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What Are the Features of a VoIP Phone System?

This article was updated on June 22, 2025

By now, most business owners have heard voice over internet protocol systems (VoIP) are replacing conventional multi-line phone setups. But why? What features make these powerful systems tick? How can VoIP, and other communications solutions, help your business? Let’s take a look at the answers.

Photo of a woman standing outdoors, holding and texting on her phone

The ABCs of VoIP

Using a VoIP business phone — sometimes called a voice over IP phone — enables greater efficiency. VoIP technology also provides the flexibility needed to seamlessly reach customers and accommodate growing numbers of hybrid and fully remote workers. But what, exactly, does VoIP do? Instead of linking physical wires and phone jacks throughout an office space, VoIP operates using the cloud and internet connectivity — eliminating a mess of moving parts and making things much easier to manage.

Aside from transmitting and receiving calls, VoIP comes with various bonus features. A few typical VoIP features include:

But beyond this basic VoIP features list lies a host of time-saving communications abilities — especially if you choose to explore unified communications as a service (UCaaS) solutions, which we’ll get into later. In the next few sections, we’ll dive deeper into VoIP phone service to explain how these solutions modernize and streamline your business communications process.

What Are the Components of VoIP?

The good news about VoIP components is that there aren’t many. In fact, when people ask, “what is the biggest benefit of VoIP?” two of the most common answers are simplicity and easy adoption. Most VoIP systems operate using four straightforward components:

  1. Media Gateway Controller — This component is the core of every VoIP platform and connects the telephone network to the cloud and IP environment.

  2. Media Gateway — This component transmits voice information through the internet.

  3. Media Server — This component manages all voice media (like voicemails). 

  4. Application Server — This component hosts all additional features (like instant messaging apps).

But how does this all work? Put simply, VoIP systems intercept and translate a voice into a compressed signal to transmit through the internet. Once this transmission is ready, a server connects calls to other telephone networks. This is done through one system using significantly fewer components than traditional phone setups. In fact, the only physical components you need for VoIP to work are a modem and a router!

Who Provides VoIP Service? 

The VoIP market is growing, and all trends indicate that growth will continue in the coming years. But with so many UCaaS and  VoIP providers out there, how do you choose the right one? Here’s what you should look for in an ideal communications partner.

  • Provides employees with rich customer data for an improved customer experience

  • Offers easy onboarding for employees to quickly adopt calling, messaging, and video conferencing

  • Provides an all-in-one communications platform solution

  • Has flexible features that integrate with tools and apps you’re currently using

  • Supports multiple types of devices from cell phones to desktops

What’s Better Than VoIP? UCaaS

If you’re trying to level up your communication methods, VoIP on its own doesn't cut it anymore. As today’s working world becomes increasingly competitive and fast-paced, businesses must be on the hunt for new communication technology to improve how they connect with employees and customers.

To ensure their communications framework is as robust as possible, many turn to unified communications as a service. At their core, UCaaS platforms are cutting-edge solutions, powered by VoIP.  UCaaS enhances VoIP technology by integrating additional functionalities like:

Although phone calls will always be important, businesses must expand their current communications framework and seek out additional solutions to better connect internally and with customers.

Anywhere, Any Time, Any Device — Vonage Connects You

If you want to experience features like these and more, consider Vonage. Trusted by over 100,000 businesses, our end-to-end cloud communications solution ensures you can reach employees and customers seamlessly. Learn more about our VoIP and UCaaS features or our VoIP call center solutions to see what we can do for your business!

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