VoIP, which stands for Voice over Internet Protocol, is a phone system technology that allows users to dial and receive calls without using a local phone service but instead with an internet connection.
VoIP converts your voice into a digital signal, compresses it, and sends it over the internet. A
VoIP service provider sets up the call between all participants. The digital data is then uncompressed into the sound you hear through your headset or speakerphone on the receiving end.
To call someone using VoIP, you need an SIP-compatible desk phone or a VoIP calling app, which means it is assigned an IP address to make calls from your
network. Unlike landline phones, they are capable of high-definition (HD) phone calls. A business VoIP service can be executed with any device, as long as it has an
internet connection.
How Does a VoIP Phone System Work?
Voice over IP works by using protocol technologies, and SIP is one protocol that enables VoIP. Session Initiation Protocol (SIP) is a communication protocol for VoIP calls and other text and multimedia sessions, such as instant messaging and video. Based on the SIP protocol, SIP trunking is a service established virtually over your internet connections and provided by Internet Telephony Service Providers (ITSP).
Since VoIP runs over the
internet, your
data is stored securely in the
cloud. You can manage the VoIP system through an online dashboard. This dashboard allows users to adjust contacts, business phone numbers, call forwarding, and add new phone numbers.
You probably already pay for internet service regardless of which phone system you use. Cable and fiber broadband make it possible to substitute internet phone services and cut out the usual costly telephone companies. VoIP also makes it much easier to add new features that are essential to your business needs.
Advantages of Using a VoIP Phone System
Low Cost
VoIP is a budget-friendly way to set up a
business communications system. It cuts down the cost of internal calls in your organization to virtually none and greatly reduces the expenses of external and international business calls, saving a significant amount of investments on purchasing traditional phone lines, installation, and ongoing
maintenance.
If your current voice and
data solutions are separate, you can save money by combining the two under one provider. In addition to the cost savings, you'll also be able to consolidate both internet service and telephone support.
Flexibility
Since VoIP can easily integrate with mobile phones and
other devices, your employees can connect from anywhere.
VoIP enables businesses to extend their communications system to
remote offices and on-the-go workers over SIP-enabled devices. The office is wherever they make it for remote workers as long as the internet connection is available.
The deployment of a multi-site VoIP system can keep all dispersed branches connected seamlessly and reduce the spiraling inter-office call costs. Softphones enable employees to make their office extensions mobile with a wide range of call handling features at hand. Additionally, cloud phone systems make it easy to connect geographically dispersed offices under one phone system and the
IT admin can easily manage it from any location.
Scalability
VoIP is a scalable solution that offers greater flexibility for businesses with staff
growth or reduction. The increase and decrease of phone extensions can be made immediately, and businesses only pay for what they need without purchasing additional hardware equipment or new dedicated lines.
Abundance of Features
VoIP services deliver many features either not supported by traditional telephone systems or only available for an additional fee. Many businesses have found it easy to use VoIP and have become more competitive with the full suite of built-in features. Some features may help companies meet important
safety and security needs, including connecting with
emergency services while using internet VoIP.
Below is a list of must-have VoIP features that will boost your business communication efficiency:
-
Voicemail to Email
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Video Conferencing
-
Call Recording
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Call Routing
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Auto Attendant
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Do Not Disturb
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Unified Communications
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Mobile App Integration
Is a VoIP Phone System Right for Your Company?
We understand that some businesses might have been using traditional phone systems for quite a long time, and are unsure whether a VoIP phone system makes sense for their business. There are indeed significant differences between VoIP and traditional landline.
Here are some questions you could ask yourself before making an informed decision:
- Do you want to save money by upgrading your landline phone system?
- Do you have employees working from home?
- Can your current analog system address your needs?
- Do you want to keep up with the latest phone service technology?
- Do you want a more secure communication system for your business?
If your answer is yes to all or most of these questions, it might be time to upgrade to a VoIP phone system for your business. Make the switch and let
Cite Tech help with your VoIP phone system management and reap the benefits of increased collaboration, communication, and productivity.