What Is a VoIP Phone System?

The ABCs of VoIP

VoIP stands for voice over internet protocol. A VoIP business phone leverages an internet connection, allowing the business to make clear and reliable phone calls. Some VoIP phone systems incorporate other functionality like faxing, video calls, and virtual receptionists to let small businesses achieve outsized impact. Vonage created this guide to VoIP phone system basics to help you understand this technology and inform your decision-making.

What is a VoIP phone and how does it work? 

Do VoIP phones work without the internet? No. VoIP phones send data packets over the internet to the listener on the other side. Without a high-quality internet connection like cable or fiber, the phones can’t make the connection and transmit the call. The standard bandwidth necessary for VoIP is at least 85 Kbps of both upload and download capability per device. The more devices you have connected and receiving/making calls, the more bandwidth you will need.

Also, in case you’re wondering: The caller on the other side does not have to have a VoIP connection for the call to work! In fact, if you’re calling a landline from a VoIP telephone, the experience isn’t any different than you would usually expect. Your voice is converted into digital signals, which are sorted into regular phone signals before reaching the destination. Users of traditional landlines can still call you, too, without any noticeable differences to calling another landline.

There is a positive element to the experience as VoIP is often higher quality, more flexible, and comes with lots of features.

Why use VoIP phones?

VoIP phones are used for both business and home solutions. Why would someone use a VoIP phone instead of a regular phone? Reasons include call quality, the diversity of devices that can connect to the phone system, cost savings, and expanded functionality beyond a traditional phone.

• Call quality: Sound quality and call reliability are generally greater on VoIP systems, assuming your internet connection is strong enough to support the technology. If the bandwidth is lagging, then VoIP call quality might be affected.
• Device diversity: VoIP systems can support desk phones and handsets that you normally think of with a phone system. But cell phones, desktops, laptops, and tablets can also make and receive calls through these setups.
• Cost savings: VoIP for business starts out with costs around $20 a month per connection. Long-distance and international calls are often much cheaper when placed over the cloud versus a traditional private branch exchange (PBX) system.
• Expanded functionality: In addition to the ability to make and receive calls, VoIP phones can feature unified communications benefits like voicemail to email, virtual receptionists, video conferencing, click-to-call, and more. For growing businesses, this functionality becomes valuable as the business grows and needs to operate more efficiently. These and other features are available through Vonage’s unified communications solution.
• Future-proofing: VoIP is the calling technology of the future — and not just because it’s generally faster, more reliable, and more cost-efficient than legacy systems. Landlines are being phased out all over the world in favor of VoIP. In the USA, for example, telecom companies no longer have to offer or even maintain landline options.
• Flexibility: Flexible, hybrid, and remote work have a lot of benefits for staff and companies alike. However, these models are challenging if your business relies on a landline system, where your employees need to be in the office to take and make calls. With VoIP, you can use any internet-enabled device for calls, and you can use it from anywhere with an internet connection.
• Scalability: Scaling a landline system is difficult and expensive. It involves running additional copper wires through your walls to new phone stations and handsets. That’s not the case with VoIP. Scaling a VoIP system is as simple as adding a new user to your account. Plus, it’s often much simpler to onboard them.

Can a regular phone be used as a VoIP phone?

Many people wonder, is VoIP a landline or a cell phone? VoIP is not a landline in a traditional sense, because these phones are connected to the internet, not a phone line. However, you can get a VoIP phone that looks and functions exactly the same as a traditional landline phone, such as a SIP phone. SIP phones offer advanced features and better call quality, making it a robust alternative to traditional phones.

VoIP can also be used through your cell phone. Traditional cell phones function using data connections, but cell service is not the same as high-speed internet service. With VoIP through a cell phone, an app is installed that the user opens to make and receive calls using the phone’s 4G/5G connection or another internet connection like Wi-Fi. An added benefit is that a business number can be attached to the application, while the personal number on the cell phone isn’t affected. This allows business owners, salespeople, or other employees to maintain a distinction between work and personal life using just one device.

In fact, any internet-enabled device can be a VoIP phone

While traditional and legacy phone systems have to be wired into the landline network, it isn’t the case with VoIP. Any device that can connect to the internet and operate a VoIP app or interface can be used to make calls.

For that reason, VoIP phone systems are a lot more flexible than traditional landlines. Flexibility means your employees can easily perform a call flip, seamlessly transferring calls from one VoIP-enabled device to another, without dropping the conversation. 

Must-have features of a business VoIP phone system

There are lots of things to consider when choosing a VoIP provider, but here are some of the most important features to look for in your new business phone system:

Reliable quality

VoIP is generally of a higher and more reliable quality than landline systems, but some platforms are better than others. Look for a system that offers consistent quality, including crisp, HD audio and video. Reliability is also very important, so check that your chosen VoIP provider has limited downtime and won’t let you down. 

Collaborative features

VoIP opens up a whole world of collaborative possibilities too, especially if you choose a UCaaS system like Vonage Business Communications (VBC). 

VBC makes collaboration easy no matter where your employees are located, thanks to its wide range of features and equally broad selection of add-ons you can choose to incorporate if you need them. Things like:

• Business SMS and MMS

• Conference calling

• Call forwarding

• Conference bridging

• Call recording

• A multi-line business phone system

• A team messaging and chat app

• Visual voicemail

• Vonage Meetings video conferencing

• And many more!

Global reach

VoIP technology enables easier collaboration with colleagues and customers from all over the world. You’re no longer restricted by geography — instead, you can work with the best people the international talent pool has to offer and reach markets all over the globe.

To get the most from this global potential, look for a VoIP provider with worldwide reach. For example, Vonage offers international company numbers, making it easier to call and be called by overseas customers and colleagues.

Plenty of integrations

Modern business is at its best when everything is connected and working together. By integrating your communications system with tools that your teams already use, you can boost productivity and streamline your workflows. Employees can complete their tasks in one place and collaborate more easily with one another, too.

Vonage offers a host of integrations, including productivity tools like Microsoft Teams and CRMs like Salesforce, in our App Center. You can sync data across platforms and systems to boost productivity, optimize customer experience, and empower employees across the board.

What is the best VoIP phone for small business? 

The best VoIP phone for a small business is one that has the functionality you need today, and can grow with your business tomorrow. VoIP’s cloud connectivity allows owners and employees access to expanded functionality that drives efficiency and productivity. 

UCaaS services like Vonage Business Communications can be a game-changer for SMBss, helping them more readily compete with larger rivals. The solutions provide access to a host of tools and features that optimize communications. Plus, they make it far simpler to access and use communications data (in marketing, for example).

Why Vonage?

Vonage is proud to offer a full VoIP phone service to support any business, whether it’s a small team or a large enterprise.

Learn more about the business communications features that make us one of the world’s most flexible VoIP phone providers, or explore our VoIP business plans and pricing to explore how these systems could save you money and improve operations.