What is VoIP (Voice over Internet Protocol)?
Quick Definition
VoIP is technology that transmits voice calls over the internet instead of traditional phone lines. It enables business phone systems, video calls, and unified communications at lower cost.
VoIP (Voice over Internet Protocol) explained
Voice over Internet Protocol (VoIP) is a technology that converts voice signals into digital data packets and transmits them over the internet rather than traditional copper phone lines (PSTN). VoIP enables businesses to make and receive phone calls using an internet connection, significantly reducing communication costs. Popular VoIP providers include RingCentral, Vonage, Nextiva, 8x8, and Grasshopper. VoIP systems offer features that traditional phone lines cannot: call forwarding, voicemail-to-email, video conferencing, call recording, analytics, and integration with business software. For small businesses, VoIP typically costs $20-$50 per user per month compared to $50-$100+ for traditional phone lines with comparable features. VoIP is the foundation technology that enables modern AI receptionists, auto-attendants, and cloud-based business phone systems to function.
Where is voip (voice over internet protocol) used?
All modern business phone systems, remote work, contact centers.
Related terms
Auto-Attendant
An auto-attendant is an automated phone system that answers incoming calls and routes them to the correct extension or department without a human operator.
Call Routing
Call routing is the process of directing incoming phone calls to the most appropriate person, department, or system based on predefined rules, caller input, or AI-driven analysis.
IVR (Interactive Voice Response)
IVR is a phone system technology that interacts with callers through pre-recorded voice prompts and keypad inputs. Callers navigate menus by pressing numbers to reach the right department or information.
Speech-to-Text (STT)
Speech-to-text is technology that converts spoken language into written text in real time. It powers call transcription, voice search, and AI receptionist comprehension.
Want to see voip (voice over internet protocol) in action?
AIRA is an AI receptionist that answers your business calls 24/7.