VoIP phones use voice over internet protocol (VoIP) technology to deliver an internet based telephone service.
Calls are delivered over the internet rather than the traditional legacy technology of the Public Switched Telephone Network (PSTN) or Integrated Services Digital Network (ISDN). Both the PSTN and ISDN networks are set to be decommissioned shortly.
Due to the reduced infrastructure needed to deliver phone calls on VoIP technology, voice calls can be provided at a very low cost.
VoIP services also use the internet to deliver phone system functionality to the end user. Many new features and useful services are available to small/medium businesses that were previously unaffordable to SME budgets. These include voicemail-to-email, call recording, instant messages, international calling, music-on-hold and call diverts.
While VoIP is not a new technology, it has fast become the standard for business telephony and communication, fast outpacing the growth of ISDN and ‘traditional’ PBXs and on-the-wall telephone systems.
What is VOIP?
A great place to start is to look at VoIP itself, and how it can replace your phone system. VoIP stands for Voice Over IP. VoIP is a method of communication that uses data packets and your broadband connection; as opposed to an analogue line or ISDN circuit.
Hosted VoIP phone systems can dramatically reduce your costs by removing or reducing things like:
- Telephone system maintenance
- Call charges
- Multiple telephone lines
- Cost of spares and repairs
- System installation costs
- System upgrades
There are many reasons to upgrade to VoIP. Perhaps the main reason would be the cost savings it can result in for all businesses. VoIP can massively reduce a businesses running cost by removing maintenance, installation and costly equipment.
Another reason why many businesses choose to upgrade is the better call quality. Because it uses packet data rather than analogue lines, VoIP is often much higher quality when compared to traditional ISDN and telephone systems.
The third main reason is the flexibility of VoIP. Traditionally, if you wanted to add another phone to your telephone system, then you would need to potentially upgrade your entire system and get in a new line from BT which comes at a high cost. However, VOIP allows you to just add another licence – and therefore a handset. You can even use a mobile app for further flexibility and mobility.
Do I need a VoIP phone?
Openreach is intending to stop providing PSTN and ISDN phone lines completely in the UK by 2025.
This is because the existing telephone service infrastructure is dated and expensive to maintain. As a result, making the switch a VoIP phone system and internet telephony should be a priority for every business regardless of size or what the business does.
VoIP is a method of communication taking the market by storm.