VoIP technology allows traditional telephony services to operate over computer networks. VoIP is the technology that converts voice into a digital signal, allowing a call to be made directly from a computer, VoIP phone or other data-enabled devices. Simply put, it is a telephone service delivered over the Internet. VoIP systems for small businesses are telephone systems that allow communication over the Internet. With traditional telephone systems, calls are made over what is known as the Public Switched Telephone Network (PSTN). The PSTN consists of physical wires that transmit the analogue voice signal from the caller to the called party.
The call begins when the caller establishes a connection on the PSTN. The connection between the caller and the called party must remain open throughout the call. A computer program records the voice and encodes it into a digital signal that is sent over the Internet. VoIP gives companies more flexibility in terms of where and when their employees work. In addition to uniting multiple locations under one system, the cloud-based solution also allows organisations to implement operational options that were not available when using traditional landline phones and local systems. Another great advantage of VoIP is that it offers businesses much more flexibility than traditional phone systems.
While a basic small business VoIP system does not need much to be functional, there are other requirements for business VoIP to ensure high audio quality and reliability. Yes, when switching from a traditional landline phone to a business VoIP phone, you can apply for number portability, which allows you to keep your existing business phone number. In other words, when you upgrade to a VoIP business phone system, you do not need to lose the business phone numbers that your employees, customers, suppliers and partners are used to using. For many companies that do business internationally, international calling plans make the minimal investment in a small business VoIP system worthwhile. With your VoIP provider's software installed, you can turn a computer into a telephone to receive and make calls using your business VoIP phone number. There are two basic types of small business VoIP systems: hosted VoIP, which offers PBX functionality over the Internet, and on-premises solutions, where the organisation owns and operates the IP PBX.
We'll explain how VoIP works and what makes it ideal for (most) businesses, and help you decide whether a VoIP system might be the best fit for your company's telephony needs. But how exactly is VoIP used in business, and why is it better than PSTN? Let's start by defining what VoIP is. Because VoIP uses the Internet instead of landline wires, you may also see a VoIP business phone system called a cloud phone system, cloud telephony or digital phone system. One of the biggest advantages of VoIP, especially for businesses with employees who work remotely or in multiple locations, is that it allows employees to take their business phone line with them wherever they go. VoIP also offers more powerful conferencing features, such as video integration, which is something every company should make sure they have access to.