Introduction to VoIP

Introduction to VoIP post image

Voice over Internet Protocol (VoIP) is a type of technology that lets you to make free, or very low cost, calls over the internet.

It doesn’t matter what network or equipment the person you’re calling uses; VoIP lets you call any phone in the world – and you can be reached by any phone. VoIP’s digital nature also allows for new features that were either impossible or very expensive with traditional telephone technology, such as voicemail, call diverts, admin portals, call records, and integration with PCs that allows users to call a number directly from a web browser or address book in an email client.

The intricate, often fragmented nature of business telecoms can take some people by surprise. From the sheer variety of the technology in use, to the range of features and functions that are offered by different systems, the thought of adopting an infrastructure that runs on VoIP can be daunting.

In this introduction to VoIP, you will find out all you need to know to demystify the procurement process, ensuring that you can invest in a VoIP solution which is suitable for your business without being deterred by the complexities of the marketplace.

Legacy Solutions

Older telecoms technology is based on analogue landline connectivity to the POTS (otherwise known as the Plain Old Telephone Service). This tongue in cheek name is an indication of just how archaic such configurations are considered to be today. And yet in spite of this, plenty of contemporary companies are still reliant upon legacy systems, even if they are eager to migrate to VoIP. The good news is that it is possible to take an incremental approach to upgrading, integrating elements of traditional systems with modern IP-based solutions.

PBX Benefits

Private Branch Exchange (PBX) telecoms solutions are comprised of on-site hardware which is used to route all calls to and from individual desktop phones through the central connection to the office, otherwise known as the trunk line. The first benefit of a PBX is that employees can make internal calls without having to involve any element of the external network in the process, which reduces the expense of internal communication.

Today, a PBX handles routing automatically. In addition, the bulk of the infrastructure can be hosted off-site, meaning that small businesses can enjoy the benefits of a private PBX in an IP environment without having to make major investments in hardware. By using VoIP, these small businesses will also save on maintenance costs.

The other important acronyms you will need to know to differentiate telecoms systems from one another are:

• IP PBX: Internet Protocol Private Branch Exchange
• PABX: Private Automatic Branch Exchange
• EPABX: Electronic Private Automatic Branch Exchange


Small Office Solutions

A suitable set-up for a small office with a handful of phones and lines will be a key system, in which users have the ability to pick which line to use and who to contact without any automation involved. The more lines and users involved, the less appropriate a manually-managed key system will become. But thankfully enhancements to technology have made keyed terminals compatible with PBX-style systems that allow for a merger of older technology with modern capabilities.

This means that systems can be monitored remotely and also offers benefits including caller ID and voicemail. Office-wide restrictions can also be put in place on all lines, in order to prevent users from making international calls, for example.
The underlying infrastructure of such systems is clearly more complicated than this overview might imply. But understanding that keyed systems have become hybridised in the modern age is important for any firm looking to update their current infrastructure or procure new telecoms services.

PBX vs. Hybrid Key System

In broad technology terms there are significant similarities between both configurations, but from the point of view of end users there are some differences which need to be taken into account. A PBX effectively acts as an all-in-one solution to calling needs, integrating IP technology and automating the process of call routing for multiple lines. A hybrid key system, on the other hand, is better suited to small businesses, both in terms of costs and scale. If you need to support fewer than around 12 lines, a full blown PBX may not make sense when a hybrid key system is available.

Read More: SIP trunk vs PRI – what’s the difference? 

Behavioural Differences

With a hybrid key system the user will either need to select a line to use or have one automatically assigned based upon current availability. To make external calls via a PBX, dialling out by hitting a so-called ‘escape number’ before entering the target number of the recipient will be necessary on some systems.

However, current technology means that call routing to an outside line can be activated without the need for manual intervention.

For inbound calls, a key system will typically ring at multiple endpoints within the office, meaning that anyone who gets to their phone first will be able to answer it. This is a very helpful feature for especially larger customer services centres, where the employees are dependent on quickly taking calls and responding to the customers’ needs. With a PBX, specific call routing is possible, making such a system better for businesses with more than 50 employees, or large call centres where allocating inbound calls to the first available agent is an efficient option.

Understanding VoIP

VoIP, which stands for voice over internet protocol, is a service that allows calls to be handled via a digital internet connection as opposed to over an analogue landline. VoIP is advantageous to commercial organisations because it can drive down costs while dramatically improving usability and features. Calling international locations is far cheaper via VoIP, while the scalability of this type of system is greater since expanding capacity does not rely upon adding more landlines, but increasing the bandwidth of the broadband connection which powers it.

The rise of VoIP technology has blurred the distinctions between key systems and PBX setups, enabling companies to enjoy the best of both worlds. The following three VoIP set-ups will give you an idea as to how different businesses can find an appropriate solution for their telecoms needs.

Basic VoIP Solutions

The simplest way to access VoIP calling capabilities is to install software on a desktop PC that turns it into a phone. Provided that you connect a headset to the computer, calls can be made to any landline number in the world, not just to other VoIP users.

The provider will also supply a number for the so-called ‘softphone’ so that inbound calls can be made from traditional landlines or mobile devices. But crucially, the recipient of calls from a VoIP device will not know that the user is using the internet to make the call, as the caller ID will show the firm’s official phone number. This means that even those who are working remotely can make VoIP calls and still appear to be in the office, which could be an advantage.

While softphones may be the most basic form of VoIP, they can come with access to more advanced features such as voicemail and call waiting, as well as integrating functionality such as instant messaging.

Mid-Range VoIP Solutions

For a more comprehensive approach to VoIP – suitable for businesses of around 10 or so employees – using a ‘hardphone’ system will be necessary. This involves buying and installing desktop phone terminals which are compatible with VoIP systems. They behave very much like a standard analogue handset, but are linked not to a landline but to the networking infrastructure available within the premises. More hardphones can be added if necessary, but a provider may offer a set number as part of a bundle to get small businesses started.

A physical PBX can be combined with hardphones, but a simpler solution may be to use a computer running a software-based PBX which can perform the same routing functions without the up-front costs. Another alternative to on-site hardware is a cloud-powered PBX which runs remotely on a provider’s data centre infrastructure. This is something that is particularly well suited to modern VoIP services.

Stepping up to a more comprehensive small business VoIP solution like this will also grant you access to features such as IVR (Interactive Voice Response). This will allow inbound calls to be answered automatically and to be directed to the most appropriate end point for answering.

High End VoIP Solutions

For businesses with in excess of 100 employees spread across multiple locations nationally or even globally, a more comprehensive VoIP infrastructure will be necessary. This can include either on-site PBX hardware or a cloud-hosted equivalent, together with desktop phones linked to each and every member of staff. Individual users will be able to make and receive calls, as well as having the option to forward them to colleagues as appropriate.

In most cases this hardware will be accompanied by additional softphone functionality so that employees can make VoIP calls from compatible mobile apps, facilitating wireless access to advanced functions while on the move. Using both wireless hotspots and mobile broadband coverage, VoIP services can function identically on both on-site and portable devices.
SIP trunking technology means that big businesses with multiple on-site PBX setups can provide inter-office communication in a cohesive, consistent and secure manner.

VoIP Advantages

It is increasingly common for businesses to do away with legacy telecoms systems based upon analogue landlines and instead move to a VoIP solution which is both more cost-effective and functional, enhancing productivity.

VoIP services can be tied in with other forms of communication, including instant messaging, video calling and platforms which are designed to combine multiple solutions to streamline collaboration between employees who may not be based at the same location. With VoIP it is possible to make enterprise telecoms more efficient, since it adds the option for inexpensive expansion further down the line, while also keeping call handling more consistent for day to day use.

The resilience of VoIP is also significant, since any device with an internet connection can double up as a softphone. In contrast, analogue landline outages are much harder to overcome, compromising continuity in the event of unplanned downtime.
Competitive pricing of VoIP plans further enhances the value of this type of telecoms solution. And with a reduced need for hardware procurement, maintenance and upgrades by using cloud-based platforms, the long term running costs are also reduced, even if you want to add more users.

Software Enhancements in a PBX Ecosystem

Being able to record calls or send faxes is something that businesses have expected from their telephony solutions for many years. But if you want to add yet more features, an advanced PBX solution will enable a number of the following benefits to be integrated as required.


Computer Telephony Integration (CTI) is a good example as to how modern systems can combine traditional phone services with PC hardware, including the ability to make and receive calls as well as transferring them to other lines, getting data on inbound callers and tracking a range of other metrics.


A software-based phone solution that does not require a dedicated handset but instead makes use of a computer and a compatible headset, featuring earphones and a mic, is known as a softphone for obvious reasons.

Remote Access

Contemporary enterprise phone infrastructures are not limited to a single site but can provide users with access to crucial functions even if they are off-site. This is not only achievable via remote landlines, but also from portable devices to further enhance mobility and convenience.

Dialling Technology

Automatic diallers allow outbound calls to be placed with ease. If the call is answered by the recipient, a suitable member of staff is connected to deal with them as appropriate, avoiding needless waiting and dropped calls.


Automatic Call Distribution (ACD) is an advanced form of routing that can not only transfer calls efficiently, but also provide benefits such as automatic call back, caller ranking and a host of hold options that ensure optimum flexibility.


Interactive Voice Response (IVR) is a commonly encountered technology that allows callers to engage with a phone system either verbally or by pressing numbers on their handset’s keypad to better direct their calls and obtain access to the right department or specific team member.

Recording Calls

Being able to record inbound and outgoing calls and then store them for training and monitoring purposes is invariably useful. You can even attach recordings to an email to send them on, as well as combining the audio with other data about the nature of the call, including its duration and any complaints that were raised by the customer.

Conference Calls

Conference calls can be a great way of catalysing collaboration between colleagues, ensuring that multiple parties can participate in a simultaneous conversation.

Video Conferencing

Adding in Audio-Visual (AV) technology means that conference calls become far more engaging, with desktop machines capable of offering audio and video feeds to be shared between several people spread across more than one location.

Assessing VoIP Prices

How much you pay for the next phone system you procure for your company will be determined by a number of variables. And assessing each one will give you an idea as to what you can expect to pay and whether or not a provider’s package represents a good deal.
Your organisation’s size will be perhaps the most important aspect, since small businesses with a single office will not need to spend as much on a phone system as larger firms operating across multiple locations with a significant number of users to supply with voice call capabilities. Because of this, each business will need to strike a balance between the expense of a system and the extent of the coverage it provides.

More users necessitate more lines, but it is only necessary to invest in as many lines as will be adequate to cope with the demands of peak periods of activity. Providers should be able to give you an idea as to the configuration that will be suitable. Do bear in mind that when several locations are taken into account, along with the need to integrate smartphones and other portable devices, things can become rather more intricate and expensive.

Secondly, the cost of a system will depend on the capabilities you expect. If you want cutting-edge voice and video conferencing as part of a CTI set-up, then this will require more investment than a simpler solution. The volume of calls that are expected and the locations of the recipients will also come into play when determining costs. As will the need for mobile device management (MDM) systems if you intend to supply staff with handsets or embrace bring your own device (BYOD) strategy.

The final consideration is that of industry regulations and legislation and how this may influence which phone configuration you choose. In particular, the need to adhere to privacy rules within your sector is important, while also ensuring that security is sufficiently resilient to pass muster with the regulator. The PCI DSS regime will apply to any organisation taking card payments from callers, which is why plenty of businesses also choose to select a comprehensive IT security solution to go in tandem with any new phone system.

Combining service packages under a single provider can be a means by which to further reduce overall costs, in much the same way as prices can be cheaper on a home telecoms bundle than if services are procured individually. So comparing packages and pricing will be worthwhile.

How VoIP Can Benefit Your Business in 2019

Over the years, VoIP technology has allowed businesses to enjoy a significant edge in their respective industries. However, there are those who believe that VoIP communication only benefits large companies. As such, many SMEs hesitate to embrace the technology and end up missing out on the benefits it has to offer.

Before we start explaining the many benefits of VoIP technology, let’s get a bit technical first – for how does it actually work? Essentially, VoIP is a communications system that uses your internet connection in routing calls instead of going the traditional and analogue way. VoIP solutions function by converting the sound or voice call into digital signals that are then transported to its receiver via the internet. Compared to analogue phone systems, VoIP is more flexible, practical and functional.

According to Gartner, businesses that effectively communicate

  • Have a 19% higher market premium
  • Have a 57% higher shareholder return
  • Are 4.5 times more likely to report high level of employee engagement

In other words, implementing a VoIP solution is likely to pay off. The minute you switch to VoIP, your business will start experiencing plenty of benefits. Here are some of the most important ways a VoIP solution can benefit your business in 2019:

VoIP will reduce your expenses

Using Voice over Internet Protocol, an all-in-one communications system, can help your business cut down on expenses compared to a traditional phone system. Since the solution is already integrated into the internet, businesses don’t have to spend separately for each. In addition, there are no expensive installation fees and traditional equipment to invest in first.

Furthermore, if you often make international client calls, you’ll experience even higher savings. Using VoIP for international calls is more practical because the rates are cheaper, this is because companies are usually given virtual numbers that are attached to local area codes.

VoIP leads to increase in productivity

Internet telephony is multifunctional. In other words, it can be used to communicate in a variety of ways that the traditional phone cannot. Aside from traditional features such as putting calls on hold and transferring them, VoIP solutions allows your business to make group calls, send voice messages, hold video conferences and send instant messages.

This means that businesses can enjoy an increase in efficiency and productivity, because the system makes everyday communication easier and faster to complete. Likewise, this increase in productivity is likely to lead to increased customer satisfaction and, eventually, better sales.

VoIP promotes flexibility

With good internet connection, your employees will be able to work and stay connected regardless of time and location. VoIP solutions does not rely on hardware or physical phone lines, meaning that businesses can allow their employees to adopt flexible work hours. And we all know how flexible working can positively impact your business culture.

VoIP solutions are easy to install and manage

Installing and managing VoIP is easier than you might think, and it requires little technical expertise. Most of the VoIP providers follow quite a simple installation process. Additionally, unlike the traditional phone system, it doesn’t require a morass of lines, wires, cables and hardware.

An extra benefit is that VoIP is highly scalable, so when there is a need to add more components into it, there are no difficult processes involved. Businesses can minimize or increase the number of telephone lines into the system whenever there is a need to. It’s both convenient and practical.

Find Your Next VoIP Provider

Communication is an integral part of a company’s success. In other words, a convenient, practical, flexible and multifunctional system like Voice over Internet Protocol is essential for any business that want to improve its overall productivity and success.

Are you looking for your next VoIP provider, but don’t know where to start? YourShortlist offers non-chargeable, independent buying advice to UK businesses. Simply get in touch with our experts via the contact page.