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VoIP Origination vs Termination: 5 Must-Know Differences (Updated 2025)

VoIP calls differ from traditional analogue phone calls in several ways, like their dependence on the internet, how call data is transmitted, and the core hardware used. In a landline system, incoming and outgoing calls typically follow the same physical pathway, which is provided by the physical copper wires. But, in the case of VoIP, calls are exchanged through the internet using different paths, and the process is divided into two parts.
In this blog, we’ll discuss both of these VoIP steps, the meaning of each term, and explain 5 major differences between them.

What is VoIP?

VoIP, or Voice over Internet Protocol, allows you to make and receive calls using the internet. VoIP uses internet signals, instead of a traditional landline system, which uses physical copper wires to transmit data.

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Components of a basic VoIP system

VoIP origination vs termination- 1

A basic VoIP setup consists of an internet service provider, a device like a smartphone, laptop, tablet, or phone, and a subscription to a VoIP package.

A VoIP system is flexible in its usage, unlike a landline phone that needs to be attached to a specific place in your office. VoIP lets you take the handset and device anywhere. Moreover, VoIP also offers additional advantages like integration with your existing business applications to provide advanced features. These might come at an additional cost, but VoIP has the potential to scale with your business, i.e., add more features if you need or exclude if you want to.

VoIP origination vs termination​: 5 Key Differences at a glance

VoIP origination VoIP termination
  • Incoming calls for your business.

  • The call is initiated by an external dialer.

  • Requires a VoIP number to receive calls.

  • IP packets are received and converted to analogue voice signals.

  • Your device is on the receiving end.

     

  • Outgoing calls made by your business.

  • Your business initiates the call.

  • No VoIP number needed to make calls

  • Voice is converted into digital signals and sent as IP packets.

  • Your device is on the sending end.

     

What is VoIP origination?

Origination refers to incoming calls. These are the VoIP calls that your business receives from your customers or any other VoIP dialer. The process starts when someone initiates the call and dials your number. From there, the call is routed via your VoIP provider to reach your internet-connected device. Your device is on the receiving end of the call here.

Qualities of a reliable VoIP origination service

Attaining a reliable VoIP origination service is important because it connects you to new customers and opportunities. It is important to know the signs of a quality service provider when choosing one. Before finalising an option and initiating a contract, you should also compare different providers and see which suits your business needs the best.

1. Missed or dropped calls

A good VoIP origination service should have a minimum rate of missed or dropped calls for a business. There are many reasons why some calls coming your way might get missed. It might be a problem at your end, like an unstable internet connection. In other cases, your provider could also be at fault with issues like poor routing, insufficient network coverage, and using heavy-traffic internet routes.

2. Availability of backup routes

In a VoIP network, your incoming calls are routed through different pathways over the internet to reach your end. In case of a technical difficulty, there should be an option to reroute calls over alternative routes. This lowers the rate of dropped calls and increases the reliability of the connection. Most of the businesses use a stable internet connection, so network congestion at busy times is a given. That’s also when the option of backup routes comes into play. Instead of compromising on call quality, calls can simply be routed through a different pathway.

3. Scalability

A reliable VoIP origination provider should have a comprehensive infrastructure that allows you to extend your area of network to more regions over time. Scalability is all about having the room for your communication system to meet the growing needs of your business. Adding or removing users to your system should be easy and remotely manageable with your chosen provider.

4. SLAs

Between a provider that offers SLAs and one whole doesn’t, you must choose the first one. Service level agreements are written documents that show what you can realistically expect from the service. It includes specific mentions of uptimes, minimum time for conflict resolution, customer support times, and more.

5. Customer support

Even with SLAs, guaranteed uptimes, vast infrastructure, and efficient internet connection, problems could still arise. The difference lies in how long it takes for it to get solved. Evaluate the customer support platform provided by your VoIP service provider. For this, you can also review experiences from past customers or check for ratings online.

What is VoIP termination?

VoIP origination vs termination- 2

Termination refers to outgoing calls, which are VoIP calls that your business makes. The process starts with you initiating the call by dialing a number. You don’t require a VoIP number to make outgoing calls.

Like any other VoIP process, call termination also requires an internet connection to take place. As long as the device is connected to the internet, it can be a laptop, a mobile phone, a landline deskphone, or an IP softphone.

Qualities of a reliable VoIP termination provider

Let us look at some of the qualities of a VoIP termination provider that are signs of a reliable service.

1. Affordable rates

A good VoIP termination service provider should offer competitive rates for calls. Depending on your business industry, whether your business makes or receives more calls, choose a VoIP origination and termination provider accordingly. Your VoIP provider should also offer affordable pricing for international calls.

2. International calls

If your business has a considerable international reach, make sure to choose a provider that can provide enough coverage. You should be able to make cost-effective and reliable calls to your international customers.

3. Security

Compared to analogue or traditional phone calls, VoIP ones are at a greater risk of eavesdropping because of the involvement internet. Any open ends in your system must be eliminated to avoid any call interruptions. Moreover, a reliable VoIP provider offers multiple security features, systems as dual password authentication, encryption, IPS, DDoS filters, and firewalls.

How do both VoIP origination and termination work together?

By now, we know the basic mechanism of VoIP, in which analogue signals get converted into digital ones and travel via the internet to transmit data. But in terms of today’s topic, let us explain how VoIP works in terms of origination and termination.

1 – When you make a call (Termination):

  • Your voice (analogue signal) is converted into digital signals.
  • These digital signals are sent to your VoIP provider’s network.
  • The provider converts them into small data packets (IP packets) to send over the Internet.

2 – When you receive a call (Origination):

  • The IP packets travel from the initiating end (the person calling) to the network of your VoIP provider.
  • They are converted back into analog signals so you can hear the voice on your speaker.

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FAQs

Origination means the VoIP calls you receive, and termination means the VoIP calls you make. You might find both terms confusing at first, but try not to take them at face value. It would be best to remember the terms with their meanings instead, like origination = incoming calls and termination = outbound calls.

Yes, to receive an incoming call, you must have a VoIP number allotted to you by your service provider.

Written by:

Picture of Sophia Taylor
Sophia Taylor
Sophia Taylor is a prolific business writer and tech enthusiast based in Edinburgh. Her career blends a love for writing with a fascination for technology, resulting in insightful articles for ComparedBusiness. Sophia holds a degree in Business Administration from the University of Edinburgh and has written for several esteemed publications.

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