Before purchasing and implementing a VoIP phone system in your business, it is important to understand its advantages and disadvantages. To help you easily acquire that knowledge, we have created this short article that details VoIP’s features, benefits, and drawbacks.
What is VoIP and Its Features?
VoIP, short for “Voice-over-Internet-Protocol,” utilizes an Internet connection rather than your local phone company to make voice calls. Because it utilizes the Internet, calls are not limited to being made through telephones, but can also use your computer, tablet, or smartphone.
Additionally, users can benefit through VoIP by making or receiving phone calls from anywhere in the world as long as there is an Internet connection available. This “always-on” capability helps keep employees engaged and reachable, regardless of their location or the devices available to them.
VoIP Advantages and Disadvantages
1. Cost Reduction
Compared to a landline, VoIP can reduce your phone bill by an average of 50% or more. Usually, landlines cost about $50 per line per month, while VoIP can lower that cost between $12.50 to $24.99 per line per month.
In addition, international call rates are lower with VoIP providers versus your regular phone provider. However, if the international line has a configured extension, VoIP lets you bypass long-distance charges and call internationally as if they are domestic. This allows businesses with operations overseas significantly reduce their phone bills.
2. Vast Features and Functionalities
VoIP systems provide a wide range of phone features that would enhance your business’ productivity, capabilities, and customer satisfaction. Some of these VoIP features include:
Call recording and monitoring – This feature lets you record calls and store them for call quality monitoring. This can help you improve customer satisfaction.
Auto-attendants – A virtual receptionist that will help guide callers to the right department and/or person. This lets you save on hiring a human receptionist.
Call forwarding – This feature forwards your calls in the office to your mobile phone or other device, so you don’t miss an important call.
Do-not-disturb – In scenarios where you need to be focused or cannot be distracted, this feature redirects your calls to voicemail or a busy line.
3. On-Demand Scalability
With VoIP, you can easily increase or reduce phone lines on-demand based on your business needs. This lets your business have an agile phone system that can grow with the business and downsize when cost-saving.
As described in the section “What is VoIP and Its Features?”, VoIP lets you make calls anywhere as long as internet connection is available. This allows your employees the availability to call, even when working remotely or on the road, improving your business efficiency and flexibility.
5. Multi-Country Extensions
Mentioned briefly in the cost reduction advantage of VoIP, your international branches and employees can be configured to have extensions. This provides seamless communication among international branches, while evading the associated high costs with international call rates.
6. Fully Managed and Monitored
For some VoIP providers, they can fully manage your phone system and ensure it is working 99.99% of the time.
As for Cyzerg, we provide 24/7/365 phone system monitoring and technical support. We proactively monitor your systems to ensure you don’t experience downtime, but if you do, our around the clock technical support team is ready to help.
1. Relies on Internet Connection (with Good Bandwidth)
VoIP’s usage of the Internet provides many great advantages, but it also has its cons. When your Internet line is down, your VoIP phone system is also out of service. Additionally, if your bandwidth is low, your phone calls might suffer in quality.
The good news is that ever since companies started relying on the Internet to be more efficient and effective, Internet technology and service levels have become reliable. Additionally, wireless Internet technologies, such as LTE and 5G, are also heavily invested by companies to serve as a backup source of Internet connectivity.
2. Needs Sustained Power Source
In addition to internet connectivity, VoIP needs a sustained power source. The good news is your VoIP line, if configured, can work on your mobile phone, which is most likely connected to an LTE or 5G signal. This lets you make and receive calls even during power interruptions.
Additionally, most office centers have generators in place to maintain office operations.
Just like any solution, VoIP has its corresponding advantages and disadvantages. For advantages, VoIP can help your business be more cost-effective, productive, mobile, and, for some providers, have a worry-free phone system. Yet for drawbacks, VoIP needs a reliable and high bandwidth Internet connection and sustained power source. But, if your business has backup Internet and power sources in place, VoIP’s wide range of features can greatly benefit your business’s efficiency.
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