What is VoIP and How Does it Work?

VoIP (Voice Over Internet Protocol), often known as VoIP or IP telephony, is a phone technology that enables you to make and receive phone calls via the internet rather than traditional telephone lines.

Unlike traditional landline phone systems, which are limited to a single desk phone in your office, VoIP allows you to make and receive business phone calls from your laptop, tablet, standard smart phone (via an app), and even VoIP compliant office phone sets.

How does it work

  • A caller dials a number, and the call is routed from the device to the router.
  • The router routes the voice call to an internet-based VoIP phone service server.
  • The call is then routed via the local internet to the other end of the recipient’s router.
  • Finally, the call is connected to the recipient’s IP device.

Companies that provide VoIP phone services have useful applications for everyone, from individual subscribers to major corporations. Session Initiation Protocol (SIP) has evolved as a useful complement to VoIP.

For more detail: What is VoIP Phone? – A Complete Guide in 2025 for Beginners