voice over internet protocol

Voice Over Internet Protocol is changing the way businesses communicate everyday. Thanks to its flexibility and cost-effectiveness, VoIP is replacing traditional telephony at a rapid pace as more and more companies make the switch. It’s no longer a matter of if companies will switch but when

If you’re not yet on board, this article will show you why you should think about business VoIP over your traditional phone provider and how your company can benefit from this technology.


What is VoIP?

Before we delve into voice termination, let’s take a brief look at what VoIP actually is and how it works. VoIP is an acronym for Voice Over Internet Protocol, which simply means voice over the internet. Sounds simple enough right?

Instead of using landline phones to communicate, you can enjoy the same phone experience via your internet connection. Many businesses use this technology because it gives them flexibility their landline phones don’t and it is cheaper too. 

If you have a robust internet connection, you can get excellent phone service from a VoIP provider rather than your local phone company.


What is Voice Termination?

Voice termination, also called call termination, merely means that when you place a call it is routed from one provider to another until it gets to its final destination (i.e. the end-user). The point at which the call is received at the end of the cycle is what we call voice termination.

The endpoint at which a call is received can be another phone or a service such as Skype.

Your voice termination provider handles the rearranging of this data when it gets to its final destination. The rearranging is vital since it keeps the call and voice quality high for the users. 

Without good call quality, the voice would deteriorate, making understanding the caller next to impossible. Like when you have bad phone reception and hear every few words. That makes for a frustrating conversation. 

voip provider

Types of Voice Termination Providers

For managing VoIP networks, there are a variety of providers from which to choose, depending on your company’s needs.

  • Tier 1 Provider

Tier 1 providers are registered operators who manage the infrastructure required to handle the call and the call termination.

  • Tier 2 Provider

Tier 2 providers are ones who are not registered and lease service from the registered Tier 1 providers.

  • Tier 3 Provider

Tier 3 providers are also unregistered and lease their service from either a Tier 1 or 2 operator.

While it might seem confusing at first, the number of operators is essential to keep competition healthy, give businesses choices, and to keep prices low. That is great news for consumers. 


Is Voice Termination Cost-Effective?

While many companies choose business VoIP solutions because it’s inexpensive when compared to traditional phone service, they find that calls out of the country are billed at a higher termination charge, which cuts down on the cost-effectiveness.

Depending on which voice termination company you choose, you may be able to get one that offers basic features and smaller packages that benefit the small business owner as opposed to a one-size-fits-all approach offered by others.

The good thing about voice termination companies is that every one of them offers a variety of services and packages depending on your particular needs. 

Another bit of good news for the business owner, is that voice termination companies are becoming more competitive as the market expands, which means better services, more choice, and lower rates for the customer.


Voice Termination Benefits For You

If your business hasn’t yet adopted VoIP, there’s a good chance it will in the next few years. As more and more landline companies prefer to bundle services into an expensive package, being able to pick and choose what you want with VoIP at a lower price is attractive to many companies. 

why your business needs voipEven if you decide to keep traditional landline phones, having VoIP is a great backup system in case of failure and allows your employees to be more mobile.

So, if you’re thinking about going down this road, here are the benefits to voice termination for your business.


Like VoIP, voice termination integrates exceptionally well with all of your other communications systems, such as fax, email, video conferencing, and texting. Combining all of these services into one cohesive package makes the company more efficient.

Increased Mobility 

Another benefit to businesses is the increase in mobility that VoIP and voice termination offers. With this system, you can set up communications almost anywhere you have access to a computer and robust internet connection. Today, there are tens of thousands of mobile hot spots and free wi-fi areas to ensure connectivity.

Lower Cost

To install traditional phone systems, it usually requires miles of wiring and routing through walls and such. With VoIP systems, there’s no need for any of that. Your VoIP provider gives you the phone exchange that works with your computer, and you can easily divert numbers, leave messages, block calls, and many other options. 

Almost all of these features are included in the price of your VoIP package as opposed to add-ons, which makes it very cost-effective for the small to the medium-sized business owner.

Ease of Installation 

Remember the miles of wiring we mentioned earlier? Well, with VoIP systems, you don’t have to worry about any of that. Also, you don’t need to hire a team to wire up your connection junctions and install a plethora of new components. 

Your VoIP system doesn’t even require your IT team; most systems and new elements can be installed by anyone with very little technical knowledge.

VoIP can be extremely beneficial to your company, whether it’s replacing your current phone service or serving as a compliment. Provided you have a reliable internet connection, there’s very little equipment to buy, and it takes next to nothing to get set up. VoIP continues to change the communications landscape, especially for businesses. If you want to save money and add functionality to your company, consider making the change to VoIP.



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