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The Beginner's Guide to VoIP Phone System for Business

January 6, 2022

A VoIP 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.

VoIP Business Phone System

Figure: VoIP Business Phone System

Why Adopt VoIP Phone Systems for Business?

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

Higher Efficiencies

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 system. For remote staff, they can take business calls using nothing more than a VoIP app for their smartphones. With these features, VoIP phone systems for businesses can highly increase efficiencies for working from anywhere.

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 system 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.


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