What is a VoIP Phone and How Does It Work?

NB Technology, LLC.

July 25, 2023

Have you always wondered ‘what is a VoIP phone and how does it work’? If so, we have a comprehensive overview of VoIP phones and what makes them different from traditional phones.

Below you will also find out how a VoIP phone works, how to decide what type of VoIP phone and VoIP provider is best for your business, and we answer some FAQs about VoIP phones.


Essentially, a
cloud based VoIP phone system is one that uses the internet to transmit data and phone calls. Instead of relying on traditional copper wire fixed lines for making calls, you can use your business internet to make calls. 


There are many benefits to using a VoIP phone for businesses, such as cost savings, flexibility and workforce mobility, which is why so many businesses are making the switch.

VoIP phone systems and a screen


VoIP phones: a quick summary

A Voice over Internet Protocol (VoIP) phone is one that uses an internet connection to make and receive calls rather than a landline cable that’s made from copper wire. A VoIP phone transmits digital sound data via the internet. And because all they need to work is an internet connection, you can save on costs of overseas or long distance calls when you switch from a traditional phone system to a VoIP phone system. 


VoIP phones have the advantage that they can be used via apps from any computer, smartphone or connected device - making them a highly mobile phone solution. That helps telecommuting and communication between staff who work remotely, enabling a mobile workforce.

diagram of how a VoIP phone system works


How are VoIP phones different from traditional phones?

There are a few key differences between VoIP phones and traditional phones. For one, traditional phones use analog technology to transmit voice signals, whereas VoIP phones use digital technology to convert voice signals into data packets that are transmitted over the internet.


In addition, you don’t need to have PBX to make a user-to-user call with a VoIP phone, which is another key difference. 

traditional phone


How does a VoIP phone actually work?

So how does a VoIP phone actually work? Using modern digital technology, a VoIP phone makes calls using an internet connection. You use a VoIP server to connect calls, which you arrange with a service provider - and you’ll also need to have internet and a router, which most offices would already have for business communication and emails. 


VoIP phone calls are actually data calls, and you can store these digital conversations in the cloud. It’s also easy to manage your entire VoIP network from your desk, as you’ll see an overview of all phones on the network. This provides a great deal of control for managers and administrators. Here you can also set up many of the functions such as call forwarding or adding new contacts. 

Someone using a VoIP office phone


VoIP phone FAQs

Here are answers to some frequently asked questions about VoIP phones. 


Can I use my existing PBX phone system and convert it to a cloud based phone system?

Many businesses have invested significantly in PBX phone systems for their companies and are hesitant to make a new change over to VoIP phones. The good news if you’re considering this, is that you can use your existing phones and switch them over to cloud-based phones using SIP trunking, which allows you to access all the features and cost benefits of cloud-based phones without having to invest in new phone hardware.


What’s a VoIP phone provider?

VoIP phone providers are similar to cloud software providers in that they provide customer service and support for your VoIP system and they bill you monthly for your calling plan and any other hardware you may need from them.


Can VoIP phones send and receive text messages?

Yes, VoIP phones can send and receive text messages, just like mobile phones can. The only difference is the message is transmitted using an internet signal, so it will be sent or received if you have Internet. 


You can send and receive messages by downloading a VoIP app on your laptop or mobile phone.

Someone using a VoIP phone and mobile app


What are some popular VoIP phone features?

The wide range of features is one of the main benefits of having a VoIP phone. These features help to make your work life simpler and easier than when you had a fixed landline phone.


One of these popular VoIP phone features includes the ability to make unlimited calls without having to worry about what it will cost you - as you’re just using an internet connection to make the call. 


The ability to send online faxes and messages is another popular feature, as is the ability to set up visual voicemail, call routing, call queues, voicemail to email, and an auto attendant to answer calls. 


What type of VoIP phone is best for my business? 

Once you’ve decided that a VoIP phone is a great solution for your business, you’ll want to start deciding which type of VoIP phone to get. 


Remember that VoIP phones rely on an internet connection to work, so you’ll also need to make sure your business has fast and reliable internet. 


As you may have gathered, some of the main reasons for businesses switching to using VoIP phones is the fact that they can save on costs and have more flexibility and workforce mobility. And many existing PBX phone systems can be re-configured to work using VoIP or a ‘cloud PBX’ system. 


Here are some tips when deciding which VoIP phones and VoIP hardware to buy, and which VoIP service providers to choose:

  • Look out for brands which have good reputations for being reliable and trustworthy such as Poly, Cisco, Yealink and VTech. 
  • Find out what the setup and monthly fees will be.
  • Find out how reliable the service provider is and how much uptime is guaranteed
  • Look at whether the VoIP provider has great customer service to help you when you need it.
  • Look at customer reviews to get a better sense of how products and providers work.
  • Consider how many lines you need. Some of your staff may need multiple lines, and others may not need any, or just one.
  • Consider whether your staff will use headsets and if you want those to have a USB or Bluetooth connection.
  • If you are wanting to use the popular Power over Ethernet (PoE), then consider whether your devices support that and have power adaptors for remote staff. 
  • Security features should also be front of mind when choosing a VoIP phone. Consider whether the phone can get regular security updates or not. Many don’t, so it’s worth really looking around for ones that do, to get the most reliable phones.


How can we help you switch to a VoIP phone system? 

There are many benefits for businesses in switching to using a VoIP phone system. That includes cost savings, flexibility, and workforce mobility. 


But not all VoIP phones and VoIP providers are the same, and it takes considerable research to figure out which ones are best for you. 


At NB Technology, we have many years of experience working with the best
VoIP phone system technology and providers and can quickly provide you with all the relevant advice and guidance.


Contact us at (704) 644-1220 for a no obligation consultation to discuss your VoIP phone needs and any inquiries you may have.

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