If you've got questions about business VoIP, we've got answers! These FAQs answer everything about VoIP pricing, providers, and more.
WRITTEN & RESEARCHED BY
Editor & Senior Staff Writer
Last updated onUpdated
REVIEWED BY
Managing Editor
More businesses are moving away from outdated legacy phone systems and are now turning to VoIP.
Before switching your phone carrier, signing up for service for the first time, or attempting to navigate your new VoIP system, check out these VoIP frequently asked questions to learn more about this technology.
Table of Contents
Unsure of what VoIP is or how it works? Start here with these general questions about business VoIP.
VoIP stands for Voice over Internet Protocol.
VoIP is technology that allows you to use a high-speed internet connection to make and receive phone calls.
Check out our post on what is VoIP for business to learn more about this technology and how it can benefit your business.
VoIP converts analog voice signals into digital packets, which are transmitted through an internet connection. Before reaching the other caller, these digital signals are converted back into analog signals.
This is just a basic overview, and the process of how VoIP works is actually pretty complex (and very interesting, if you’re into that sort of thing!)
The primary way that VoIP is different from traditional landlines is that it uses the internet for making and receiving calls, while landline systems use copper wiring.
VoIP has many benefits. More features and communication tools are available through VoIP. Call clarity and reliability are often better with VoIP.
Despite these advantages, VoIP is typically cheaper than landline service.
There aren’t many drawbacks of VoIP. However, the service will not work if you do not have internet. Service may also be spotty if you have unreliable internet.
Your service will also be unavailable if you have a power outage (although there are ways to mitigate this issue, which we’ll discuss later).
In many ways, VoIP is better than traditional landline service.
VoIP is generally more affordable, offers more features, and has better call clarity than landlines.
Yes, high-speed internet is required to use VoIP.
According to the Federal Communications Commission, VoIP calls require a minimum download speed of less than 0.5 Mbps.
This is just a minimum requirement, and faster speeds will result in more a more reliable, stable system with higher call quality.
Talk with your ISP and VoIP providers to find the best options for your business.
VoIP will not work during a power outage. However, you can avoid being without service by using a backup power source or by setting up automatic call forwarding.
Yes, most VoIP providers use encryption to protect your privacy when making calls.
One of the benefits of VoIP is that you can set up the system yourself without needing an on-site technician.
As long as you have an active VoIP calling plan, an internet connection, and hardware, you can have your system up and running within minutes (in most cases). Setting up features and configuring your system may take a bit longer but all can generally be done yourself.
If you struggle during the process, most VoIP providers offer customer support and self-help resources to guide you through the process.
From general pricing to free VoIP options, these FAQs address the costs of business VoIP.
There are a few costs associated with VoIP phone systems. This includes:
The cost of your monthly VoIP plan varies by factors including your provider and the features you need.
Basic VoIP plans may cost as little as $10 to $20 per month, while feature-rich plans with multiple users and lines can cost hundreds of dollars (or even more) per month.
The cost of a full VoIP business phone system is influenced by a number of factors.
The number of users, provider pricing, features, add-ons, integrations, and hardware can all affect the cost of a phone system.
A system with a basic calling plan with minimal or even no hardware may cost $20 or less per month.
On the other hand, businesses that need multiple phones, add multiple users, and select a more expensive plan can easily pay hundreds of dollars per month for their phone systems.
While free VoIP is available, these options are usually only suitable for personal use.
Most free VoIP programs are unsuitable for businesses as they offer very limited features.
These frequently asked questions can help you choose the right VoIP provider for your business.
When shopping for a VoIP provider, look for competitive pricing, a good mix of features, good customer service, excellent security features, and solid customer reviews.
With so many VoIP providers, it’s hard to make a decision. Start your search with our picks for the best VoIP business phone system providers.
You can get one or more different types of phone numbers from your VoIP provider, including:
Yes, many VoIP providers offer free trials so you can try before you buy.
VoIP providers that don’t offer free trials may offer a demo so you can at least get an idea of what to expect if you sign up.
Before signing up for a VoIP plan, learn more about picking a plan and what to expect with this set of frequently asked questions.
No, in most cases, your VoIP plan does not include internet service.
However, your carrier may offer VoIP and internet bundles that can help you save money.
To choose a VoIP plan, start by setting a budget. Next, consider the features your company needs and will actually use. Finally, make sure to compare your options to find the right fit at the right price.
Many VoIP providers have month-to-month contracts. However, some providers may require a long-term contract.
You may also be required to sign a contract if you lease equipment or take advantage of a special promotion.
In most cases, you can bring your existing phone number to a new VoIP provider. This is known as number porting. Some carriers will provide this service for free, while others may charge a fee.
Hosted VoIP is also known as cloud-based VoIP. The hardware and software are managed by the VoIP provider.
This is a convenient option for many businesses, as they won’t have to keep or maintain physical infrastructure on the premises.
On-premise VoIP requires hardware to be installed at a business’s physical location.
This option is best for larger businesses with IT experts on staff to manage and maintain the system.
Session Initiation Protocol (SIP) trunking connects an on-premise phone system to the public switched telephone network (PSTN) to allow users to make and receive phone calls.
You can sign up for SIP trunking through SIP providers.
No. SIP trunking is generally used to allow existing phone systems or newly installed on-premise systems to be used with VoIP.
Depending on the phone system you want for your business, here’s what you need to know about purchasing and using VoIP hardware.
No, you do not need to purchase a phone to use VoIP. A softphone is an option you can use if you don’t want to purchase hardware.
However, if you want a traditional desk phone, these can be purchased for use with your VoIP phone systems.
A softphone is software that allows you to use your smartphone, tablet, desktop computer, or laptop to make and receive phone calls.
Most providers offer desktop and mobile apps that you can download at no cost.
There are several types of IP phones to choose from. This includes basic phones, cordless phones, and conference room phones.
Yes, you can use an analog phone with VoIP. However, you will need to purchase an analog telephone adapter (ATA) to make it compatible with VoIP.
Other VoIP accessories and hardware include hands-free headsets, VoIP gateways, and analog telephone adapters.
A computer is not required to use VoIP.
VoIP hardware like adapters and basic desk phones can be purchased for around $50 or less. Top-of-the line conference room phones that are loaded with features may cost upwards of $1,000.
Fortunately, there are hardware options for just about any budget.
We do not recommend leasing or renting VoIP hardware.
While these arrangements lower your upfront costs and allow you to make smaller payments over time, the overall cost usually ends up being far more expensive.
Additionally, leasing your equipment requires a contract, which isn’t ideal if you’re unhappy with your service and want to switch carriers.
One of the biggest benefits of VoIP is the range of features it offers. Here’s what you should know about VoIP features.
There are lots of features available for VoIP phone systems, although offerings vary by provider.
Most providers offer basic calling features, such as call waiting, caller ID, and three-way calling.
They may also offer more advanced features such as interactive voice response (IVR), auto attendants, video conferencing, and more.
Add-ons are other features you can add to your monthly calling plan, typically for an additional monthly fee.
Add-on features include things like additional phone numbers, toll-free numbers, custom hold music, cloud storage, and advanced reporting and analytics.
Yes, you can make long-distance and international calls with your VoIP phone system.
Many providers offer free unlimited calling through the United States. Some also include free calling to Canada and/or Mexico.
International rates vary by provider. Some providers offer low-cost packages that allow you to call other countries for one low monthly rate (in addition to your monthly calling plan).
Integrations allow you to connect your VoIP platform to third-party software and apps.
The most common types of VoIP integrations are with popular CRMs, although you may be able to connect with email accounts, online calendars, and other programs based on what’s offered by your provider.
The term Unified Communications (UC) is used to describe a suite of communication tools integrated within a single platform.
Many VoIP phone systems meet this criteria, allowing users to make and receive phone calls, send SMS and MMS messages, use instant messaging, manage social media, and more.
Get in touch with a real human being on the Merchant Maverick team! Send us your questions, comments, reviews, or other feedback. We read every message and will respond if you'd like us to.
Reach OutGet in touch with a real human being on the Merchant Maverick team! Send us your questions, comments, reviews, or other feedback. We read every message and will respond if you'd like us to.
Reach Out
Let us know how well the content on this page solved your problem today. All feedback, positive or negative, helps us to improve the way we help small businesses.
Give Feedback
Want to help shape the future of the Merchant Maverick website? Join our testing and survey community!
By providing feedback on how we can improve, you can earn gift cards and get early access to new features.
Help us to improve by providing some feedback on your experience today.
The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.
"*" indicates required fields
