Reduced ownership cost

When VOIP communication is used instead of traditional telephone systems, the total ownership cost of the business is reduced. There is no need to buy dedicated cable lines to accommodate telephone calling. Maintenance cost of VOIP systems is also less making the system easy to use. VOIP PBX does not require you to install costly equipments and upgrades. When you wish to use VOIP for business communication, you don’t have to purchase anything new. The current system that you use can be extended to include VOIP services. Monthly bills can be reduced greatly as you can combine voice and data transfer. There is no need to find service providers separately for voice and data transfer.

Full control over the bill

Studies show that over 70% of traditional telephone bills are wrong. With VOIP service, customers don’t have to worry about their bills. Business persons can keep track of their bills and you can always know ahead about your bills. Sometimes, you may not know charges for international calls because some providers charge a connection fee apart from calling cost.

Streamlined communication

The whole communication system can be streamlined with the use of VOIP. With traditional systems, each and every branch of your office should have a centralized system. This distribution of responsibilities may hinder your business development if you wish to open a branch in a new location. VOIP makes communication very simple as you can have only one centralized location for all your offices. Call transfer among branches in various places can be done very easily with the help of VOIP. All these transfer tasks are generally invisible for your users.

Better quality of service

With VOIP system, you can achieve better quality of service. If the bandwidth of internet used for communication is high, you can certainly achieve an exceptional quality. This is not possible with traditional telephony systems. Call dropping and low call quality is never possible with VOIP if you use a high speed internet connection. Modern day businesses use only high speed broadband connection and so, obtaining a great quality of service is not a problem anymore.

Dynamic bandwidth allocation

In the case of VOIP solutions, you can automatically reserve resources to allocate the bandwidth optimally. This ensures that important communication utilizes higher bandwidth. You can also prioritize the communication by specifying the priorities while transferring data. Dynamic and flexible bandwidth allocation is possible with VOIP system.

Increased security

In the case of traditional networks, communication security can’t be enforced properly. Breaches were very common and several businesses suffered from loss of data. With VOIP, attacks can be prevented with multilayered security. Further, encryptions can be deployed to ensure that the data transferred reaches the destination securely.

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PSTN networks have their own advantages and disadvantages. The well established technology makes PSTN systems more reliable. A dedicated line is established between the caller and the called party in the case of public switched telephone networks. This dedicated line ensures more reliability and chances of call dropping is almost nil with PSTN networks. Further, the set up process is hassle fee and usage procedures are simple for consumers. However, efficient use of bandwidth is limited with PSTN network. Most of the bandwidth dedicated to PSTN remains idle most of the time. The monthly fees and high call charges restrain the users to use PSTN telephones. PSTN networks can handle only voice data and they are transmitted using fixed cables.

VOIP on the other hand solves most PSTN problems, but the ubiquitous technology has its own limitations. There are no monthly fees in the case of VOIP and you have to pay for the number of calls you make. Prepaid cards allow you to use the same device in different countries without any change. The data sent through the network is compressed, allowing optimal utilization of bandwidth. VOIP primarily uses internet to transfer voice. Further, voice is also sent as data packets. This simplicity has reduced the cost of every call. Many value added services can be given to the users at lower cost. VOIP allows you to make use of soft phone and virtual keypad without even using telephone system if you have a broadband internet connection. The only problem with VOIP is related to call quality. When you choose a good service provider, you can overcome this problem. With a good service provider, you can achieve call quality equal to that of PSTN networks.

In the offices and homes, the usage of internet has increased. Further, data traffic is much higher than voice traffic. The existing system can handle both data and voice traffic in an efficient way, but this cannot be called the optimal system. Studies show that data traffic will continue to increase in the near future. Moreover, the availability of internet facilities using wireless networks has motivated the researchers to improvise the present VOIP technology. With more and more improvements, VOIP technology can completely replace PSTN service, but it will take at least a few decades. For now, you can save money without compromising the services, using hybrid VOIP and PSTN systems.

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Running a business is a tough task and most business owners try to reduce the business cost to increase their profit. Telephone services are essential for any business and international calling has become an integral part of the business irrespective of its size. Traditional telephone services costs more to make international calls which in turn increases your business cost. Further, many value added services like videoconferencing, call waiting, voice mail messages, are important if you are serious about your business. The essential and value added telephone services will be available for your business at low cost when you use the VOIP service.

Advantages of VOIP over traditional telephone services

The VOIP providers will give you a one-stop platform for all telephonic needs. Once the essential hardware and software are installed, you can start enjoying the benefits of VOIP. It is possible to call international numbers at low rates, making VOIP the essential choice for any business. Some providers give other value added services like call waiting, three-way conferencing and caller id to make business communication easier.

With the VOIP platform, you can extend the business line and give a separate communication line to your employees. They can use the VOIP services in their existing phone equipment and stay connected even if they relocate. To use the VOIP service, they must connect their phone device to the internet and start talking. This facility will save a lot of money because you have to spend huge money when you want this feature using traditional telephonic services.

The best part with VOIP platform is that you can integrate your existing equipments to the new VOIP device. An additional adapter has to be bought for necessary conversion. This reduces the set up cost to use VOIP services. Many VOIP providers will give you a software client which can be loaded in your computer. With this software, you can call international and local numbers without having to use the phone device.

Every business needs voice mail and fax services. Rather than paying extra fees for these services with traditional system, you can use VOIP and save money. The Traditional telephonic system wants installing extra lines to use these services. The VOIP providers can give you fax services without the need for any extra lines and so, the cost is low. The VOIP platform can be set up to call several numbers before directing the call to a voice mail number. This will ensure that you don’t miss even a single call from your customer.

The savings you make with VOIP depend on the size and complexity of your business. A small business with no branches will save little money, but you can see huge savings with a big business. Many small businesses are switching to using VOIP platform because it allows easy expansion. The savings depend on the VOIP provider you choose. It is important to know your business needs and choose the calling plan accordingly. Never compromise with the quality of the service for the cost. Whatever may be your business, if you want to save on your telephone bills, it is now time to switchover to VOIP services.

See Also: International Calling Cards, China Calling Cards

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