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.
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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 be made using your computer, tablet, or smartphone.
Additionally, users can benefit from VoIP by making or receiving phone calls from anywhere worldwide if there is an Internet connection. This “always-on” capability helps keep employees engaged and reachable, regardless of location or the devices available.
VoIP Advantages and Disadvantages
Advantages
1. Cost Reduction
VoIP can reduce your phone bill by an average of 50% or more compared to a landline. Landlines usually cost about $50 per line per month, while VoIP can lower that cost between $12.50 and $24.99 per line per month.
In addition, international call rates are lower with VoIP providers than with 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 it were domestic. This allows businesses with operations overseas to reduce their phone bills significantly.
2. Vast Features and Functionalities
VoIP systems provide many phone features that 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, which can help you improve customer satisfaction.
- Auto-attendants are virtual receptionists who help guide callers to the right department and/or person. This saves you money on hiring a human receptionist.
- Call forwarding—This feature forwards your office calls 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.
4. Mobility
As described in the section “What is VoIP and Its Features?” VoIP lets you make calls anywhere as long as an internet connection is available. This allows your employees to call even remotely or on the road, improving your business efficiency and flexibility.
5. Multi-Country Extensions
As 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 high costs of 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 our around-the-clock technical support team is ready to help if you do.
Disadvantages
1. Relies on Internet Connection (with Good Bandwidth)
VoIP’s Internet usage has many advantages, but it also has 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 since companies started relying on the Internet to be more efficient and effective, Internet technology and service levels have become reliable. Additionally, companies are heavily investing in wireless Internet technologies, such as LTE and 5G, 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.
Summary
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 a sustained power source. However, if your business has backup Internet and power sources, VoIP’s wide range of features can greatly benefit your business’s efficiency.
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