What Is VoIP For Business?

Business phone systems are critical for many businesses, allowing employees to communicate internally and connect with customers. In the past, business phone systems have been complicated and expensive, requiring professional installation and maintenance and bulky equipment.

Fortunately, business VoIP phone systems are changing the game, providing businesses with a reliable phone system that’s easy to install and even boasts added features you won’t find with your old landline.

If your phone system needs a major upgrade, keep reading to learn more about business VoIP.

What Is Business VoIP? The Quick Answer

Business Voice over Internet Protocol (VoIP) is a more modern way to send and receive phone calls. Instead of the copper lines used with traditional landline service, VoIP utilizes your internet connection.

Many businesses are switching to VoIP phone systems because they can receive high-quality phone service that’s more affordable, accessible, and flexible than landline systems.

How Does Business VoIP Work?

To understand how VoIP works, we first have to look at how traditional landline systems work.

When you speak into the phone receiver, the soundwaves of your voice pass through a disc called the diaphragm, which converts these sound waves into electrical signals. Through copper wires, these signals are routed to the central office of your telecommunications company.

At this point, the electrical signals are converted back to sound waves and delivered to the other person on the call.

VoIP works quite differently. When making a call, your voice is converted from an analog to digital format, which is then broken down into packets. These packets are sent through your internet connection to the VoIP provider’s server, where the data is compressed and routed to the other caller.

Before reaching the other caller, the packets are reassembled back into an analog format. Once this is complete, the person on the other end of the line will hear your voice.

All technical jargon aside, what it boils down to is this: traditional landline phone systems use physical wires for phone calls, while VoIP uses an internet connection. Further along, we’ll see exactly why this matters and how VoIP is becoming the more popular option for business owners.

The Phase-Out Of Plain Old Telephone Service

In 2019, the Federal Communications Commission granted telephone carriers permission to no longer be required to support the old copper wire telephone systems that provide POTS — Plain Old Telephone Service.

While some carriers hesitated to initially abandon these systems due to the time and expense required to update old infrastructure, more are now moving forward and shifting to modern systems that rely on fiber optics and ethernet.

Old copper-wire-based systems are expensive to maintain, and these costs will have to be passed down to customers. Telephone service that isn’t as reliable, flexible, or affordable as modern systems just doesn’t make sense for telecommunications providers or consumers.

As the old systems are phased out, businesses will have to look at other options for telephone service, such as VoIP.

What Are The Different Types Of Business Phone Systems?

We’ve provided an overview of VoIP and basic landline phone services. However, here’s a more comprehensive breakdown of different types of phone systems.

While it may sound confusing, you’ll be relieved to know that most businesses will do well with a VoIP system. Unless you’re a very large business, you won’t need a completely customized, overpriced system. And VoIP is more convenient and affordable than the basic business phone systems of the past.

What Is Unified Communications?

Another term you may hear while researching business phone systems is unified communications (UC). UC integrates enterprise communications channels using hardware, software, apps, and services. This solution may include things like voice calling, SMS messaging, instant messaging, video conferencing, Push-To-Talk (PTT) services, and email.

If you operate a large business that relies heavily on different forms of communication, this may be an option worth exploring.

What Is SIP Trunking?

You may also encounter the term Session Initiation Protocol trunks, or SIP trunks, in your research. SIP trunks or Session Initiation Protocol trunks. While the terms SIP and VoIP are sometimes used interchangeably, they aren’t the same thing.

We’ll keep it simple: SIP trunks make it possible to send and receive VoIP calls, but also supports other forms of communication such as video and messaging services. Many modern VoIP providers also use SIP to provide additional services beyond simple phone calls.

VoIP Service Benefits

While traditional landline phone systems have been used for decades, VoIP phone systems are on the rise and quickly taking over — and for good reason. Here’s a breakdown of the benefits of using VoIP over landline services.

• Flexibility: The internet has helped us become more mobile than ever, and this is no exception when it comes to VoIP. Through this type of phone system, phones can be made and accepted through a regular phone, cellphone, or even a desktop or laptop computer. Employees will no longer have to be chained to their desks or risk missing an important call.
• Scalability: With VoIP, you don’t have to worry about the time or costs of having new wiring and infrastructure installed for a new location or for additional phone lines. Additional lines can be added quickly and easily by simply contacting your VoIP service provider.
• Better Call Quality: Background noise, disconnected calls, and those annoying voice echoes are a thing of the past with VoIP. Call quality is significantly better on these systems, provided you have a stable, reliable internet connection.
• Fewer/Shorter Outages: Damages that occur to landline phone wires can take days to repair. While your internet isn’t immune from going out, repairs are often made far more quickly, getting your phone system up and running again sooner.
• More Affordable: VoIP phone systems are more affordable than a traditional landline business system, from repairs to equipment. We’ll discuss the financial benefits in more detail in the next section.
• Easy Setup: Landline service relies on physical connections, and often require a technician to come into your business to get your service working — a process that could take days or longer. Signing up for and setting up VoIP is much faster and easier, typically allowing you to be using your phone system within just minutes without requiring an on-site technician.
• Advanced Features & Integrations: VoIP goes beyond your every day phone calls. Depending on your provider’s offering and your selected plan, you could have access to great business features like call recording, video conferencing, transcription, and integrations with business software and apps.

Business VoIP Financial Benefits

Despite being more technologically advanced and offering more overall benefits, VoIP is actually more affordable than old-school landline systems. Here’s how you’ll save:

• Setup/Installation Fees: If your business isn’t set up for landline service, a technician will be required to come out to perform tasks like install wiring or set up equipment. In addition to charges for equipment, other installation fees from the phone company may apply.
• Repair Costs: If your phone system stops working and requires the assistance of a technician, you may be charged service fees by your phone provider.
• Costs To Scale: Additional costs can be piled on if you need to add more lines to your system or add service to another location.
• Monthly Charges: The monthly charges you’ll pay for VoIP service are often much cheaper than traditional phone service.
• Additional Features: Additional features and services like long-distance calling are often lower with VoIP service providers.

When you choose a new provider or switch providers,  do the research and ask about monthly charges, extra fees, and contract requirements before signing up.

Also note that while new customer deals are great for saving money upfront, make sure you know what to expect in terms of cost once your promo expires.

Should You Make The Switch To Business VoIP?

With all of this being said, should you make the switch to business VoIP? In our opinion, it’s a smart move to switch to business VoIP. As we’ve discussed in this article, there are several reasons why:

• VoIP is more affordable
• It is fast and easy to set up
• It is flexible, allowing you to easily add more lines, features, and services as needed
• VoIP gives you and your employees more flexibility
• Expanding a VoIP phone system doesn’t require extraneous costs or visits from a phone technician
• It is more reliable and offers higher quality calling
• VoIP offers more features than you’ll find with landline service

It’s also worth remembering that many telecommunications providers are moving away from old systems. There’s no better time than now to start checking our your options and learning more about what phone systems are out there.

If you’re ready to upgrade your phone system, make sure to check out our picks for best VoIP business phone providers. Explore these options, don’t be afraid to ask questions, and see how easy it is to make the switch to a VoIP business phone system.