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What Is VoIP Phone Service?
VoIP
(Voice over Internet Protocol) phone service is a technology
that lets users make phone calls using an internet
connection, without the need for local phone service.
It uses a high-speed internet connection and Internet
Protocol (IP) addresses — the same way computers communicate
with each other on the internet — to transfer data via
interconnected networks.
VoIP has become the communication method of choice for both
individual consumers and businesses, thanks to the rise of
broadband data transmission. It provides more capabilities
than traditional phones, at a much lower cost.
VoIP capabilities include:
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Call recording
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Call forwarding
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Conferencing
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Voicemail to email/text
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Custom caller ID
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Auto attendants
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Remote calls
To help you uncover everything you need to know about VoIP,
we’ll answer the most common questions.
Question #1: How Does a VoIP Phone System Work?
All you need for your VoIP phone system to work is a
broadband internet connection.
VoIP converts phone call information into packets of
compressed data and sends it via the internet. VoIP phone
calls travel through Ethernet cables or a strong Wi-Fi
signal.
The service then transfers this data online using IP
addresses, instead of the wire infrastructure used in
landline systems.
VoIP phone calls are exchanged via small data packets that
can travel around the world in less than a second, thanks to
internet satellite communication.
Here’s how a VoIP phone system works:
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Your VoIP phone connects to your Local Area Network
router
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The VoIP phone informs your VoIP service provider to
make the call when you dial a telephone number
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Your
VoIP service
provider establishes the connection and exchanges your
phone call data packets with the person you called
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The VOIP phone converts your voice into digital signals
and transmits them
A VoIP phone service allows you to connect with team members
and clients while you work from home
Question #2: What Are Key VoIP Phone System Features For
Businesses?
VoIP phone systems come with built-in features that can
benefit your business in many different ways. Here are some
of the key features:
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Mobile and desktop apps:
These VoIP apps let you make phone calls, join
conference calls and send text messages from your
computer or mobile device. They are especially useful
for businesses and staff members that work remotely.
-
Auto attendants:
This phone menu feature greets incoming calls, directs
callers to the right department/person or forwards calls
to a voicemail. For example, when you dial a bank and
the automated voice says something like, “press 1 to
talk to a support agent,”, that is auto attendant in
action. This feature helps project an overall
professional business image.
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Unified communication platforms:
This feature integrates your company’s communication
channels into a single platform. A unified platform’s
functions include instant messaging, team chats, screen
sharing and video meetings that make real-time
communication more efficient and simpler.
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Call encryption and security:
VoIP phone system have built-in security that protects
confidential information your phone calls may carry.
VoIP technologies can scramble and encrypt call data,
but it’s also important to make sure that your VoIP
service provider is accredited and meets the industry’s
safety standards.
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Call recording:
VoIP systems allow secure call recording for authorized
personnel. VoIP call recording is undetectable and
requires no additional hardware. The useful hidden
benefit here is that it can help you identify areas for
your team’s improvement during phone calls with
customers.
Question #3: What Is a Fixed VoIP Phone Number & What Is a
Non-Fixed VoIP Phone?
A fixed VoIP phone number
is an internet phone line tied to a real address and an
account owner, such as a company office or a residential
address. In this case, the subscriber location matches the
phone user identity.
Fixed VoIP numbers are rarely used by scammers because they
are easy to trace. For this reason, a fixed VoIP phone
number is perceived as more reputable and dependable.
For your business, this means that call recipients will feel
more willing to answer your calls because fixed numbers
exude trust.
A non-fixed VoIP phone number,
or a virtual phone number, is not associated with a physical
address or account owner and therefore can be linked to any
geographical location.
Non-fixed VoIP phones are a convenient method for calling
clients and partners in different countries and areas where
your business is not physically present. It is also a great
solution for telecommuting and remote work.
Non-fixed VoIP phone calls are
provided by technologies like Skype, Slack and Google Meet.
Because it is easy to mask the caller’s identity, this type
of phones is popular with internet fraudsters. That is
possibly why as many as 76%
of calls go unanswered if they’re from unidentified phone
numbers.
Question #4: Does My Business Need a VoIP Phone?
When deciding whether to transfer to a VoIP phone service,
you should consider the following factors to help you make
the right choice.
Reliability Of VoIP Phones
Although the quality and reliability of VoIP calls depend on
your internet service provider, any concerns you may have
about this can likely be put to rest. Modern-day VoIP calls
often sound clearer than landline calls, and even mobile
phone calls.
Not only has the VoIP call quality improved by leaps and
bounds, it also contains error-correction protocols that
make it more stable and reliable.
Remote Work
In the post-COVID-19 era, more and
more companies will transition to telecommuting.
25%
of company decision makers plan to move at least 10% of
their workforce to permanent remote positions.
Recent research also shows that
77%
of remote workers report better productivity, and
45%
of telecommuters are happy with their jobs, compared to 24%
of those who work in the office.
VoIP allows your employees to
work from their homes
or anywhere in the world, potentially contributing to these
figures. Software apps, desk phones of softphones are all
configurable with VoIP services.
Mandatory Analog Phones
In some cases, traditional phones may
be connected to fax or
copier machines or simply
have an established role in your daily work routine, which
may make transitioning to VoIP a bit more difficult.
However, Analog Telephone Adapters can help in these
instances. They allow analog phones to send digital data
over the internet so you can use a traditional device with
VoIP phone system.
Question #5: How Do You Connect a VoIP Phone To a
Router/Modem?
To connect your VoIP phone to a router or a modem, follow
this multi-step process for either Ethernet cable or DECT
router connectivity.
Using an Ethernet cable:
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Step 1: Turn off the router/modem
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Step 2: Link the AC adapter to the base station
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Step 3: Connect the handset to the base station
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Step 4: Connect one end of the Ethernet cable to the
router’s/modem’s open port
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Step 5: Connect the other end of the Ethernet cable to
the VoIP phone base station’s port
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Step 6: Power up the router/modem
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Step 7: Connect the phone to the power source (optional:
follow your VoIP provider’s instructions to configure
your VoIP phone for calls)
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Step 8: Wait for a dial tone
Using a DECT router:
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Step 1: Check your router’s built-in DECT capabilities
in the user manual
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Step 2: Put batteries in the handset
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Step 3: Power on the phone handset
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Step 4: Press and hold the router’s DECT button
Small businesses that use VoIP save up to 40% on local calls
6 Benefits of VoIP For Small and Mid-Size Businesses
Using a VoIP phone service comes with tangible financial and
organizational benefits for small and mid-sized businesses.
Benefit #1: Lower Costs
If your business makes long-distance calls on a regular
basis, the cost of having many phone lines may add up
immensely.
This is where VoIP’s cost savings come into play as one of
the major benefits for any business.
Traditional phones may charge for every minute of call time.
VoIP-related costs are, in fact, your internet service
provider’s monthly charges.
And the best thing is – it is going to
get even cheaper! Gartner estimates that VoIP telephony
prices will decline between
3% and 5% on a yearly
basis.
As a consequence, a small business
that uses VoIP can expect up to
40%
in savings for local calls.
The issue of a single phone line being available for only
one caller is also eliminated with VoIP: It sends
communication data packets via IP network, enabling multiple
calls at the same time.
VoIP also helps you reduce costs associated with hardware
and software upgrades and maintenance. VoIP providers make
sure their clients have the latest hardware and software, so
you don’t have to purchase your own equipment and
infrastructure.
Benefit #2: Global Access & Mobility Of Service
Because it is highly portable and mobile, VoIP technology
allows your employees to connect from anywhere in the world,
make calls and telecommute efficiently.
VoIP numbers can be easily transferred in case you need to
change your office location
— unlike traditional phones, that need a unique number for
each line, which makes number transferring complicated.
Additional perks of using a technology that allows worldwide
access and mobility include decreased utility costs and
smaller office spaces.
Benefit #3: Network Flexibility
Your existing Wi-Fi and ethernet infrastructure can serve as
a foundation for your VoIP network.
This eliminates the complexity of traditional phone networks
and doesn’t require the development of a specific technology
infrastructure.
VoIP allows the implementation of a standardized system that
supports a wide range of communication channels and requires
less equipment and management.
Benefit #4: Scalability
A VoIP phone service supports and follows your business’s
productivity while being highly cost-effective.
As your business changes and grows, an efficient VoIP system
will scale with you. For example, adding a new VoIP line for
every new employee you hire is remarkably easy, as is
eliminating lines if you downsize.
Benefit #5: Simple Integration With Other Business Systems
VoIP systems can easily integrate with a range of business
systems and tools that boost your operational efficiency.
For example, VoIP providers can integrate their services
with widely used business apps such as Zendesk, Salesforce,
Google Workspace, Outlook and others.
These integration capabilities do not require any
modifications of your existing tools and apps or IT
infrastructure.
Benefit #6: Easy Conferencing & Media Transfer
Using traditional phone systems for conference calls
inflates the cost of hosting multiple callers.
VoIP’s absence of traditional phone lines makes conferencing
simpler. Its conference call features are native and the
cost of conference calls is included into the VoIP service
price. Which – as mentioned earlier – is lower than
traditional phone lines.
An often-overlooked VoIP conferencing benefit is that you
can also send and receive various media files during the
actual calls.
Key Takeaways On VoIP Phone Service & How It Benefits Your
Business
A VoIP phone service streamlines business operations while
reducing costs.
Its scalability, flexibility and capabilities such as
voicemail to email, conferencing, caller ID and call
recording can help enhance your company’s daily workflow and
productivity.
It enables your staff to work remotely, while keeping and
even enhancing their efficiency and work satisfaction.
And the best of all:
it requires only your internet connection and it is getting
cheaper!
Document Solutions provides expert integration of VoIP phone
systems for conducting your business anywhere, including on
the go.
Our fully integrated unified communications solution comes
with features that boost employee productivity and make
teamwork easier than ever across all platforms and devices.
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