The Beginner's Guide to VoIP Phone System for Business

A VoIP(Voice over Internet Protocol) phone system for business can help enterprises big and small operate effectively while employees work remotely and keep the flexibility of scale for growth. Before choosing a VoIP system for your business, some important factors such as the basic definition and working pattern of the business phone system should be clear, and this guide aims to help.

What Is VoIP Phone for Business?

VoIP phone for business is a kind of telephone using IP technology to transmit calls. It can be in the form of specialized digital hardware or a program (running on a computer or mobile device) with the same functions. A VoIP phone for business firstly takes the sound you generate with its microphone and receiver and converts it into packets of data. Then it sends the data out through the internet. On the other end, the phone decompresses the data and plays it back for the other person to hear.

How Does A VoIP Phone System for Business Work?

A VoIP phone system for business is a technology to make phone calls through an internet connection instead of a regular landline or a mobile network. It converts analog voice signals into digital signals over your broadband connection.

Once you have a high-speed internet connection, including a router and modem, you are ready to use VoIP. A VoIP phone system for business can facilitate calls between other phones or over to another phone company. Other useful functions like voicemail, call forwarding, call recording, and more are also provided by it.

Figure: VoIP Business Phone System

VoIP vs Landline Phone

Traditional landline phones have long been the backbone of communication for homes and businesses. However, with the rapid advancement of internet technology, VoIP (Voice over Internet Protocol) phones are quickly emerging as a powerful alternative. VoIP phones use the internet to transmit voice, offering many advantages that traditional landline phones cannot match. Nevertheless, there are significant differences between the two in terms of performance, cost, reliability, and functionality. We will illustrate the differences between VoIP phones and landline phones in the table below. For further insights, you can read "VoIP vs. Landline: Which Phone System Is Better for Your Business?" to help you make informed decisions when choosing the communication solution that best fits their needs.

3 Benefits of VoIP Phone for Business

The VoIP phone system for business is an ideal solution to provide both employers and employees reliable phone service with two main benefits.

1. Higher Office Efficiency

VoIP can elevate the workflow of your team through a concept known as Unified Communications (UC). Without using several disparate apps, your company's communications platform is fully integrated. Besides, employees are no longer tethered to their desks in a VoIP phone. For remote staff, they can take business calls using nothing more than a VoIP app for their smartphones. With these features, VoIP phones for businesses can highly increase efficiencies for working from anywhere.

2. Increase Client Satisfaction

VoIP's efficient response mechanisms and high-quality communication experience can significantly enhance customer satisfaction. Through automatic call distribution and intelligent call routing features, customers can quickly reach the appropriate personnel, reducing wait times and improving service efficiency. Additionally, VoIP phones provide high-definition voice calls and stable network connections, ensuring clear and smooth communication between customers and businesses, thus avoiding misunderstandings and dissatisfaction caused by call quality issues. Its integration of various communication methods, such as video calls and instant messaging, also allows customers to conveniently choose suitable communication channels, enhancing communication flexibility and convenience.

3. Reduced Costs

One way companies can realize significant cost savings is by adopting a VoIP phone system for business. VoIP networks, featuring a broadband connection allowing both voice and data on the same channel, do away with the need for extra on-premise physical hardware and wiring that is necessary for a traditional PBX. Besides, VoIP calls are cheaper compared to the Public Switched Telephone Network (PSTN) or the traditional circuit-switched telephone network by a stretch. A VoIP phone for business service can also help cut other ongoing expenses such as taxes, repair, and maintenance fees.

What Equipment Do You Need for a VoIP Phone System?

Apart from your existing internet setup including a modem and router, for a VoIP business phone system to work, you need to invest two categories of new equipment: VoIP phones and VoIP headsets.

VoIP Phones

VoIP phones are significant equipment in the VoIP phone system for business. They don’t need to be connected to an outlet which is different from a landline phone and can establish calls by using a VoIP service provider. And employees can use these phones both at the office or at home if they work remotely.

VoIP Headsets

Another optional piece of equipment for the VoIP business phone system is a headset. With a headset, employees can talk comfortably without having to hold up a phone or rely on the audio from their computer.

FAQs about VoIP Phone Systems for Business

Q: Can I use my existing phone with VoIP?

A: Yes, you can use your existing phone with VoIP by using an Analog Telephone Adapter (ATA), which can retrofit existing phones with more features and capabilities. In many cases, it may be more desirable to use a VoIP phone because of its native functionality to work with VoIP services.

Q: Should I get rid of my landline?

A: For the majority of providers, you need line rental to receive broadband anyway, so you may have no choice but to keep it. And if you have to call numbers not available through VoIP, or use features only available on landlines, it's worth keeping a landline around as a back-up.

Q: Do I need a special modem or router to make VoIP calls?

A: No, you don’t need to purchase a new modem or router for a VoIP business phone system. Once your VoIP application is downloaded on your device, you can make and receive calls from that device. If your business’s internet connection isn’t robust enough, however, you may want to consider upgrading to ensure you have enough bandwidth.

Q: How much does a VoIP phone system cost?

A: A VoIP phone system for business normally costs between $20 and $40 monthly per line. Depending on the number of users, commitment, and features, your costs could be less or more. A decent IP phone starts at $70. The total cost of a VoIP phone system for business should factor in phones, accessories, service, and any one-time setup costs.

Related article：

VoIP Phone System for Business: An Efficient and Cost-effective Choice

PBX vs VoIP Phone Systems: How to Choose the Right One?