What Is VoIP Phone Service? [Complete Guide for 2025]

If you’ve ever wondered what is VoIP phone service, here’s the simple answer — it’s a modern way to make and receive phone calls using the internet instead of traditional phone lines. Businesses today are rapidly moving away from landlines to VoIP (Voice over Internet Protocol) because it’s cheaper, more flexible, and packed with advanced features.

In short, VoIP is the backbone of cloud communication systems like Siratel Voice Solutions, which help companies manage calls, automate communication, and connect teams anywhere in the world.

If you’ve ever used WhatsApp, Teams, or Zoom, you’ve already used VoIP technology. But here’s the thing – business-grade VoIP goes way beyond personal calling. It powers call centers, IVRs, customer care lines, and even global call routing — all without a single copper wire.

How Does VoIP Work?

VoIP converts your voice from a standard phone signal into a compressed digital signal. It then sends digital data in small “packets” over the internet. A VoIP service provider (like Siratel) helps manage the connection between you and the person you’re calling. The process happens almost instantly.

Here’s a basic breakdown of the steps involved:

1. Your IP phone or VoIP app connects to the router on your Local Area Network (LAN).

2. When you dial a phone number, your phone tells your VoIP service provider to connect the call.

3. The provider establishes the call and exchanges data packets from your phone.

4. Your VoIP phone converts these incoming digital packets back into clear audio you can hear.

This entire process bypasses the public switched telephone network (PSTN). VoIP systems are built on open standards like Session Initiation Protocol (SIP). IP telephony ensures that different desk phones, conference phones, and VoIP apps can all work together optimally.

Example:
A company with 50 employees can connect everyone through VoIP for under ₹1,000 per user per month — compared to ₹2,500+ on traditional PBX systems.

VoIP vs. Landline Phones: The Big Difference

👉 Fact: Businesses switching to VoIP save up to 60% on telecom bills. Businesses prefer VoIP because it offers better call quality, more features, and scalability without complex hardware setups.

How Is a VoIP Setup Different?

In a landline system, your call travels through a Public Switched Telephone Network (PSTN) — copper wires connecting exchanges.

In VoIP, the call goes through the internet router, not a phone line. The VoIP provider (like Siratel) manages all the routing and ensures your calls are secure and high quality.

You only need:
✅ Broadband internet
✅ VoIP phone or headset
✅ VoIP subscription plan

That’s it. No bulky PBX, no wiring.

Types of VoIP Phone Services

1. Residential VoIP

Used by individuals or families for cheap home calling.

2. Business VoIP

For startups and enterprises to manage customer calls, IVRs, call tracking, and analytics.

3. Mobile VoIP Apps

Apps like Skype, WhatsApp, and Zoom use VoIP principles to make calls over data.

4. Cloud PBX / Hosted VoIP

Your entire phone system runs in the cloud, no physical server needed.

Advantages of VoIP for Businesses

VoIP helps businesses communicate smarter — saving money, time, and effort.

Here’s why companies are switching fast:

1. Lower Call Costs

You can reduce your monthly phone bill by 50% or more. Internal calls are usually free.

2. Advanced Call Features

Features like IVR, auto-attendant, call routing, call recording, voicemail-to-email, and analytics are standard.

3. High Call Quality

HD codecs like G.722 deliver crystal-clear sound.

4. Remote Work Friendly

Employees can make calls from anywhere using a laptop or mobile app.

5. Easy Scaling

Add or remove users instantly — no technician needed.

6. Seamless Integration

Connect with CRM, WhatsApp, SMS, or chatbots to create unified customer communication.

Example:
A BPO with 100 agents using VoIP can handle over 10,000 calls per day with zero downtime when powered by Siratel’s enterprise infrastructure.

Global VoIP Adoption Data (2025)

What Equipment Do You Need to Set Up VoIP?

For a small setup, you only need a subscription to your VoIP provider and a device — like a softphone app or a desk phone — to start making calls. Already have a broadband connection and router? That’s enough.

For large organizations, an analog telephone adapter (ATA) can help connect older phones to VoIP systems.

You might think it’s complicated — but it’s not.

Here’s all you need:

• Stable Internet (10 Mbps or higher)

• Router or modem

• VoIP phone, laptop, or smartphone

• VoIP provider like Siratel

Optional for big offices:

• Analog Telephone Adapter (ATA) — to connect old landline phones.

• Firewall/Switch — for call security and better traffic control.

Pro Tip: With Siratel, your business VoIP setup can go live in under 24 hours.

Best VoIP Phone System Features

1. Auto Attendant – Route calls automatically to sales or support.

2. Mobile & Desktop Apps – Stay connected anywhere.

3. HD Call Quality – Enjoy crystal-clear sound.

4. Unified Communications (UCaaS) – Combine voice, video, and chat.

5. Call Encryption – Protect conversations with advanced security.

6. Call Recording – Record and review calls for quality control.

These are all part of integrated systems like Siratel Voice Solutions, designed for both startups and enterprises.

How Much Does VoIP Phone Service Cost?

Let’s look at the cost difference between VoIP and traditional phone lines.

Best VoIP Features That Businesses Love

Disadvantages of VoIP (and How to Fix Them)

How To Switch to VoIP

1. Check your internet connection – Make sure your internet speed supports voice traffic.

2. Choose your provider – Go for a trusted name with proven uptime like Siratel.

3. Port your number – Keep your existing business number easily.

4. Set up your phones – Use IP phones or VoIP apps.

5. Configure and train – Customize call routing, voicemail, and auto-attendant.

If you’re unsure, you can learn more about the technology that powers this through What Is CPaaS — it explains how VoIP integrates with SMS, IVR, and chat to create a unified communication system.

Who Should Use VoIP Phone Service?

• Call centers handling customer support

• Sales teams making outbound calls

• Healthcare providers for patient communication

• Educational institutions for student services

• E-commerce companies managing COD and returns

If your team makes over 100 calls per day, VoIP will save both time and money.

📞 Talk to a Siratel expert for a free demo today.

Is VoIP Secure?

Absolutely — when managed by a trusted provider.

Siratel ensures:

• TLS & SRTP encryption for every call

• ISO 9001:2015 certified data centers

• 99.99% uptime

• Real-time monitoring & firewall protection

So your customer data stays private and your voice calls are protected.