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Your Complete Guide To Understanding The VoIP Phone System

Joe Calvin by Joe Calvin
June 18, 2025
in Tech
0
white label hosted PBX
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VoIP refers to voice over Internet Protocol. It has many names such as Internet telephone, Internet calling, or IP telephoning. VoIP was born an alternative to the public switched telephone network (PSTN). VoIP systems transmit voice over IP networks at the root level. It is simply a way of calling someone over an Internet connection instead of using a landline. Recent Internet advances have made this the standard means of communication for businesses that want future-proof and reliable communication. VoIP has a consistent and dependable status in the market.

An excellent example of the VoIP system is a private automatic branch exchange (PBX). PBX was initially designed to use a few connections over many access lines to the public network. This network was also referred to as the public switched telephone network [PSTN]. A PBX system works by using phone lines that connect to the phone systems present on site. The phone lines connecting PBX to the PSTN are called “trunks.” A PBX system is a phone switch generally used to connect attached phones. When an incoming call from a trunk line arrives, the PBX will typically send it to one of the locally attached phones.

Modern PBX today relies on a voice over IP protocol and is usually hosted by a VoIP Service Provider. It can create a good added value for MSPs to bring to their clients. If you want to add PBX services to your company’s product portfolio, check out white label hosted PBX.

VoIP is a superior technology because it is greatly extendable and easy to deploy. Opting for services or systems utilizing this technology allows the business to cut communications costs. Hosted VoIP service eliminates the need to pay for PBX hardware and phone lines.

How does the VoIP system work?

Plain Old Telephone Service (POTS) utilizes the traditional infrastructure of telephony. However, in the case of VoIP service, calls get transmitted differently. The audio which you send from your site gets converted into a digital packet.

CODECs do this digital to analog packet conversion.

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Codecs can either be hardware or software-based. They are responsible for sampling the analog voice signals and then converting them into digital signals. The data packets then get transmitted via IP. The transmission can either happen over the Internet or across a local area network. The actual voice data packet often gets sent using a real-time transport protocol [RTP] or secure real-time transport protocol [SRTP]. SRTP is an encrypted version of RTP.

Once the data packets reach the intended recipient side, they are decoded, decompressed, and converted into audio signals.

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Therefore, the recipient hears your voice like it would be a standard phone line. Aside from the technicalities, making a VoIP call is not very different from a regular phone call. If you plan to get VoIP installed in your customer’s business, you should sign up for or contact white label VoIP providers. They offer turn-key VoIP services, management, and tech support of white-label hosted PBX. These services can generate recurring income for your clients and allow you to stay ahead of your competition.

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Tags: white label hosted PBXwhite label VoIP providers

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