How VoIP Business Phone System Exactly Works?

VoIP Phone System

Whether you are setting up a new business phone system or replacing the existing one, it is vital to choose a phone system that serves the key purpose of your business. These days, so many phone systems are available in the market, including cloud, IP-PBX, SIP, and VoIP. It may be difficult to differentiate between these systems when choosing the one. This blog will discuss one of the most popular and widely used VoIP business phone systems and how it can help businesses streamline their workflow. Let us first take a look at what exactly a business phone system is?

What do you understand about a business phone system?

Many people get confused between a telephone number, telephone line, and system. It is important to note that all are quite different things. A telephone number is a string of digits that recognizes your phone on the network to others. A telephone line is a physical wire that connects your phone to the rest of the network. Usually, the individual users and most households have one telephone line and number. 

So, what is a business phone system? Well, enterprises starting from small businesses to large enterprises use a business phone system. Instead of buying separate lines and numbers for each employee (which otherwise would be very difficult to manage and maintain), the organization interconnects its phone lines to create its small system. This allows employees to use and share phone lines as everyone would not be using the phone simultaneously. This type of phone system comprises assorted business functions such as:

  • Call transfer
  • Call logging
  • Phone directories 

With a business phone system in place, employees can easily share telephone lines even if they have their telephone number. 

All about VoIP business phone systems

VoIP, also known as Voice over Internet Protocol, is one of the most preferred choices for today’s businesses. A VoIP phone system is an upgraded form of traditional business telephone technology. It can do almost anything a landline can and many more things that are not possible with old technology. Some of the key benefits of using a VoIP business phone system are:

  • Consolidated network: To start working, a VoIP phone doesn’t need a separate network of calls. It works by converting human voice into digital packets sent via the Internet to the receiving party, just like other data such as documents, pictures, email, etc. Since everything works on the Internet, businesses need not set up a physical wire. They just need good wifi and a robust data network to manage their business communications, including voice, video, and text. 
  • Reduced expenses: As all the communications are managed with the help of the Internet, users are not required to pay any extra charges for the traditional PSTN system. Also, there is no such cost of maintaining a physical network. To put it simply, businesses do not have to pay anything for the calls that travel entirely through the Internet. No matter where the employees are located (working remotely or in-office), they can make internet calls free of cost. Even for international calls, the users may have to pay just a little portion of the call (when it travels over the PSTN), which means that international calls are much less expensive when made using a VoIP phone system. In all, by switching to VoIP phone technology, businesses can see a great reduction in their monthly phone bills. 
  • Need no maintenance: With VoIP phone technology, businesses can focus completely on improving their business communications instead of worrying about the maintenance of the system. No matter how many employees an organization has, with VoIP technology in place, businesses do not have to purchase any tool, equipment, or maintain anything. Everything starting from the installation, security, to hardware maintenance will be taken care of by the service provider. Users will also remain updated by receiving frequent updates and new features delivered online.

Due to all these reasons, more and more businesses are switching to business phone systems. By adopting this phone system, businesses can enjoy various features such as an online dashboard, digital faxing and analog features, E911, and unified communication. Let’s look at these features in detail. 

Features of VoIP phone system

Some of the key features offered by VoIP phone technology include:

  • Online dashboard: With the help of VoIP phone technology, businesses can manage all their inbound and outbound calls easily and efficiently. Businesses can set up and configure the system according to their precise business needs via an online dashboard. The service provider will provide the business phone services via the organization’s data network. This means that the organizations do not have to wait long to get started with their business phone service. New features can be added instantly, and ant alterations can be performed with ease. 
  • Digital faxing: With a VoIP system, organizations do not have to keep a separate fax machine to send or receive important documents. Users can directly send and receive faxes in their email. They can get the printout anytime, whenever required. 
  • E911: VoIP phone systems do not depend on a particular location. Users can access VoIP services from anywhere and anytime. However, many businesses worry about the security of their data when using the VoIP system. The good news is that most of the VoIP services these days provide E911 services. By just providing the right address, organizations can have access to emergency services as and when required. 
  • Other features: Most service providers offer an array of VoIP features such as auto-attendant, call routing and management, call transfer, call on hold music, multi-device ring, and many others. Businesses can select the features they feel will be useful for the efficient management of their business communication. 


To conclude, VoIP business phone systems offer more than just a voice service. Users can enjoy video calls, texts, instant messaging, group calls, conferencing, and much more. To get the best outcome, it is vital to choose a vendor carefully. The vendor should understand your key requirements and provide you the right services to help your business grow successfully.

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