The functioning of wireless VoIP phones is similar to that of regular VoIP phones but Wireless VoIP phones combine VoIP technology and Wi-Fi (wLAN) systems. Users need to be in the range of the wireless node in order to make and receive calls. And when they are in the Wi-Fi's reach, they are able to do a lot of the same calling functions enabled by regular desktop VoIP phones. When one is already equipped with a wireless local area network as well as VoIP phones, adding wireless VoIP phones can be a logical step.

Wireless VoIP phones are also known as VoWLAN or voice over wireless local network areas and Wi-Fi phones. The working of wireless VoIP phones involves a data network to which Wi-Fi equipment is connected. The network itself can either be independent, or connected to the Internet or the public phone system. The equipment enables high-speed wireless connection to unlimited access points.

Each access point has an antenna to catch the signal from the Wi-Fi equipment and broadcast it in a 300-foot radius or a hot spot. Within the radius all Wi-Fi enabled laptops, personal digital organizers and wireless phones can tune into the signal.

In wireless VoIP phones, the voice is converted into segments of data for transmission from the phone antenna to the Wi-Fi radio waves and then received by the data network. Here the data segments reverse the process to reach an extension or the traditional phone network. In other words, an extension can be carried around.

Although there is no argument about wireless VoIP phones being advantageous, they have their share of shortcomings as well. Fore one, they can not yet completely replace hard-wire VoIP phones mainly due to lack of reliability and the limited functions of wireless phones currently available in comparison to desktop phones.

However the biggest disadvantage in wireless VoIP phones is the limit on the number of simultaneous calls that can be made. The maximum number of calls in each wireless system cannot exceed five or ten. This seriously undermines its call handling capability in a large corporate environment.

Nevertheless, the dramatic reduction in operational costs has made it possible for wireless operators with high quality compressed VoIP to bring the ease and comfort of cordless calling to the VoIP world.