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What Is A VOIP Phone System?

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Changes in technology, the remote workforce, and consumer demands contribute to today’s dynamic business environment. Smooth internal and external communication is an essential pillar of daily business operations. Fortunately, businesses have various tools to assist them in doing just that, with Voice over Internet Protocol (VoIP) steadily becoming the standard for modern-day business communications.

What Is VOIP, And How Does It Work?

VoIP or IP telephony is a technology that enables calls over the internet. Unlike traditional phone lines, you don’t need a public switched telephone network (PSTN) to make a call. You can place and receive calls from just about anywhere with internet access. 

VoIP also integrates with cloud PBX technology. Cloud PBX technology assists businesses in managing incoming calls by directing them to the appropriate individual or department. VoIP, together with cloud PBX, creates the modern VoIP phone system.

VoIP phone systems for small businesses provide a complete unified communications solution. It has capabilities and features not present in conventional analog phones, and the system integrates various communication and collaboration functions. 

Functions like VoIP’s ability to enable you to make calls from anywhere with cloud PBX’s capacity to route incoming calls, as well as:

  • Video conferences
  • Group messaging
  • Virtual faxing
  • Business SMS

These capabilities offer flexibility that traditional on-premise phone systems are unable to provide.

How VoIP Works

young woman talking on the office phone

Voice calls on VoIP phones are converted into digital signals that travel via IP networks, such as the internet. When calling an ordinary phone detail, the signal changes into a standard telephone signal prior to reaching its destination. Because of how quickly this process takes place, VoIP sound quality occasionally surpasses traditional phone calls.

VoIP enables you to place calls from a computer, a particular VoIP phone, or an ordinary phone connected to a suitable adaptor. Furthermore, Wi-Fi hot spots that link to the internet may let you utilize VoIP service wirelessly.

Costs, Equipment Need to Set Up A VOIP Phone System

How Much Does a VoIP System Cost?

The average price per extension for a VoIP phone system is between $100 and $500. Ongoing expenses, including service and maintenance charges, often range from $10 to $25 per monthly extension. 

The following factors will influence the cost of your VoIP phone system.

  • The number of extensions needed. This cost includes the price for each phone’s purchase, configuration, and installation and a monthly fee for each extension. The number of employees who require a desk phone should determine the cost of extensions.
  • The number of external call pathways or lines that you require
  • One-time setup fee for moving your extension numbers from your current provider to the new VoIP provider
  • Costs of Continuous Monthly VoIP Phone Service

Equipment Needed to Set Up A VOIP Phone System

A VoIP phone system necessitates the construction of an infrastructure that includes particular technical components such as;

  • Hardware. This includes phone hardware, a router, a VoIP adaptor, and headsets.
  • A dependable internet connection. Ideally, one that uses fiber optic cabling.
  • Bandwidth that can handle the volume of calls you receive.
  • Software including integrations, applications, and a cloud-based phone system 

The Benefits of Using A VOIP Phone System

Advantages of using VoIP

Lower Monthly charges

VoIP has cheaper monthly costs for both domestic and international calls. Most VoIP phone service providers offer free, unlimited domestic calling. Furthermore, calls abroad are relatively inexpensive. You will also spend less on maintenance and repair costs than your landline charges.

Portability

Remote employment has assumed a prominent role in the modern, digitally connected society. VoIP eliminates the requirement that you only accept calls while at your workstation. While using an app on your phone, tablet, or laptop, you may answer incoming calls from any location.

Advanced phone features

VoIP systems often include a slew of additional business phone services, such as;

  • Video conferencing
  • Virtual receptionists
  • Auto dialers
  • Voicemail to email or text

These functionalities enable firms to increase efficiency and improve communication resulting in significant cost savings. Regular telephone service providers impose recurring charges for these add-ons.

Scalability

Small businesses benefit from the increased scalability of VoIP phone systems since they can quickly and easily add new locations, phone lines, phone numbers, and extensions. This makes it incredibly simple and quick to scale your business phone system as your company grows.

VoIP enables you to join more members with only a few clicks in your account dashboard. This is different from traditional phone services that would need investing in costly hardware.

Your team may also install the app on their phones as VoIP is compatible with all smartphones, thus, saving money on additional equipment. 

Disadvantages of Using VoIP

call center

VoIP is a fantastic technology, but it might only be ideal for some. There are a few drawbacks to VoIP that you should know:

  • To make phone calls, you need a reliable internet connection
  • You need to consider power outages
  • You will need to retrain your personnel on the new system

How to Choose the Right VOIP Provider for Your Business

Once you have a general concept of the VoIP features and specifications you need, get a service provider who is both affordable and scalable. Look up customer reviews, live assistance accessibility, and documentation.

A VoIP service provider should have the following characteristics:

  • Proven reliability and minimal downtime
  • Round-the-clock live support 
  • Current clients from the same industry 

Tips for Setting Up Your VOIP System

When switching to a VoIP system, you must make plans in advance. The process will be more straightforward with a reputable VoIP service provider and adequate preparation for the switch. Some essential tips for setting up your VOIP system include;

  • Check that your current network can handle voice traffic while maintaining call quality
  • Use a reliable VoIP provider. Ensure they are aware of your requirements and goals. They need to be able to see the entire process through
  • Establish a migration strategy. Discuss with your VoIP service provider to discuss how, when, and if the move may affect your business operations
  • Your staff should receive training, so they are ready to use the system as soon as it is operational
  • Before you entirely get rid of your PBX system, test the VoIP system. Make sure everything functions properly

VoIP is simple to set up and utilize for regular business and personal calls. You can enjoy making calls online if your internet connection is active.

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