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Understanding VoIP for businesses
Despite the rise of everyday VoIP apps like Google Meet and WhatsApp, commercial VoIP (Voice over Internet Protocol) remains essential for businesses that need reliable, high-quality voice solutions that integrate with their workflows.
They are necessary to manage high call volumes, multiple users and integrations with systems like CRM.
This guide explores commercial VoIP’s key advantages, practical setup, and essential uses, helping businesses understand when and why it’s the right choice.
Content
- What is a VoIP phone system?
- What are the key benefits of VoIP?
- How does a VoIP phone system work?
- What businesses is VoIP for?
- How to acquire a VoIP system
- Business VoIP system requirements
What is a VoIP phone system?
A VoIP (Voice over Internet Protocol) phone system transmits voice data over the internet rather than using landlines or cellular networks.
This offers greater functionality than traditional business phone lines while providing useful features that popular Device-to-device video conferencing platforms like Google Meet or Zoom can’t offer.
A commercial VoIP setup usually includes purpose-built VoIP phones and headsets for high-quality voice and video from the office, as well as VoIP-enabling apps (i.e. not WhatsApp!) for mobile devices like smartphones, tablets, and laptops.
Cloud-based VoIP software adds key business functionality, such as call routing, recording, CRM integration (UCaaS), and secure encryption.
Commercial VoIP differentiates itself by providing the highest-quality, most secure, and best-integrated telecom solutions for businesses that rely heavily on calls for customer support, sales, and distributed teams.
What are the key benefits of VoIP?
VoIP phone systems offer greater cost-efficiency, flexibility, and scalability than traditional landline systems and provide distinct advantages over popular device-to-device VoIP platforms like WhatsApp, Google Meet, Zoom, and Teams.
Let’s take a closer look:
Cost savings
VoIP significantly reduces communication costs compared to landline phone systems, especially for long-distance and international calls. This is possible because VoIP is internet-based, bypassing the costly infrastructure of traditional telephony, which keeps expenses low and predictable (for pre-paid plans).
While popular platforms like Google Meet and WhatsApp are free, understanding the added functionality of VoIP and UCaaS beyond video and voice calls is key to understanding VoIP costs.
Flexibility
With VoIP, employees can make and receive calls from virtually any device (smartphone, tablet, laptop, or VoIP phone) using a stable WiFi or internet connection.
This enables seamless communication from anywhere. Whether on the go, working remotely, or from home, VoIP supports flexible work arrangements and maintaining productivity across locations.
It also supports multi-party calls, ideal for team and client meetings, and call routing to ensure someone always answers the phone.
Scalability
VoIP systems allow businesses to quickly add or remove lines as needed, especially on flexible VoIP plans.
Network switches let you easily add or remove VoIP phones in the office, and VoIP apps can be instantly installed or uninstalled from mobile devices.
This means businesses can expand or reduce their system according to seasonal needs, workforce growth, or project demands, which was much more challenging with traditional landlines.
Advanced features
Advanced commercial VoIP systems called UCaaS integrate seamlessly with digital applications like VoIP call analytics, AI tools, email, smart call forwarding, and video conferencing, allowing for a streamlined workflow.
For a detailed list, see our article on current VoIP features.
Call quality and reliability
VoIP systems offer high-definition audio, surpassing traditional phone line clarity for professional communication.
Cloud-based VoIP hosting ensures continuous service with automatic backups and quick recovery.
While VoIP depends on power and the internet, an Uninterruptible Power Supply (UPS) or backup generator can keep phones operational during outages—vital for critical sectors like healthcare and finance.
How does a VoIP phone system work?
To illustrate how a VoIP phone system operates, let’s follow Sarah, a financial advisor who needs to have a secure call with one of her remote colleagues and a client based in Hong Kong. Here’s how everything unfolds both within and outside the network:
Initiating the call
Sarah opens her UCaaS (VoIP) app on her laptop, which is connected to her business’s leased line broadband for reliable and secure connectivity.
She first dials her colleague working from Egypt, to review key points before adding the client. Sarah opts for an audio-only call using her VoIP headset to keep bandwidth usage light, as her colleague is using the hotel’s low performance guest WiFi.
VoIP’s flexibility allows both participants to join from virtually any internet-enabled device, even in areas without robust connectivity.
Connecting to her colleague in Egypt
As Sarah speaks, her voice is broken down into tiny digital packets using a VoIP protocol called Session Inititation Protocol (SIP). These packets travel from her VoIP device through her broadband router, and across the internet to her colleague’s laptop in Egypt.
VoIP’s packet-based transmission ensures Sarah’s voice reaches her colleague with minimal lag, even over varied network strengths, offering better clarity than general-purpose apps might in the same situation.
Connecting to the client in Hong Kong
After discussing it internally, Sarah initiates the call with her client in Hong Kong.
Although the client doesn’t use VoIP, external call routing connects him seamlessly. It even recognises and forwards his client’s call to his temporary location in Australia, automatically routing the call to his tablet. This makes the connection process seamless for Sarah and her client, with VoIP handling the complex routing and device compatibility in the background.
Post-call automation
Once the call ends, UCaaS (advanced VoIP) automates record-keeping by sending an AI-generated meeting summary to Sarah’s project management software, keeping the finance team organised.
Additionally, detailed call analytics are sent to her network monitoring software to assess VoIP call quality and maintain cybersecurity compliance, which is especially important in the financial sector.
What businesses is VoIP for?
VoIP is essential for businesses requiring advanced call management, integration with other systems, or security compliance. Here are the main examples:
| Business | VoIP Use Overview |
|---|---|
| Call centres | VoIP efficiently manages high call volumes, routing calls to the right agents and linking with CRM systems. It enables quick, organised customer support and smooth operations. |
| Sales | Essential for frequent outbound calls, VoIP supports scalable team growth, automates call logging, and integrates with CRM systems, keeping client communication well-organised and effective. |
| Retail chains | VoIP connects all locations on one system, ensuring consistent customer service, smooth inter-store coordination, and efficient communication across branches. |
| Healthcare and telemedicine | VoIP provides secure, compliant patient communication, crucial for telehealth. Encrypted calls and recordings ensure patient privacy and continuity in remote care. |
| Legal and financial firms | VoIP ensures secure, private client communication with encryption and secure logging, meeting compliance needs. Integration with client management and cybersecurity software further safeguards interactions. |
| Logistics and transportation | VoIP links dispatchers, drivers, and warehouses for real-time coordination across the supply chain. Integrating with supply chain management software, VoIP supports responsive and efficient logistics. |
| Education providers with remote learning | VoIP enables reliable, time-zone-friendly communication for online education, connecting students, parents, and teachers. It supports high call volumes and maintains consistency in remote learning environments. |
What businesses don’t need VoIP?
Many smaller businesses and freelancers today bypass VoIP altogether and use accessible tools like Google Meet, Zoom, WhatsApp, and Telegram for calls and messaging instead.
These platforms offer quick, low-cost communication solutions for businesses with straightforward needs and minimal call volume.
Local shops, solo professionals, and small remote teams often find these tools more than adequate, providing all the essential features like video calls, messaging, and file sharing without setup costs or complex VoIP integrations.
Cloud-hosted VoIP vs On-premises VoIP
There are two primary types of VoIP systems:
- Cloud-Hosted VoIP: In this setup, a third-party provider manages the VoIP service off-site in the cloud, handling data storage, functionality, and maintenance.
- On-Premises VoIP: Here, the business hosts and maintains the VoIP infrastructure on-site, giving them full control over data storage and security.
While most businesses opt for cloud-hosted VoIP due to its convenience, scalability, and minimal IT requirements, some enterprises prefer on-premises VoIP. This option allows for greater control over data and security and can sometimes reduce costs for larger organisations with many users.
How to acquire a VoIP system
If you’ve decided to install a VoIP system for your business, here’s what you need to do:
- Assess needs: How many VoIP phones do you need? Do you need the advanced features of UCaaS? Is your business broadband speed and latency performance sufficient?
- Choose a provider: Research and compare reputable VoIP providers. Some give free trials!
- Budget: Confirm all costs, including setup, equipment, and monthly fees, and assess the expected ROI.
- Get equipment: Choose VoIP phones, headsets, and a load balancing router that integrates smoothly with your CRM or project management software.
- Implementation: Depending on the setup complexity, your provider will install and test the system. They should also offer training for your team.
- Security & Compliance: Ensure your system meets all cybersecurity essentials. Critical sectors like finance and healthcare must meet stringent cybersecurity compliance.
This streamlined setup will help you choose and implement VoIP to support efficient communication for your business.
Business VoIP system requirements
Several network and broadband factors must be considered to ensure smooth, high-quality performance of a business VoIP phone system. Below is a guide to the essential requirements for broadband and other network elements to support reliable VoIP communication.
Broadband requirements
VoIP requires the reliability of tethered broadband connections for clear, uninterrupted voice calls. Below are recommended performance levels based on the number of VoIP devices (i.e. users) at a single premises with their recommended broadband connection:
| Setup size | Performance requirements | Suitable broadband | Unsuitable broadband |
|---|---|---|---|
| Small office (1–5 devices) | 5–10 Mbps bandwidth, < 150 ms latency, < 30 ms jitter, < 1% packet loss | Standard fibre SoGEA | ADSL 4G/5G Broadband Satellite |
| Medium office (5–20 devices) | 20–50 Mbps bandwidth, < 100 ms latency, < 20 ms jitter, < 1% packet loss | Virgin Media Cable Full fibre Leased Lines | ADSL SoGEA 4G/5G Broadband Satellite |
| Large office (20+ devices) | 100 Mbps+ bandwidth, < 50 ms latency, < 10 ms jitter, < 1% packet loss | Full fibre Leased Lines | All the rest* |
Network requirements
Your local and wide area network infrastructure also needs to meet certain minimum criteria:
- Routers: Use a VoIP-compatible router that supports Quality of Service (QoS) to prioritise voice traffic and minimise interference from other network activities. Note: Business broadband providers don’t offer these in their standard deals.
- Ethernet vs. WiFi: For the best VoIP quality, use wired Ethernet connections, as they provide stable bandwidth and lower interference. If you use WiFi for VoIP, ensure a high-performance WiFi router (with WiFi 5 and 6 compatibility) and comprehensive coverage with mesh networks.
- Network Switches: Managed network switches help control and prioritise data traffic, improving call quality and reliability, especially in environments with multiple VoIP users.
- Broadband Redundancy: For businesses relying on VoIP for critical services (e.g., finance, healthcare), consider a secondary connection or failover option to maintain service continuity during primary connection outages.
- Multi-premise VoIP: For multi-location VoIP implementations, SD-WAN and SASE enhance VoIP by dynamically routing calls over the best available connection, ensuring consistent call quality across sites and reducing reliance on costly dedicated lines.
VoIP – FAQs
Our business broadband experts answer frequently asked questions regarding VoIP systems for UK businesses:
How reliable is a VoIP phone system?
VoIP systems are reliable when backed by a stable, tethered fibre optic internet connection. VoIP can maintain high-quality, uninterrupted calls by ensuring good internet service and prioritising call traffic.
Also, VoIP systems are installed over business broadband connections, which don’t suffer from bandwidth throttling during peak hours (unlike residential broadband).
Can I keep my current phone number when switching to VoIP?
Yes, most VoIP providers allow you to port your existing number to the new system, ensuring customer continuity and eliminating the need to update contact information.
This seamless porting is part of a UK-wide transition into fully digital communications, also known as the PSTN Switch Off.
How secure are VoIP phone systems?
Top VoIP providers prioritise security, offering encryption and robust security features to protect against cybersecurity threats. Choosing a reputable provider is essential for ensuring secure communications.
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