Telephone technology has come a long way since it was first invented by Antonio Meucci in 1876, we have moved into more sophisticated landline handset, into mobile telephones and also communicating across the internet through VOIP based systems. VOIP telephones use the same system as Skype and allows you to make and receive calls using the internet as a base.

When looking at VOIP telephone systems it is worth being aware of some of the top key words and phrases that are used so you are fully informed before you make your package choice. Here are just three key terms for you to be aware of.

VOIP – The acronym stands for Voice Over Internet Protocol and as already mentioned this essentially means using the internet to transfer an analogue signal into a digital one.

Wholesale Voice Termination – This is the process of routing the telephone call across from one provider to another until the call is connected from the call maker to the final call receiver. The process is – a tier 1 wholesaler essentially buys the connections between countries at a set rate (this is usually based on the amount of traffic they think they are going to need). As a wholesaler these connection services are then sold onto to other companies who offer them as a white label service. The next important element in this exchange is the tier 2 provider. When the call is connected from the provider to the intended recipient a tier 2 is essentially providing the route that the call is taking over the internet. In simple terms Tier 1 has capability of sending calls over an international network on a physical basis, Tier 2 rents part of the network from tier 1 and can then sell on services to its customers – like a white label service.



Soft Phone – This is a type of IP telephone software that effectively lets you send and receive telephone calls over the computer or tablets etc using the Internet as its base. This would require the need for a speaker and microphone, whether this is built into the computer equipment or a stand alone on is purchased, is entirely up to personal preference.

There are lots more technical terms relating to VOIP phones that you may want to be aware of but essentially understanding what VOIP is, who the parties are involved in the transaction of the telephone call and the type of technology you can use on your computer equipment is a good place to start.

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