VoIP Switch Explained: How It Works & Why Businesses Use It

Managing a business call with an outdated phone system is challenging, as it comes with limited flexibility and high costs. That’s why modern businesses are switching to VoIP technology.
A VoIP switch routes your calls over the internet and offers a more innovative and cost-effective way to handle voice communication.
In this guide, we'll learn what a VoIP switch is, its key components, and how it works, alongside its types, essential features, and the setup process.
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Highlights:
- VoIP switches manage voice calls over the internet with high efficiency.
- Call Control, Media Gateway, Signaling Gateway, and Database are the essential components of a VoIP switch.
- VoIP switches route calls using signaling protocols and manage traffic, ensuring high call quality and stability.
- The VoIP switch setup involves defining VoIP requirements, selecting the right switch, installing the necessary hardware or software, configuring the system, and regular monitoring.
What is a VoIP Switch?
A VoIP switch is the central component that manages the call routing in a VoIP technology over the Internet. It acts as the system's "traffic controller," ensuring that calls are connected, routed, and maintained seamlessly across networks.
When a VoIP caller makes a call, the switch routes it, sets up the connection, and ensures that the voice gets to the other side clearly and reliably.
Key components of a VoIP switch
The key components of a VoIP switch include Call Control, Media Gateway, Signaling Gateway, and Database. These elements work together to ensure the smooth operation of VoIP communication systems.
- Call Control
Call control manages the setup, supervision, and termination of calls. It ensures the call flow is appropriately handled, including dialing, ringing, and disconnecting. This component uses signaling protocols like SIP (Session Initiation Protocol) to manage communication between devices. - Media Gateway
The media gateway is responsible for converting voice signals between different formats. It acts as a bridge between traditional telephony systems (PSTN) and digital VoIP networks, allowing calls to move smoothly between both systems. - Signaling Gateway
The signaling gateway translates signaling information between different network protocols. It ensures the smooth connection even if the caller and recipient use different signaling methods. - Database
The database stores essential information such as user credentials, call routing data, and configuration settings. It helps the VoIP switch decide where and how to route calls based on stored user profiles and policies.
How Does a VoIP Switch Work?
VoIP switches operate using a set of VoIP protocols to efficiently route and manage calls. Here’s how it works:
- Initiation of Call: First, the caller dials a recipient's phone number through the softphone on the computer or mobile.
- Voice Digitization: The user’s voice is captured through the microphone and converted into a digital data packet by the VoIP codec within the device.
- Call Request: Now, the device sends a call request to the VoIP switch using a signaling protocol such as SIP or H.323. The signaling message contains information about the caller, the called party, and the supported codec.
- Call Routing: After receiving the call request, the VoIP switch determines the best path for your call, considering the network speed and traffic
- Signaling to the Destination: Next, it sends a signal to the recipient’s device, inviting it to answer.
- Connection Establishment: When they pick up, the switch creates a secure, stable connection so your voice reaches them clearly, without glitches or delays.
Types of VoIP Switches
The VoIP switches are categorized based on their functionality and technology used.
Based on Underlying Technology
Softswitches
Softswitches are software-based solutions that run on general-purpose servers. Unlike traditional hardware switches that use physical wires and dedicated circuits to connect devices and route calls, softswitches utilize software to establish VoIP connection between the devices.
Hardware-Based Switches
Hardware-based VoIP switches efficiently connect IP phones and VoIP devices within a LAN, ensuring smooth call routing. They use VoIP gateways to convert analog signals to digital for internet transmission, and VoIP routers to link networks, enabling seamless communication over the internet.
Based on Functionality
Class 4 Switches
Class 4 switches are designed to handle long-distance voice traffic. They manage high-volume calls between carriers or service providers, often handling calls between different networks and service providers across various platforms. These switches are ideal for large-scale, international calling.
Class 5 Switches
Class 5 switches are responsible for handling calls at the local level. They are typically used for residential or small business applications. Though its key feature is to route the call within the local exchanges, it also supports different telephony features such as voicemail,call forwarding, and conference calling.
Essential Features of VoIP Switches
VoIP switches must have features like advanced call routing, security protocols, and scalability to ensure efficient operation and smooth communication.
Advanced Call Routing
An advanced call routing feature enables the VoIP switch to intelligently route calls based on various factors, including network conditions, cost, and available bandwidth. As a result, it ensures high-quality calls and efficient resource utilization.
Security Protocols
VoIP switches utilize advanced security features to safeguard against various risks, including fraud, unauthorized access, and eavesdropping. Standard security measures include encryption, secure signaling protocols, and authentication mechanisms.
Scalability
As businesses grow, the VoIP switch can scale to accommodate increased call volume and more users. This enables companies to expand their communication systems without requiring additional infrastructure.
Upgrade Your Business Communication with a Smarter VoIP System
How To Set Up a VoIP Switch?
To set up a VoIP switch, select the appropriate switch and install or configure the system to route calls over the Internet.
Step 1: Define Your VoIP Requirements
Determine your VoIP needs, including the number of users, expected call volume, and required features (like IVR, call recording, call forwarding).
Step 2: Choose the Right VoIP Switch
Select the appropriate VoIP switch based on your business requirements.
Step 2: Install the Hardware/Software
If you’re using a hardware switch, install and connect the physical device to your network. For a software-based switch, install the VoIP software on a dedicated server.
Step 3: Configure the Network
Configure the network settings, including SIP trunks, call routing, and user extension rules.
Step 5: Monitor and Maintain
Regularly monitor the system for issues and ensure it remains up-to-date and secure.
Comparing VoIP Switches with Traditional Telephony Switch
VoIP switch uses the internet to transfer the digital signal, while traditional switches rely on dedicated lines, such as copper wires, to transfer the analog signal.
Explore the key differences in the table below:
Feature | VoIP Switches | Traditional Telephony |
Technology | Software-based (packet switching) | Hardware-based (circuit switching) |
Call Routing | Routes calls over the Internet (IP networks) | Routes calls over physical phone lines (PSTN) |
Infrastructure | Can operate on existing internet connections, requiring minimal physical infrastructure. | Requires dedicated phone lines and hardware. |
Cost | Lower cost, especially for long-distance calls, due to Internet routing. | Higher cost, particularly for long-distance calls. Requires dedicated phone lines. |
Flexibility | Offers features like call forwarding, voicemail, video conferencing, and more. | Limited flexibility. Additional features may require additional hardware or services. |
Scalability | Highly scalable, allowing easy expansion as the business grows. | Often difficult and costly to scale; requires new infrastructure. |
Call Quality | Superior call quality with advanced call routing and traffic management. | Call quality may be affected by network congestion, particularly for long-distance calls. |
Maintenance | Easier maintenance and updates. | Requires maintenance of physical lines and hardware. |
Conclusion
Upgrading to a VoIP switch is a strategic move for businesses aiming to improve communication efficiency and reduce telephony costs. By routing calls over the internet, VoIP switches offer advanced call management features, integration capability with different business tools, and greater flexibility.
Frequently Asked Questions
How do I choose the right VoIP switch for my business?
Choosing the right VoIP switch depends on your business's size, communication needs, and budget. Consider scalability, security features, and whether you need advanced routing options when selecting a switch.
Is a VoIP switch a good option for remote teams?
Yes! A VoIP switch is a perfect phone system for remote teams. Since it operates over the internet, employees can make and receive calls from anywhere, enhancing flexibility and communication.
What kind of security features do VoIP switches have?
VoIP switches offer security features such as end-to-end encryption, secure authentication, and firewalls, ensuring your calls are protected from cyber threats and unauthorized access.
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