We use cookies to help improve how this site works and the services we offer. By continuing to use this site without changing your cookies settings you agree to our use of cookies.
To find out more about how this site uses cookies and how to disable them visit our cookies policy. Close Message



Speak to one of our consultants to determine which Vonage plan is best for your based on your needs.

Call Sales
Call Us

0207 993 9000

Call Sales
Have a Consultant Call You

Call Me Back

The Beginners Guide to VoIP

2. How VoIP works

If you're not sure about exactly how VoIP works, we've created this handy guide to explain it all in clear and simple English.

How does VoIP work?

VoIP is a communication system that works by converting your voice into digital data and sending it through your internet connection. So, instead of your voice passing down a phone line, it passes through your router. All this is done at incredible speed and it doesn't matter if the person you are speaking to is using a VoIP or regular phone, the voice data is transferred back into recognisable speech, often through a private branch exchange system (PBX).

In case you're still not sure, here is a handy VoIP diagram that describes how VoIP technology works at its most basic level.

How VoIP works
Dial the number
Your voice is turned into digital packets
Connect with a system to your destination and convert the data into voice
A similar process occurs in the other direction

How does VoIP PBX work?

A normal PBX is the system that connects telephone extensions to the public switchboard. VoIP gateways can be combined with this to allow PBX functionality to make normal phone calls through your internet connection. This means you can take advantage of a single network for both voice and data.

The benefits of how VoIP works

Of course, all of this is only necessary if it's better than your existing system. But don't worry because this is where VoIP really shines. Because your calls are transferred through your internet connection, there is no line rental and call costs are extremely low and even free. You can even use VoIP to make international calls, so it could help you to significantly save on communication expenses.

How VoIP features work for small businesses

Features for small businesses

As well as just saving on costs, VoIP has a number of other big advantages for small businesses. Here's our top five.

  • Mobile clients - you'll have the ability to make and receive VoIP calls through your mobile phone. You don't need to be in the office to stay in touch and can manage your VoIP service on the move.
  • Desktop clients - the desktop VoIP service is integrated with your email so when you receive an incoming call, it pops up with the caller's details from your contact directory. You'll also have the ability to simply click and call contacts, plus you can see if colleagues on the internal directory are available.
  • Voicemail to email - a transcription service turns your voicemail into text and sends it directly to your phone.
  • Coaching tools - you can sit in on employees calls and offer advice without clients being able to hear you, providing an invaluable training tool.
  • Auto attendant - calls can be answered and callers can engage with an automated menu to avoid using extensions or receptionists.
What is VoIP
Using VoIP