Voice over Internet Protocol (VoIP) has become an increasingly popular option today for businesses that are looking to upgrade their telecommunications network. Recent research suggests more than a billion companies around the world may employ this type of technology by the year 2017. Some experts even suggest the traditional phone network may disappear completely in just a few years. For our homes, many still rely on a traditional phone line for voice communications so this suggestion might sound premature. However, for the business sector, this is definitely possible.

One of the most cited benefits of VoIP phone system is its cost versus traditional analog phone lines. With the price of service being anywhere from 50 percent to 80 percent cheaper than using a traditional phone, the available savings is a lure for businesses and residential citizens alike.

VoIP phone service is still fairly new to many businesses. Due to this, it is valuable to learn the basics. So, we have put together some frequently asked questions about this affordable and reliable technology.

VoIP Phone System Frequently Asked Questions


What is the difference between VoIP and a traditional phone line?

The biggest difference between VoIP and traditional calling is that the phone lines that are used. Traditional lines use an analog signal, and VoIP uses a digital signal.

A digital signal is more efficient than analog and costs less money. Anyone who has used a program like Skype has used VoIP to communicate. So, the technology, when used at a business level, uses the same method as programs like Skype for voice communications.

What are the costs associated with VoIP for business?

Business communications today are often part of a whole network of services that may include cloud access, internet access, and phone service. In virtually every case, VoIP is a cheaper option than traditional phone lines. When the costs are separated or broken down, VoIP is usually charged on a per-extension basis for businesses. These plans can cost much less than traditional phone service because there isn’t the need for many separate, physical phone lines.

What features are available with VoIP?

The same traditional features that are available on landline phones are available on VoIP, too. Features include caller ID, call waiting, and call forwarding. Other features may include automated attendants, hold music, voicemail, and multiple phone lines.

What equipment is required to use VoIP?

One of the most convenient benefits of using VoIP is the ease of setting up the system. If a business already has traditional phone lines, all that’s needed is to convert the lines to VoIP is a converter box. This will allow the analog phone lines to work with a digital signal. Essentially, this converter connects the phone lines to the internet. Some businesses may choose to install additional equipment like IP phones meant for use with VoIP technology.

What is PBX for Large Businesses?

Some large companies use a Private Branch Exchange (PBX) to manage significant call volume. These devices help route calls to open lines, and the system features an automated attendant that will help callers reach the right person. Owning a PBX in-house can become expensive, but VoIP providers may offer access to a PBX for businesses to use so that they don’t need to house a PBX system in-house.

Switching to VoIP with VergentSwitching to VoIP with Vergent

Are you a small business owner looking to increase telecommunications capabilities without significant investment in hardware? Do you want to save money each month on phone costs? Whether you have a business with just a few phone lines or a corporation with a thousand employees, using VoIP may benefit your bottom line.

Contact us to get in touch with a representative from Vergent today to learn more about the benefits of digital communications through VoIP.

Read More Information: Virtual PBX Phone Systems | Virtual Private Network