Before we understand the working system of VoIP technology it is essential for us to understand the importance of a high speed internet connection. As the word itself explains, internet is inter-network. And information that flows between various networks is known as data.

There are certain protocols and gateways that assist, an organized flow of data, between these networks and thus all sorts of data get transferred from one to the other network. It is very similar to the way we employ barriers to guide the flow of traffic!

VoIP uses a good broadband connection to connect and proceed with VoIP call. Essentially once we have a good speed broad band connection installed we can choose from any one of the three ways to place a VoIP call, though the technology behind it would always remain the same.

How VoIP functions is that once VoIP call Originates, data from that computer travels to the server of the broadband service provider with cables. Data travels in small packets through specially designed call signal protocol. These VoIP routes carry any sort of analogue audio data that a dialer inputs into the system. This data gets converted into small digital format and packed into small packets to be transferred to the destination and similarly it receives data from the other network and this is termed as VoIP Termination

VoIP functions on a global platform, it is not necessary that all the three stages of VoIP take place in the very same place. The three stages namely are VoIP call origination, VoIP Routes and VoIP Termination.

It can be broadly categorized into three tiers. Tier one operators , may have the necessary infrastructure to generate the VoIP minutes (VoIP Origination) which could even be termed as calling minutes. While Tier three operators may be in need to purchase these calling minutes to facilitate VoIP Termination. While a Tier 2 operator will be one who has the facility to route the call for it to reach from tier one operators to tier three operators while all the three operators could be located on different continents! Thats magic of VoIP!