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Overview

Voice over Internet Protocol (VoIP)

Discover how VoIP delivers cost savings, flexibility, and advanced features for seamless communication across devices and locations.
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VoIP transforms how businesses and individuals communicate by enabling calls over the internet instead of traditional phone lines. This technology offers cost savings, flexibility for remote work, and advanced features like video conferencing and unified communications. With solutions like Microsoft Teams Phone, VoIP delivers a reliable, scalable, and all-in-one solution.
  • VoIP replaces traditional landlines by transmitting voice as digital data over the internet. 
  • Lower costs and easy scalability make VoIP ideal for businesses of all sizes. 
  • Advanced features like video calls, call recording, and unified communications boost productivity. 
  • Microsoft Teams Phone provides VoIP calls with quick setup and flexible device options. 
  • Perfect for remote and hybrid work, VoIP supports reliable, mobile-friendly connectivity.

What is VoIP?

Voice over Internet Protocol (VoIP), also called IP telephony, is a technology that enables phone calls over an internet connection instead of a traditional landline. It works by converting voice signals into digital data packets.

VoIP services offer key advantages for businesses and individuals, including:
 
  • Lower costs compared to traditional phone systems.
  • Greater flexibility for remote and hybrid work.
  • Streamlined communications across devices and locations.
  • Advanced features such as video conferencing and unified communications.

Make and receive VoIP phone calls with Teams Phone

Microsoft Teams Phone supports VoIP calls to anyone—whether they’re on a landline, a mobile phone, or using the Teams app.

Make VoIP calls right away

Start making VoIP calls from Teams Phone to anyone using Teams—no setup required. Learn how

Use flexible setup options

Make calls from Teams Phone with or without a connection to the public switched telephone network (PSTN). Learn how

Make video calls

Turn on your video to talk face-to-face with one person or a group no matter where you are. Learn how

Keep your existing connection

If you prefer to keep using the traditional phone network, Teams Phone can connect through that too. Learn how

How does VoIP work?

VoIP works by converting your voice into digital data and transmitting it over the internet instead of a traditional phone network. The process starts by capturing your voice through a microphone, converting it into digital packets, and sending those packets across the network. At the recipient’s end, the packets are reassembled and converted back into audio. This technology supports voice calls and video calling, messaging, conferencing, and integration with cloud apps such as Microsoft Teams.

VoIP features

VoIP calling features deliver all the capabilities of an enterprise phone system, including call routing, screen sharing, call recording, and call queuing—to help businesses stay connected and improve communication efficiency.

Call management
Use AI-powered features like automatic call routing based on time, location, and availability.

Screen sharing
Share your screen during a call for better collaboration and productivity.

Call recording
Record a voice or video call for later reference so you can focus on the conversation instead of taking notes.

Cloud voicemail
Access and listen to your messages anywhere, anytime, on any device.

Call queues
Set up greetings, hold messages and music, and voicemail to manage incoming calls professionally.

Device compatibility
Using Teams for VoIP calls means you can choose from a wide range of devices such as headsets and speakerphones—with flexible payment options.

VoIP benefits in Teams

Using VoIP in Teams delivers cost savings, flexibility, and advanced features such as video, messaging, and unified communications. Sign in to Teams.

Cost savings 
Eliminate long-distance and international call charges—an internet connection is all that’s required. Compare plans and pricing.

Remote and hybrid work connectivity 
Collaborate face-to-face from any location using VoIP to make video and conference calls.

All-in-one solution 
Stay focused and in the flow of work with an all-in-one solution for calling, chat, meetings, and collaboration.

Device flexibility 
Choose from a variety of devices for every situation—such as headsets and speakerphones—with flexible financing options.

Quick setup and management 
Easily add, monitor, and manage voice and video calling from the Teams admin center.

Reliable, flexible, mobile calling 
Make high-quality voice and video calls from any location, at any time, since VoIP calling is as reliable as your internet connection.

Easy scalability 
Scale your VoIP phone systems up or down as your business evolves—without adding or removing physical lines.

Benefits of VoIP phone system for small business

A small business VoIP phone system offers a modern, cost-effective way to stay connected and competitive. Key benefits include:

Lower operational costs 
Avoid expensive landlines and reduce long-distance or international calling fees. Pay only for the extensions and features you need.

Remote work flexibility 
Make and receive calls from laptops, smartphones, or tablets—ideal for working from home, client sites, or coworking spaces without missing important calls.

Easy scalability 
Add new team members or departments without extra hardware or complex installations. Perfect for growing businesses or seasonal staffing needs.

Professional appearance 
Present a polished, larger-business image to clients with custom greetings, call routing, and voicemail-to-email.

Business continuity 
Ensures calls continue during power outages or internet disruptions with cloud-based VoIP, connecting through mobile devices or alternate locations.
RESOURCES

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Gartner® Magic Quadrant™ for Unified Communications as a Service

Microsoft named a Leader in the 2025 Gartner® Magic Quadrant™ for Unified Communications as a Service1
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Frequently asked questions

  • Voice over Internet Protocol (VoIP), also called IP telephony, is a modern communication technology that enables voice calls over an internet connection instead of a traditional telephone network. It works by converting voice signals into digital data packets that travel securely across the internet, allowing users to make and receive calls from virtually anywhere.
  • A VoIP number is a phone number assigned to a VoIP service. Unlike traditional landline numbers tied to a physical location, a VoIP number works over the internet. This means you can make and receive calls from any device—computer, smartphone, or VoIP-enabled desk phone—anywhere that has a reliable internet connection.
  • A VoIP phone is a device or application that uses VoIP technology to make and receive calls over an internet connection instead of a traditional telephone network. VoIP phones can be physical desk phones designed for IP calling or software-based apps (often called “softphones”) that run on computers, tablets, or smartphones.  
  • VoIP phone service offers several advantages over traditional telephony. It significantly reduces costs, works anywhere with a reliable internet connection, and delivers advanced features such as video calling, call forwarding, and integration with collaboration tools. VoIP is highly scalable, making it ideal for growing businesses. It’s also simple to install, configure, and maintain—no complex hardware required.
  • VoIP phones come in several types: desk IP phones that connect directly to the internet, softphones that run on computers or mobile devices, wireless VoIP phones for mobility, and video phones with built-in cameras for conferencing. Analog phones can also be used with VoIP service through an adapter.  
  • VoIP uses the internet instead of costly landlines, reducing expenses and offering advanced features like video calls and conferencing, call forwarding, and app integration. It’s highly scalable, easy to set up, and works anywhere with a reliable connection—making it more flexible and future-ready than traditional phone systems.
  • Yes. VoIP calling requires a VoIP app or software, VoIP-enabled devices, and a reliable internet connection. Learn more and get started.

    Most mobile devices make it simple, even for individuals—just switch from LTE to Wi-Fi calling in your device settings. When you’re connected to Wi-Fi, your calls will use your internet provider instead of your wireless carrier network.
  1. [1]
    Gartner and Magic Quadrant are trademarks of Gartner, Inc. and/or its affiliates. All rights reserved.

    Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

    Gartner, Magic Quadrant for Unified Communications as a Service, Worldwide, by Pankil Sheth, Megan Fernandez, Rafael Benitez, Nitan Narang, 22 September 2025. 

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