Many IT professionals use the terms “VoIP” and “IP Telephony” interchangeably because they are similarly integral to modern-day communications. There are, however, some differences that could make a difference for businesses seeking these solutions. 

In this blog, we'll delve into the differences between VoIP and IP Telephony to provide a clear picture of these two essential communication methods.

What is Internet Protocol (IP) Telephony?

IP Telephony encompasses technologies, products and services that allow voice calls, voicemail, video calls and conferencing, faxes and messages over the Internet. With these technologies, calls, faxes and messages are converted into packets of data that travel across computer networks. 

Key Features of IP Telephony:

IP Telephony empowers businesses with a selection of features to boost functionality and efficiency. Some of these features include: 

One Number

IP Telephony allows businesses to have one single phone number to use from different handsets. 

Hardware and Software

IP Telephony often involves both hardware (IP phones) and software (PBX systems) to facilitate voice calls.

Call Quality

IP Telephony is known for its reliability and call quality, which is essential for businesses that require high-quality voice communication.

Call Handoff 

One reason the calls are consistently high quality is call handoff, which allows users to switch from one device to another without audible disruption. Mobile phones can be connected to the phone system as well. 

What is Voice Over Internet Protocol (VoIP)?

Voice over Internet Protocol (VoIP) is a subset of IP Telephony that allows voice calls over the Internet. The term is used to describe a variety of services and applications, but the core principle remains the same: voice data is converted into packets and transmitted over IP networks.

Key Features of VoIP:

VoIP, while primarily a service for voice-based communication, includes a range of features and benefits for businesses. Some of these features include: 

Internet-Based

VoIP relies entirely on the Internet for transmitting voice data. It doesn't necessarily require a dedicated network like traditional telephony.

Software-Centric

VoIP often involves software applications or devices specifically designed for VoIP calls, such as softphones, VoIP phones, or smartphone apps.

Cost-Effective

VoIP is generally more cost-effective than traditional phone services because it utilizes existing Internet infrastructure and doesn't incur long-distance or international call charges.

Feature-Rich

VoIP services typically offer an array of features, including call forwarding, voicemail-to-email, video conferencing and more.

Integration

VoIP can be seamlessly integrated with other digital communication tools and software, enhancing productivity and streamlining communication.

Key Differences Between VoIP and IP Telephony

As we’ve outlined, VoIP and IP Telephony have some different features and, while they are overall similar, these can lead to some performance differences.

Scope

The primary distinction lies in the scope of services. IP Telephony is a broader term encompassing various communication modes, including video and multimedia, while VoIP is (at its most basic - there is some debate about this) solely focused on voice communication.

Hardware Involvement

IP Telephony often involves dedicated IP phones and Private Branch Exchange (PBX) systems, whereas VoIP can also function using software applications and standard computing devices.

Reliability and Call Quality

IP Telephony is renowned for its reliability and consistent call quality, while VoIP can vary in quality depending on factors like Internet bandwidth.

Use Cases

VoIP is versatile and suitable for both personal and business use. IP Telephony is primarily adopted by businesses seeking to modernize their voice communication systems while retaining a traditional phone system setup.

Which is Right for You?

The choice between VoIP and IP Telephony depends on your specific communication needs:

For Businesses

If you require high-quality voice communication with advanced features and the flexibility of integrating with other digital tools, IP Telephony might be the ideal choice. See how Statewide Windows & Doors implemented these features to become more flexible and capable operationally.

For Personal Use and Small Businesses

VoIP is a cost-effective and versatile option, offering a wide range of features suitable for individuals and small to medium-sized businesses.

Hybrid Solutions

Some organizations opt for hybrid solutions that combine both VoIP and IP Telephony elements to cater to diverse communication needs.

PanTerra Streams: Only the Features You Need

VoIP and IP Telephony are two integral components of modern business communications, each offering its unique features and use cases. However, in their overall use and purpose, they are essentially interchangeable. 

By understanding the distinctions between these two technologies, businesses can make informed decisions about which one aligns better with their communication needs. 

Do you want cloud-based communications solutions that only give you the features you need? PanTerra Streams offers just that. Learn more about our customizable pricing bundles for businesses: https://www.panterranetworks.com/pricing