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In this video tutorial, Tony from Nextiva discusses the hardware needed to set up a VoIP phone system. VoIP, or voice over internet protocol, uses the internet for calls instead of traditional landlines. To make VoIP phones work, a modem is required as the main gateway to the outside world. Ethernet cables are used to connect devices to the modem for internet access. It is important to research and choose the best modem for your business.