Understanding Different Types of VoIP Technology

Understanding Different Types of VoIP Technology

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In the past few years, VoIP technology has drastically evolved to provide a convenient and easy mode of communication through Internet connections. VoIP service provides voice communication, video conference, text messaging, and real-time chat using a network connection. Businesses are now switching from the traditional phone system to a cloud-based VoIP system because of its versatility and cost-effectiveness.


VoIP technologies offer users a low-cost business communication solutions with advanced features like HD Voice- crystal clear audio quality, conference calling, three-way calling, Caller ID, call transfer, call forwarding and call monitoring. As a virtual phone system, Calilio has contributed to the growth of thousands of companies worldwide.

What is VoIP technology?

Voice over Internet protocol technology or VoIP technology is a cloud phone system that businesses use to communicate. The technology transmits voices, conference calls, and text messages to anyone, anywhere, and anytime. VoIP phone call requires internet stability through which the voice signals are transmitted to the receiver.

The Five Types of VoIP Technology

There are different types of VoIP technologies, each having a unique level of complexity that impacts the ease of business communication. Below are listed 5 major types of VoIP technology.

1. Hosted VoIP

Hosted VoIP technology allows communication between different phone extensions and locations, eliminating the need for physical wire using an internet connection. With hosted VoIP technologies, businesses can connect to an external network system outside the user’s location. You don’t have to deal with maintenance and expensive long-distance call charges. Your VoIP provider maintains all the problems and errors. As an external company is hosting these VoIP services, you don’t have much control over every aspect of your business phone system.

2. Premise/In-house VoIP

Premise VoIP, or In-house VoIP technology, in which an IP PBX (Private Branch Exchange) equipment and phones on-site are installed, enables business communication. Unlike hosted VoIP phone services, the company manages and maintains the required VoIP equipment, hardware and software. So the user will have complete control over every aspect of the business communication system. Maintaining and managing premise VoIP technologies requires an IT team or an individual.

3. Hybrid VoIP

Hybrid VoIP technology gives your existing telephone system advanced VoIP features without investing in additional hardware and software. It establishes modern Voice over IP services in your traditional phone system combining complex telephone lines with an advanced VoIP system. They are not actually switching to a new VoIP phone system. Cost is a factor to consider while establishing hybrid VoIP services. However, over time, it saves costs and provides flexibility.

4. SIP Trunking

Session Initial Protocol (SIP) Trunking is a digital communication service with a stable internet connection. SIP Trunking is specifically used to replace PRI (Primary Rate Interface) technology, which uses physical copper wires to deliver data and voices. SIP trunk uses an application protocol to establish and manage VoIP between their on-premises phone systems and the public switched telephone network (PSTN). SIP provides flexibility enabling affordable communication. It is particularly useful for small businesses and offices with existing PBX systems.

5. Analog Telephone Adapter

An Analog Telephone Adapter(ATA) is a device that converts the voice signal from the landline phone into digital signals compatible. It is the most basic type of VoIP technology. They are relatively easy to set up but may require additional hardware for optimal functionality. It can be a small USB adapter or a larger unit that plugs into a wall jack. ATAs allow multiple devices to connect over Ethernet or wireless networks. ATA is ideal for individuals who prefer the familiarity of traditional telephony and wish to continue using their landline phones.

Advantages of Voip Technology

VoIP technologies provide a vast amount of advantages in business communication. Using a cloud phone system, it offers different forms of communication, like voice calls, text messages, and video conferences. VoIP engages phone calls with high quality, reduced cost, portability, and reliability, and enhances business productivity. Let’s take a look at some of the major advantages of VoIP technology.

1. Portability

VoIP technology provides complete portability to use the cloud phone system. It offers phone calls with the help of a wireless connection, which means you can communicate to and from anywhere you want as long as you have a stable internet connection. It enables full mobility to use the service from anywhere you want. There is no physical limitation in Voip technologies - you can move as your business demands.

2. Highly Reliable

VoIP is highly reliable due to its internet-based system. It eliminates the problems that may occur in the traditional telephone system, like line noise and dropouts.VoIP has become a reliable technology that companies adopt as a business communication solution. 

3. Reduced Cost

VoIP is very cheap and affordable compared to conventional phone systems. Considering VoIP for business communications saves you from the expensive installation and maintenance costs you would have to pay to set up traditional landlines. VoIP calls are made through the help of a cloud-based system or the internet, which dramatically reduces the average cost to its minimum.


VoIP technology provides your business with an easy and convenient communication service through a cloud-based phone system. It provides a cost-effective, versatile, and convenient solution compared to traditional landlines. With numerous advantages, you can choose different types of VoIP services based on your specific needs and preferences for your business communication. 


Calilio is one of the best VoIP providers. We have served thousands of companies with our VoIP technology services. Sign up and get started with the best VoIP services.

Frequently Asked Questions

Why should VoIP technology be a clear choice for business communication?

VoIP technology offers numerous advantages over traditional telephony systems. It’s cost-effective, eliminating hefty international call charges and infrastructure costs associated with traditional landlines. With its advanced features, VoIP offers enhanced portability and clear communication, allowing businesses to communicate from anywhere with an internet connection.

What is Hosted PBX?

Hosted PBX (Private Branch Exchange) refers to a virtual phone system hosted in the cloud rather than on the business premises. Instead of buying and maintaining expensive hardware, businesses can lease PBX services from a VoIP provider. This means all telephony services, like voicemail, call routing, and call recording, are delivered and managed off-site, allowing businesses to focus on core operations without worrying about phone system maintenance.

What is Session Initiation Protocol (SIP)?

Session Initiation Protocol (SIP) is a signaling protocol used to initiate, manage, modify, and terminate real-time sessions in an IP network. These sessions can include voice, video, and messaging communications. SIP trunking replaces traditional telephony lines with a digital connection, making it a crucial element in VoIP technologies, allowing for the transmission of voice data over the internet.

What is the difference between VoIP and WIFI calling?

Both VoIP and WiFi calling use the internet to transmit voice data, but they differ in scope and functionality. VoIP refers to a broader technology that can transmit voice data over any internet connection, be it broadband, cellular data, or WiFi. VoIP services often come with various features catering to businesses, such as video conferencing, call forwarding, and more.


On the other hand, WiFi calling uses explicitly WiFi networks to place or receive calls through a mobile provider, bypassing traditional cellular networks. It’s a feature on many smartphones and is beneficial in areas with poor cellular reception but a strong WiFi connection.

Are VoIP calls free?

VoIP calls between users on the same service or network are typically free. However, when calling a traditional landline or a mobile number from a VoIP service, there may be charges involved, but these charges are usually significantly lower than traditional phone call rates. Some providers also offer subscription packages that allow unlimited calls to certain regions, further driving down costs.

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