What Are VoIP Phone Systems?
VoIP, or Voice over Internet Protocol, is the modern standard of telecommunications. You may not realize it, but it covers nearly every aspect of your digital world, from business phone systems, messaging apps, chat rooms, and even video games. Keep reading to learn more about how these phone systems work, their history, key statistics, and even more fun VoIP facts.
The History of VoIP
Did you know that VoIP systems predate the internet? Although VoIP phone systems are part of mainstream technology today, they were actually first developed in 1974 on a military research network called ARPANET. In August of that year, they performed the first ever VoIP phone call, a one-way call between two devices on their network. The speed was 16 kb/s, which is about five times slower than the average minimum speed of VoIP transmission today.
The second VoIP call—and the first two-way call—was made four months later. With this timeframe, it’s totally possible that Electric Light Orchestra’s hit song “Telephone Line,” which was released in 1976, was actually about VoIP phone systems!
How Do VoIP Phones Work?
VoIP phone systems use packet switching. In this method of communication, information is broken up into small packets that can be easily transmitted through a network. Once the packets reach their intended destination, they are pieced back together and the message is received.
The Rise of Outsourcing
VoIP phones greatly contributed to the global rise of outsourcing. In a classic case of digital arbitrage, companies were able to divert calls to countries where the cost of labor was much lower than the United States. With the ability to pay less for the same service, companies flocked to the opportunities that this technology brought.
Call Me From an Outside Line: The Mob’s Use of VoIP
As you may know, many video games have in-game chat and communication features. Some of these games, like Second Life, were used by the mob to communicate about nefarious activities, like money laundering or hits, without drawing suspicion from authorities. Since police weren’t sifting through video game chat data, the mob was able to communicate relatively freely.
VoIP Facts For Your Business
VoIPs Make Remote Work Possible
Whether you moved to the heart of the jungle or are just working from your couch at home, VoIP phone systems are what make remote work possible. Traditional, analog phone systems require a physical wire to connect locations—VoIPs just need a network connection. With hybrid and remote work becoming more commonplace, a phone system that lets you work from anywhere in the world is extremely beneficial.
VoIP Phone Systems Don’t Use Actual Phones
Have you ever heard of the term softphone? Softphones are a type of software application that are installed on your internet-connected device and allow you to make phone calls without dedicated phone hardware. VoIP phone systems use this type of software to send and receive digital communications right from your connected device.
You Don’t Need Any Hardware Installed
Modern VoIP systems are mostly cloud-based, meaning they only need a network connection and the proper software to function. There’s no need to install a physical business phone infrastructure. No wires, no cables. Just easy-to-use communication features.
VoIPs Have Great Sound Quality
Traditional phone lines operate within a range of about 300 Hz to 3400 Hz, whereas VoIP phone systems can pick up frequencies between 50 Hz and 7000 Hz. With this much wider range, VoIP phone systems offer more precise, distinct sound quality than their traditional counterpart.
VoIP Statistics
Cost Saving
In general, VoIP systems are great for reducing business communication costs. Here are a few specifics:
- VoIP phone systems reduce the price of international phone calls by up to 90%.
- On average, companies that integrate VoIP systems save between 50% and 75% on telecom costs overall.
- Startup businesses save around 90% on starting costs when they use a VoIP system.
Miscellaneous
The benefits of VoIP phone systems are wide reaching. Here are just a few more VoIP facts and statistics to know:
- Small businesses improved their productivity by 77% when using VoIP services.
- 94% of businesses saw an improvement in security when switching to VoIP services.
- 67% of employees found it much easier to manage phone calls using a VoIP system.
Growth
VoIP services are a rapidly growing industry. With traditional phone lines being phased out by the FCC, this growth rate is expected to increase even more. Here are some key VoIP facts to keep in mind:
- 31% of businesses use VoIP technology, and 61% of businesses are planning to switch to VoIP.
- Almost 3 billion people were using VoIP services in 2021.
- The global market value for the VoIP industry was $85.2 billion in 2021, and it’s expected to grow to $102.5 billion by 2026. That’s an expected compound annual growth rate (CAGR) of 3.8%.
Ready To Learn Even More About VoIP Phone Systems?
These fun VoIP facts may have taught you a lot about VoIP phone systems, but there’s much more you can learn when you partner with a reputable VoIP provider like Superior Office Solutions. With our VoIP services, you can cut costs and navigate the modern business world with ease. If you’re looking for a VoIP provider in NYC, contact us today!
Related Postings
