What Is VoIP System? And How Can You Tell If It’s Right For Your Company?

What Is VoIP System? And How Can You Tell If It’s Right For Your Company?

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What Is VoIP System? With businesses looking for ways to reduce costs and streamline processes, many are turning to VoIP for phone telephony services. But what exactly is VoIP, and how can your company decide whether it is suitable?

VoIP (voice over internet protocol) is a communications platform that transforms voice signals into data packets for transmission over the internet. Rather than traditional circuit-switched landlines, VoIP allows you to utilize existing internet connections instead, saving money while providing advanced features like voicemail-to-text transcriptions, call recording and more.

Integration between VoIP systems and other software can create an easier platform for employees to use and manage, cutting down time spent switching tools while increasing company efficiency and productivity.

Many businesses that utilize VoIP have reported increased customer satisfaction. This is likely because VoIP systems provide options like callbacks, ring groups and auto attendants that make customers feel valued; saving both money and improving service in the process.

VoIP also helps your business expand with time. Its flexibility enables easy addition of extensions and features, and configuration changes at any time – ideal if your company’s requirements change over time.

With VoIP phone services on mobile devices and network-ready apps compatible with your vendor’s system, you can work from any location with reliable internet access – be that home, the road, or anywhere else with an internet connection. When expanding globally, local or toll-free numbers for each market can build trust among callers, increasing the chances they will pick up.

How Does VoIP Work?

How Does VoIP Work? VoIP works by harnessing the internet connection as the source for phone calls, thus eliminating expensive copper wires and their associated costs. Long-distance and international calls tend to be much cheaper as call rates vary based on where the recipient lives rather than on your current location.

To use VoIP, a broadband Internet connection must be in place – cable modem, DSL or dedicated business line are all suitable – to make and receive calls on a computer, VoIP handsets or traditional phones connected through an analog telephone adaptor (ATA). Many providers include an ATA for free as part of their service packages – these devices convert analog signals into digital data that is then sent over the Internet, making setup and use straightforward.

VoIP solutions for businesses also feature unified communications tools that treat voice, faxes, emails, web conferences and messaging apps as discrete units that can be delivered to any device at any time.

Most providers offer an application that can transform your smartphone into a VoIP mobile phone, so employees can stay in contact using their business phone numbers when working remotely. All it requires is software, microphone and speakers – as well as an ethernet internet connection for optimal call quality.

What Is the Difference Between VoIP and Landline Phones?

If your business is considering switching to VoIP phones, several key aspects should be kept in mind when making this decision. These factors include:

VoIP provides numerous features not found on traditional landline systems, including automatic call forwarding to mobile phones. This feature can come in handy when redirecting calls while out and about.


If your business wants to cut costs and reduce recurring costs, moving away from landline phone systems and into a cloud-based VoIP setup is an excellent way to do it. Landlines require expensive hardware that must be professionally installed; with cloud VoIP systems you can have your office up and running in minutes at an economical price point.

Modern VoIP systems also boast advanced functionality beyond basic telephony. Notable features of modern VoIP solutions include video calls, faxing, instant messaging and text-to-voice transcription. Many solutions also allow the integration of these solutions with smartphone headsets and computer accessories for seamless operation.

VoIP systems employ digital data transmission rather than traditional copper lines, making them considerably less expensive than landlines. Most VoIP providers offer various affordable pricing plans with some providing annual billing or volume discounts.

VoIP offers several distinct advantages over landlines for business. If your company experiences growth, adding additional telephone lines is easier with VoIP than it would be with physical lines and additional hardware like desk phones. Furthermore, many VoIP systems allow employees across different locations to be connected through one centralized network for voice, video, text and meeting communications – check out our list of top providers today and receive your free quote in seconds to learn just how much money can be saved!


An effective business VoIP system relies on having a stable internet connection; fortunately, business broadband connections tend to be much more reliable and stable than residential landlines.

VoIP is a digital technology that utilizes the same IP information exchanges that other technologies – like computers, tablets and smartphones – use. Therefore, it should work well with both current and future technology including headsets, cell phones and computer accessories.

VoIP technology also eliminates the need for costly PBX hardware setup, saving your company thousands in expenses. Instead, it resides either in the cloud or your company’s data center allowing for easier and cheaper provision of new lines as your company expands.

Landlines may still have the edge in terms of signal reliability, but VoIP calls have become just as reliable over time. VoIP works by compressing analog sound frequencies into digital data packets before sending them instantly over the Internet to receiver devices where they decompress back into analog signals for decompression at receiver device level. To maximize call quality with VoIP for businesses it’s key that their Internet connection be fast and reliable; otherwise, it can lead to issues like jittery audio quality, delays during teleconferencing sessions, or other disruptions that hinder call quality altogether.


Traditional landline systems require the installation of a private branch exchange and copper wires, incurring start-up costs that could run to thousands. VoIP can be more cost-effective as it runs over your existing internet connection – something your office likely already has access to – offering flexible payment plans like pay-as-you-go and all-inclusive plans that help reduce business phone bills.

VoIP offers many other advantages that go beyond lower call rates, including better audio quality and the ability to tether mobile devices for increased mobility. This feature can be especially beneficial for employees who must work on the go – such as salespeople traveling between appointments or remote workers working from home – making VoIP calls easily from any device connected to WiFi, 4G LTE or 5G internet service.

Modern VoIP systems boast many features that add extra value, such as three-digit dialing and voicemail-to-email, making them a fantastic option for businesses that demand high levels of call reliability and functionality. To select the ideal provider for your company’s specific requirements, it is crucial that you know which features are essential and which are optional – knowing this information will allow you to narrow down your choices to find the one with the best services.


Landline phones convert soundwaves into electrical signals that travel over copper wires to a telephone company’s central office and back again via sound waves; once there, these electrical signals are converted back into sound and sent directly to whoever is calling them – making these more reliable than VoIP systems but less flexible than alternatives such as SIP trunking systems.

VoIP phone systems offer many advantages to businesses that rely on remote workers or those working from home, including call re-routing – an essential feature that protects from interruptions due to power outages or problems with your office internet connection.

VoIP systems also boast the advantage of being more scalable than landline phones; adding additional lines or extensions is simple and cost-effective with VoIP while scaling a landline system can require installing additional hardware or adding physical lines.

Most VoIP providers provide advanced features, like voice analytics, text-to-speech, real-time APIs and call queues that would typically not be included with a traditional landline phone system. These features are often included as part of their base price and updated frequently to enhance your experience with their software compared with traditional landlines that may charge extra or require investment in costly PBX setups.

What Equipment Do You Need to Set Up VoIP?

When opting for a cloud-based VoIP solution, certain pieces of equipment will be essential – this includes an analog telephone adapter (ATA), VoIP phones and unified communications software.

Most residential users will only require a PC, softphone, headset, high-speed internet and VoIP subscription for home VoIP use. A small business, however, will likely require more infrastructure.

High-Speed Internet

VoIP calls can be an intensely resource-consuming activity that requires fast internet connections for optimal call quality. To make sure that your office’s connection can accommodate VoIP calls, run a network speed test during peak usage times when everyone in the office is accessing the web – this will allow you to assess whether your ISP and router can meet all the demands of your business VoIP system.

If the results of your speed test are poor, try directly connecting a computer with an Ethernet cable to the modem and taking another speed test. If they remain low, your ISP or router may have an issue and require firmware updates – Cabertel can assist in this process based on the make and model of the router used.

VoIP relies on tools called codecs that require a fair amount of bandwidth to operate effectively. If the codecs used by your VoIP provider don’t fit with your organization’s data usage or consume excessive bandwidth, consider switching solutions or prioritizing data by setting QoS on your router.

Analog Telephone Adapter (ATA)

Your VoIP solution of choice may require additional hardware. For device-based systems, such as an ATA (analog telephone adaptor) will need an Ethernet router or port that allows it to convert analog telephone signals to digital and can connect directly to standard phones and fax machines.

Most VoIP vendors include an ATA when signing up for service, making this an inexpensive investment for consumers. Businesses looking for robust gateway ATAs with IP phone support should consider an option like Patton SmartNode SN5540 which features dual Ethernet connectivity for LAN and WAN connections as well as enterprise features like wideband audio streaming and SIP registrar functionality.

Some businesses opt to go without traditional phones altogether and instead utilize PC headsets with VoIP software instead of traditional telephones for internal communication and customer interactions. Hosted VoIP services allow employees and customers to interact through virtual telephone applications on computers or smartphones that facilitate communications; they are more flexible than devices as they can easily scale up or down with assistance from third-party providers.

VoIP Phones

In addition to an ATA and router, VoIP systems require phones capable of handling internet connections and connecting to the network over Ethernet. These phones may take the form of hard phones resembling traditional office phones with digital hardware attached, or softphones operating as software applications on computers and mobile devices; most providers offer both options. A PoE switch must also be present to power these phones over Ethernet cables without the need for individual power adapters for each phone – this enables teams to work more easily together and increase output overall.

Some businesses opt to go without physical phones altogether, using softphone apps on computers or mobile devices instead. This may be particularly suitable for companies with limited space or that rely on remote workers; should your company choose this approach, they’ll require an internet connection with sufficient bandwidth as well as headsets equipped with microphones.

PoE Switch

For optimal VoIP call quality, your router must be capable of handling a high volume of data. A high-speed Internet connection also helps, so to be certain of a good connection use this innovative tool to test its speed!

Your VoIP hardware requirements depend on your business’s communication needs; while residential users may only require an ATA adapter, IP phone or softphone and headset; for businesses however, additional equipment might include routers with VoIP software installed, desktop/laptop computers running these programs, an IP or ATA phone (connected via a UC program), headset and high-speed data or WiFi internet connections.

To maximize the potential of your VoIP service, it is recommended that you use a PoE switch that supports Power over Ethernet. This type of switch distributes 48V power along the copper wires which carry signals in an Ethernet cable. Unmanaged and managed switches may be appropriate depending on your network infrastructure and business needs, with smart-managed switches featuring features like QoS and VLANs to keep your VoIP system functioning efficiently.

Unified Communications (UC) Software

Unified communications (UC) software provides businesses with an all-in-one communication platform that includes features like chat, phone calls and video conferencing – along with integration into third-party calendars and marketing tools – in order to simplify communication among teams.

Selecting the proper hardware depends on both your needs and budget. Your choices could range from VoIP desk phones, cordless VoIP phones, software-based phone systems running on computers or mobile devices, or VoIP desk phones to software phone systems running on computers and mobile devices. Connect these phones via Ethernet cables or Power over Ethernet (PoE) switches before verifying that routers, switches and firewalls support VoIP traffic prioritizing voice data over other forms of traffic.

At the core of setting up VoIP is a high-speed Internet connection capable of handling your company’s call volume and quality without being affected by Wi-Fi speed issues like jitter and packet loss. Furthermore, performing a network speed test prior to the deployment of VoIP can help identify potential issues that may arise with regard to network performance.

Advantages and Disadvantages of VoIP

Organizations can increase customer service with applications that provide features like call logging, video calling, unified messaging and even free calls to contact centres. All these tools come together into a single communications solution that is easier and cheaper to manage than multiple tech stacks.

VoIP provides crystal-clear voice calls with no lag or latency issues.


Traditional phone systems require new employees and lines of service to purchase and install hardware, whereas VoIP services are easily adjustable with just a few clicks on a web portal, making scaling easy while remaining significantly cheaper than buying new lines or hiring receptionists to answer calls.

Businesses experiencing seasonal spikes in call volume can take advantage of this scalability to quickly add extra lines without incurring additional hardware or system overhaul costs. They can also adjust call volumes during events like product launches or sales campaigns which generate significant inquiries.

VoIP solutions also feature features to facilitate collaboration and business operations, such as unified communications, voicemail, video conferencing and instant messaging. Some providers even integrate with CRM software so you can manage customer interactions more easily.

VoIP solutions also allow users to access call logs and features from any Internet-connected location, making them ideal for remote workers and companies operating across multiple time zones. VoIP can help businesses adapt quickly to changing customer demands quickly, which is critical for competitive advantage. Furthermore, it reduces costs by eliminating hardware installation fees as well as long-distance calling charges that would otherwise arise.


VoIP systems reduce costs associated with traditional landline phone systems, helping businesses save on equipment, installation fees and maintenance contracts. Furthermore, this type of phone does not need a physical landline; employees can work from home or travel while still receiving customer calls on their device with internet connectivity.

VoIP networks save businesses money in multiple ways, including eliminating the need for an on-premise PBX (private branch exchange). This costly piece of hardware connects multiple landline phones in an office and may cost tens of thousands over several years; with VoIP networks using broadband internet connections they don’t require one and setup is much less expensive.

VoIP provides companies with cost savings when it comes to international calling rates, particularly useful for companies that rely on international callers for client liaison purposes in various countries. Many VOIP providers include unlimited domestic and international calling in their plans – this can reduce monthly telephone bills substantially.

VoIP technology can also save businesses money in terms of overhead and human resources costs. Features like auto-attendants can replace receptionist duties to save companies on wages and benefits, as well as reduce staff needed for answering incoming calls – freeing up valuable time that could otherwise be spent doing value-adding work.


VoIP works by converting voice signals into digital data and transmitting it across the internet, which necessitates a high-speed, reliable connection in order to function. Due to its internet-dependent nature, however, VoIP requires a strong and stable internet connection with adequate bandwidth – otherwise call quality may suffer greatly and security breaches such as identity theft and service tampering may occur; to mitigate against this threat a reputable provider with excellent customer support can provide faster response times and mitigate against security threats associated with identity theft or service tampering issues associated with VoIP service tampering issues associated with identity theft or service tampering by choosing an excellent provider with excellent customer support and fast response times for emergencies.

VoIP provides more than voice calls; it also offers other business communication services, including faxing and video conferences. VoIP supports mobile workforces by enabling employees to work from home or the office with headsets or smartphones – something many businesses find particularly valuable as it increases flexibility and productivity.

VoIP differs from traditional telephone systems in that its setup and installation don’t necessitate purchasing special hardware, like desk phones or PBX boxes, making its setup significantly simpler than its counterpart. Furthermore, users can quickly add lines of service or features via web portal, whether using their smartphone, computer or Internet-enabled desk phones; or alternatively VoIP compatible softphone applications on PC or tablets – making VoIP an appealing solution among small businesses, startups and freelancers.


VoIP takes analog phone calls still being made by most homes and businesses today and converts them to digital packets, traveling over the internet to reach their destinations just like any other digital data.

As VoIP relies heavily on software infrastructure, it is susceptible to online security risks such as phishing attacks, malware infections and denial-of-service (DoS) attacks. To reduce these threats with proper precautionary measures and IT oversight.

Network monitoring is one of the cornerstones of protecting a VoIP system. This process monitors traffic patterns, looking out for any suspicious activities that might indicate malicious intent. Furthermore, network monitoring identifies any calls which could potentially be fraudulent, which allows administrators to take immediate actions against those potentially engaging in fraudulent practices.

Encrypting data is another essential aspect of VoIP security, ensuring that even if hackers gain entry, they won’t be able to exploit any sensitive data they obtain – this is especially important when working with HIPAA patient data or financial details that must remain protected.

Finding a provider who adheres to industry best practices is also key when securing your VoIP system. Look for providers with multiple methods of security for their system and robust features for your business, like NAT router features that assign VoIP devices a private IP address that only visible on local area networks (LAN). This makes it more difficult for hackers to gain entry.

FAQs About VoIP For Your Business

VoIP (Voice over Internet Protocol) is an internet-based telephone system that utilizes high-speed connections to route calls instead of traditional circuit switched networks, offering cost savings, flexibility and functionality advantages over their counterparts. If you’re considering making the transition, here are some FAQs about this technology that may provide some answers to any potential queries about its adoption:

What equipment am I required to have to use VoIP?

Starting a cloud based VoIP system doesn’t require much equipment – the main prerequisite being an internet connection with minimal latency and enough bandwidth for multiple concurrent calls. Once this has been established, VoIP phones (cordless and corded models), smartphone apps with VoIP calling software or computers equipped with headsets can all be utilized to make and receive calls through a business VoIP phone service.

With VoIP phone systems, your calls are routed over the internet rather than PSTN networks, enabling you to bypass long distance fees and save on international call rates, with most providers offering lower than traditional rates for many countries. Your employees can collaborate more freely across borders while still remaining free from incurring expensive roaming charges.

VoIP calls often feature clear and crisp audio quality compared to standard phone lines, due to how VoIP converts analog voice signals into digital ones that are compressed and transmitted over your internet connection. Your provider can further optimize call quality with various codecs that balance bandwidth consumption against sound quality for voice calls.

Apart from the advantages that VoIP brings over traditional phone services, your employees will also enjoy more flexible working conditions with VoIP compared to traditional services. This enables them to become more productive by working from home, on the move or other locations while keeping their original number. They may even retain it should their office move across town or country!

Advanced features like auto attendant and call transferring can help to increase productivity by reallocating team resources more effectively, making scaling your business simpler without needing to hire and pay new staff members’ salaries and benefits. Your VoIP system will adapt as your business does allowing you to add or delete lines and extensions as necessary.

Advanced features like auto attendant and call transferring enable even small businesses to project an image of being larger enterprises, helping attract clients and increase revenues. VoIP enables your employees to connect with clients and customers regardless of location – creating an approachable atmosphere while increasing customer bases and decreasing operational costs.

By |2023-10-24T13:34:12+00:00October 24th, 2023|Blog|