VoIP Phone Systems: What Are They and Why Are They Useful?

“The number of seats for hosted business VoIP and unified communications services is on track to more than double between 2012 and 2016,” according to a research by Infonetics.com. To be honest, this is nothing new. We’ve been hearing about the VoIP revolution for a while now, and there’s no denying it: Internet telephony has experienced an astonishing growth during the past decade.

In contrast, today we will try to avoid making predictions about the future of telecommunications and, instead, focus more on stripping VoIP Technology down to the basics by answering a simple question: What is a VoIP Phone? Of course we will also cover why VoIP Phone Systems are useful, but mostly our focus will revolve around developing a better understanding of how VoIP technology works.


To explain what a VoIP Phone System is, we must first understand what VoIP means. Voice over Internet Protocol (VoIP) was defined on howstuffworks.com as “a method for taking analog audio signals, like the kind you hear when you talk on the phone, and turning them into digital data that can be transmitted over the Internet.” So, as you can see, it’s not that difficult to comprehend.

But, what is a VoIP Phone System?

Putting it simply, a VoIP Phone System is a device designed especially to take advantage of VoIP technology. In other words, it’s a telephone that transforms standard audio into a digital format and converts incoming digital phone signals to telephone audio through a broadband internet connection (without ever needing to involve programmers or even a personal computer).

However, if you’re a still unclear about the differences and similarities between VoIP, Hosted PBX and a traditional PBX System, you’re far from alone. Many readers have expressed how difficult it is for them to understand this, which is why we will explain more about it in future articles, but in the meantime, feel free to check out our previous blog post about hosted PBX systems.

How is a VoIP Phone System useful?

Probably the most persuasive benefit of VoIP is that is far less expensive than traditional circuit switched technology. In fact, Gary J. Johnson, President and CEO of Voice Carrier, claims that VoIP can reduce business phone bills by up to 70 percent. Essentially, the practical upshot of VoIP is that it can turn your Internet connection into a way to place cheaper phone calls.

But that’s just the beginning, VoIP Phone systems…

  • Deliver crystal-clear sound.
  • Make it easy to add phone lines as your business grows.
  • Offer a host of features like Caller ID, Voicemail, and more.
  • Allow you to setup a conference call with a whole team in real time, not just two people.
  • Feature a user control interface that allows users to change options and services dynamically.
  • Provide rich media service to users enabling integration with other protocols and applications (such as email or web browser).

Why are VoIP Phones ideal for your business?

A survey by Infonetics revealed that the number of residential and SOHO VoIP subscribers grew to over 178 million worldwide in 2011, which could be interpreted as a sign that VoIP is starting to eliminate traditional communications. If you haven’t tried VoIP yet, then you should consider checking out some of the VoIP Phone Systems available at our website.

Do you have a VoIP Phone System at your office? Have you experienced any impact in productivity since you acquired it? Let us know your thoughts on this blog post in the comments section below, and keep visiting us every week for more articles on subjects like Colocation and VoIP Technology.

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