As part of the name suggests, hosted VoIP solutions utilize Internet Protocol to make calls. Instead of using telephone lines, all communication data is turned into packets and sent over the IP network. The IP network your business uses could be your Internet connection, a direct IP connection to your telephone service provider or a combination of both. The important part of the IP connection is that there is guaranteed quality of service (QoS) from your telephone service provider’s network to your office network.
Placing calls over traditional phone lines means that a line is taken up by the two callers using it to communicate. There’s a finite amount of lines that can be installed, especially if they’re long-distance. Costs can start to mount up. When you use the internet to make calls, you’ll be able to decrease how much you’re spending on both domestic and long-distance calls. In fact, businesses that use VoIP are often given the ability to make domestic and domestic long distance calls for free.