Introductory Guide to Voice over IP Phone Service
Your voice needs change as your business grows, but can your contact center infrastructure adapt?
If you’re solely using an on-premise system, likely not. But, on the off-chance, it does have that capability, it’s probably costing you a hefty chunk of your budget to pay for maintenance and infrastructure.
Voice over Internet Protocol (VoIP) has emerged as a solution that not only helps modernize your legacy communications infrastructure– but does it at a fraction of the cost of traditional telephony systems.
If you’re new to virtual telephony, you’ve come to the right place. Below, you’ll find our introductory guide to VoIP phone service and see if it’s right for your business.
What is Voice over IP?
Voice over IP (VoIP) is a technology that allows users to make and receive local and international calls over high-speed internet rather than PSTN landlines.
IP stands for internet protocol.
This technology goes by many other names: cloud communications, cloud-based phone system, IP telephony, cloud voice, virtual phone system, and more.
How VoIP Works
Voice audio is broken up into digital packets, sent over the internet, and assembled back in the correct order when the VoIP call reaches the recipient. Here’s the voice over IP process:
1. Voice Conversion
When you speak into an IP-enabled device, your voice is compressed (disassembled) using codecs and converted into data packets.
2. Data Transmission
These packets are sent over the internet to the person you’re calling.
3. Voice Reconstruction
When the packets reach their destination, they’re decompressed (reassembled) on the receiving end.
This is a fluid process for phone conversations. Voice over IP technology enables two-way communication using IP-enabled devices, including softphones (webphones), laptops, computers, desk phones, and mobile, regardless of your existing infrastructure.
Why Use VoIP Phone Service for External and Internal Communications?
Using VoIP in external and internal communications is a scalable and cost-effective solution across your multinational organization. Here’s how you can leverage voice over IP phone service within your organization:
1. Using VoIP Externally in Your Contact Centers
Global contact centers need a reliable voice solution to connect with prospects and customers. VoIP’s flexibility offers access to phone numbers and global reach even where your organization doesn’t have a physical presence- enabling you to easily scale with your evolving business needs. In addition, many VoIP phone service providers offer advanced contact center features to help you improve customer service and collaboration.
2. Using VoIP Internally in Your Business
VoIP is used to foster better communication between departments and branches. Its connectivity helps employees stay globally connected using direct routing in business tools like Microsoft Teams. With reliable voice and business call features, you’ll see improvement in productivity and streamlined communication.
The Voice over IP Advantage
VoIP technology has revolutionized the way businesses communicate. Embracing voice over IP phone services not only enhances global connectivity and team collaboration but also offers your business a variety of other advantages as well…
1. Reduced Cost Per Call
VoIP is a cost-effective solution for multinational companies. Because calls are placed over the internet, you benefit from lower call charges and the elimination of additional infrastructure and maintenance costs, reducing your overall cost-per-call.
2. Increased Accessibility
VoIP significantly enhances accessibility– making communication more efficient and convenient for your business, its users, and its customers. Here are a few examples:
- Multiple device compatibility: VoIP phone systems can be used on a wide range of internet-ready devices, including softphones, laptops, mobile phones, desk phones, and more.
- Supports remote and mobile workforce: Teams can stay connected from anywhere in the world – even when they travel – as long as there’s reliable broadband.
- Global call routing management: You can optimize call routes, forward calls, and more from an intuitive user interface, anywhere.
3. More Local and International Coverage
VoIP phone service gives you greater control over your business’s global communications coverage. Easily establish a presence in new markets without investing in physical infrastructure with virtual phone numbers.
4. Better Sound Quality
Voice over IP technology delivers better sound quality for users and customers through a combination of codecs and quality of service (QoS) tools, resulting in clear and crisp audio on the receiving end.
5. Scalability
You can quickly activate or deactivate VoIP phone system numbers as you need to– allowing you to scale as business demands it.
6. Keep Legacy Numbers
Your phone number is a fundamental part of your business– you don’t have to change it using VoIP! Your provider will help you retain your existing numbers through options like phone number porting.
7. Enahnce an Existing Phone System
VoIP phone service offers a convenient way to upgrade your existing phone system without the need to replace it. Modernize your on-premise PBX via SIP trunking, or through contact center software integration, to enjoy advanced call features and digital capabilities so you can reach your customers securely around the world.
Terminology: public branch exchange (PBX), session initiation protocol (SIP)
8. Easy Integrations
VoIP has a very simple setup and integrates seamlessly with business tools like your…
- CRM
- Helpdesk and Ticketing System
- Sales Automation
- Conferencing/Collaboration
- Chat
VoIP integrations - integrating your business tools with IP telephony - allow you to create efficiency and reduce business disruption, all while easily managing your phone numbers in one place and getting reliable voice quality for productive conversations.
Terminology: customer relationship management (CRM)
How Much Does VoIP Cost?
Cost-savings are a driving factor for many IT professionals looking to modernize their voice systems. And the data explain why– companies can achieve an average of 25% savings using VoIP.
The amount you pay for a PBX compared to a VoIP phone system is staggering…
Total Cost of Ownership Comparison
A look at the Total Cost of Ownership (TCO) associated with VoIP phone systems and on-premise PBX solutions.
| Costs | VoIP | PBX |
|---|---|---|
| Initial | $ | $ |
| Monthly Rates/Plans | $ | $ |
| Training | -- | $ |
| Maintenance | -- | $ |
| Server Housing | -- | $ |
| System Upgrades | -- | $ |
| Add-Ons | $ | $ |
| Downtime | -- | $ |
| Service & Support | -- | $ |
| Security | -- | $ |
As shown in the table above, the cost of a VoIP phone system is significantly less than the cost of an on-premise PBX in affordability, convenience, and security.
With an on-premise voice solution, you’re responsible for user training, routine on-site maintenance, server housing, and system upgrades when the technology becomes obsolete. Additionally, the time spent fixing outages and security issues with service and support adds up and can create a financial burden.
A VoIP phone system gives you greater control over your Total Cost of Ownership (TCO). With most of the above costs already built into the platform, you can spend your time optimizing call flows and growing your voice with peace of mind. In fact, we explain how VoIP can lower your call center TCO within our ebook.
Being prepared with these considerations will help you to make informed decisions on how to maximize cost savings while implementing a VoIP solution that meets your business’s specific needs.
Advanced VoIP Features
The variety of robust and advanced call features provide even more value to your existing phone system. Upgrading your contact center infrastructure with voice over IP phone service features can be implemented in just a few clicks.
1. Call Routing
Advanced call routing options such as Skills-Based Routing (SBR) and percentage-based routing allow you to optimize the distribution of incoming calls. Using this VoIP phone system feature can connect callers to the appropriate agent or reallocate flows to different queues quickly based on pre-set routing rules.
2. Complete Number Inventory
You can centralize your phone number footprint in a single platform to easily manage them and quickly add new virtual numbers when you need them, including local DIDs, ITFS, mobile, and more, around the world. This helps you establish a local presence with no downtime, so you can scale with agility and cater to your target markets more effectively.
Terminology: direct inward dialing (DID), international toll-free service (ITFS)
3. Intelligent IVR
Create custom call flows with visual, drag-and-drop functionality from VoIP phone service providers. IVRs deliver a multitude of organization benefits– and a user-friendly flow builder tool lets you reduce the time spent on building even complex voice menus within your voice over IP interface system.
Terminology: interactive voice response (IVR)
4. Audio Quality Tools
VoIP phone services also give you better visibility into the audio quality of each call by providing dashboards that monitor QoS issues like jitter, packet loss, and poor MOS. By monitoring your calls, you can quickly troubleshoot issues before customers get frustrated by poor call quality.
Terminology: quality of service (QoS), mean opinion score (MOS)
5. Number Reporting Analytics
VoIP platforms provide detailed inbound and outbound call metrics and number trends, enabling you to analyze call patterns and make data-driven decisions to optimize communication strategies.
6. APIs and Webhooks
Voice APIs and webhooks allow you to customize your VoIP phone systems, automate processes, and easily pull data from your communication platform. This can help streamline your operations between the business and contact center and enhance overall efficiency for users.
Terminology: application programming interface (API)
7. Number Testing Tools
You never want to risk having your number out of service. That’s why VoIP phone services may include phone number testing tools to ensure they are in proper working order, maintaining the reliability and performance of the telephony system.
8. Integrations
VoIP solutions can integrate with various systems like PBX, CCaaS, Microsoft Teams, and other business tools, creating a seamless communication experience and simplifying workflows.
Terminology: contact center as a service (CCaaS)
Is VoIP Secure?
If you’re questioning whether a VoIP phone system is secure, we have good news. VoIP is just as secure as traditional lines if your cybersecurity posture is in order. Below are voice over IP features used to protect your infrastructure.
1. Encryption
VoIP uses encryption protocols like TLS and SRTP to protect voice data during the transmission process. This ensures that packets remain private and secure. WebRTC is used to support softphones and creates a secure connection between the web browser and the VoIP provider’s servers.
Terminology: transport layer security (TLS), secure real-time protocol (SRTP), web real-time communications (WebRTC)
2. Authentication
VoIP phone systems typically implement strong authentication mechanisms, like multi-factor authentication (MFA), to verify the identity of users before granting them access to the system. This helps prevent unauthorized access and potential security breaches.
3. Fraud Monitoring
Fraud monitoring and prevention tools are put in place to continuously analyze call patterns and usage to detect and prevent fraudulent activities, such as toll fraud or unauthorized access. These tools can alert administrators to suspicious behavior and automatically block malicious users or IP addresses to protect the system from potential threats.
4. Call Blocking
Call blocking feature rejects specific numbers or entire number ranges to protect your organization from spam calls, robocalls, or other malicious communications that may compromise the security or efficiency of your VoIP phone system.
5. Compliance
VoIP phone service providers must adhere to in-country legislation and security compliance to ensure safe transactions and protect customer data. Some of these include personal data privacy regulations, compliance certification, and robocall mitigation.
- General Data Privacy Protection (GDPR)
- Payment Card Industry Data Security Standard (PCI-DSS)
- STIR/SHAKEN
- Personal Information Protection Law (PIPL)
- And more…
Getting Started With Voice over IP Phone Service
When it comes to reducing costs and enhancing the efficiency of your telephony system, a voice over IP phone system is low-hanging fruit. Its robust features and call advantages trickle across your organization– from call center agents to IT.
With a VoIP solution like the AVOXI Platform, you can quickly advance your organization’s telephony infrastructure, wherever you are in your cloud transformation journey. Give us a call or contact us today to learn more.
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