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What Is IP Telephony ? Features and Benefits For Businesses

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What is IP Telephony?

IP Telephony, also known as Voice over Internet Protocol (VoIP), is an IP based technology that allows voice communication over the Internet. It converts analog voice signals into digital data packets transmitted over IP networks. Internet Protocol Telephony offers businesses and individuals cost-effective, scalable, and feature-enriched communication solutions.

In the past, phone calls used to transmit through regular phone lines. But with IP Telephony, these calls are sent as small packets of data over a computer network like the internet or a local network. It’s like sending messages in small pieces instead of using traditional phone lines. Internet telephony offers hosted VoIP solutions that let businesses use advanced PBX features without on-site hardware installation. Technology acts as a boon for cloud call centers and helps them to streamline their communication in the business environment.

Working Functionality of VoIP System

You can also use SIP trunking to connect a legacy IP PBX to a modern VoIP provider to take advantage of missing features.

  • With hosted VoIP, your Internet Protocol phone sends digital data over the internet to your provider.
  • Your provider handles the routing of calls, call queues, and everything else in the cloud.
  • You can also use SIP trunking to connect a legacy IP PBX to a modern VoIP provider.
  • This IP based technology allows you to take advantage of missing features.

What are the Benefits of IP Telephony for Businesses?

IP telephony helps businesses expand rapidly with the support of advanced telephony features such as advanced call routing, auto attendant, call queue, call pop, call recording, etc. These features enable businesses to streamline the functionality of their operations and make them scalable.

Key benefits of switching to IP Telephony are mentioned below:

IP telephony, also known as Voice over Internet Protocol (VoIP), offers several benefits, making it a popular choice for modern communication systems. Here are some of the key advantages:

  1. Cost Savings:

    Internet Protocol telephony can significantly reduce long-distance and international call costs since it leverages the internet for voice transmission. This is particularly advantageous for businesses with global operations.

  2. Scalability:

    It’s easy to scale an IP telephony system up or down to accommodate changing business needs. Adding new phone lines or extensions is typically straightforward and cost-effective.

  3. Flexibility:

    Internet Protocol telephony allows users to make calls from anywhere with an internet connection. This flexibility is especially valuable for remote work, mobile employees, and businesses with multiple locations.

  4. Feature Rich:

    IP telephony systems offer a wide range of features, including voicemail, call forwarding, call waiting, conference calling, and more. These features enhance productivity and communication capabilities

  5. Integration:

    IP telephony can integrate with other business applications such as email, CRM systems, and customer support software, streamlining communication and improving efficiency.

  6. Reliability:

    Modern IP telephony systems are highly reliable and have robust failover mechanisms to ensure uninterrupted communication, even in case of network issues.

  7. Quality of Service (QoS):

    Most Internet Protocol telephony systems prioritize voice traffic to ensure high-quality calls. This QoS management helps maintain call clarity and reliability.

  8. Unified Communications:

    IP telephony is often part of unified communications (UC) solutions, which integrate various communication tools like voice, video, messaging, and collaboration into a single platform.

  9. Remote Management:

    IT administrators can manage and monitor IP telephony systems remotely, making it easier to maintain and troubleshoot the system.

  10. Eco-Friendly:

    Internet Protocol telephony is more energy-efficient than traditional phone systems since it doesn’t require dedicated phone lines or large pieces of hardware.

  11. Global Reach:

    With IP telephony, businesses can establish a local presence in different regions by using local phone numbers, making it easier to connect with customers worldwide.

  12. Future-Proofing:

    As technology evolves, IP telephony systems can easily adapt to new features and innovations without requiring a complete overhaul of the infrastructure.

In summary, Internet Protocol telephony offers cost savings, flexibility, and a wide range of features that can enhance communication for businesses and individuals. It has become a fundamental technology for modern telecommunication needs.

What Is The Difference Between VoIP and IP Telephony?

VoIP (Voice over Internet Protocol) and Internet Protocol telephony are related technologies that involve the transmission of voice and multimedia communications over the Internet or IP networks. While they share similarities, there are some distinctions between the two:


  • VoIP (Voice over Internet Protocol): VoIP is a broad term that encompasses the transmission of voice and multimedia over IP networks. It can include voice calls, video calls, and other multimedia communication methods.
  • IP Telephony: IP telephony specifically refers to voice communication (telephone calls) over IP networks. It focuses on voice calls and may not necessarily include video or other multimedia communication methods.


  • VoIP: VoIP covers a broader range of communication services, including voice, video, instant messaging, and more.
  • IP Telephony: IP telephony is more narrowly focused on voice communication using IP networks. It primarily deals with voice calls made over the internet.


  • VoIP: VoIP can be used for various purposes, including personal voice and video calls, business communications, video conferencing, and multimedia streaming.
  • IP Telephony: IP telephony is typically associated with traditional telephone services delivered over IP networks. It is commonly used in business environments for voice calls.


  • VoIP: VoIP is often integrated into unified communications (UC) solutions, which combine voice, video, messaging, and collaboration tools into a single platform.
  • IP Telephony: IP telephony may be part of a broader IP-based phone system within an organization but may not include extensive integration with other communication tools.


  • VoIP: VoIP is used by a wide range of users, including individuals, businesses, and service providers, for various communication needs.
  • IP Telephony: IP telephony is primarily used by businesses and organizations for voice-based communication, such as internal and external phone calls.

Features of IP Telephony

IP telephony enables businesses to access a wide array of functionalities and capabilities, their efficiency in the competitive work environment.

Here are a few notable advantages of an IP phone solutions (IP PBX), among many others:

Crystal Clear HD Voice Quality

IP telephony enables users to experience ‘High Definition’, seamless and crystal-clear sound quality that eliminates background noise.

One Number

By investing in IP technology, users gain the convenience of using a single phone number to make calls from various handsets. IP telephony is one of the most used features of cloud telephony that enables businesses to have advanced call handling capabilities.

Smart Call Routing

Smart Call Routing enables cost-saving by offering optimal call routing features. This guarantees that the system will choose the pre-defined, most economical option call routing path for each external call.

Call Handoff

Call handoff is a convenient feature that enables users to switch seamlessly between devices without any audible disruption. For instance, at the end of their workday, users can effortlessly transition their ongoing call from a desktop (softphone) to their mobile device, allowing them to continue the conversation uninterrupted while shutting down their desktop.

Fixed-mobile Convergence

It is the most useful feature for roles like sales, client servicing, and support, businesses often require an “always on” approach. Fixed Mobile Convergence offers a solution where a mobile phone can serve as an additional hub, providing all the functionalities of the phone system, such as call transfer, conference features, and more. This ensures seamless integration and accessibility across devices, enabling efficient communication for these profiles.

VoIP Protocols and Audio Codecs

IP telephony relies on several open-source protocols to facilitate the transfer of data from the phone to the IP telephony service provider.

There are three commonly used protocols in IP telephony:

SIP Protocol

SIP (Session Initiation Protocol) is widely used for establishing, modifying, and terminating communication sessions between devices. It enables functions like call setup, call termination, and call transfer.

H.323 Protocol

H.323 is an ITU (International Telecommunication Union) standard that facilitates multimedia communication over IP networks. It has other protocols that participate in audio, video, and data transmission.

RTP/RTCP Protocols

RTP (Real-time Transport Protocol) and RTCP (Real-time Transport Control Protocol) are popularly known for working together in IP networks. These protocols are responsible for transporting real-time audio and video data over IP networks. RTP handles the actual data transmission, while RTCP provides control and feedback mechanisms for quality monitoring.

Configuration of your phone system and the VoIP service provider decide the use of specific protocols for your communication needs. To effectively transmit voice data over the Internet, we need to use compression and decompression methods.

Final Thoughts

IP telephony has eliminated our dependencies on traditional phone lines and enables us to use advanced features for streamlined business communication. As technology grows, IP telephony will evolve further, providing even more innovative solutions for our communication needs. Adoption of IP telephony can increase productivity, improve customer experience, boost outbound call strategy for businesses to create a more connected business environment.

Frequently Asked Questions

What is meant by IP telephony?

IP telephony enables communication carried over the Internet in the form of audio and video. It allows users to make and receive calls using IP (Internet Protocol) networks instead of traditional telephone lines.

How does IP telephony work?

IP telephony converts analog voice signals into digital data packets, which are then transmitted over IP networks. These packets are reassembled at the receiving end to recreate the voice signal.

What are the benefits of IP telephony?

Benefits of IP telephony include cost savings, scalability, flexibility, integration with other communication tools, enhanced features, and the ability to make calls from anywhere with an internet connection.

Is IP telephony secure?

IP telephony can be secure if appropriate security measures are implemented. Encryption and firewall configurations are commonly used to protect voice data during transmission.

Can I keep my existing phone number with IP telephony?

In many cases, yes. VoIP providers often offer number portability, allowing you to transfer your existing phone number to their service.

What’s the difference between IP telephony and traditional landline phones?

Traditional landline phones use circuit-switched networks and analog signals, while IP telephony uses packet-switched networks and digital data. IP telephony is generally more cost-effective and offers additional features.

What are the examples of IP telephony?

Skype, WhatsApp calls, Cisco Unified Communications, Zoom, Microsoft Teams, etc. are perfect examples of Internet Protocol telephony that enables businesses and individuals to communicate flawlessly over the web.

What is the difference between VoIP and telephony?

VoIP (Voice over Internet Protocol) technology is used to transmit voice calls over IP networks, while telephony includes a broader concept of voice communication that includes both traditional and IP-based systems.

Why are IP phones used?

Internet Protocol phones are used for various reasons. They leverage IP networks to transmit voice calls, offering cost savings, flexibility, advanced features, scalability, integration with digital technologies, and improved collaboration and communication capabilities.

Is IP telephony suitable for businesses?

Yes, Internet Protocol telephony is commonly used in business environments due to its cost-efficiency, scalability, and advanced features. It’s ideal for internal and external communication needs.

Can IP telephony be used for video conferencing?

Yes, many Internet Protocol telephony systems and VoIP services support video conferencing in addition to voice calls.

What is Unified Communications (UC), and how does it relate to IP telephony?

Unified Communications (UC) integrates various communication tools, including IP telephony, video conferencing, instant messaging, and collaboration, into a single platform. IP telephony is often a component of UC solutions.

Can I use Internet Protocol telephony for international calls?

Yes, IP telephony is often used for international calls because it can be more cost-effective than traditional phone services for long-distance and international communication.