What Is VoIP, and Why Does It Matter for Your Business?

“Voice over internet protocol” is not simply technological jargon. VoIP has the power to transform your business’s communications.

VoIP services offer companies unparalleled flexibility and savings, as well as many other benefits. For that reason, the market is growing rapidly and worth billions of dollars. 

If you’ve only heard the term in passing, you’re likely wondering, what is VoIP, and why does it matter for my business? Find the answer here.

Key Takeaways:

• VoIP providers allow you to handle all of your communications in one service through your existing internet connection.
• VoIP is superior to landline phones and can enhance an existing mobile service.
• Companies gain multiple advantages with VoIP, such as cost savings, flexibility, and integration with advanced productivity features.
• The quality of your VoIP depends on your internet service and communications provider.

What Is VoIP?

VoIP is a technology that lets you make phone calls over the internet instead of traditional phone lines. This functionality means you can make and receive calls on almost any internet-enabled device with speakers and a microphone. 

VoIP services vary by provider, but most offer voice calls and text messaging at a minimum. Professional VoIP services also provide easy access to other channels, such as video conferencing and faxing.

How Does VoIP Compare to Landline and Mobile Phone Service?

VoIP, cellular, and landline phones operate on related principles but connect in slightly different ways. What is the VoIP advantage over other connection types?

Landline

A landline phone requires physical copper wires to operate. Landlines used to be the more consistent and reliable option for users. However, analog phone lines cannot provide high-definition call quality. 

Also, inclement weather or a severed line can still interrupt connectivity. Customers often have long wait times until the phone company restores service.

Mobile 

Cellular phones send signals through radio waves to nearby towers. The connection can transmit audio, text, video, and internet.

Like a landline, the strength and quality of any transmission depend on your equipment and your service provider. However, providers can upgrade service much more rapidly than through physical lines, leading to higher-quality communications. Technological advancements continually boost the quality of mobile service with each generation.

VoIP

As the name implies, VoIP makes connections over the internet. Clearly, this service doesn’t rely on landlines, but what is the VoIP difference from mobile?

VoIP serves as an enhancement to your mobile phone service. You can use any available internet connection for calls. A device might connect through a wired ethernet cable, Wi-Fi, or 4G mobile internet. 

VoIP keeps your business phone service in one secure platform for your whole team. If your wired internet goes down, you can use mobile devices with the same numbers and features and vice versa. Customers and callers never know the difference.

What Equipment Do You Need for VoIP?

Most homes and offices already have what you need to operate a VoIP service. A device needs to access a high-speed internet connection through broadband. A smartphone, tablet computer, or personal computer could all do the job, as long as the device has a microphone and speakers.

For example, a business could allow employees to use their personal devices. The VoIP application ensures secure connections and preserves data so that your company still controls it.

On the other hand, many businesses prefer to purchase hardware and peripherals for employees. Company-owned equipment ensures team members have dependable devices that can handle the workload.

What Are the Benefits of VoIP for a Business?

A VoIP service provides a company with the highest quality phone service for the lowest cost. What is a VoIP service able to deliver as benefits to your business?

• Scalability: Your company can increase or decrease lines effortlessly with easy-to-use controls in an administrative panel.
• Flexibility: An on-premise phone system restricts your company to onsite workers in one location, but VoIP opens the door to worldwide remote talent.
• Advanced features: Your business can more easily access features like caller ID, call transfers, holding, and auto attendants that work across the organization.

Unified communications with VoIP technology also make integration with productivity software seamless. You can use your workforce and customer relationship management software to monitor your team and improve performance.

Are There Any Disadvantages of VoIP?

One potential drawback with VoIP is that you have to ensure you have reliable internet service. The quality of communications depends on your upload and download speeds.

Once you have a reliable connection, a VoIP service will only be as good as the provider who offers it. Security and reliability also depend on if the company has a robust backup solution and secure data centers.

Additionally, VoIP does not handle emergency calls in the same way as traditional landlines or mobile calls. Since users can be anywhere in the world, the service may not automatically connect to local first responders.

What is a VoIP provider able to do about emergency calls? A top company such as Intermedia helps you understand how to set up enhanced 911 services or use other connections to reach local emergency responders. 

Is VoIP Expensive?

With VoIP, businesses do not have to invest in the infrastructure and equipment for public branch exchanges. Your organization can forego an office altogether and connect remote and hybrid teams using cloud communications.

What is VoIP able to save your business in costs? Customers have reported over 50% savings in some instances. 

However, results vary by each organization’s circumstances. The best thing to do is discuss plans and options with an expert to design a system with the highest return on investment.

What Is the VoIP Service That Is Best for Your Business?

You might become overwhelmed by the many options for a business phone service. Don’t worry; Intermedia has been successfully helping companies make the right choices for decades. 

What is the VoIP solution that can best serve your business’s needs? Contact the team to discover how Intermedia Unite helps you work securely and productively from anywhere.