What is a VoIP Phone System and How Does It Work?

What is a VoIP Phone System and How Does It Work?What is a VoIP phone system? This is a question that business owners have been asking more and more in recent years. In short, VoIP, or Voice over Internet Protocol, is a technology that allows you to use the internet to make phone calls.

In this blog post, we will discuss the advantages and disadvantages of using a VoIP phone system for your business. We will also talk about why businesses might choose to use a VoIP phone system and what other business phone system options they have to choose from. Finally, we will talk about how RanderCom helps small and mid-sized businesses in the Appleton and Green Bay areas with all their business phone system needs.

Understanding VoIP

A VoIP phone system is a business telephone system that uses “Voice over Internet Protocol” (VoIP)  technology to route calls over the internet instead of using traditional landlines. This type of business telephone system has become increasingly popular in recent years for a number of reasons which we will discuss below. But first, let’s talk about how a VoIP phone system works.

A VoIP phone system converts your voice into digital signals that travel over the internet to reach the person you are calling. The person you are calling also has a VoIP phone system which converts the digital signals back into voice so they can hear you.

Advantages of VoIP

One of the advantages of using a VoIP phone system is that it allows you to make calls anywhere there is an internet connection. This means that you can make calls from your office, from home, and from your mobile device while you are on the go.

Another advantage of using a VoIP phone system is that it is often more affordable than traditional business telephone systems. This is because you do not need to pay for costly landlines and long distance charges since the calls are made over the internet. In addition, many VoIP providers offer features that would normally cost extra with a traditional business telephone system such as call forwarding, caller ID, voicemail, and more.

Disadvantages of VoIP

One disadvantage of using a VoIP phone system is that it requires a reliable internet connection. If your internet connection is down, then you will not be able to make or receive calls. This can be problematic for business owners who need to be available by telephone at all times.

Another disadvantage of using a VoIP phone system is that the quality of the call can sometimes be poor if you have a slow internet connection. This is because the digital signals can get lost or garbled when they are traveling over the internet.

Why Businesses Choose VoIP Phone Systems

So why do businesses choose to use VoIP phone systems? One reason is that VoIP phone systems are more affordable than traditional business telephone systems. Another reason is that VoIP phone systems offer features that would normally cost extra with a traditional business telephone system such as call forwarding, caller ID, voicemail, and more. Finally, many business owners like the flexibility that comes with being able to make calls from anywhere there is an internet connection.

Other Business Phone System Options

In addition to VoIP phone systems, there are two other main types of business telephone systems: premise-based and hybrid.

Premise-based business telephone systems are those that are physically installed at your place of business. One advantage of using a premise-based business telephone system is that you have complete control over the system and can customize it to meet your specific business needs. Another advantage is that you do not need to worry about your calls being dropped or having poor call quality since the system is not reliant on an internet connection.

The main disadvantage of using a premise-based business telephone system is that it can be expensive to install and maintain. In addition, if you move locations, then you will need to have the system physically moved which can also be costly.

Hybrid business telephone systems are a mix of both VoIP and premise-based systems. This type of system gives business owners the best of both worlds by providing them with a reliable business telephone system that offers features such as call forwarding, caller ID, and voicemail.

How RanderCom Can Help

RanderCom is a leading business telephone system provider in the Appleton and Green Bay areas. We offer a variety of business telephone system options including VoIP, premise-based, and hybrid systems. We can also customize a business phone system to meet your specific business needs. Contact us today to learn more about how we can help you with all your Green Bay & Appleton business phone system needs!