What is VOIP?

What is VOIP?

VOIP, or Voice Over Internet Protocol, is a phone system that uses an internet connection to make and receive calls, as opposed to POTS Lines. VOIP has a ton of benefits over POTS (Plain Old Telephone Service) that we will go over later in this article. Key ones being Lower Cost, More Included Features, Better Scalability, Remote Extensions, and Long Term Future Benefits. 

VOIP provides phone service using the internet. It converts voice into data packages and sends them, using the internet, to the end user, then unpacks them back into voice.  POTS on the other hand, uses traditional phone lines, a copper pair of wires, to convert voice to electrical signal, then to the provider's central switching system, after that routed to the other phone, then back to voice. For a business an onsite PBX is standard to allow for simplified call switching, transferring and other features. 

Why Choose VOIP?

Lower Cost: 

VOIP services tend to have a lower cost and better ROI than POTS, this can be due to many factors, such as installation cost, per-user vs data limits, and even support costs.

One of the big ways VOIP can save you money over POTS is simply due to the use of generally already existing internet infrastructure, rather than needing additional work done, hardware added or lines ran, most businesses are already equipped with necessary equipment to support a VOIP system. While this might not be true for every business, acquiring the necessary set-up required for VOIP is also generally lower cost, and most VOIP providers will assist you and your office in getting VOIP ready. 

VOIP also is generally set on a “Per-User” pay structure that includes a myriad of features without extra cost. Things you may pay extra for on POTS such as voicemail to email, auto attendants, call forwarding, and remote extensions are generally included in your VOIP service and can save you a lot on monthly costs. There also is no cost for data limits, or time of day charges, which is generally how POTS determine your bill, along with add on packages. This also helps your bill stay consistent with a VOIP service.

Another way VOIP can save you money is in support costs, most VOIP providers staff a support team and access to them is included in your cost. VOIP is easier to support remotely and allows solutions to not always require a technician to come to your site to diagnose the problem, this can save money on costly in person service calls. This can also alleviate your inhouse support team from having to spend too much time working on the phone system or being on the phone with a technician trying to solve the problem. With most VOIP providers you may even be able to find the solution to your problem in an article on their website. Even if you require an onsite technician a lot of VOIP providers are local and have a quicker turnover time on scheduling and resolving issues. 

Included Features: 

    VOIP providers tend to include a ton of features that POTS would charge as add-on features at an additional cost, if they can even provide the functionality at all. Some of these key features being auto attendants, voicemail to email, timeframe management, call forwarding, mobile options, and a user portal for easy customization of these features. Your VOIP provider may have varying features, be sure to check their feature list to see what's included. 

    Auto attendants can act as a virtual receptionist, directing customers to the appropriate employee to get their question answered, letting them know business hours, or whatever you’d like it to do. An auto attendant can save both you and your customer time by having their call go to the right person, without having to have someone there to transfer them

    With VOIP being an internet based phone system, features like voicemail to email, virtual voicemail boxes, and even voicemail to texting tend to be features that are easy to set up and are included in your monthly cost. VOIP also allows for every user to have their own voicemail box if the company would like, but can also have all voicemails go to a general inbox that you can adjust the setting and allow a number of people access to. If your provider has a webportal you can even access your voicemails without being in the office!

    Timeframe management allows you to set up schedules that can route calls based on time, and can be used in conjunction with other features to make calls go to specific auto attendants, voicemail boxes, users, or even forwarded to someone's personal number based on what time or day the call was placed. This can be highly beneficial to companies with odd business hours or departments that open at different times. 

    The ability to use a mobile app with your VOIP provider may vary provider to provider but is extremely common to have as an option. Most VOIP providers will have a third party app that works with their system, allowing you to use your cellphone as a company desk phone. This allows mobile workers to make calls and even send texts as if they were sitting at a desk using a company phone. This feature is one that POTS simply cannot provide due to requiring a copper line to make the service work.

    There are a ton more features that VOIP providers tend to offer, ask your provider, or potential provider what they offer. Some will offer things such as a user web portal that allow you to make changes and adjust things on the fly with simple user interfaces and no need to call them. They can also let you check active calls, call history, look at peak call hours and more. They also may allow you to record and store recorded calls if your provider has this option. 

Scalability:

    One of the biggest benefits of going with a VOIP system is the scalability of it, most of the time it takes just minutes to add a new user to a VOIP system and will  just cost you the updated monthly fee, where for POTS a technician will have to come out and physically set up a new phone, if the VOIP user is mobile only it can be setup remotely and quickly. Also with a lot of VOIP systems adding users tends to lower the per-user cost, this isn't always the case but it’s common practice for most VOIP providers. There is also the benefit of the potential of a VOIP phone system, VOIP systems are easy to upgrade, get better as technology advances and have regular service updates that can increase functionality and quality of calls. Some VOIP providers even offer video conferencing, something that is impossible using POTS lines.

VOIP is The Right Choice

    With all things considered we believe switching to VOIP now is the right choice, it can save you money, provide more features and build and grow with your company. Making the move now will have amazing long term benefits, with the biggest hurdle being the learning curve and picking a provider that works for you. If you're curious if your business is VOIP ready you can read our article on that here, or if you’re a Michigan or Florida based company contact us today and we can schedule a free consultation to let you know if RingGenius, and VOIP are right for you.