What Are the Benefits of VoIP Technology?

What Are the Benefits of VoIP Technology? thumbnail
VoIP uses the Internet to replace traditional phone lines.

VoIP, or Voice Over Internet Protocol, is a service that uses the Internet to deliver voice communications. VoIP service is used as an alternative to traditional, line-based phone plans. Calls placed over the Internet are sent digitally, as data, and they are received by computers. This reduced the need for hardware and resulted in lower costs.

  1. Low Cost

    • One of the most significant benefits of VoIP technology is the low cost. In situations where broadband Internet is used for voice calls, the costs are typically dramatically lower than standard phone service. In fact, many VoIP services such as Skype and iCall cost nothing, as long as calls are made from one computer to another.

      When VoIP is used for calls to traditional phone lines, the cost remains low. Because the voice data is routed over existing Internet connections, the older phone infrastructure is bypassed. This method creates savings for the phone provider, who can pass on a lower price to the consumer.

    No Long Distance Fees

    • VoIP service typically does not have long-distance charges for calls made within the home country. For example, while a caller in California would have to pay long distance charges for a traditional phone call to New York, VoIP treats this call as within a single territory. In terms of price, this makes long-distance calls no different than local calls.

      Many VoIP providers expand this concept to include an entire continent, such as North America. This allows residents in Mexico, the United States and Canada to connect at one rate. When calls are made over extended distances, such as between continents, the resulting charges are commonly lower than normal land-line phone rates.

    Portability

    • Unlike traditional phone lines that must be physically installed, VoIP connections are made virtually. This means that a VoIP user can make calls from any place where high-speed Internet is available. This benefit is particularly valuable for individuals who travel often. For example, a business executive can use the same VoIP service whether he is in the office, an airport or a hotel on the other side of the country.

      VoIP phone numbers are also portable. Unlike other phone numbers that vary based on location, a phone number from a VoIP provider will never change. This allows people to be reached with one consistent number, no matter if they are in America, China or anywhere in between.

    Premium Features

    • VoIP services allow users to access premium features at no additional cost. These features are commonly implemented using software installed on the computer. Because no physical hardware is needed, costs are kept low. Examples of software-based premium features include call forwarding, voice mail, call waiting and conference calling.

      Because VoIP operates over the Internet, other data can be sent over VoIP services as well. Fax lines can be added at low or no cost, with computer software replacing the expensive traditional fax machine. Pictures and other documents can also be sent electronically over the VoIP data line.

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  • Photo Credit telephone image by Vasiliy Koval from Fotolia.com

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