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What is a VoIP Phone System and Why Do You Need It?

voip phone system

If you did not hear about it before, VoIP is the acronym for Voice over Internet Protocol. Now, you might be thinking that you have never used such a service when in reality you have. Does that come as a surprise to you? Well, most of the people reading about this fact would be! Some of the examples of a VoIP phone include FaceTime, Skype, and Google Voice. This service might not attract residential clients as there is nothing much for them in it, honestly. But small businesses can save a lot by switching to these.

Here is your detailed guide regarding the service.

How Does a VoIP Phone System Work?

It will get technical from here. VoIP converts your voice call into a digital signal. This signal gets sent via the Internet only to reach a non-VoIP number. Here, the travelling signal gets transformed into a standard telephone signal. The best part is that you do not always need a mobile phone or landline to make a VoIP call. Instead, you can make use of other devices including laptops or tablets. Apart from that, VoIP phones or an ordinary phone that is connected to VoIP adaptor also performs the same function.

The voice signal in VoIP gets broken into data packets just as it does in a normal call. These packets travel over the Internet only to reassemble at the destination. The best part about this service is the cost-saving aspect. Hence, making a VoIP phone system for small businesses a hit.

How VoIP Doesn’t Work?

Although reading about the cost-saving option that VoIP fascinates many, it is not all pros for this service as well. No doubt that when compared to traditional phone service, VoIP is superior in far many ways. However, you should know about a couple of weaknesses. To begin with, you always need an Internet connection. However, the company that you purchase the plan from does not matter. From Verizon plans to AT&T, you can opt for any.

But you would know that you cannot afford for your Internet connection to be of low-speed. You need to subscribe to a service provider that offers stable and high-speed Internet. As downtime would only mean your calls getting disconnected. Moreover, the power outage is very likely to affect your connection as well. As opposed to traditional landlines that can function even when there is a power outage.

However, you should know that regardless of you opting for VoIP business phone system, blazing fast Internet and a power backup are necessary anyway.

VoIP vs. Traditional

Whenever VoIP gets discussed, a comparison between traditional and VoIP is almost inevitable. People often ask the question as to why they should choose VoIP over the traditional landline. The truth is that the trend of opting for a landline is decreasing. In fact, in the future, you might not even find PSTN. But this should not worry you as VoIP offers just as many features as that of a landline. It offers more.

So, the next time someone asks why you chose VoIP, you should be able to back up your choice with the strengths that it offers. For example, it is less costly. Apart from that, you save the cost of having to pay for two services i.e. the Internet and phone. As VoIP works on the Internet.

However, there are some weaknesses that the VoIP phone system has as well. And you cannot ignore them altogether. These include VoIP failing to perform if there is a power outage.

Why Should Your Company Consider It?

If you are running a small business or are about to kick-start one, you will have to choose between a VoIP phone and a traditional phone system. This section throws light on why you should go with the former. If you have to call many clients and customers in a day, it is only fair to opt for VoIP as even the cheapest phone plans would cost you a lot if you make hundreds of calls every day.

You and your employees will notice a change after you make a shift from the traditional method to the modern one. Moreover, the performance of VoIP is far better than landlines. But here is a catch, if your company is working on making calls from outside the office as well, then mobile data will be more costly. Under such circumstances, a business should opt for a business cell phone plan.

VoIP Phone Features

Having discussed ways in which VoIP is better than landline, it is time to discuss the features that a standard service offers. You will find the following features in the business plans of basic service:

  • Web-based administration
  • Hold music
  • Caller ID
  • Auto-attendant
  • Call transferring
  • Video conferencing
  • Ring groups
  • Conference bridging

There are many more features but these are worth noting ones.

Some More Advantages that You’d Enjoy

It does not end with a list of features. You can relish many more advantages once you opt for a VoIP phone. These include the following:

Virtual phone numbers

A VoIP user has the liberty to choose a phone number with any area code that he wants regardless of his actual location. Because VoIP numbers are not attached to any location. For example, your company does much of its business with clients in Florida. However, you operate from Texas. This should not be an issue as your company can still use a business number that has Florida code.

Number Portability

You would know the pain and hassle that it brings when one has to change a phone number if he is moving. However, this is not the case with VoIP. As you can continue using the same number for the rest of your business’s life no matter what. This comes as a relief for many. Because a VoIP is not attached to a copper line. So, moving states or cities do not make much pf a difference to the number’s health.

Multiple Device Ring

Apart from all the other advantages, multiple device rings is also an amazing feature. This feature, in particular, means that you can make calls using any of the devices that support the Internet (mostly) to make a call. Moreover, it is also a beneficial feature for the customers or clients who can receive calls on any of their devices as well. Thus, making it a favorable option.

Hosted or Cloud?

Now that you know that what is a VoIP phone system, there is something regarding the service that you still are not aware of. So, this section will enlighten you about the hosted vs. cloud VoIP. Many people use the two terms interchangeably. However, this is not the right way to go about it. Although both of them use the Internet, there is a difference between the two.

A cloud VoIP gets monitored by your service provider. On the other hand, a hosted VoIP gets managed by your business. Moreover, the latter works on the on and off-premises rule. So, if you are in the office, you can use the hosted VoIP number. Otherwise, you can’t.

That is pretty much about it. I hope you learned many new things regarding VoIP in this blog.


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