Companies using VoIP technology can significantly reduce their communication costs when making both local and international calls. There are different types of VoIP configurations that B2B companies can select. Some connections allow users to make free calls but with some limitations. For others, users have to pay a fee. Regardless of the type of VoIP configuration, the cost is significantly cheaper than traditional landline calls.
There are four major types of VoIP connections in the market. Let’s briefly look at them.
1. Phone to Phone Connection
Phone to phone connections function like a regular phone service. Usually, callers have to purchase a set box that will configure their phones’ signals to a digital signal that can be transmitted over the Internet. Making phone to phone connections is significantly cheaper than traditional landline calls.
2. Computer to Computer Connection
This connections require callers to run the same application when communicating. The best known example of this configuration is Skype. Calls can only be made to others running Skype. This configuration is easy to get running. The only requirements are a client PC with a VoIP application installed, a sound card, and a microphone.
3. Computer to Phone Connection
This configuration provides the bulk of revenues for VoIP providers. A PC with this type of VoIP application installed can call traditional landline phones. The VoIP application converts the caller’s sound data into analog format and then sends it over to the telephone line. Callers using this configuration do not notice experience any difference in call quality, but will pay more for this option.
4. SIP to SIP Connection
SIP, an abbreviation for Session Initiation Protocol, is the underlying technology used by VoIP solutions. With this configuration, callers need a SIP phone to make calls. Usually, callers have to buy a SIP softswitch or other hardware that will allow their phones to operate as VoIP enabled devices.
On the other hand, instead of buying the SIP softswitch or a different hardware, callers can pay a fee to a VoIP services provider to make calls. The VoIP provider hosts the solution instead of the customer. Phone calls may be free or prices may vary depending on the configuration. Nearly all VoIP configurations require third party software or hardware to work.