Simply put, it is a telephone service delivered over the web. To do this, the old analog voice data is sent through cables, also known as digital phone lines. When it comes time to turn the signal back on to digital, it means that you receive phone service via the web, just like a traditional home telephone line. There are advantages to this new technology, which we will discuss below.
One of the most obvious advantages of VOIP phone service over a traditional telephone system is the fact that it is cheaper to implement. Softswitch, also known as third-party network connectivity, is one of the largest expenses associated with implementing a VOIP based system. One way to avoid the high cost of softswitch is to implement your VOIP system through a hosted PBX platform. Hosted by platforms are much more affordable than traditional PBX plans because they are hosted on a server rather than on-site at the phone company. Hosted softswings utilize a hardware platform which allows the provider to provide the same robust features as an on-site PBX plan while saving on capital expenses.
Another major advantage of VOIP phone services over conventional telephone systems is the presence of unifying features.
Traditional IP phones and softswitch-based solutions will only provide the features of analog voice and basic sip trunking. They do not offer any unified communications benefits. One of the biggest advantages of VOIP over these older systems is the ability to integrate VOIP with PBX solutions. Implementing a unified communications solution that includes VOIP, IP telephony, and IP trunks allows a business to have the benefits of all three elements at once.
One of the main reasons that businesses opt for VOIP over more traditional telephone systems is the increased efficiency with which they are used. By reducing overhead for businesses, especially small or medium-sized ones, business owners can enjoy a marked cost savings as well as improved productivity. An IP telephony system eliminates the need for a second phone line or service purchase. Implementing a hosted softswitch or pbx system permits the use of a standard telephone number as an internal IP number.
Many small and medium-sized businesses have already replaced traditional telecommunications plans with VOIP-only offerings. One of the primary reasons for this is a desire to save money in a time of budget constraints. Even large businesses have found a great deal of savings by switching their telecommunication plans to VOIP only. Large corporations often save tens of thousands of dollars each year by eliminating the use of costly, in-house telecommunication expenses. Smaller businesses can expect even greater reductions in overhead costs from their hosted softswitch and tax systems, especially when the majority of their communication functions are performed through VoIP phones.
A VoIP phone system requires less wiring than older systems,
since the connection utilizes the Internet as its main source of connection. In addition, there is no need to build additional equipment such as a PBX, as most VOIP phones are supplied with standard analog lines. The benefit of this feature is that it makes it possible for the owner of a business’s phone system to “go green” – meaning that the business owner doesn’t need to waste electricity by using traditional phone lines. Furthermore, an IP phone system may be supplied with SIP trunks, which allow multiple employees to share the same telephone number. This is similar to sharing a specific email address within a company.
Another way that an IP-only provider can offer cost savings on internet phone services is to bundle multimedia communications such as video with its normal voice-only services. Most providers provide video-video-audio capabilities through SIP trunks. When a user calls into one of these SIP trunks, the video is converted to a digital signal and is then sent over the IP network. As long as the video is within reach of the IP network, it is viewable by anyone, and will result in a seamless multimedia communications solution.
There are many ways to reduce costs associated with traditional phone services, and IP-only providers can provide cost savings in a variety of ways. There are many factors that go into setting the prices for the services, such as service tiers, maintenance fees and so on.
- However, the key factor for reducing overall costs is to make use of VoIP.
- Voice-only solutions have a low cost per call, but the added cost of operating VoIP equipment.
- Businesses that take advantage of VoIP and implement it as part of their overall communications strategy can save up to 50% of their yearly expenses.