History and Development of VoIP

For IP telephony, two technologies are needed: the VoIP phone and the internet. The first version of the internet was set up by the U.S. military in 1969, and by 1993, it became widely available to the public.

1995: VocalTec Introduces VoIP Calling

In 1995, VoIP calling was made possible by the Israeli company VocalTec, Inc. All callers needed a microphone and speakers, which were not standard on PCs at the time. However, the ability to make voice calls via the computer was new, and internet users invested in microphones and speakers. Software programs like Skype, ICQ, and VocalTec allowed users to make VoIP calls over the internet using the Internet Protocol.

A New Kind of Phone

With a microphone and speaker or headset, you essentially had a new kind of phone. You could call a relative in Australia for free via VoIP if they were using the same software. This was the first form of digital telephony and the first step toward replacing traditional telephony over landlines.

In 1998, solutions emerged for calls between PCs and phones, addressing the issue of not everyone having their computer on all the time. These solutions also allowed calls to users with new VoIP phones.

Internet and Existing Telephony Networks Linked

The internet and existing telephony networks were linked. If you connected with another Skype client, it was free. However, if you called a regular phone number, which required part of the call to go through the telephony network, you were charged a few cents. This gradually popularized VoIP telephony, leading to the creation of the first VoIP telephony platforms.

VoIP Calling: 25% in 2003

By 2000, IP telephony accounted for 3% of all phone calls, and by 2003, VoIP calling made up 25% of all calls. It grew rapidly as consumers used Skype and ICQ for expensive intercontinental calls, and international telecom operators handled calls via internet data connections, achieving significant savings.

The infrastructure also became simpler: data, VoIP calls, chat, and video all used the same connection, eliminating the need for separate phone lines. New VoIP calling plans emerged, and traditional landline telephony with physical exchanges was replaced by fiber-optic connections combined with VoIP telephony.

Multinationals and the Growth of Voice Over IP

Multinationals quickly recognized the benefits and transitioned from ISDN telephony to VoIP calling in the early 21st century, eliminating landlines. This also paved the way for outsourcing to call centers abroad. In 2000, Belfabriek was founded in the Netherlands, focusing on phone numbers, Interactive Voice Response, and business telephony.

How Does VoIP Work?

To transmit voice over a data network, the voice must be converted into small data packets and compressed. This is done by the VoIP phone or VoIP software (softphone) of the caller. During the call, these audio packets are sent one by one.

Upon arrival at the destination (the IP addresses of routers and phones), these packets are “unpacked” by the VoIP phone of the recipient, making the voice audible again. The VoIP telephone exchange of your provider handles this and adds various phone features like menu options or call queues.

Important for VoIP Calling: An Internet Connection

To reliably call via Voice over Internet Protocol, you need a stable internet connection and knowledge of your network, routers, and firewalls. For businesses, a good infrastructure is crucial: if your internet connection goes down, you won’t receive calls.

VoIP Calling or Call Forwarding?

For many entrepreneurs, VoIP calling isn’t the best choice: you’re dependent on a reliable connection for internet-based calls.

Many companies opt for the IVR variant: forwarding incoming calls over landline and mobile networks to a mix of mobile phones and VoIP devices.

For many startups, this is the ideal mix: they benefit from an online telephone exchange without relying solely on an internet connection. This option also uses modern mobile networks, which are much more reliable. While there are forwarding costs, they outweigh the costs of an internet connection and its management.

Always consider what’s best for your business: do you want flexible call forwarding without relying on a single connection, or are you based at a fixed office location with a stable connection and a dedicated system administrator?

Why VoIP Calling is Interesting for Your Business

Aside from a simpler infrastructure and lower costs, VoIP calling offers several key benefits for SMEs:

  • Old landline telephony ties your phone number to a physical address and a fixed device. Today, phone numbers first arrive at your business telephony provider’s data center.

    From there, you can decide what to do with them: forward all calls via VoIP telephony to your internet connection or forward them via landline and mobile networks to a mix of phones and colleagues working remotely as part of your phone team.

  • Location Independence: This is a major advantage of VoIP telephony. The combination with mobile telephony is powerful, offering the convenience of being reachable on your business number anywhere.

    This is also useful if you or your colleagues work from home or want to create a virtual team to handle incoming calls.

  • High Sound Quality: A VoIP connection has no static because it’s fully digital. All EU countries now have high-speed internet connections, ensuring excellent Voice over IP quality.

  • Always Reachable: Traditional telephony can be disrupted by issues with the company’s exchange, phone cables, or local exchanges. VoIP offers better reliability with a stable internet connection or business telephony using mobile numbers.

We offer hosted VoIP telephony solutions for smart small and large businesses. Consider whether you want to rely on your internet connection or prefer a solution based on call forwarding through our Interactive Voice Response platform.

Want to learn more about cloud telephony or get a new business phone number? Contact us or register your own 085 number today!