To set up a business VoIP system, you need several components. A central device to manage the calls, the way a private branch exchange (PBX) or key system unit (KSU) does in traditional phone systems is one of them.

This can be a dedicated piece of hardware such as an IP PBX, a regular PBX that has been IP-enabled, or a server running specialized software. You will also need phones and a data network. In many cases, you may be able to use your existing digital phones and computer network, although you may need to upgrade some of your network hardware.

VoIP Benefit

The most prominent benefit of an IP PBX is for businesses with multiple locations. With the advantage of VoIP, all the offices on a LAN or WAN can get the profits of having a common office phone system. The profits are - extension dialing, seamless call transfers, and other features.

In addition to making it easier to communicate, this sharing of features can enhance collaboration as employees at different locations can truly feel like they are part of the same organization. Plus, if they are on the company network, the phone calls are free - even if your offices are located thousands of miles apart. It is an advantage in saving money expended on calling between two branches of the same office.

VoIP Conversations

Computer networks are designed to handle messy data: packets arrive out of order and some are even lost, but in most cases the data being sent can easily be reconstructed when it is needed. Voice conversations, though, are not as tolerant of these kinds of disturbances. Each packet of sound has to arrive in the correct order because they are being sent in real time - if packets are lost; the conversation sounds distorted, choppy, or falls off all together. This is why VoIP services that rely on the Internet to transmit calls can have uneven phone quality.

The selection of a business VoIP solution is a major decision. Voice service is critical to the operation of the business, so no one wants to implement a technology that will compromise call quality or reliability in any way. On the other hand, the cost savings and value-added functionality available with VoIP makes it a compelling investment.

LANs & WANs

The VoIP phone system is beneficial for companies having multiple locations branches, telecommuters and remote sales offices. And the locations are connected with a company's Local Area Network (LAN) or Wide Area Network (WAN). In that case the companies are suitable for using a VoIP system.

You can share the full features of your phone system across all your locations. In addition, even if you have one office in one place and one in different place, VoIP allows calls between them via extension dialing, making it a zero cost call. For businesses with hefty monthly long distance charges due to calls between far off locations, is an attractive reason to upgrade.

VoIP Process

A VoIP phoning process requires a regular phone, an adapter, broadband Internet service, and a subscription to a VoIP service. When you place a call, it is sent over the Internet as data until it nears the recipient's destination.

Then the call is translated back into a more traditional format and completes the trip over standard phone lines. Also known as Internet telephony, this allows for extremely cheap long-distance and international calls.

VoIP Drawbacks

The main drawback of VoIP systems is the network requirements.

In VoIP telephony the greatest challenge is the bandwidth. It requires high bandwidth for clear messaging.