In 2019, you cannot afford to not invest in good communication. The business has boiled down to the mutual understanding between the customer and the brand. In a scenario like this, wouldn’t it be wise to have a dedicated business phone system for your brand in place?

Evolution in technology has proven to be beneficial for humankind at all levels. Cloud telephony is one such innovation. The best you can do is leverage it as it continues to take the world by storm. 

With the Internet has invaded all spheres of our lives, quite literally, the communication dynamics have gone through a major shift.

The New collection of Digital 2019 reports from Hootsuite, and We Are Social reveals- There are 4.39 billion internet users in 2019, an increase of 366 million (9 %) versus January 2018.

In such a space, it makes sense for brands to leverage the platforms that their audience use. Voice communication has become possible over the internet, courtesy of the thorough internet penetration, and exponential broadband speeds.

With over 100 million conversations (Voice calls) happening on WhatsApp each day, you can imagine how we have collectively transitioned from PSTN (Public Switched Telephone Network) as the primary communication technology to VoIP (Voice over Internet Protocol). 

VoIP phone number allows businesses to make calls from computers equipped with a VoIP phone. It works by converting voice vibrations to digital signals that translate to Internet Protocol packets. These Internet Protocol packets are then transmitted and converted to regular telephone signals.

Five ways in which the VoIP phone system will serve your business

Reduced cost- 

Making calls through VoIP is way cheaper when compared to conventional phone calls. As a single system is dedicated to voice and data both, cost cut down is obvious. This reduction in cost, if used efficiently, can serve your business in a multitude of ways. 

Innovative features- 

VoIP phone system serves you with features such as call queuing, interactive voice response, voicemail, call planner, recording, and many more.

24*7*365 Availability- 

VoIP makes sure that your customers are not left unattended ever again. This proves to be an advantage for your call center agents as well, as they can now work remotely as per their convenience. 


The best part about VoIP technology is that it is hassle-free and saves space. All you need is a good internet connection, and you’ll be able to access the VoIP phone system from anywhere, anytime.

Constant evolution-

You no longer need to be stuck with outdated equipment that is expensive to upgrade. VoIP serves you with the ease of upgrading and changing plans. 

Now that we know why you must make the switch, let us understand the cost involved in doing so– 

As compared to traditional landlines that come with separate, dedicated copper wires, a VoIP phone system can run on your existing internet connection, transmitting your voice as data. As a result, VoIP proves to be much cheaper! The total cost incurred includes a basic cost, plus the cost of running your internet connection. A landline, on the other hand, costs around $100 for a base unit, with extra charges incurred for each additional user.

In-depth cost analysis and break-up

Irrespective of your strategy, VoIP proves to be cheaper than traditional phone systems.

Let’s look at the individual factors that influence the VoIP phone system cost-

Number of VoIP users

In many cases, VoIP is billed based on the number of active users.

Calculation of VoIP users

Calculation of VoIP users is done based upon the number of lines you need open at any point in time. That means, if you have 20 customers on the phone at any given time, then you’ll need 20 open lines.

The mandatory VoIP features

The pricing is also decided by the features that your business requires.

The must-have(s) are listed below- 

  1. Call from any device–You should be able to make calls from your choice of hard or soft-phones, and even from mobile phone apps.
  2. Ease of use– you should be able to manage VoIP numbers and related activity with a single click using an online portal.
  3. Cost-effective – Your VoIP phone system must save you money when compared to a traditional phone system.
  4. Efficient service provider – This is more important than you think. Your service provider should have a dedicated customer service team to support you at all times.

But that’s not it, a package cannot be complete without side orders.

Thus, listed below are optional choices that will further affect your cost– 

  • Number management – Assigning multiple numbers to one user is a great feature you can add.
  • Conference calls – The ease of collaboration over conference calls cannot be undermined. Hence, this feature is a major value addition for many VoIP users. 
  • Voicemail to text conversion – Automatic conversion from voicemail to a text message or an e-mail is another great add-on.
  • Call queuing – A missed call is a lost customer. And you surely do not want that! Queuing calls lets your customers know that they will be attended shortly. 
  • Call forwarding – By setting up a forwarding number, your inbound calls to your VoIP system will be automatically redirected to a fixed line or a mobile phone.
  • Call recording – Call recording can be used for training as well as regulatory purposes.

The price of a VoIP system also depends on your billing cycle. You can choose that fits your needs- 1 month or 12 months contract. Like any other service, the length of this contract determines the price.

  • Hardware choice-

The cost will also be affected by the phone choices that you will make when switching from traditional phone to the VoIP phone system

VoIP works by using Session Initiation Protocol (SIP).

You can either buy new, SIP-enabled VoIP phones or add an adapter to your analog handset. This is called an ATA adapter/VoIP adapter.

How VOIP phone system helps your business save money?

By now you must have understood that the ROI of business phone systems outweighs the involved cost. Let us establish this more clearly by comparing the cost of conventional phones and VoIP phone systems.

  • Staffing cost– Unlike traditional phones, VoIP phone systems do not demand PBX experts and receptionists. It uses internet technologies and can be managed by your existing IT team. 
  • Equipment cost– Instead of an IP PBX kit, with VoIP in the cloud, all you need are handsets. This is especially useful for small businesses that can leverage the saved cost in multiple ways.
  • Copper wiring– This can be a recurring cost for businesses that are still stuck with traditional phone systems. With VoIP, all you need is- devices connected to the internet.
  • Switching costs– You can save a lot of bucks when making the switch. Cloud VoIP systems do not require any special equipment as all of the equipment is hosted by the provider.
  • Scalability– In traditional PBX, circuit upgradation is highly expensive. Whereas, while upgrading VoIP lines, you just have to upgrade your internet connectivity. 
  • Call Costs– With VoIP, the distance is never a concern. Telecoms providers often charge high rates for long-distance and international calls. While VoIP providers offer effective plans that offer long-distance calls at minimal rates. 
  • Setup Fees– Finally, VoIP comes with a low setup cost as it is very easy to set up a VoIP phone and that is because setting up a new customer happens with the click of a mouse.


Now that you know how the VoIP phone system can redefine your business while cutting down the overall cost, so effectively, you cannot afford to defer. Upgrade your business technology, right now! 

Updated : July 22, 2021


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