Hardware

Every VoIP phone contains one or more codecs, and during call establishment, they share their lists of supported codecs. One phone, for example, may say “Hey stranger, I can support codecs A, B, or C”, and the other one will respond “Nice to meet you, I can support codecs “B, C, or D.” At this point, both phones recognize that they could converse in either B or C (this process is can easily be compared to two multilingual strangers meeting on the street, figuring out what languages they share, then deciding which of the shared languages to proceed in).

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