime and quality of service.  

Not only can you rest assured in the availability of Lumen voice solutions, but you can rely on them to deliver crystal-clear voice quality. Lumen uses dedicated bandwidth, prioritization and compression technologies to optimize your voice traffic. Our solutions feature low latency, jitter and packet loss, which are essential for smooth and uninterrupted voice communication.

Cyberthreats are always a concern in the digital world. However, Lumen voice solutions can safeguard your communication from these threats, as they use encryption, authentication and firewall technologies to secure your voice traffic. You can also control your own security policies, such as blocking unwanted calls, restricting international calls and enforcing compliance standards.

We make the switch from legacy voice services to VoIP easy. Lumen^® Enablement Services for UC&C is designed to simplify every step of the deployment process with assessments, adoption services, training and expert guidance to help ensure your team stays connected.

Finally, Lumen can provide you with 24/7/365 support, as well as a dedicated account manager and technical team to help you jump-start your digital transformation.

Ready to learn about VoIP? Check out our complete portfolio of voice solutions.

¹Metrigy Research, Workplace Collaboration 2023‑24, 2023.
²Frost & Sullivan, Lumen Receives the 2023 Competitive Strategy Leadership Award, 2023.

This content is provided for informational purposes only and may require additional research and substantiation by the end user. In addition, the information is provided “as is” without any warranty or condition of any kind, either express or implied. Use of this information is at the end user’s own risk. Lumen does not warrant that the information will meet the end user’s requirements or that the implementation or usage of this information will result in the desired outcome of the end user. All third-party company and product or service names referenced in this article are for identification purposes only and do not imply endorsement or affiliation with Lumen.