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Why a Voip System is Perfect for your Small Businesses

Arlen Peterson - Monday, April 07, 2014 |

Image of a word cloud based around VoIP The traditional phone systems (read landlines) are outdated, inefficient and expensive. For Small and Medium Enterprises (SMEs) and Small and Medium Businesses (SMBs) opting for a traditional phone system is not such a good idea anymore. It is a sheer waste of the constrained funds available to your company, especially when there is a much better and inexpensive system available. Welcome Voice over Internet Protocol (VoIP) phone systems.

What is VoIP and how does it work?

VoIP systems route calls through the Internet instead of the Public Switched Telephone Network. This sort of phone system is more robust and reliable. With the advancement in internet technology and speed, traditional phone systems are more or less obsolete. It may be hard to believe, but the fact is that VoIP offers more for less.

This is how VoIP works:

  • A session is created using the VoIP protocol. 
  • This protocol then attempts to connect with the phone number (in technical terms – the termination point) you are calling. 
  • Once a connection is established the session starts or the call begins. 
  • Sound is coded and transferred as digital packets and decoded to sound at the other end. 
  • At the end of the call the session is terminated.

Why VoIP?

Unlimited calling facility

Most VoIP business phone system providers offer unlimited calling – local and long distance – within plans. For small businesses, this is exactly what is needed. You can make as many calls as you want without having to pay for every call like you would for a typical long distance call.

Hosted PBX services

An in-house PBX or Private Branch Exchange will require significant investment – to buy it, install it and then maintain it. These issues and expenses are bypassed with a hosted PBX that VoIP makes possible. It is an ideal business tool for SMEs and SMBs. A hosted PBX can connect several phone lines with several extensions. And it automatically directs incoming calls to the intended extensions. So, you also save on hiring a person to operate the phone.

Cheap international call rates

As mentioned earlier, making unlimited international calls is possible with VoIP business phone systems, but what about the cost? VoIP solves this problem as well. Since calls are routed through the Internet, it effectively means that calls originate within the country you are trying to reach. This significantly reduces international call charges and makes interacting with overseas clients affordable for small businesses.

Value-add features for free

A traditional phone system provider will charge extra for value-add services like voice mail and call forwarding. These are offered for free by most VoIP phone system providers. Several other useful features are part of the package.

Works at multiple locations

Even small businesses have teams/employees in remote locations – for example sales teams. With a VoIP phone system any employee, whatever the location, will be able to connect to the company network.

Small businesses need to seriously consider VoIP business phone systems as it makes more sense on multiple fronts.


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