What is VoIP? Definition and Beginners Guide

Want to learn about VoIP and what it can do for your business?

VoIP definition

VoIP stands for voice over internet protocol, referring to technology that allows you to make and receive phone calls over the internet, instead of plain old telephone service (POTS) copper wire lines.

Here’s a thorough video introduction to VoIP:

Why use VoIP?

VoIP phone allows you to take and make calls anywhere you have an internet connection without the constraint of being by a phone. Rather now, so long as your device (mobile phone or computer) is in range of a high speed internet connection, a VoIP call is possible.

Getting connected to VoIP

To get connected to VoIP, you need a reliable provider who’ll handle the whole set up for you.

Once you’ve been carried through their on-boarding process, all that should be left for you to do is to plug in your IP handsets and go.

VoIP transmits calls as data packages over the internet. Ethernet or wireless will do if you have a strong enough signal.

Immediate advantages of connecting to VoIP over traditional phone lines are:

• lower cost (piggybacking on existing internet connection)
• plus, tons of call management features at your fingertips

Difference between VoIP and traditional landlines

A closer look at the differences between VoIP and landline phone systems reveals the following:

VoIP advantages

Physical location

✅ VoIP: you can take or make VoIP calls anywhere you can connect an IP device with calling ability to the internet.

❌ Landline: you are constrained to take and make calls using a phone physically connected to a landline

Long distance calling

✅ VoIP: inclusive in cost

❌ Landline: optional add-on

User to user (internal calls)

✅ VoIP: inclusive in cost

❌ Landline: need an additional PBX phone system

Easy set-up

✅ VoIP: relatively simple to get going (remote on-boarding with self-serve documentation and videos)

❌ Landline: onsite visit and more complicated set-up

Call quality

✅ VoIP: today, IP telephony outperforms analogue phone lines for audio quality

❌ Landline: lesser call quality

Zero set-up costs

✅ VoIP: there are no upfront costs to ‘set-up’ the system – no one-off capital expense

❌ Landline: upfront fees to cover on-site engineer’s time and configuration

Cheaper international calls

✅ VoIP: roughly 1/10th the cost for an international call

❌ Landline: up to 10x more costly to make international calls

Advanced call features as standard

✅ VoIP: inclusive features like – auto-attendant, hunt groups, conferencing, routing, business voicemail

❌ Landline: often achievable, but not without paying separately

3rd party software integration

✅ VoIP: uses the internet advantage to merge with other business apps, like your accounting software, for example

❌ Landline: not able to integrate

VoIP Disadvantages

Must have internet connection

❌ VoIP: requires an internet connection. Typically 100 kbps per line.

✅ Landline: no internet needed.

VoIP value for money

VoIP works out much cheaper than traditional phone system in the long run.

If you are considering investing in a new business phone system, these are the key areas of cost savings that VoIP  offers:

Set-up costs

50-100% of your monthly line costs can be saved with a VoIP phone system

Monthly call costs

You might save up to 30% of your monthly call costs with VoIP

International call costs

With VoIP international call costs could be as little a 1% compared with a traditional phone line

Maintenance contract

No tie-in to expensive maintenance and service contracts with VoIP

Deposit

No up front deposits with VoIP

Tips for choosing the best VoIP provider for you

Generally speaking, a reliable VoIP providers should exhibit the following credentials:

• proven service up-time
• network compatibility
• 24/7 live, remote support
• multiple data centres

In short, they’ve got to have a track record of sustaining a quality service without exception.

You may also ask a potential provider for relevant client references.

A reputable VoIP provider like RingCentral, for example, are a safe bet – plus they have flexible pricing.

Whilst going through the sales process with a VoIP provider it will pay-off to organise your approach to the deal.

Here are 3 tips that will help you achieve best fit and value for money:

1. VoIP providers do provide price incentives to sign-up. Always check if you are eligible for introductory discounts or price promotions before you commit.
2. Ask if they have any deals on VoIP phones, you might find yourself saving at least a couple of hundred pounds on a reconditioned unit.
3. Also, price matching could shave off a little cost with a provider whose service and features suit you better than a cheaper offer.

Equipment needed for your new VoIP phone system

There are some simple decisions to make when choosing VoIP hardware. Here’s a simple summary:

1. Hardphone or softphone?
   • Do you want a desk phone set-up with a physical handset, or do you want a software based phone?
     • Choose if you’ll be handling calls via your computer, or in traditional office style.
2. Headset or speakers?
   • Do you want a compact, more mobile phone experience with call privacy for the user?
     • Headsets, like the Jabra Evolve 75 give users the ability to take and make calls away from the base unit and stay on their feet
3. BYOD (bring your own device) or provider’s own?
   1. Do you want the flexibility of selecting your phone or do you want your provider to do that?
      1. If you’ve shopped around for a handset and know what you want, you’re not obliged to go with the provider’s option. Though if you want a future-proof desktop device, then welcome to the HiHi 3.

VoIP FAQs

Is VoIP easy to change over to?

Both the convenience of technology and the right provider make VoIP a simple choice.

With an internet connection, you’re ready to get calling immediately. And unlike Skype or Whatsapp, you can call any phone number you like. Even cross network – it’s a totally seamless experience for both parties involved in the call.

You don’t need any technical ability aside from plugging in your phone to the internet and following some simple instructions.

Have an Android or iPhone?

Simply download the provider’s app.

Is VoIP reliable?

Early days VoIP was touch and go for quality. Audio was of distorted with crackling and call dropped frequently. Basically, there was an obvious difference between the experience of calling a landline vs. a VoIP call.

But it was all to do with bandwidth limitations. Nowadays, with much larger bandwidth availability, VoIP call quality has come on leaps and bounds.

In fact now, VoIP calls are often reviewed as possessing better audio quality than their landline counterparts.

Still, with VoIP there is the potential to forward your calls to your mobile or cell phone number if you experience an internet outage. This redundancy is a good backup for connection loss.

Can VoIP be used with fax?

Providers like Nextiva, do allow you to send and receive fax via your VoIP phone line.

Is my office phone compatible with VoIP?

You’ll need to find out from the phone manufacturer’s hand book. Or, you can always opt for a future proof option, like the HiHi 3.

Can VoIP receive and send text messages?

Yes. A provider’s software app, like Nextiva’s, allows you to both send and receive text messages on the same phone plan. In fact, this is one of the most popular features with Nextiva customers.

Can a VoIP phone replace a mobile phone?

They both have their advantages, so our advice is to use them side-by side.

A desk phone set-up like the HiHi 3 allows you to dock your mobile phone into the base unit of the desk phone. Plus allows you to take desk phone calls direct from your mobile using the app.

Also, the base unit has a touchscreen tablet allowing you to take video calls on the move.

Will my internet be quick enough to support VoIP?

A great way to answer this question DIY is to take the speed test on the Nextiva website.