Is Your Monthly Phone Bill Killing Your Business?
Don’t worry if the term doesn’t sound familiar to you. We’ll show you how VoIP works in this post. And more important, you will learn all the wonderful things that this upgraded phone system can do for your biz.
And more important, you will learn all the wonderful things that this upgraded phone system can do for your biz.
What’s Wrong With Traditional PBX Systems
Private branch exchange (PBX) is a telephone system that switches calls within local lines while giving users access to external lines. If you have 5 external lines from a telephone company, PBX lets you use and network up to 15 extensions.
And a PBX can fail you in more ways than one.
For starters, the number of calls you can take at any given time is limited to the number of your external phone lines. And what happens if all external lines have called in progress? The next caller gets a busy signal.
Think about it:
The caller might’ve been a customer – and you just turned them off.
The second problem with PBX is its inability to scale.
If your company grows to epic proportions, you need more external lines to accommodate the influx of calls. The cost of usage plans increase, and more so if you need features like a toll-free calling.
And worse, traditional PBX systems only work with business phones from the same brand.
How VoIP Works And Why This System Is Better
If you think the disadvantages of PBX are a big deal (and they are), then consider VoIP.
VoIP stands for Voice over Internet Protocol.
The communication system transmits voice and multimedia content over the internet using a group of technologies and methodologies. VoIP converts analog audio signals – like those you hear when talking on the phone – to digital data.
VoIP is installed on a server and lets businesses use their existing internet connection and network as phone lines.
And as you will see below, how VoIP works and its method of transmitting calls affords many business advantages!
Going VoIP Means Lower Costs
VoIP offers the same service at a cost lower than PBX. The former uses your internet connection, taking traditional (and expensive) telephone lines out of the equation.
Such a setup also means you only have to deal with one account and bill for both of your business’ internet and phone subscription.
Two primary costs are associated with VoIP – the monthly cost of the service and the cost of the handsets.
In a comparison between a VoIP and traditional phone service provider, the total cost of 5 phone lines amounted to $232.92 for VoIP and $467.20 for the traditional phone system. The latter even had a one-time setup fee of over $300!
And here’s another cost advantage of VoIP:
You get to choose which phone to use! You’re not forced to use the business phones recommended by your provider.
A VoIP phone works with just about any provider. VoIP phones with screens for video calling can cost several hundred dollars. But you can choose less expensive phones with fewer features, reducing costs and cutting out features you don’t need.
Better Features For Businesses
Traditional PBX systems and VoIP have similarities in the features-and-functionality department. Both offer internal transferring, voicemail, call forwarding and even conference calling.
However, how VoIP works let it bring more features, many of which are well-suited to businesses.
Do you have a traveling sales team?
VoIP gives you the ability to use your smartphone as an extension of the business phone system. Even better, you can forward business calls to your mobile device.
And you can also place outbound calls from your smartphone and use your office number.
VoIP users can also take advantage of softphones, a client software which loads the VoIP service to a computing device. Softphones often sport a user interface that’s similar to traditional telephones, so using them should be a breeze.
You can load the software on a laptop. Toss in a headset and microphone, and you’re all set to place calls from any location with an internet connection.
And what if you need to redesign how your phone system works? Simply log in to your VoIP provider’s dashboard, and with a few clicks, you can change how calls are routed and handled.
Long-distance calling is expensive – and that’s because traditional phone systems are handicapped by distance. With a VoIP system, distance and location are never a problem as it relies on broadband connectivity.
Do you need to call the head office from another side of the world? No problem!
VoIP uses the internet to connect calls. If you have an internet connection, you can take and make calls.
Reliable Voice Quality
Back in the day, the old phone systems have a large advantage over VoIP in the call quality department. But VoIP overtook the competition thanks to the continuous increase in internet speeds and innovations by VoIP service providers.
If you have a stable broadband connectivity (and most businesses do), the voice quality you get from VoIP can equal that of a traditional phone connection. Maybe even better.
However, businesses in rural areas without a reliable connection can suffer from poor voice quality due to latency issues.
Switching To VoIP
You already know how VoIP works and the business advantages it brings. And maybe you’re thinking about switching.
Now, you need to make a few choices.
First, what phones will you use?
You can stick with your old phones and use an adapter. Softphones are also on the menu, or you can have the service’s app on your smartphone. However, you want to purchase new VoIP handsets to get the most functionality.
Next, will you switch to a new phone number? Or keep your current one?
The latter requires “porting,” a process which can take anywhere from 2 to 4 weeks to complete and will cost you extra. Until porting is completed, you need to stay connected to your old phone service and the new VoIP to keep receiving calls.