Understanding VoIP: The Cost-Effective Telecom Solution for Your Business

You may have seen VoIP mentioned a lot in the telecommunications’ world but if you’re a non-techy, you may not know what it involves, how it is used or how it could benefit your business and most importantly, save you money!

In this month’s Article we dive into the ins and outs of VoIP and its advantages for businesses and individuals.

What is VoIP?

VoIP stands for Voice over Internet Protocol. It is a technology that facilitates voice-based phone calls using an internet connection instead of a regular landline. It was originally developed in 1995 and has transformed the way we communicate.

Unlike landline phone systems that are limited to a single desk phone in your office, VoIP lets you make and receive business phone calls from your smart phone (using an App), laptop, tablet and even VoIP compatible office phone sets.

A lot of businesses choose VoIP because they can make phone calls over the internet without any telephone service, which saves on the costs of long-distance charges. If you have high-speed internet access with a router and modem you can use VoIP. You don’t need to run any extra copper wires. It is also a fantastic option for businesses who require employees to work remotely.

How does VoIP work?

When you make a phone call using VoIP, your voice is converted from an analog signal into a digital signal. The data is then sent to the business phone service provider across the internet using your broadband connection. Finally, the message is routed to the phone of the person you want to speak to. A VoIP server is used to connect calls to telephone networks. The process is nearly instantaneous resulting in the sound quality being better than regular phone calls.

To call someone using VoIP you need a SIP-compatible desk phone or a VoIP calling app. It works better than a traditional landline phone because it offers many more features than what an analog phone service could ever provide.

The VoIP system is managed through an online dashboard and data is stored securely on the cloud. The dashboard allows you to adjust your phone numbers, contacts, call forwarding, and add new numbers.

What are the advantages of using a VoIP Telephone System?

There are many advantages to using a VoIP telephone system within your business, such as:

  • Reduced Costs – with reduced upfront costs and capital expenditure, plus paying on a per user, per month basis, VoIP allows you to cut back substantially on communication costs.
  • Reduced Call Costs – by placing calls over the internet, you are cutting out the costs associated with landline rental and call providers.
  • Scalability – need to add 30 more users to your phone system? With VoIP you do not have to install or upgrade to a bigger phone system when your business grows. VoIP is scalable, even to include remote workers.
  • Future-Proofing – with traditional landlines becoming obsolete by 2025 as the Big Switch Off reaches its conclusion, many businesses won’t want to invest in a new system that has a short shelf life. By utilising VoIP, you can buy one system that will last a lifetime.
  • Instant Communication and Collaboration – Easy to use features such as voicemail, conferencing, messaging, and call recording are standard, making your internal communications quicker and more accessible.
  • Seamless Remote Worker Connectivity – Your business only needs to buy one system even when working across different sites, so your workers can access the system no matter where they are in the world. This is especially good now that a lot of businesses employ remote workers. As the way people work changes, your VoIP system continues to support you.
  • Easy Management and Number Portability – Numbers can easily be managed and assigned. Calls can be quickly redirected to other lines, including mobiles.
  • Quicker and More-Responsive Communication with Customers – Stay better connected and provide an improved service to your customers with a lower cost and streamlined approach to communications.

Key Benefit! Did you know that businesses can keep their existing telephone numbers when they move premises? This is because VoIP allows you to transfer numbers beyond the traditional telephone exchange boundaries.

Final Thoughts

For a business application, VoIP is an ideal solution to provide employees with a reliable phone service. Many small businesses are now switching to VoIP because of the variety of benefits and cost savings. You can move your phones to the cloud and have a maintenance free, cloud based hosted phone system that can be set up quickly, simply, and cheaply.

Have you recently switched to VoIP? How do you find working with a cloud-based system? Let us know your thoughts.

PiBlu specialise in helping businesses choose the right system from the many different options open to them. Different configurations have different advantages and drawbacks, so it is important to make sure that you are fully aware of the benefits and implications of a VoIP system before going ahead.

You can reach out to us for a complimentary chat where we can answer all your questions by emailing info@piblu.co.uk or calling us on 0161 388 8188.


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