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Find out more about how VoIP works

Also known as an Internet telephony service provider, a VoIP service provider transmits two-way voice over the Internet in real time. While it may seem confusing to most, VoIP works very similar to standard telephones. VoIP offers lower up-front costs than traditional phone services, as well as more predictable operating costs, easier growth management and reduced concerns about equipment obsolescence.

I recommend: Check out BT to learn more about which types of businesses would most benefit from VoIP service. You may also read more about the benefits of VoIP by reading a case study provided by AT&T.

Compare the costs of VoIP phone service

The pricing of VoIP phone systems will vary depending upon your existing phone structure and desired features. For example, a basic 16-feature VoIP phone system will typically cost between $10,000 and $30,000. While this is considerably higher than standard digital phone systems, the difference can be offset by savings on long distance calling and decreased administrative costs.

I recommend: Check out WhichVoIP.com for information on how to compare the total cost of VoIP service. You may also consider reviewing the VoIP buying guide offered by Cat5 Telecom.

Factor in costs of required equipment and other services for VoIP

To implement a business VoIP system, you will need several pieces of equipment. You will need a central device, such as an IP PBX to manage the calls, IP compatible phone and a data network. In some cases, you may be able to save money by simply upgrade your existing digital phones.

I recommend: Learn more about VoIP for business pricing by visiting BuyerZone. You may also obtain VoIP shopping tips by visiting VoipReview.org.

Helpful advice for making the most of this Guide

• •  You can eliminate some of the risk and cost associated with switching to a new VoIP phone service by first trying the service. Many VoIP service providers have created technology allowing business owners to try out VoIP service with initial VoIP services through regular phone lines, which allows business owners to uncover any pros and cons before fully switching over to VoIP.

Guide to VoIP for Small Business

Why VoIP? Inside info on VoIP, finding a VoIP provider, VoIP phones and VoIP services

By Daniel Kehrer, Editor, Business.com & Work.com

1. It costs less than conventional business phone service — often a lot less. No more multiple phone lines or paying extra for features like conference calling. Most VoIP service works on a flat monthly fee, so bills are more predictable.
2. It's less complex and easier to maintain. Voice calls run over the same network you already use for email and Web access. One system serves all.
3. It offers more advanced features. You can select area codes other than your own for your business number and receive calls or voicemail to your laptop or IP phone while traveling, as if you were at your desk. You won't need a separate cell phone and number. Take your business phone system with you when you travel.
4. Business class VoIP offers auto attendant, desk-to-desk calling, message on hold, conference calling and other features.

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Shop smart and compare business VoIP service and VoIP providers easily online

As VoIP gains popularity, the field is buzzing with competitive activity, product reviews, shopping guides and help transitioning your business to VoIP service.

I recommend: VoipReview is a super site for finding and comparing VoIP services for both home and business, and for learning more about how it works. VoipReview Business helps you find the best business-class VoIP service in your area or industry. Filter details and order service based on price, features, biz-user reviews, ratings and more. Eric Laughlin, CEO and co-founder of VoipReview, has built a highly useful site that includes a business VoIP shopping guide, the business case for VoIP, VoIP for small business and more.

Plug into a serious VoIP provider

VoIP providers include newer companies that specialize in this area, as well as traditional phone companies.

I recommend: Vonage, with over a million customers, is a major VoIP provider. The firm has a Small Business Unlimited plan for about $50 per month. AT&T CallVantage phone service for broadband gets high marks for features and call quality. Other VoIP service providers to consider include: VelocityTel, Packet8, Quintum, Net2Phone, Virtuoso Net Solutions and Intelecom Solutions.

Select a total communications solution

You can reduce overall communications costs by combining VoIP and broadband at a single provider.

I recommend: Covad offers voice and broadband solutions, including Business VoIP. Get a free comparison of your service to Covad VoIP.

Talk to anyone, anywhere for free

Skype is a program for making free calls over the Internet to anyone who also has Skype.

I recommend: Check out Skype for Business, and see the case histories of how some small business owners are putting this service to work.

Line up smart, secure and expandable IP phone systems

Cisco Systems offers a range of VoIP phone systems for small and mid-sized businesses.

I recommend: Check out the Cisco IP lineup.

Helpful advice for making the most of this Guide

• •  Using the internet for phone calls isn't all roses. Audio quality still isn't perfect, but it is much better than a few years ago when VoIP calls required both people to be at a computer.
• •  You can make VoIP calls with regular phones or new feature-rich, high-tech IP phones, and many users report no difference in quality.
• •  Depending on the number of employees you have, you might need additional bandwidth (a T1 line) to handle VoIP if, say, a dozen or more people will be on the phone at the same time.
• •  Plan ahead if you intend to switch to VoIP. Find out if your current phone number can be switched to VoIP.
• •  You may want to keep a conventional phone line as a backup, and also to assure you business a listing in the local phone book.
• •  If power goes out, VoIP service can go down, so consider a power backup.
• •  The lack of 911 emergency access through VoIP is a concern, although that too is disappearing as VoIP service providers find ways to add this feature.

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Obtain VoIP service anywhere with PSTN

In addition to higher voice quality, another benefit of VoIP service over PSTNs is increased availability. With PSTN, businesses that are not near a wireline or broadband Internet connection can still enjoy voice over IP services. Therefore, PSTN allows more businesses to benefit from low-cost VoIP phone service.

I recommend: Read more about trends and news on VoIP service providers by checking out VoIP2020. Check out Technology Trends for information about trends in Internet telephony solutions.

Try VoIP service risk free

In recognition of many small business owners' reluctance to switch over to VoIP phone service, many VoIP service providers have created technology allowing business owners to try out VoIP service before making the full jump. For example, RingCentral and Junction Networks both offer service through regular phone lines, which allow business owners to test the service without the risk.

I recommend: Check out VoIP-News for more information on VoIP news and trends. You may also read more about VoIP news and trends by visiting Asterisk VoIP News.

Get affordable VoIP without sacrificing service

It often takes a while for new service providers to iron out all of the kinks and VoIP service is no different. Several VoIP providers have implemented procedures to make signing up, downloading VoIP software, transferring contacts and adding services much more user-friendly. For example, Vonage allows users to sign up, transfer contacts, add service features and much more from a secure online site.

I recommend: Check out VoIP Phone Systems to read more about providers’ latest moves to offer more user-friendly VoIP services. You may also learn more about trends in user-friendly VoIP services by visiting SmallBusinessComputing.com.

Helpful advice for making the most of this Guide

• •  While VoIP providers can now offer enhanced voice quality and affordable phone service, security is still a primary issue that concerns many VoIP users. Before making the switch to VoIP for business services, be sure to ask your Internet telephony provider about security controls in place to protect your confidential business discussions.

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Voice over Internet Protocol or VoIP

Voice over Internet Protocol or VoIP is the use of a broadband Internet line instead of a phone to make phone calls. Some of the Voice over Internet Protocol services will only let you call phones that use the same technology, while others will allow you to call any number, no matter what the technology.

I recommend: Review the Voice over Internet Protocol tutorial available at the Federal Communications Commission.

North American Numbering Plan or NANP

The North American Numbering Plan is the distribution plan for numbers that includes 19 different countries. When you install a VoIP system, each terminal will need a number assignment using this system.

I recommend: Evaluate the North American Numbering Plan tutorial available at NeuStar.

IP phone

An IP or Internet Protocol phone is one that converts the data packets from the computer into voice communication and vice versa depending on the directional flow of the data.

I recommend: Use the IP phone definition from PC Magazine for more details on the term.

IP address

The IP or Internet Protocol address is similar to a phone number, but for a computer location. In essence, it is the numerical address of the device located on a computer network.

I recommend: Assess the IP address definition at the Tech Terms website.

IP telephony

IP telephony is another term for Voice over Internet Protocol. The only difference between the two is that VoIP has come to represent multiple terms and IP telephony represents making calls over an Internet enabled phone.

I recommend: Analyze the IP telephony summary available at Fierce VoIP.

Compression technology

Compression is the technology that enables voice to travel over Internet communication lines. It compresses the data into a transferable file that's small enough as to not consume too much Internet bandwidth.

I recommend: Scroll down the tech glossary page at Quick Start VoIP for further information on compression technology.