What is the difference between VoIP and IP telephony?

For over a decade, businesses made calls using traditional landline phones. They relied on circuit-switched networks, but this has changed in recent years. Enterprises are using Internet protocol(IP) telephony for voice communications.

IP telephony sends voice, video, chats, and more over the Internet instead of using phone lines. Businesses can combine different ways of communication in one system, making it affordable.

You don’t need to worry about phone lines or other infrastructure to operate. It also helps businesses connect with international audiences to improve their brand.

A majority of businesses are shifting to telephony over IP networks. In this blog, you can explore details on how IP telephony works and how it improves communication.

What is IP Telephony?

IP telephony(Internet Protocol Telephony) uses Internet protocol to send and receive voice data. It uses the internet or local networks to send voice, video, fax, and messaging over Public Switched Telephone Network(PSTN).

It eliminates traditional PSTN tolls by transmitting calls in packets through the Internet. While calling, analog signals are digitalized and transferred over the Internet. The system decodes the digital signals and converts them back to analog voice signals.

This process takes place in seconds, simplifying real-time communication. It proves superior to traditional phone systems, offering HD voice quality at affordable prices. Businesses benefit from its advanced phone features and enjoy no upfront investments trait.

IP telephony doesn’t limit itself to voice calls and can be used in other conditions. Some of the uses of it are:

• Text messaging
• Faxing
• Video Calling
• Flash messaging
• Video and audio conferencing

Main Components of IP Telephony Systems

IP telephony uses several components working together to streamline communication. Here are key elements that help to run an IP telephone system:

VoIP Gateways

A VoIP Gateway is a crucial component bridging an IP network with a traditional PSTN. It helps traditional public telephone networks and older PBX systems work with new VoIP technology. The getaways enable calls to and from traditional phone lines.

Additionally, gateways can convert a traditional PBX into IP enable. By doing so, it allows call routing over the IP data network instead of the telephone network. This will allow you to lower call costs and consolidate your telephone resources.

IP PBX( Private Branch Exchange)

An IP PBX combines traditional PBX functionality with Internet protocol technology. It routes calls through the Internet, connecting the telephone extension with an organization. This acts as the central switching and control unit for the IP telephony system managing communications.

Additionally, IP PBX lets your business serve as a mini-service provider, acting as a private telephone switch. It gives your business various features to operate like:

• Call Transfer
• IVR(Interactive Voice Response)
• Call queues and reporting
• Call Waiting

Session Border Controllers

Businesses need to ensure security and management criteria to maintain smooth communication. Session Border Controllers(SBCs) act as gatekeepers for IP telephony traffic, giving security and management functions.

SBCs focus on time-sensitive voice data, preventing delays or call dropouts. Monitoring network usage confirms that calls stay clear and reliable. It helps safeguard your business, ensuring only authorized users use the network and preventing unknown access and attacks.

Multi-Conference Unit(MCUs)

The MCU is an important component that lets large groups of people join video or audio calls at once. It allows a group of people to talk smoothly and clearly regardless of the devices or networks they are using. MCU controls who joins the call and helps a moderator lead the conversation.

It handles transcoding to ensure compatibility between differing communications protocols or network speeds. MCU is necessary for business as it facilitates collaboration among remote teams working anywhere in the world.

Ip Softphone

IP softphones are software-based solutions that allow voice, video, and message communication through the Internet. Instead of traditional phone lines, they enable computers or mobile devices to make and receive calls using the Internet.

Softphones allow businesses to operate from anywhere in the world, allowing remote work and hybrid setups. It also helps growing startups add users without hardware upgrades, offering scalability and cost savings.

Network Infrastructure

A reliable and powerful network infrastructure is necessary for running an IP telephony system. It is an important component that impacts cost savings, scalability, and productivity. Here are the key elements to build a network infrastructure:

• Good Bandwidth
• High-speed network connection
• Proper network configuration

What is VoIP?

VoIP refers to a phone solution that uses the Internet for voice communication. Instead of using traditional phone lines, VoIP phones convert your voice into digital data and send it through the Internet. VoIP phones offer lower costs, improved sound quality, and flexibility over traditional phones.

The VoIP phone solution doesn’t include non-voice-based communication services like faxing or text messaging. It is a subset of IP telephony solely focusing on voice communication.

How VoIP Works

VoIP is one of the beneficiary technologies in modern communication, enabling phone calls using the internet. It does this job by converting callers or receiver voices into digital data using an analog-to-digital converter.

Then, the IP network transmits these packets over the Internet. These packets include the source and destination IP addresses to ensure proper routing. Next, the packets are put back together into an analog signal using a digital-to-analog converter.

Finally, completing this process lets the person on the other end hear your voice. VoIP phone systems use many protocols for call management. Yet, they generally utilize Session Initiation Protocol(SIP), which helps start and end calls.

Working Mechanism of IP Technology

IP telephony operates using the Internet protocol. It is the main system that allows data to be sent over the Internet and to transfer voice communication. Here is the step-by-step process of how IP technology works:

Converting Voice into Data

When you speak into an IP phone, your voice is transformed into digital data. It’s done by digitalizing the analog sound into small packets. These packets contain the information required to send the call across the network.

Sending Data Over the Network

Once the data digitalizes into small packets, it transmits using the Internet protocol. These packets move via routers, which read packet information and send it to the right destination. The data may pass through several routers until it reaches the other end.

Protocols Used In IP Telephony

The key protocols helping to move data correctly in IP Telephony are:

• SIP (Session Initiation Protocol): It helps set up, manage, and end calls by signaling.
• RTP (Real-Time Transport Protocol): It transmits the actual voice data during a call.
• RTCP (Real-Time Transport Control Protocol): It works with RTP to manage the quality of the call. This protocol ensures data arrives in the right order.
• H.323: This was one of the early protocols used for IP telephony, helping with call control and signaling.

Rebuilding The Voice

Once the data packets reach their destination, the software reassembles them in the right order. This restores the voice stream so you can clearly hear the person on the other end of the call.

IP telephony vs VoIP: Key Differences

Although IP telephony and VoIP are often used as if they mean the same thing. There is a slight difference between them. Let’s learn about IP telephony vs VoIP.

IP Telephony refers to any phone system that uses Internet Protocol (IP) to transmit both voice and data. It provides a broad range of services, enabling all forms of communication. This can include older phone systems upgrading to use IP technology.

But VoIP stands for Voice over IP, a specific technology within IP technology. It is used to make and receive voice calls and exchange other kinds of data. Also, VoIP exclusively handles the transmission of voice traffic over the internet. Here are the key differences between them:

• VoIP protocol only handles voice calls over the internet.
• IP telephony contains voice and data transmission over IP, covering more than voice.
• All VoIP are types of IP telephony, but not all telephone systems are VoIP systems.
• IP telephony requires PBXs, gateways, and service, while simple VoIP only needs its adapter or software.

Although they are different in some ways, both cover phone systems that use a LAN to connect to the Internet through a modem or router. In the end, both have improved communications, providing cost reductions and enriched functionality.

Reasons For Choosing IP Telephony

More businesses are switching to IP telephony over traditional phoning. Here are the reasons why it is becoming a common choice for modern communication.

Enhanced Communication

IP telephony and VoIP phones help you provide consistent customer service, bringing data across many channels into one. It helps you to connect voice calls with your CRM and other tools to improve customer experience. Remote teams can use VoIP apps to improve collaboration.

Lowers Operational Costs

Using a traditional system requires extra hardware and increases costs due to international call charges. VoIP eliminates these factors, requiring no hardware installation and working through the Internet. It also crams voice and data networks, saving businesses long-distance call fees.

Flexibility And Mobility

As long as the internet is connected to your device, you can make and receive calls from anywhere in the world. IP telephony, using a softphone or VoIP installed on any device, makes this possible. This offers a flexible workplace for remote or mobile employees to work.

Easy To Scale

With every new user, the traditional phone system needs hardware installation. This may not be required, while your team may decrease increasing expenses. IP telephony removes this headache, enabling service administrators to add or remove users.

Access to More Features

IP telephony helps you access many advanced features to streamline your communication interactions. You can have call recording, video conferencing, and instant messaging without needing to spend extra money on hardware.

Integration with Other Tools

The cloud phone system allows easy integration with business tools to enhance productivity and business growth. Integration features allow companies to handle calls, texts, and tasks combined into one system. This reduces switching between apps, giving a smooth workflow.

Potential Drawbacks of IP Telephony

All the technologies are not one hundred percent perfect and have some flaws in them. Likewise, IP telephones also have some imperfections despite having benefits. Some of the potential drawbacks followed up are;

Reliance On Internet Connection

IP telephony and VoIP telephony are heavily dependent on the internet connection. Interrupted VoIP calls can occur due to internet connectivity loss or power outages. Insufficient internet bandwidth may also degrade audio quality or cause calls to drop often.

Risk of Security

Businesses need to maintain secure customer interactions to build trust. Yet, if VoIP calls are not secured correctly, there are risks of intercepting and eavesdropping. The IP telephone system can resolve this issue through authentication and encryption measures.

Compatibility Issues

Modern VoIP may not work with traditional phone systems, which means you may need to update or replace some devices. To make the switch easier, invest in the right VoIP solutions that connect your old system via SIPtrunking.

Quality Of Service(QoS)

Peak network traffic may disrupt smooth communication in some cases. However, uninterrupted voice calls can be achieved by using the right QoS mechanism. They focus on voice packets over other types of data communication and drop latency, preventing noticeable delays.

Dependence on Power

It all boils down to the power requirement for IP telephony to run properly. Without reliable and consistent power, this system can’t operate effectively. Also, power outages can hamper productivity and revenue, causing the system to shut down immediately.

Voice Quality Issues

Voice quality issues are a common challenge, and jitter can also affect call quality in IP telephones. It happens due to a delay between small packets of data transferred over a network. Good internet quality with proper network settings can help reduce jitter.

Lower Your Phone Costs Switching to VoIP

Want to save your pocket by searching for an affordable phone system including PBX features and multi-line support? Dialaxy comes to your rescue.

We offer reasonable and feature-rich VoIP solutions for all types of businesses. Our basic VoIP plans start at $10 per user/ monthly, and we offer custom plans for enterprises. With our VoIP system, you can improve your business through call routing, analytics, and CRM integration.

Our 24/7 customer support guarantees customers’ issues are solved in time, keeping communication seamless. This helps your business build trust and ensure uninterrupted service.

Ready to move to IP telephony?

Speak to a Dialaxy expert today and get a fully packed communication system that meets your business needs.

Conclusion

IP telephony systems have become a necessity for modern communication. By utilizing Internet protocols, this phone system gives a scalable, flexible, and affordable solution over the Internet. It allows smooth communication, combining voice, chats, and faxing into one.

These phone solutions have digitalized the communication system using a VoIP phone solution. Using this allows your business to operate remotely and make a global reach for growth. Altogether, it integrates several advanced features for seamless communication.

FAQS

What is IP telephony?

IP telephony refers to a phoning system that uses the Internet to transmit voice, video, and other data.

What are the benefits of IP telephony?

The key benefits of IP telephony are:

• Flexibility
• Scalability
• Reduced Costs
• Unified Communication Features

How is IP telephony different from VoIP?

VoIP(Voice over Internet Protocol) is a part of IP Telephony mainly focused on voice communication. It doesn’t focus on services like video calling, faxing, and instant messages.

What are the types of IP?

(IP)Internet protocol is a fundamental component of the phoning system that routes data across network platforms. It types are as follows:

IPv4: only uses 32-bit IP addressing

IPv6: uses a 128-bit address, providing a large number of unique IP addresses.

What Do You Need to Set Up an IP Telephony System?

The components needed to setup are:

• Reliable internet connection
• IP Phones or Softphones
• SIP Trunking
• VoIP Gateways
• Network Infrastructure