Voice over Internet Protocol (VOIP) is a technology that enables telephone services to be provided over the internet. The technology requires hardware to convert analog phone signals into digital signals which are then transferred using the internet. Often PBX services are also provided. Hosted VOIP is an application of this technology where the VoIP equipment, servers and services are hosted by a third-party provider that manages telephone calls and routes them to and from the subscriber’s existing phone system.
It is sometimes referred to as ‘managed VoIP’ and can save a company from the potentially expensive costs of investing and implementing VoIP equipment on their own premises and having to manage the system. To operate properly this technology requires a connection to the internet that has sufficient bandwidth (the rate at which data can be sent over the internet) to carry the information.