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What is VoIP? And Why Your Business Phone Bill is Probably Too High

If you're still paying for traditional phone lines, you're almost certainly overpaying. Here's how VoIP works and what it can save you.

VoIP in Plain English

VoIP stands for Voice over Internet Protocol. Translation: it's a phone system that runs over the internet instead of traditional copper phone lines. Instead of paying the phone company for each line, you use your existing internet connection to make and receive calls. The call quality is the same (often better), and the cost is dramatically lower.

How Does VoIP Actually Work?

When you make a call on a VoIP system, your voice gets converted into digital data, sent over the internet to the other person, and converted back into sound on their end. It happens instantly, so the person on the other end has no idea you're not using a regular phone line. You can use a VoIP desk phone that looks exactly like a traditional phone, or you can use a softphone app on your computer or smartphone.

What Can VoIP Do That Traditional Phones Can't?

This is where it gets interesting. VoIP systems come with features that used to cost a fortune on traditional phone systems. Auto-attendant ("Press 1 for sales, press 2 for support"), voicemail-to-email (voicemails show up as audio files in your inbox), call routing (send calls to your cell when you're not at the office), and conference calling are typically included at no extra charge.

For a small business with employees who work from home, travel, or split time between locations (pretty common around the Semoran Blvd corridor and throughout Seminole County), VoIP is a game changer. Your business phone number rings on your desk phone, your laptop, and your cell phone simultaneously. No forwarding, no separate numbers, no missed calls.

How Much Can You Save?

Most businesses save 40% to 60% on their phone costs by switching to VoIP. A traditional business phone line runs $30 to $50 per line per month. VoIP services typically cost $15 to $30 per user per month, and that includes all those features we just mentioned. For an office in Maitland or Casselberry with 10 phone lines, that's a savings of $200 to $400 every month.

What You Need to Get Started

The main requirement is a solid internet connection. VoIP calls use about 100 kilobits per second per call, so for an office making 5 simultaneous calls, you need at least 500 kbps of upload bandwidth (most business internet plans easily exceed this). You'll also want a router that supports Quality of Service (QoS) settings to prioritize voice traffic over other internet usage.

The transition is surprisingly painless. You keep your existing phone numbers, and most setups can be completed in a day or two. Want to see what VoIP can do for your business? Take a look at our VoIP phone system services.

What You Need to Know

  • VoIP is a phone system that runs over the internet instead of traditional phone lines
  • Features like auto-attendant, voicemail-to-email, and mobile apps are included
  • Most businesses save 40% to 60% on phone costs by switching
  • You need a solid internet connection (most business plans are plenty fast)
  • You keep your existing phone numbers, and setup takes 1 to 2 days

Wondering what VoIP would look like for your business? We can walk you through it in about 15 minutes.

See our VoIP services