Traditional business phone systems have been around since the 19th century. They’ve come a long way and have tried their best to modernize. But the problem is at its roots. They’re built on outdated technology that can’t adapt fast enough. It’s time to move on.
From small startups to Fortune 500 companies, more businesses are turning to VoIP calling technology. And for good reason. VoIP is more affordable, flexible, and packed with advanced features that traditional phones can’t match.
If you’ve heard the term “VoIP caller” but aren’t sure what it means or how it could benefit your business, this guide will help.
What is a VoIP caller?
A VoIP caller is someone who’s making a call using Voice over Internet Protocol, or VoIP, technology. They’re not calling through traditional phone lines or their phone’s SIM card. VoIP lets you make and receive calls over the internet using apps or software. If you’ve ever called someone over FaceTime, you’ve been a VoIP caller.
VoIP callers can be anyone — from a family member checking in to a business owner returning a customer’s call. Contractors, lawyers, real estate agents, and customer support teams all rely on VoIP to stay connected.
In some cases, the term “VoIP caller” might refer to the VoIP service provider itself. Or it could mean the tool or software used to make the call. But it’s more accurate to call them VoIP systems, VoIP apps, or VoIP platforms, rather than callers.
💡 Learn more: VoIP vs cellular
Does “VoIP caller” show up on caller ID?
No, VoIP calls look identical to traditional calls on caller ID. Whether the person is calling with VoIP or using a traditional phone line, it shows up the same. VoIP users can have local, toll-free, or vanity numbers, and they’ll all appear as normal phone numbers on your screen.
You can also port in your existing number. In this case, customers continue to see the same familiar number they already recognize and trust. There’s no visible change on their caller ID.
Here’s what your recipient will see when you call them using Quo, formerly OpenPhone:
You might also be able to set up a CNAM, or business caller ID name, with your phone number. This means when you call a customer, your business name could show up. If not, customers will just see your phone number including area code.
From the customer’s side, there’s no visible difference. A VoIP call looks just like a regular phone call — but with better features and flexibility behind the scenes.
What is VoIP, exactly?
VoIP stands for Voice over Internet Protocol. It’s a technology that lets you make and receive calls through the internet instead of traditional phone lines. Tools like WhatsApp, FaceTime, and Zoom use VoIP.
VoIP phones don’t connect to the Public Switched Telephone Network, or the PSTN, like analog phones do. Instead, they work by your voice into small digital data packets that travel through the internet. Before they reach the other person, they’re turned back into sound in real time.
Setting up VoIP is simple. You sign up with a provider like Quo and get a business number that works on any device with internet access. You can also bring in your existing number. Then, you can call, text, and manage voicemails from your computer, tablet, or smartphone. As long as you have WiFi, data, a hotspot, or Ethernet, you can stay connected anywhere.
Types of VoIP numbers: Fixed vs non-fixed
There are two types of VoIP numbers: fixed vs non-fixed. The main difference is whether the number is linked to a physical address.
Fixed VoIP numbers:
- Are linked to a specific address, like your office or store
- Usually come with a local area code that matches your physical location
- Can be traced back to that address, which makes them compatible with emergency services
- Are best for businesses that operate from one main location
Non-fixed VoIP numbers:
- Aren’t tied to any physical address
- Let you choose any area code, even outside your city or country
- Perfect for remote teams or companies that serve customers in different regions
- Are easier and faster to set up than fixed numbers
Since virtual numbers aren’t tied to a physical address, caller ID can’t usually identify them. In some cases, customers might mistake your number for a spammer’s. With Quo, you can set up your own Caller ID name, eliminating this concern.
What’s the difference between VoIP vs traditional phones?
The key difference between VoIP and analog phones is that VoIP uses the internet to place calls and send texts. Traditional PBX, or Public Branch Exchange, phones use copper or fiber-optic wires.
This makes VoIP phones much more flexible, scalable, and cost-effective. They also give you more advanced features to help you build better relationships and grow your business. For example, with Quo, you get SMS and MMS, automations, integrations with tools like your CRM, AI, and more.
Old-fashioned PBX systems are more expensive and difficult to scale. Plus, you only get basic features like voice calls, voicemail, call forwarding, and hold music.
Here’s a closer look at how they compare:
| Feature | VoIP | Traditional PBX |
|---|---|---|
| Mobility | Works anywhere with internet | Tied to a physical location |
| Cost | Predictable, monthly subscription-based pricing | High setup and maintenance costs |
| Scalability | Add new users, numbers, and features in minutes | Requires buying extra hardware and hiring expert support |
| Text messaging | Supports SMS and MMS, plus texting automations | No texting support, only voice calls |
| Security | Built-in encryption and controls from trusted providers | Secure if properly maintained — but all on you |
| Call quality | Clear with a strong internet connection | Clear with good wiring, but weather/wiring can affect quality |
| Team productivity | Built for collaboration | Internal calls and call routing only |
💡Learn more: VoIP vs PBX
Why are more businesses using VoIP calling?
Businesses are switching to VoIP because it helps them build better customer relationships at scale. It brings calling, texting, and voicemail together so you can manage conversations more easily.
Smarter routing gets calls to the right person, and AI handles busywork like transcribing calls and answering FAQs. This helps small teams deliver fast, professional service and stay competitive.
Your peers are switching to VoIP. Here’s why you should, too:
1. Lower costs
Typically, VoIP phone systems cost between $15 and $40 per user per month. The pricing is on the higher end for enterprise and more customized VoIP solutions.
Let’s say your team of five uses Quo’s starter plan, at $15 per user per month. For six numbers and unlimited calls and texts to US and Canadian numbers, your total upfront cost is between $81.50 and $83 per month, plus a one-time US carrier registration fee of $19.50.
In comparison, PBX system costs start at $2,605 per year for a team of five. And you pay that upfront.
With VoIP, you get started for a fraction of the cost. You pay a predictable monthly fee and your provider handles all updates, maintenance, and fixes at no extra charge. You don’t need to buy special equipment either. Just use the computers and phones your team already has.
Already have some VoIP providers in mind? Use our cost comparison calculator to see how much you can save by switching to Quo.
2. Stay accessible to customers from anywhere
With VoIP, you can work from any device with an internet connection. This can be WiFi, cellular data, a hotspot, or an Ethernet connection. You and your team stay reachable whether you’re on site, on the road, or with a customer.
For example, you might text a customer from your laptop in the morning. Then take their follow-up call on your phone while going between appointments. Your business number follows you everywhere, so customers always reach you when they need to.
3. Scale however and whenever you need
With traditional phone companies, adding new phones or people can take weeks. You order the hardware, wait for shipments, and pay for the installation. With VoIP, you can add new users in a couple of minutes with a few clicks.
It’s just like when you upgrade your Netflix subscription to get higher resolution video.
With VoIP, there’s no hardware to buy or phone lines to install. New team members can start taking calls immediately using their existing devices. Quo even lets them keep their work and personal numbers separate on the same phone.
Need local numbers in different cities? Add them instantly. VoIP scales as quickly as you need it to.
4. Get more time-saving features, not just calling
The best VoIP phone solutions have features that help you build better customer relationships at scale. Plus, they help you grow your business more quickly without burning yourself out.
For example, in addition to unlimited calling, Quo gives you:
- Unlimited texting. Reach customers the way they prefer to communicate without worrying about extra charges.
- Messaging automations. Save time by scheduling texts, using templates, and setting up auto-replies.
- Shared numbers for teams. Split responsibility for calls and texts. Share context and avoid overworking individual team members.
- Call management features. Call routing, ring orders, and phone menus help you direct callers to the right person without dedicated IT resources.
- CRM and app integrations. Connect with the tools you’re already using to automate repetitive tasks — like logging calls in your CRM.
- Call recording and transcriptions. Store audio recordings and their transcripts in one place. This lets you go back for context, coach your team, and keep a paper trail.
- AI features. For example, Quo’s AI voice agent Sona lets you take calls 24/7 so you don’t lose business.
- Phone analytics. Track call volumes, response times, and team performance to spot patterns and improve service.
- Visual voicemail. Read voicemail transcriptions instantly instead of listening to each message.
💡Looking for top VoIP providers with automation features? Check out our guide to the 10 best VoIP software systems for calls, SMS, and more.
5. Better security
With PBX phones, handling security is largely on your shoulders. With VoIP, you can leave that to a team of experts who monitor and protect your communications around the clock.
For example, Quo has enterprise-grade security with 24/7 system monitoring and encrypted data storage. We also run frequent, automated backups across multiple data centers.
Your information is protected, whether you’re making calls, sending texts, or storing voicemails. Plus, Quo is SOC 2, GDPR, HIPAA, and CCPA compliant, so your customer data stays private and secure by default.
Protecting your business: VoIP security and scam prevention
Unfortunately, sometimes bad actors exploit VoIP because it’s easy to set up and inexpensive to use. This is why some people are wary of VoIP calling. But the technology itself isn’t the problem. It’s how it’s used.
Here’s what you need to know to stay safe:
How to identify and avoid VoIP scam calls
One tell-tell sign of a scam VoIP caller is repeated calls from an unknown number. This is especially true if there’s no caller ID or if the caller refuses to identify themselves clearly.
You should also be cautious of unexpected calls from unfamiliar area codes, particularly if they’re long-distance or international numbers.
Another red flag is high call volume or irregular calling patterns — like dozens of calls in a short time period or calls at odd hours. You can also report suspicious numbers to the FCC.
💡Getting too many robocalls? Set up IVR on your business phone. These phone menus help filter out robocalls, since spammers can’t navigate the options.
Keeping your business number off spam lists
Carriers’ spam detection and criteria aren’t 100% accurate. So, even lawful businesses can sometimes be marked as spam. Here are essential steps you should complete to lower your chances of that:
- Register your phone number with the Free Caller Registry. This informs carriers that your phone number has a new owner. It can address the problem of a previous owner’s bad reputation if they engaged in spam-like behavior.
- Register your phone number with STIR/SHAKEN. STIR/SHAKEN is an FCC protocol that authenticates caller ID information. It helps carriers verify your calls are legitimate and not spam. If you’re a Quo customer, you can complete the Low Volume Standard US carrier registration form. Quo will then automatically register you for STIR/SHAKEN.
- Register your phone number with major carriers. This can increase your number’s reputation and ensure that carrier records are up to date.
- Be consistent with your calling behavior. Sudden spikes in call volume or aggressive calling schedules can trigger spam filters.
- Stay compliant with relevant regulations. This includes the Telephone Consumer Protection Act and “Do Not Call” lists. Clearly identify your business when calling and provide simple opt-out instructions.
💡Dig deeper: Learn more about why your phone number shows up as spam, plus the exact steps to avoid it.
Take your business communication further with Quo
VoIP helps businesses stay connected, respond faster, and scale easily. It also helps cut costs while giving teams the flexibility to work from anywhere.
But some providers are more reliable than others. The right provider will keep your communications secure and your number’s reputation clean. It also gives your team the features it needs to stay supported every step of the way.
Ready to get started? Sign up for your free trial of Quo to try out VoIP calling today.
FAQs
You can’t tell if someone’s calling you with VoIP. So use the same judgment you’d use for any incoming call. If it’s an unknown number, let it go to voicemail and never share personal information with callers you can’t verify. If you recognize the number or are expecting the call, you can answer the VoIP call.
If you receive a call from a VoIP phone number, there’s no need to panic. It might be a friend without access to their regular cell phone or a business you’ve given permission to contact you. For example, let’s say you’re looking to buy a new home and you fill out an inquiry form with your contact information. The realtor may call you through their VoIP system instead of a traditional cell phone or landline.
A VoIP number is a virtual phone number that lets you call and text over the internet instead of traditional phone lines. You can use it on any smart device, like your laptop or cellphone.
VoIP numbers display a phone number on caller ID, and if the business has registered with CNAM, their name will show too. But caller ID can be customized or spoofed with any phone system — VoIP or traditional. So it shouldn’t be your only way to verify a caller’s identity. If you’re unsure about a call, let it go to voicemail or verify their identity independently.
VoIP relies on internet connectivity, so poor bandwidth can affect call quality. Customer support quality varies widely between providers. So choose one with a strong service reputation. Finally, many VoIP services can’t pinpoint your exact location during 911 calls. That said, some providers offer location tracking as an added feature to mitigate this.
VoIP stands for Voice over Internet Protocol. It’s a technology that uses a broadband internet connection to help you communicate. VoIP calls are made over the internet rather than traditional phone lines.
VoIP caller ID works like traditional caller ID. It displays the caller’s phone number and business name — if registered — when they call you. You can customize your caller ID to show your company name, making it easy for customers to identify legitimate calls.
An IP phone is a physical desk phone that connects to the internet to make calls. A VoIP phone can be any device — hardware or software — that uses internet calling. All IP phones use VoIP, but not all VoIP phones are physical IP phones.
Hard phones are physical desk phones — either traditional models that use phone lines or IP phones designed for VoIP systems. Softphones are apps that run on your computer, tablet, or mobile phone, letting you make calls from any device without extra hardware.
