What Are the Advantages of VoIP?
Increased accessibility, portability, and scalability — these are only a handful of the advantages of VoIP technology. Generally, the incredible flexibility of VoIP is what makes it the true star of modern unified communications. Read on to learn how internet-based phone service can transform your communications.

What Is VoIP And How Does It Work?
VoIP stands for Voice over Internet Protocol. As the name implies, VoIP business phone technology allows you to make calls using the internet instead of analog phones. If you’re comparing VoIP vs. landline for business purposes, VoIP usually comes out on top.
To understand why, you first need to understand how VoIP works. Here is a general overview:
You speak into a VoIP phone, and your voice is converted into digital data.
This data is sent in packets over the internet to the recipient’s destination.
Once at the recipient’s end, the digital data is reassembled into the sound of your voice, which the recipient hears played back through their phone speaker.
The VoIP system sends these little data packets back and forth, allowing you and the recipient to converse like you would over a standard telephone.
In recent years, VoIP use has expanded greatly, as have the range of scenarios you can see it used in. In fact, according to Future Market Insights, the residential market is expected to rise at 11.9% CAGR over the next decade.
VoIP can be beneficial for everything from rural communities to schools and NGOs, but it’s with business that it comes to the fore. Not only does the technology provide your staff with the mobility that means they can work anywhere, but it can also mean that your business will see significant cost savings when compared to traditional phone lines and other communication methods.
Advantages and Disadvantages of VoIP: A Quick Summary
If anyone in your organization suggests switching to VoIP, the first question will always be, “What benefits will it bring?” Knowing the advantages (and disadvantages) of VoIP technology can mean you’re better placed to make an informed decision.
We’ll go into more detail shortly, but here is a brief summary.
Advantages
Disadvantages
Flexibility to make calls no matter your location (as long as you have a reliable internet connection)
Requires a stable — and fairly fast — internet connection
Easy to scale as your business grows, without the need to invest in additional hardware
Potential connection issues, including latency, jitter, and packet loss
Cost savings versus traditional telephony, especially on international calls
Issues with geolocation — it can be challenging for emergency services to pinpoint the exact location of a call
Increased accessibility — with features like text-to-speech, VoIP levels the playing field for all your employees
Security risks — like any form of communication today, VoIP comes with its own set of security concerns that can be mitigated
A range of additional features, such as video conferencing or AI assistants
Integration with other elements of your tech stack (for instance, a CRM)
The Advantages of Using VoIP Solutions
There are several advantages of VoIP for businesses, both small and large, but the main advantage is convenience. This takes many different forms, such as:
Flexibility
Voice over Internet Protocol solutions give you freedom with your business communications. Unlike traditional telephony, where you have to remain fixed in place with physical phone lines, VoIP allows you to make and receive calls from anywhere with a stable internet connection and from any device that connects to the internet. Additionally, VoIP texting offers a convenient way to send and receive text messages using the same internet connection, enhancing your communication capabilities. This is great for organizations shifting toward a hybrid work model or looking to tap into the global talent pool.
Cost Savings
Choosing VoIP means more money in your pocket, because you avoid the hardware costs required to set up and maintain PBX equipment. These savings result from VoIP using existing internet infrastructure (such as WiFi or an Ethernet connection) rather than requiring a separate set of telephone lines. At most, you might want to invest in some dedicated desk phones (though you don’t need to, as you can use a softphone instead) or headsets.
Most VoIP solutions will involve a recurring monthly subscription, meaning you’ll never get caught by an unexpectedly high fee. Plus, it’s also cheaper per-minute than a standard phone call — especially if you need to call internationally.
Scalability
VoIP is highly scalable because you can add or remove lines whenever you like, with no need to manually install extra telephony equipment. It all depends on the package you’re subscribed to. That means you can easily scale — up if you get a sudden uptick in call volume, or down in an off-peak season.
You can also add new features, like a virtual receptionist or CRM integrations, when they’re needed. This makes it ideal for growing businesses or those experiencing fluctuations in monthly call volume.
Global Reach
Internet-based phone calling means your business can project a broader global reach. For instance, you can select and switch between multiple international numbers, and your calls won’t be subject to the same international tariffs that you get when making voice calls over the regular Public Switched Telephone Network (PSTN).
Increased Accessibility
VoIP and UCaaS together make business communication more accessible for everyone, including your customers, partners, and internal team. Your team can pick up calls on the fly, rather than being tied to their desk phone all day.
Plus, it makes it possible for people with speech or hearing disabilities to communicate more effectively, thanks to features like text-to-speech, video conferencing, and closed captioning.
More Than Just Calls
A high-quality VoIP provider will offer additional features beyond their basic calling services. Some of these features include voicemail to email, call forwarding and blocking, and so much more. Here at Vonage, we offer a range of essential calling features, plus a desktop and mobile app for all of your users. If you’re running a bigger team, you can go for a package with extra call management add-ons, like virtual meetings, company-wide call recording and monitoring, and an integration suite to connect with your CRM software.
Improved Call Quality
VoIP can provide you with call quality that is comparable to traditional phone lines — and often, better. The main deciding factor when it comes to quality is your internet signal. If you have a strong and stable connection, then you have the foundation for quality calls. If you do experience issues, then it’s likely resolvable by increasing the bandwidth available, ensuring you have compatible hardware, or changing network providers.
Workflow Integration
One of the big advantages of VoIP is its part in the larger picture of United Communications as a Service (UCaas). UCaaS is a cloud-based solution that integrates various communication and collaboration tools into a single platform. Businesses use so many apps these days, so anything that can unify multiple responsibilities and functionalities is a welcome relief.
With Vonage, you can effortlessly add communications to your existing tech stack — with integrations for CRMs like HubSpot or Salesforce, as well as your productivity apps like Slack, Office 365, and Microsoft Teams. That means features like click-to-dial and automatic call-logging are built into the functionality of your CRM.
The Disadvantages of VoIP
Like every other business communication solution, there are advantages and disadvantages of VoIP. However, most of these issues are resolvable, especially if you’re well-prepared.
Requires a Strong Internet Connection
VoIP doesn’t require super-fast broadband, because it’s not transferring a huge amount of data (it only involves sending a few data packets back and forth between caller and recipient). That said, you will need your internet connection to be steady in order to keep your voice calls connected.
Luckily, if you're using a mobile device and your WiFi suffers a dip, the system automatically switches to mobile data, keeping your calls smooth. For stationary setups like laptops or desktops at work, plugging into a wired Ethernet connection is your best bet to maintain steady call quality. This way, you can enjoy all the benefits of VoIP without disruption.
Risk of Latency, Jitter, and Packet Loss
VoIP works by transforming your voice into digital signals that are sent over the internet in data packets. On this journey, there are a few issues that can affect the clarity of your calls:
Jitter occurs when packets arrive at different times, causing audio to become jumbled or missing. To minimize jitter, Vonage uses a jitter buffer to ensure packets are sent out evenly.
Latency is the delay between speaking and being heard, which can cause overlapping speech or echoes. You can help prevent latency by using a high-quality router that prioritizes voice data, such as a VoIP router.
Packet loss happens when packets are lost or arrive late and are discarded, leading to gaps in communication. To avoid this, you need to ensure you have sufficient bandwidth on your internet package.
If you’re experiencing voice call quality issues or just want peace of mind before signing up, use this network test from Vonage to identify what issues you could be facing. Please contact our support desk if you require assistance in this process.
Issues With Calls to Emergency Services
VoIP's flexibility can be a double-edged sword, especially in emergencies. Since VoIP services can be used anywhere with an internet connection, pinpointing the exact geographic location of a call can be challenging for a 911 dispatcher.
Thankfully, VoIP providers are required by the FCC to provide emergency services as a standard feature. Here’s what you need to know to set up emergency services locations and assign devices to these locations, so help is available when needed. With Vonage, you can also set up alert calls or emails to notify management when a 911 call has been made in your organization.
On top of this, it’s a good idea to have a back-up power source or alternate phone calling method in case of an electricity outage.
Security Concerns
With the cost of global cybercrime expected to reach $13.82 trillion by 2028, security is a very real issue for any business. Not only do you want to protect sensitive business data and conversations, but you may have to comply with relevant laws and regulations. As with any technology, VoIP does come with security risks — however, many of them can be mitigated through features such as better encryption and user identity and permissions.
For example, Vonage invests heavily in security and privacy measures and maintains a wide range of compliance certifications across our product lines. They include ISO 27001, PCI-DSS, SOC, HITRUST, and CSA STAR, to name just a few. Choosing the right VoIP system for your business can be an essential cog in your cybersecurity machine.
VoIP vs. Landlines
One big factor in the VoIP vs. landline debate is the simple fact that many countries are moving away from PTSN (public switched telephone network) systems. With little choice but to switch to IP telephony, the pressure is also on VoIP providers to ensure that their solutions meet all of a business’s needs.
Some countries have already changed from traditional networks to digital ones, which means that businesses have had to look at options like VoIP for their communication needs. Choosing a solution that integrates with your existing tech stack can be conducive to improved efficiency, too.
Is VoIP Right for You?
Deciding if VoIP is the right choice for your business all comes down to your current needs and future goals. Here are some key questions to help determine if VoIP fits your operation:
Do you have a hybrid or remote team? VoIP is ideal for flexibility, allowing team members to connect from anywhere with an internet connection.
Are you planning to scale your business? You can easily scale with a VoIP system by upgrading your package without significant infrastructure changes or upfront investment.
Do you need advanced communication features? Most VoIP platforms come with super productivity features like voicemail to email, call forwarding, and video conferencing.
Is cost-effectiveness a priority? Generally, VoIP tends to be more cost-effective than traditional telephony, especially when it comes to long-distance and international calls.
How To Switch to VoIP
So, you can see the benefits of switching to VoIP, but how do you go about making the switch?
1. Plan
As with any new process or system, you need to make a plan for the switch. The good news is that switching to VoIP is far less of a hassle than it used to be. For a start, there is no need for expensive equipment nor for any exchange to be based on your premises.
Make a list of your needs, as well as highlighting any plans for business growth. This gives you a checklist for when you compare providers and solutions. Your needs can include factors like the number of users (current and future), any additional features you want, and what you expect in a Service Level Agreement.
2. Internet
As well as your needs in terms of business operations, you also need to consider your needs in terms of an internet connection. Ideally, and if your budget allows for it, you want an internet connection that is exclusively for IP telephony. If that’s not an option, investing in routers that allow you prioritize certain types of traffic can help. As a rule of thumb, you need around 100kb speeds per phone for both upload and download capabilities.
You should audit your current internet connections and, if you need better, approach your ISP to see what they can offer in the way of improvements. If you have any employees working remotely — or in a hybrid pattern — then you will need to check that each person has a good connection.
3. Network preparation
One thing to note is that running a VoIP solution over a wireless network will not give you the best quality solution. If possible, ensure that any IP phones you use are connected directly to your router. This may be easy to do in an office but may provide some challenges if you have a lot of staff working remotely/hybrid.
4. Choose a provider
By this stage, you should have laid the groundwork within your business. You should also have a shortlist of ideal providers to undertake trials with if you’ve not made a final decision yet. Once you decide, you can sign up with your chosen provider and discuss installation details and timeline.
An important part of those details is the equipment you will use. What handsets suit your business needs best? For example, if you’re running a call center, you will likely want hands-free handsets. You also need to consider whether you need any specialized equipment such as conference phones.
5. Porting
Your existing numbers may be long-established, and the last thing you want to do is have to inform every customer of any changes (as well as all the other places you may have numbers listed). Thankfully, Vonage makes porting numbers painless and you can soon be using those old familiar numbers.
6. Activation
With everything now in place, you can activate your VoIP account. You should have all your required equipment by this stage, too. One thing to consider is whether your staff need any training with the new telephony system or with the system’s UIs. Other than that, you should be all ready to go!
Best Practices for Using VoIP
To really see the benefits of your VoIP system, there are a few best practices you should also be following.
Monitoring. Just because your network performance was optimal when you first tested it or installed your VoIP solution doesn’t mean it will always be so. Regularly monitor performance to look for any issues that arise. Your provider should have tools that test performance and speed.
Bandwidth optimization. You may have ensured that your bandwidth provided that 100kbs per device speed when you first installed VoIP, but is it still the same? If you’ve increased the number of devices, make sure that your bandwidth remains optimized.
Prioritize. Your router will be handling various types of internet traffic, including browsing and video streaming. Look to configure your router so that any VoIP traffic is given priority.
Equipment. If you’re using cheap phones and headsets, then you may be compromising call quality. You don’t have to break the bank, but you should ensure that you invest in high-quality equipment.
Maintenance. Your provider should offer regular updates to software and firmware so you can keep your system operating efficiently. On your end, keep an eye on any hardware you use for signs of wear and tear.
Security. Cybersecurity and cybercrime are not static. As the latter becomes more sophisticated, so the latter has to evolve to combat it. Choose a provider that offers robust security solutions and, just as importantly, one that is constantly striving to improve its security provisions.
Recovery. As the old saying goes, if it can go wrong, it will go wrong. Having some form of disaster recovery plan (or plans) can be crucial for your business. Your provider should have tactics in place for issues with their data centers, but you still need a strategy for if anything goes wrong at your end. For instance, consider having a mobile VoIP app or an alternative internet connection.
How Vonage Can Help Your Business
Vonage is a leading VoIP and UCaaS services provider, offering a reliable, all-in-one solution for businesses of any size. With Vonage, you can enjoy high-quality voice and video calls, instant messaging, and a host of advanced features, all integrated into one easy-to-use platform.
One of our customers is Dunelm, a UK-based homeware retail chain with more than 180 stores. As a large and established chain, Dunelm found that its telephony system was outdated and unwieldy due to legacy components. They decided to review their communications systems, with a goal of moving to a stronger digital solution.
Vonage was able to offer them an omnichannel solution that met all their needs. It allowed them to integrate the VoIP system with existing tools, especially Salesforce which was being used across the company. In addition to brick-and-mortar stores, Dunelm also has more than 200 call center agents, so being able to access a unified and integrated system meant that they could vastly improve efficiency.
So whether you're looking for a flexible and scalable solution for your remote team or an efficient way to manage your business communications, Vonage has you covered. Our robust network and 24/7 support will ensure that you stay connected with your customers, employees, and partners — no matter where you are or what time it is.
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