What Is VoIP Phone Service for Small Businesses?

VoIP or Voice over Internet Protocol (VoIP) is the latest trend in business communication today.  Both large and smaller businesses integrate the VoIP phone system or VoIP telephony with their existing Internet Service to maximize their marketing potential and minimize operating costs.  To be able to understand how VoIP works, let’s compare it to the traditional telephone system.

The traditional telephone system relies on the user’s dedicated cable system, which is connected to the telephone company’s network.  When you subscribe to a phone service, you will be provide with a handset and if you want to use extensions for the other rooms of your house, you must all connect it to the main phone outlet in your home.  What about the VoIP phone system?

If you have already subscribed with an Internet Service Provider (ISP), then you can easily sign up for a VoIP service at any time.  Once you sign up, the VoIP service provider will not need to install exclusive phone cable system to your home. Instead, you will be given a software-based phone unit which will be connected to your computer or Router.  Once your VoIP phone is connected to the Internet, you can start receiving and making calls.

From this set-up, it’s easy to understand that the VoIP system handles voice calls through the Internet or using Internet Protocol Networks.  When you make a call, you will be connected to a gateway so that the number you dial can be matched with the appropriate IP address.  When the call recipient’s IP address is contacted, the call will be received from the VoIP phone unit at the other end.

Once the two gateways are open, voice signals are converted into digital form so that the data can be transmitted through the IP Networks before being converted again to their original form.  Thus, the VoIP Host company provides the gateway for the calls to be processed.

Since the calls are processed through the internet, the rate per call becomes a lot more affordable for business owners.  Even long distance calls can be made every minute of the day without breaking the budget.  Business owners who have subscribed with the VoIP service have reported that they were to cut down their monthly costs by as much as 50%.

Clearly, the VoIP phone system is ideal not only for bigger firms but for smaller businesses as well.  Get to know what the VoIP phone system can do for your own business and find out which VoIP host can give you the best kind of service.


About the Author:

Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.

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