VOIP Phone System | Types, Requirements, Functionality

VoIP or Voice Over IP is a communication technology that uses an internet connection to exchange conversations. A typical IP setup includes a router, connected to a handset and a phone through which companies can facilitate their communication needs. Most companies are switching to VoIP for an inexpensive, efficient, and integrated communication arrangement.

Are you confused about whether it is right for your company to switch to a VoIP phone system? Is it better than an on-site PBX phone system? Keep reading this guide to find more.

How Does VoIP Work?

Simply put, a VoIP setup converts a voice signal into a digital format by compressing it and passing it over the internet. When it comes to VoIP phones, they use small data packets to exchange conversations. The right internet bandwidth can transfer the data in less than a second, from your phone to the VoIP service provider.

Here is a breakdown of how a typical VoIP phone works.

●       The phone is connected to your router in a LAN network (Local Area Network).

●       When you dial a number on the phone, it sends a signal to the VoIP service provider, so that it can call the other party.

●       The service provider makes a call and uses your IP phone to transfer these data packets to the right destination.

●       Finally, the VoIP phone converts the digital signal into a sound input and makes the call.

Types of VoIP Technologies

Typically, there are two types of IP phones, software-based and hardware-based and most companies combine both for maximum utility.

●       Hardware-based VoIP Phones are the traditional hard-wired or cordless phones with several physical pieces. These elements include a touchpad, hardware, microphone, caller ID, and a speakerphone. These systems are capable of transferring calls, multi-party call support, and receiving images during calls, and video calls.

●       Software-based VoIP Phones or Softphones are your software virtual phones, typically installed on a smart device. These phones usually include a headset, microphone, touchpad, and caller ID display. They typically aid similar capabilities as hardware-based phones and provide additional functionalities like call conferencing, voicemails, and instant messaging.

What Is the Difference Between VoIP and Landline Phones?

The most obvious difference between a VoIP and a landline phone is that the former technology provides high-quality conversations over the internet. In contrast, the landline depends on the copper networks to receive and send calls.

Additionally, the deployment of VoIP phones is pretty straightforward, as everything is managed through the cloud, reducing the installation and management costs significantly. Similarly, when you need to replace or add users, everything is done through software. So, there is no need to hire technicians or engineers like a landline or PBX phone.

In comparison with landline phones, businesses usually prefer VoIP phones for better calling standards and premium functionality. Despite being affordable, it supports video conferences, call recordings, and CRM software integration.

How to Choose Between the Two?

Well, starters may be confused between the functionality of VoIP and landline and may think that a PBX is not as efficient. This is why you should consider the following matters before narrowing down one for your conditions.

7 Phone System Considerations

Existing Network: If your existing PBX system is working fine and facilitating day-to-day needs, you may not want to change it to a VoIP system.

●       Remote-Friendly: Does your business have remote or hybrid teams? If yes, a VoIP system might work better.

●       Reliability: PBX systems use phone lines, so there is no communication interruption even with no internet. This is not the case with VoIP.

●       Cost Evaluation: PBX on-site systems have lower subscription fees, but the maintenance and repair can add to the expenses. In comparison, VoIP has a fixed monthly plan and no equipment installation cost.

●       Quality of the Sound: The PBX system has clear audio. However, it may be hindered by a weak signal. It is the same for VoIP phones, as a weak bandwidth can interrupt the sound quality.

●       Availability: Both VoIP and PBX systems are available 24/7 as long as the phone lines and internet bandwidth are sufficient.

●       Feature Support: PBX networks are usually limited to voice calls. In comparison, VoIP has advanced features, like auto attendants, call queues, and call recordings.

The Pros & Cons of VoIP Systems

VoIP phone systems have several benefits over analog phones and PBX systems. They help companies integrate their calls into the CRM software systems for better water management. Let us dive right in and get insights about some benefits and drawbacks of VoIP systems.

How Much Does Business VoIP Cost in 2024?

You will be surprised to know how cheap a business VoIP phone system is over the on-site PBX plans. Approximately, companies typically pay around $35 per user for a month, inclusive of all premium features and international call logs (depending on your plan). In comparison with traditional phones, the price drop is pretty dramatic.

Advantages of VoIP

Here are a few advantages of using a VoIP system.

●       Low Pricing: Unlike landlines and analog phones, VoIP has minimal upgrading and support costs. All VoIP calls are charged at local rates. With these setups, companies can reduce 50% of their on-site repair and maintenance costs.

●       Better Sound Quality: VoIP phone services work on an internet connection. Hence, there are no network issues, ensuring a high-quality sound with no management requirement.

●       Affordable International Calls: With VoIP phones, even international and long-distance rates are reduced significantly. They can get as affordable as $0.04 per minute for a call to Mexico.

●       Ideal for Remote Networks: The portable phone networks can be used from anywhere. You do not require technical setups, making it ideal for work-from-home scenarios.

●       Fast Deployment: You do not have a lengthy installation for VoIP like analog ones. All you need is an internet connection, softphones, and a handset to set up a VoIP phone system, which also reduces the extra cost significantly.

●       Premium Features: VoIP phones include premium features like auto attendants, call queues, and call recordings. These along with expensive add-ons help companies achieve better sales leads and streamline routine tasks.

●       Integration: VoIP phone networks are highly integrated. Companies can manage their CRM software and VoIP in a way that records their phone conversation and analytics to track sales leads and make calls straight from the CRM application.

Disadvantages of VoIP

With high utility, VoIP also has some drawbacks. Let us discuss them briefly.

●       Performance Constraints: VoIP phones cannot survive without a reliable internet connection. Even with a connection, they remain susceptible to bandwidth constraints. For instance, not having sufficient bandwidth may result in latency and delayed calls. You also may not be able to make a call in cases of internet or power outages.

●       Emergency Calling: With VoIP phones, you do not have the exact location of callers, as it mainly operates using IP addresses. In this case, it may become difficult for emergency or rescue operators to find the caller. Some companies collaborate with third-party providers for those requirements.

Best VoIP Phone System Features

The next big question is, why should businesses adopt a VoIP phone over an on-site, confidential PBX phone? Well, most of it comes down to its mobile, cloud-based nature. That said, there is much more to it, so let us discuss a few best VoIP phone system features in detail.

1. Auto Attendant

For starters, the auto attendant is the facility that allows users to access the menu you get when you dial a business. For instance, some configurations are set to “press 1 for the service menu, press 2 for support, and press 3 for a customer agent, etc”. It helps companies to direct their consumers to relevant departments according to their company’s structure.

2. Mobile and Desktop Apps

If you want to set up a VoIP phone without a handset, mobile and desktop may be a better option. These apps are generally designed for salespeople who are always traveling or remote teams working from home. The arrangement helps employees access everyone in the company, irrespective of technicalities or equipment.

3. HD Call Quality

Every VoIP phone setup uses an internet connection with a reliable bandwidth, all credit to the codecs it uses to ensure high voice quality. This way, employees within the company and customers are getting crisp audio quality and clear conversations. Additionally, this feature helps you focus more on streamlining and enhancing a business communication experience.

4. Unified Communications

VoIP phones feature Unified communications as a service, meaning that they deploy premium functions like instant messaging, calls, video conferencing, call recordings, voicemails, etc. This way, companies can establish an internal collaborative working system. Consequently, companies boast about productivity and introduce efficient communication.

5. Call Encryption and VoIP Security

VoIP works on broadband internet connections, which means they remain prone to security and data breaches. This is where it introduces call encryptions and significant security protocols over VoIP conversations to keep the company’s confidentiality intact. For instance, call logs will record the duration and time, but not the conversation itself.

VoIP Hacking: How It Works & How to Protect Your VoIP Phone

VoIP hacking refers to any entity using attacks to infiltrate in your communication networks; they can be accidental or caused by intentional scamming. Hacks usually happen when the social engineering setups of your business are targeted through unauthorized access.

There are several defense tactics like choosing the right VoIP service provider, adopting data encryption mechanisms, controlling administrator access, etc to prevent VoIP phone attacks. For this, you can communicate your concerns with the VoIP provider, so they can customize the setup accordingly.

6. Call Recording

In comparison with your on-site PBX phones, VoIP lets the user record calls for monetary or regulatory purposes. This way, companies can record content discussed with customers or among employees and store it in a cloud-based space for later use. With this, you can also pair smart analytics like sentiment analysis and keyword extraction to get updated feedback from customers.

When to Consider Switching to a VoIP Phone System

Are you considering switching to a VoIP phone system? In these cases, you are usually experiencing two situations; looking for a phone system that can help you scale your business or your current phone is not the right choice for the company. Going deeper, here are a few signs you need to switch to a VoIP phone.

●       The company is spending a lot on the maintenance and repair of its PBX systems.

●       You are switching to a remote routine and need a mobile network.

●       You are experiencing latency issues with the existing PBX phone.

●       If your PBX on-site plan is expiring soon.

●       You want to manage your expenses with a fixed subscription plan.

●       You are aiming for better efficiency with the CRM system integrated with your phone system.

●       You want to distribute the network on multiple devices at the same time.

●       You would like your business to access national and international customers alike.

●       You want to divide your work structure into specialized teams.

Choosing the Right VoIP Phone Service

The key to choosing the right VoIP phone services lies in your goals and activities for the company. Aside from the objectives, evaluating your budget, project cost, and maintenance requirements plays a significant role. Let us discuss a few considerations that may help you narrow down the right VoIP phone service.

●       Call Volume: If you are using a PBX system that is sufficient enough for your inbound and outbound call volume, you may not need an upgrade. However, if you have a higher call volume and need a call center, go for a VoIP system.

●       Features: The most significant element of a VoIP phone is the features. Here, you need to consider whether the service provider offers features like physical handsets, user training, call queues, and auto attendants. You also need to make a decision of choosing a software-based, hardware-based, or hybrid setup.

●       Compatibility: While deciding the service, make sure it is compatible with your existing networks. Alternatively, it is even better to find a customizable network that can be adjusted to your networking requirements.

●       Industry-Specific: It is better that you go for services that are already serving similar industries as you. Moreover, check their success stories for a satisfactory decision.

●       Customer Support: It is equally significant to choose a VoIP phone that offers better customer service support. Especially, consider features like on-site setups, ongoing support, 24/7 availability, and number porting.

●       Data Encryption and Security: Lastly, make sure the service provider has a dedicated security protocol and encryption mechanism to keep the experience confidential.

VoIP Migration

Are you ready to migrate to a VoIP phone system? Let us prepare for it.

●       Evaluate your existing requirements. Is it able to handle the call volume? Check the audio quality.

●       Locate a reliable service provider. Communicate your needs to them, so they can draft a customizable plan.

●       Map out a migration plan with the service provider. Check all the things discussed above.

●       Train your workers to make onboarding easier. Arrange workshops and make sure everyone is ready to use the system.

●       Inspect the system before adopting it officially.

Technical Requirements for VoIP Phone Systems

A VoIP system does not require lengthy equipment. But, it still requires some elements to build a VoIP infrastructure. Here are some of them.

●       An internet connection with reliable bandwidth.

●       Hardware elements like adapters, equipment, headsets, and routers.

●       Software applications, integration tools, and a cloud-based system.

Installing

Here are a few things to consider before installing a VoIP phone system.

●       Assigning an employee who will control your phone’s settings.

●       Deploying an interactive voice response system. It will offer general responses to customers.

●       Setting up usual calling hours. Make sure they are available at all extensions (locations).

●       Integrating it with other communication tools to boast operational flow.

Integrating

Integrations can help improve business productivity and streamline communication. Here are a few integrations VoIP phone systems can facilitate.

●       CRM Software

●       AI and Transcription

●       Sales (keyword extraction, voice recording, etc)

●       Helpdesk and instant messaging

What Equipment Do You Need to Set Up VoIP?

Well, now that we have established that it is undoubtedly an upgrade from an on-site PBX phone, the question is how to set it up. The first thing you need for a small setup is a business VoIP business provider and a device to make and receive calls. Typically, most people use a softphone or a desk phone.

●       It is understandable that you already have an internet connection and router.

For enterprises leveraging a VoIP phone system, it is better that they deploy a separate firewall and replace your router with it. For analog phones, it is better to use a telephone adapter. This way, you can integrate other devices (fax machines, alarm systems, etc) with the phone system.

Still Confused About Switching to VoIP?

Are you still confused about whether VoIP is a prerequisite for a better business communication experience? Well, keep calm and evaluate your needs. If you are experiencing latency or getting your business operations interrupted, it is time you switch to a VoIP phone system.

It is also reported that the Federal Communications Commission FCC is generally phasing out the traditional landline services. This decision is mainly a result of expensive maintenance and repair of the landline networks. In one way, it is good news, as switching to VoIP may help you scale businesses and streamline routine tasks.

Making Business Calls Online is Easy And It’s Free

With VoIP systems, making business calls is easy and affordable. Now, businesses can leverage advanced features like call recordings and video conferencing to streamline processes. Even better, you do not have to invest in technical setups to facilitate business communication; rather, adopt mobile systems to accommodate hybrid or remote networks.

Analog to Digital: The (Short) History of VoIP

The history of VoIP dates back to the 1970s when researchers started exploring internet protocols. During this time, the BSS or bulletin board system was used to exchange conversations through messages. Eventually, they managed to introduce real-time voice exchange in the 1990s.

Until the 2000s, VoIP technology was limited to voice calls. After this time, scientists developed video conferencing and call handling.

In recent times, it has come a long way with higher flexibility and premium features like voice/ video conferencing, call recordings, instant messaging, etc. Today, it has even become critical for scaling business processes.

Technical VoIP Terminology

Here are a few terminologies that may help you better understand Voice Over IP protocols.

●       SIP refers to the signals used to manage multimedia (audio, video, etc).

●       SRTP refers to an encrypted version of the RTP. They provide extra security for audio/ video calls.

●       H.248 represents a central system for creating multimedia files.

●       G.711 is the codec used to transmit the uncompressed data packets for a high-quality audio transmission.

●       G.729 represents the compression of voice packets so that they become compatible with the network bandwidth.

●       TCP is used to break your message into small packets for a higher quality.

●       XMPP refers to handling contact lists and instant messaging.

●       RTP converts voice into data packets for audio transmission.

FAQs

Can I use a VoIP phone as a regular phone?

Yes, you can use a VoIP phone as a regular phone as long as it has a reliable connection and the required bandwidth.

Can VoIP receive text messages?

Yes, VoIP supports instant messaging. It allows you to receive and send text messages.

Can VoIP numbers receive faxes?

Yes, VoIP services provide fax exchanges. However, you may need to discuss including it in your plan with your VoIP service provider.

Conclusion

VoIP phone systems are revolutionary for business communication, as it helps you take sales leads and respond to customer’s inquiries in an effective manner. Even better, the price drop is quite dramatic. I hope this guide has helped you figure out whether your business requires a VoIP phone system.