What does the term "Codec" refer to in VoIP communications?

The term "Codec" in VoIP communications refers specifically to a method for compressing and decompressing audio data. This process is crucial in Voice over Internet Protocol (VoIP) as it allows for the efficient transmission of voice signals over the internet. By compressing audio data, a codec reduces the bandwidth required for voice communication, making it possible to transmit calls even on limited network capacities. When the data reaches its destination, the codec decompresses it back into its original form, ensuring that the audio quality remains acceptable for communication.

This functionality is essential in optimizing both the clarity of voice calls and the efficiency of network resource usage. The choice of codec can significantly affect the call quality, latency, and overall user experience, making it a fundamental concept in VoIP technology.