What Is a VOIP Phone and How Is It Different from Standard Phones?

Casey Fitzgerald

In 2010, only 6.2 million businesses had adopted VoIP phone systems. In 2018, that number has surged to 41.6 million.

The growth of this type of phone system is pretty impressive; however, you may be one of the many who has no idea how to answer the question, “what is a VoIP phone system?”

Don’t worry! You aren’t alone. You can also learn all you need to know about VoIP phone systems and how they differ from traditional phones here.

What is a VoIP Phone System?

VoIP actually stands for Voice over Internet Protocol. A VoIP telephone works by converting a traditional, analog voice call into digital information. This information is then delivered to you via the internet.

When it comes to VoIP vs landline telephone systems, things get somewhat more complicated. A regular phone system uses circuit-switched technology.

This works by creating a singular channel between two points to allow a call to take place. Copper wire is utilized for this channel.

In contrast, VoIP uses packet-switched telephony. With this technology, countless individual packets are compressed and then sent over the internet.

The technology and processes used by VoIP phone systems help to increase data transfer efficiency. However, the benefits don’t stop there.

Cost for VoIP vs. Traditional Phone Systems

The biggest difference between traditional phone technology and VoIP phone systems is the cost.

Not only is VoIP much more affordable, most packages offered by VoIP telephone service providers include unlimited local calls.

Today, landline phone companies offer a myriad of cheaper calling services, but in reality, they aren’t ever going to be able to match the VoIP rates, let alone beat them.

Believe it or not, these high costs don’t have much to do with the actual phone company, but rather the technology used.

It costs more to connect calls with traditional telephony systems. Also, there aren’t any network maintenance costs associated with VoIP. Long distance calls are also more affordable, with some companies offering free international calls to certain countries.

Convenience of VoIP vs. Traditional Telephone Systems

By nature, VoIP phone systems are easier to use than traditional phones. This is due to the fact that there is only one supplier for voice and data calls. As a result, you can link up all technologies, along with your in-office computer applications.

This provides a more streamlined and efficient working environment. In fact, it can even lead to a higher level of company productivity.

If a company has offices in several countries or regions, VoIP is the ideal solution as it can handle internal calls without any charge.

Is a VoIP Phone System Right for You?

Now that you know the answers to the questions, “what is a VoIP phone system” and “how to VoIP and traditional phone systems differ,” you can make an informed decision regarding which option is right for you.

Be sure to consider the factor that VoIP systems also come with many more features than traditional phone systems, which makes them even more appealing.

The fact is VoIP is something all businesses can benefit from, from the healthcare field to manufacturing and more.

If you need more information or would like to know about pricing for VoIP phone systems, feel free to contact our professional staff.

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