Business VoIP: What It Is and How It Works

If you run a business, you have probably heard of VoIP. Many companies already use it every day without noticing, because for the caller and the person answering it feels like an ordinary phone call. Behind the scenes, though, everything is different: the voice travels over the internet instead of traditional copper lines, which opens up possibilities that a landline cannot offer.

This article explains what business VoIP is, how a call works and what concrete benefits it brings. If you are more interested in moving away from an old phone system, we have a separate article on migration.

What is VoIP?

VoIP stands for Voice over Internet Protocol: a technology that carries calls over your data network rather than over the analog phone line. Besides voice calls, a modern service usually includes messaging, video calls and other communication features.

A VoIP phone is any device that connects to the internet and uses this protocol: a desk phone, or an app on a smartphone or computer. The device turns your voice into compressed data packets, sends them over the network and, at the other end, reassembles them into sound.

VoIP vs. a traditional phone line

An analog line is tied to a physical cable, and therefore to a specific place. VoIP works wherever you have a connection: wired network, Wi-Fi or mobile data. That is the fundamental difference, and most of the others follow from it.

Aspect	VoIP	Traditional line
Connection	Internet	Analog copper cabling
Where you can work	Anywhere with a connection	Tied to the office
Audio quality	Digital, high definition	Limited by the line
Auto attendant	Included in the service	Needs a dedicated phone system
Devices	Desk phones, mobile and desktop apps	Only devices wired to the line
Growth	Add or remove users from a panel	Technician visits and new cabling
Call encryption	Available	Not available

How a VoIP call works

The process has several steps, but the system completes them in a fraction of a second:

1. You dial a number or pick a contact, just as on any phone.
2. The device registers with the provider’s servers, which verify its credentials.
3. The server sets up and manages the connection with the other party, routing the call over the appropriate network.
4. During the conversation, your voice is converted into compressed data packets and sent to the provider.
5. The packets reach the other party, who receives them directly if also on VoIP; otherwise they are first converted for the traditional phone network.

For the person making the call, the difference from a classic call is almost imperceptible.

Quality depends on your network

Because voice travels as data, quality depends on your connection: a stable internet line with adequate bandwidth is the key requirement. With a reliable provider, data is routed efficiently and protected along the way.

The benefits of VoIP for your business

Lower costs

Good call quality needs a solid connection, not expensive telephone infrastructure to install and maintain. Calls between sites and to other countries are generally cheaper than on a traditional line.

Flexibility and remote work

With a physical phone system, staff have to be in the office. With VoIP your business number follows you: you can answer from your computer or smartphone, even when travelling, and move a call from one device to another without dropping it. That makes hybrid work and hiring outside your home city much easier.

Scalability

A new office, a seasonal peak or one more colleague? Add or reduce users from the admin panel, with no cabling and no technician on site.

Advanced features included

A cloud VoIP service includes features that a traditional phone system would need extra modules for:

• auto attendants (IVR), including multi-level menus in several languages;
• day and night profiles, with office hours, holidays and closures;
• call queues, ring groups, forwarding and transfers;
• personal, group and company voicemail boxes, with email forwarding;
• colleague presence status.

Security

Communications can be protected with encryption, and work calls that go through a company app remain under the company’s control. To learn more, see our page on security and archiving.

Integration with your work tools

With unified communications, calls, chat, SMS and video meetings live in the same environment and work alongside your other business software. See how it works in our cloud phone system.

Which VoIP phone should you choose?

You have two options, and you can combine them.

Softphone. An app that turns a smartphone, tablet or computer into a business phone. It needs no dedicated hardware and lets you use your work number without mixing it with your personal one. Calls go through the app, so the company stays in control of them.

VoIP desk phone. A device that plugs into the network and offers high audio quality and dedicated keys: well suited to reception desks, offices and heavy phone users. Many compatible models configure themselves automatically. For meeting rooms, there are also conference devices with a microphone and speaker built for groups.

With EagleMercury Elevate you can use up to 5 desk phones, desktop apps and mobile apps per user.

Frequently asked questions

Do I need a VoIP phone to use VoIP? No, if you already have a smartphone, tablet or computer: a softphone app is enough. A physical phone is optional.

How much does a VoIP phone cost? It depends on the model: feature-rich handsets can cost a few hundred euros, but cheaper ones are available. The softphone app is normally included in the service.

Is the quality as good as a traditional line? With a stable connection, yes, and often better thanks to high-definition digital audio.

Does it work anywhere? Anywhere you have a reliable internet connection, including for remote and hybrid teams.

In short

Business VoIP moves your calls onto the internet: lower infrastructure costs, more flexibility, advanced features as standard and communications integrated with your other work tools. All you need is a good connection and, if you wish, a dedicated phone.

Want to know whether it suits your company? Get in touch and we will help you find the right solution.