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The Benefits of VoIP: Advantages and Disadvantages
In the past decade, major changes to the way people communicate have caused a steep decline in landline usage. In fact, the benefits of VoIP give it a clear edge over landline service. From businesses to homes, people are switching to VoIP for its affordability, scalability, and flexibility.
If you’re interested in making the switch, you probably want to know all about VoIP’s advantages and disadvantages. In this post, we’ll go into detail about the benefits of VoIP, as well as some of its drawbacks.
If you’re interested in getting VoIP service for your business, we can help you know if it’s right for you. We’re based in Atlanta and serve the entire state of Georgia. We also serve the entire US including Phoenix, Birmingham, Charlotte, Auburn, Dallas-Fort Worth, Houston, and Los Angeles.
What is VoIP?
VoIP is a technology that has changed the game for telephony today. VoIP stands for Voice over Internet Protocol. It works by converting voice signals into digital data packets and transmitting them over IP networks. Essentially, VoIP enables voice communication using an internet connection rather than traditional copper wires.
Aside from traditional phone calls, VoIP also allows you to make video calls and conference calls, send and receive faxes, and much more. In fact, part of VoIP’s value is how many features come standard with service.
Additionally, VoIP service is highly flexible. VoIP calls can be made using either a hard phone (a physical IP phone or analog phone with a VoIP adapter) or a softphone (an application on your smartphone, computer, or tablet).
VoIP Advantages and Disadvantages
VoIP comes with a number of advantages for businesses, but there are also some disadvantages. If you’re looking to switch to VoIP, it’s important to consider both the pros and cons of VoIP service.
Advantages of VoIP
There’s a reason so many businesses are switching to VoIP service. The benefits of VoIP are many. From cost savings and flexibility to advanced features, VoIP is an affordable way to connect with customers and coworkers alike. Here are some of the top advantages of VoIP
Cost Savings
One of the major advantages of VoIP is its affordability. VoIP typically offers lower call rates compared to traditional phone service, especially for long-distance and international calls. Where the average landline costs $50 per line per month, VoIP rates start around $20 per line per month. Plus, it eliminates the need for separate voice and data networks. Both voice and data use the same broadband connection, which saves you money and prevents the need for additional wiring.
With VoIP, you’ll also save on the costs of a PBX system. PBX (Private Branch Exchange) is a telephone system used within an organization or business to manage incoming and outgoing calls internally. PBX systems serve as the central communication hub, connecting internal extensions with external phone lines. Additionally, PBX systems enable a number of telephone features, including call routing, call transfer and forwarding, extension management, voicemail, and IVR.
Traditional PBX systems are hardware-based and located on-premise. Implementing a new PBX system requires the cost of physical equipment, such as a switchboard, telephony cards, and wiring. With VoIP, you can get all the benefits of a traditional PBX system without the costs of hardware and installation, saving you thousands of dollars.
In addition to saving on direct costs, VoIP will also help you save money indirectly. One of the benefits of VoIP is how easy it is to enable remote work. Studies have shown that companies save money when their employees work remotely part of the time. In fact, according to Global Workplace Analytics, your business could save around $11,000 per year just from having employees work remotely 50% of the time. With VoIP, your employees simply need their laptop or computer and an internet connection, and they can make and receive business phone calls.
Call Quality
Call quality is another major benefit of VoIP service. We’ve all gone through the frustrating experience of trying to have a phone conversation when the sound quality is bad. Dropped calls and choppy audio make it difficult to communicate. When VoIP technology was first introduced, the call quality wasn’t always there, making for frustrating conversations. However, improvements in the technology have made VoIP today just as reliable as traditional phone service.
In fact, VoIP call quality tends to be reliably crystal clear. There are factors–such as a slow internet connection–that can cause a few problems. But as long as you have high-speed internet and a high-quality router, you can depend on high-quality sound with VoIP.
Free Add-Ons
When it comes to features, VoIP is king. With traditional PBX systems, there are certain features, such as call transfer, call queuing, and group ringing that would make working remotely possible. However, these features cost extra. They aren’t inherent to a PBX system. Depending on your service provider, you may have to pay much more in order to get these features.
On the other hand, VoIP service is innately feature rich. These features more typically come with your VoIP service. Other features that often come with VoIP include advanced reporting and analytics, IVR and auto-attendant, third-party software integrations, and more.
Scalability
VoIP’s value goes beyond features and cost savings. The scalability of VoIP service is unmatched by traditional business phone systems. VoIP systems are highly flexible and easily scalable, adapting to your changing business needs. With traditional PBX, each line added requires a technician to come out and install the wiring. Plus, more lines require more expensive equipment and more time maintaining that equipment. Scaling up a traditional PBX system is both expensive and time-consuming.
On the other hand, if you’re looking to scale up with VoIP, all it takes is a few clicks of the mouse and you’ve added in another one or two (or ten!) lines. But this scalability isn’t just for adding more lines. It’s just as easy to scale back when needed. That way, you pay only for the lines you need and nothing more. Additionally, you don’t have to purchase extra equipment every time you add a line. Overall, VoIP makes it easy to grow your business without major expenditures.
Portability
With VoIP, employees can make and receive calls from any location with an internet connection. This makes VoIP extremely portable. Whether you’re traveling to France or Argentina, VoIP lets you make and receive business calls on the go. All you need is a reliable internet connection, and you can conduct your business anywhere.
This portability allows you to continue working while traveling for business, but it also allows for remote work. All your employees need to do is log in to the VoIP app and they can communicate with coworkers from their own home office. Additionally, if your business changes to a different physical location, you still keep the same phone number. This allows your customers to easily contact you, no matter where your office moves.
Custom Phone Numbers
Another benefit of VoIP is the ability to choose a custom phone number. If you’re expanding to a new market, one thing VoIP allows you to do is purchase a local phone number. For example, if you’re based out of Atlanta but looking to grow into Orlando, you can set up an Orlando area code phone number. This helps you establish your presence in Orlando to gain local trust, even without a physical branch.
Additionally, if you want a phone number that is memorable, you might opt for a custom vanity phone number. These numbers typically spell out a word that is associated with your business. For example, 1-800-CONTACTS is a custom phone number that customers easily remember. With VoIP, you can easily select a custom number that is memorable.
Flexibility
With traditional phone service, you need an analog phone in order to make phone calls. This is fine for the office, but if employees are working part-time or fully at home, they can’t make and receive business phone calls.
The use of softphones, on the other hand, makes VoIP extremely flexible. A softphone is a software application that can be downloaded to any computer, tablet, or mobile phone. The user interface typically mimics the look of a hard phone. Your employees can log in to their softphones and make and receive business phone calls wherever they are. You can even set up a number to ring on multiple softphones so that the first available–whether at the office or at home–can answer.
Security
Security is a concern for businesses big and small. Data breaches and hacking are problems that can put you and your customers at risk. Scammers also target businesses by tricking employees to reveal information. VoIP can help increase the security of your phone system and prevent these scammers from succeeding.
VoIP calls can be secured through encryption, which ensures that the voice data transmitted is encoded and protected from unauthorized access. Encryption converts voice signals into an unreadable format during transmission, making it extremely difficult for potential eavesdroppers to decipher the content of the conversation.
VoIP systems can also incorporate authentication and access control mechanisms to verify the identity of users and restrict unauthorized access. Additionally, the use of firewalls, intrusion detection systems (IDS), network segmentation, and regular updates will keep your VoIP system safe and secure to reduce the risk of exploitation by scammers and hackers.
VoIP Disadvantages
Clearly, we think the benefits of VoIP are overwhelming. However, we would be remiss not to discuss some of the disadvantages. As with any technology, VoIP does have a few drawbacks that you should know about before signing up for VoIP service. Here are some of the disadvantages of VoIP you should consider.
Internet Connection Required
VoIP relies on a stable and sufficient internet connection. A high-speed broadband connection with adequate bandwidth is crucial for ensuring good call quality. Insufficient bandwidth or network congestion can lead to issues like dropped calls, delays, or poor audio quality.
Jitter and Latency
Jitter and latency can both affect the quality of a VoIP call. Jitter refers to variations in packet arrival time, causing distortions in the audio. Latency is the delay in transmitting data packets, causing a delay in response. Both jitter and latency make for a frustrating conversation.
Typically, jitter and latency are caused by three things:
- A slow internet connection: VoIP needs a high-speed, reliable internet connection in order to prevent jitter and latency.
- A low-quality router: You’ll need a specialized VoIP router in order to have a smooth audio experience. This kind of router prioritizes voice packets over other data sent on the same network so that phone calls remain jitter-free.
- Low-quality cables: In order to have the best call quality, you’ll need to use Cat-5e Ethernet cables or higher. This will ensure your VoIP functions at the highest speeds possible.
With the right internet connection, the right router, and the right Ethernet cables, you should be able to prevent jitter and latency.
Limited Location Tracking
The downside to being able to take VoIP wherever you go is that this limits location tracking. Your phone call comes from an IP address without any GPS data. Location tracking may not be necessary in most scenarios, but it’s important for emergency situations. If you make an emergency phone call, you will have to be able to give the dispatcher your location in order to receive emergency services.
VoIP Services for Businesses
Because of the many benefits of VoIP, businesses are switching from their traditional PBX systems to VoIP. Whether your business is small or large, switching to VoIP can save you money and give you access to advanced features that will help you better communicate with coworkers and customers alike.
If you already have a legacy phone system, you may be wondering whether or not it’s worth it to switch to VoIP service. Luckily, there are adapters that allow you to connect your analog phones to the internet, which makes upgrading to VoIP easy and inexpensive.
In addition to voice calls, VoIP for businesses offers many other services, including faxes, voicemail, email, conference calls, and video calls. The unified communication abilities offered by VoIP give you the increased ability to run your business seamlessly.
VoIP at Home
If you’re planning to use VoIP in your home office, you’ll need the right phone to connect to your VoIP services. Luckily, you have a few different options for using VoIP at home.
- With a dedicated VoIP phone, all you need to do is plug an Ethernet cable into the phone.
- If you have an analog phone, you can purchase a phone adapter, which will then allow you to connect your phone to the internet.
- Download a softphone app on your computer, tablet, or laptop and make calls from within the app. Make sure your device has speakers and a microphone.
The Benefits of VoIP: Bottom Line
While VoIP does have a few cons (jitter and latency, the need for a reliable internet connection, and limited location tracking), it’s easy to see that the benefits of VoIP far outweigh the disadvantages. When switching to VoIP, you’ll save money, access free add-ons and advanced features, as well as increase the security of your phone system. Scaling up or down is easy, and you can take your VoIP number anywhere you go.
If you’re looking for a VoIP provider for your business, OneStop Communication can help. We’ll help you find the right provider for your unique business needs.
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