Voice-over-internet-protocol (VoIP) services have increased dramatically in recent years. Although this growth is often credited to conditions created by the COVID-19 era, the situation did not revert. VoIP has instead proven itself a convenient and cost-effective communication solution for individuals and businesses. Market value surpassed an estimated $133.9 billion in 2022, with expectations for growth to exceed $354.7 billion.
As the technology grows in popularity, it becomes crucial to understand how it works and how one can get the most from related services better. The best VoIP services for small businesses offer competitive pricing, various features including toll-free numbers and video conferencing, and high customer satisfaction ratings. In this guide, we break down VoIP technology, how it works, examples of how it differs from landlines, and VoIP’s various advantages and drawbacks.
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Zoom Phone
| Price: | Starting at $10 per user, per month |
| Features: | Unlimited domestic calls, number porting… |
| Best add-ons: | International calling, toll-free numbers… |
| Noteworthy integrations: | Salesforce, Slack, Google Calendar… |
Pros
- Easily switch from a phone call to a meeting
- Quick setup
- Mix-and-match plans available
- Affordable plans
Cons
- Reporting and analytics cost extra
- Base plan lacks unlimited outbound calling
- Unlimited calling to 19 countries is an add-on
Zoom Phone is good for anyone, but it shines for those already using other Zoom products, such as its video conferencing solution, Zoom Team Chat, and Zoom Webinars. With integration into the larger ecosystem of Zoom products, upgrade calls or chats easily to video conferences. This delivers a unified communications (UC) experience that makes business communications stacks more efficient.In addition, this solution is also geared toward solopreneurs and other small businesses because Zoom Phone only costs $10 a month per user. While Zoom offers both an annual and monthly pricing schema, the price stays the same at $120 per year if you choose to pay per annum. This convenience for solopreneurs also pairs well with the standard free tier of Zoom. With a minimum investment, new businesses are covered for domestic calling and texting in the United States as well as video meetings.
Unfortunately, the first tier of Zoom Phone, which is mostly geared toward smaller businesses, doesn’t feature unlimited domestic calling. So, for each call, you’ll be charged per minute. While this is fine for companies that make limited calls throughout the month, it can still get expensive over time. Of course, Zoom Phone rectifies this somewhat in its second tier, which is called US & Canada Unlimited, but for those looking to spend the inexpensive $10 per month, this is unavailable.Business is becoming increasingly global, but Zoom Phone isn’t the strongest when it comes to doing business overseas. To start, additional international numbers are $5 per month, per license. This will add up quickly if you’re looking to provide your international customers with calling options for your company. Secondly, while it has extensive metered options for international territories, there are only 19 countries with unlimited international calling.
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What is VoIP?
VoIP lets you make phone calls using broadband Internet instead of traditional or analog phone lines. This means that VoIP lets two or more people communicate thanks to each having a reliable network connection, but VoIP can also be used for receiving or making calls to traditional landlines provided you have the right equipment.
How does VoIP work?
VoIP works by converting your voice into a digital signal sent out over the Internet rather than through telephone wires, as is the case with traditional landlines. A wireless connection can send this signal to and from computers, VoIP phones, smartphones, or tablets using a wireless Internet connection.
Although Ethernet has traditionally been considered faster and more stable than Wi-Fi, depending on your Wi-Fi service, this isn’t always true. Your VoIP call quality may be just as good without a wired connection as it is while using an Ethernet cable, it depends on various factors, ranging from your location to your Internet service provider (ISP).
While some VoIP providers strictly work by providing a virtual phone service that connects you from computer to computer, others allow you to port over an existing phone number. That means, rather than getting assigned a new number, you transfer your phone number to the new service.
In some cases, the VoIP service latches onto your existing number and connects it to a new business number. For example, a client calls the number assigned by your VoIP service. Being linked to your personal contact, that number will let you get the business call through your private number.
As such, VoIP services are viewed as very convenient for entrepreneurs and startups that don’t yet have a complex phone system but desire a professional business contact. A wide range of VoIP providers are available, and the technology works for companies of all sizes.
VoIP vs. landlines
While VoIP is a digital solution, landline phone service relies on physical wires, metal or optical fibers, to transmit signals. VoIP’s rising popularity could be credited partially to the fact that special equipment isn’t mandatory. While businesses can purchase special VoIP phones, if you have an existing Internet connection, smartphone or laptop, you can sign up for a VoIP service, download an app, and begin using a virtual phone service almost immediately.
VoIP might typically be more convenient than landlines, however this isn’t always the case. Virtual calling is entirely reliant on a stable internet connection and electricity. If you lose power and your Internet goes down, you may not be able to make calls using VoIP. Meanwhile, a traditional landline network that uses copper wiring should still work during a power outage.
Still, VoIP has proven to be worth the investment for many entrepreneurs and small businesses because of the often-added communication services provided. In addition to calling and texting through VoIP, these services offer video and audio conferencing, online chat, and internet faxing. Some more robust solutions also offer call center features, allowing companies to offer a more complex customer service and support experience through an entirely digital communications platform.
Some still view landlines — whether using optical fires or copper wiring — as the more reliable option, especially for businesses that don’t want to risk lost business due to potential Internet or power outages. Even if landlines cost more, an enterprise-level business with a sizable budget may opt for the traditional phone system. However, for cost and convenience, VoIP continues to make strides as more businesses use it to set up their companies’ phone systems.
Another business solution similar to VoIP phone service isPrivate branch exchange (PBX). PBX offers businesses the option of physical setups like landlines, virtual phone like VoIP, or a hybrid model that combines both.
What are the benefits of VoIP?
VoIP is increasingly seen as the great communication equalizer. For businesses of all sizes, VoIP provides certain advantages over a traditional phone number and system.
| Ease of use | Because VoIP phone systems are quick and easy, it may be possible to have one ready for use within a day. Many VoIP products don’t have a steep learning curve, making it possible for those new to virtual phone systems to make the change. |
| Cost savings | Research suggests businesses that move to VoIP could see cost savings between 50% and 70%. Small businesses could also see related expenses cut by 40%. VoIP’s affordability makes it a great option for small businesses and entrepreneurs who need professional numbers to communicate with customers, peers, and vendors. |
| Scalability | With the right VoIP provider, it may be possible to scale up your phone system and contact center over time. It is possible to improve the quality and complexity of your contact system with VoIP as your business grows. You can step your VoIP needs up or down as your business needs change. |
| Convenience | VoIP service accounts can often be created and set up within minutes without having to coordinate with a sales and service team member. VoIP doesn’t require a phone. You can also call from a desktop computer, laptop, or tablet. |
| Collaboration | In addition to call and text, many VoIP providers have collaboration tools, such as chat rooms or video conferencing. VoIP is part of a unified communications as a service (UCaaS) system, Which provides multiple channels for team collaboration. |
What are the disadvantages of VoIP?
Although VoIP has many things in its favor, there are a few problems that cause some businesses to reconsider using it for communications.
| Internet/power requirement | Some VoIP services rely entirely on existing Internet connections. During an outage, you may lose the ability to make or receive calls. |
| Call quality | If you have slow or unreliable Internet, you could have poor quality. There’s a chance that calls may sound muffled or lack clear audio. Sudden loss of Internet or power could cause dropped calls. |
| Security breaches | Some VoIP services use less secure technology, making you vulnerable to breaches. Even if VoIP tools are secure, other features may pose security risks. |
The takeaway
VoIP will continue to grow in use thanks to its convenience and cost-effectiveness. You should choose services beyond calling and texting to get the most from VoIP. Some services offer VoIP alongside chat, video meetings, and e-faxing tools. Your business would be best served through multiple communication channels, especially in-house communication.
If you are part of a very small team with tight budget constraints, VoIP is a cost-friendly way to set up a business number and phone system fast and for less money. Compare plans, prices, and customer reviews, and a
