Popular VoIP Terms and What They Mean to Your BusinessVoice over Internet Protocol (VoIP), is the process of making voice calls using a broadband Internet connection instead of a regular (or analog) phone line. With its low costs, ease of use, and numerous features, it is no wonder that more and more companies are adopting this technology. With the rise of this technology, different VoIP terms have grown up. In this guide, we’ve described ten popular VoIP terms to understand the technology and what they mean to your business.

10 Popular VoIP Terms and Acronyms To Know

Telecom terms and acronyms can be confusing, particularly when discussing VoIP. Here are the terms defined to make VoIP seem less intimidating and easy to understand:


Voice over internet protocol.  In the 90’s, data was transmitted over the phone network.  Now voice communication is transmitted over data networks, like a MPLS network.  It’s just a better use of resources. If your organization is still using outdated phone equipment then hosted VoIP is the best option to move forward.

Dynamic Bandwidth:

Instead of the traditional segmented integrated T1’s, integrated T1’s today offer dynamic bandwidth.  That means that whatever bandwidth that is required to place a phone call is freed up when the call is completed.  Dynamic bandwidth is offered by almost every provider, including Qwest, Integra, TW Telecom and XO.

Class of Service:

Class of Service allows the prioritizing of real time traffic, like voice and video, over traditional data traffic.


Quality of Service.  Term to describe the voice quality on a Voice over IP service.  QoS is improved by managing the jitter and latency levels on the internet service that the VoIP rides on.


Jitter is the variation in the time between packets arriving, caused by network congestion, timing drift or route changes.  Jitter has the biggest effect on the quality of speech on a VoIP circuit.


Delay on an internet connection.


Session Initiation Protocol in business is a voice path over the internet that allows for voice communication over almost any business internet connection.

Prioritizing Traffic:

What’s necessary to assure quality voice communication, like SIP. over the internet.  Real time traffic, like voice and video, is given a priority over data traffic.


A way to reduce the amount of bandwidth necessary to make a phone call.  By using compression, there can be more simultaneous phone calls on an internet circuit.  Compression can have a negative effect on call quality and fax transmissions, however.


Multi Protocol Label Switching is a private network on the public internet where priorities can be set where real-time traffic, like voice and video, takes priority over data traffic.

Final Thought

VoIP technology has revolutionized how businesses communicate. The VoIP terms discussed in this blog, such as SIP, QoS, Jitter, and VoIP, are just a few of the many important concepts that businesses should understand to fully leverage the benefits of VoIP. Understanding these terms and how they relate to your business will help you make informed decisions about your communication systems, improving the overall efficiency and productivity of your organization.

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