As technology evolves, communications solutions should evolve as well. Streamlining your communication and saving time on routine tasks is where a VoIP phone system for your business can shine. But what is a VoIP phone service? What types of VoIP phones exist, and how do they work?
If you feel thrown off by the confusing terminology, you’ve come to the right place. Here, we’ll outline the basics of VoIP you need to know to prepare your business for communications success. Let’s get started.
What is a VoIP phone?
A VoIP phone system lets you make phone calls using the internet instead of traditional Plain Old Telephone Service, or POTS, lines. VoIP phones are available in hardware or software programs. Software-based IP phone systems are compatible with any internet-enabled device, like your laptop and smartphone. That makes them one of the top solutions for doing business on the go.
VoIP phone systems also require minimal equipment to get up and running. Their superior call quality over traditional phone systems gives them a cutting-edge advantage. Additionally, premier VoIP providers like Quo, formerly OpenPhone, offer modern features. These can include the ability to set business hours and share phone numbers with teammates. Plus, you can access AI features like call transcriptions and summaries. They let your team focus on having meaningful conversations rather than taking notes during live calls.
VoIP vs Traditional phones: A complete comparison
If you’re comparing VoIP to traditional phone systems, the biggest differences come down to how each one connects and where you can use them. VoIP phone systems run over the internet, so you can take calls from anywhere. Traditional landlines use copper wires installed at fixed locations. That means you’re tied to the office — literally.
Still not sure which one fits your team? Here’s how both systems stack up:
| Feature | VoIP phone system | Traditional landline |
|---|---|---|
| Connection type | Internet-based, WiFi, or mobile data | Dedicated copper wires and telephone lines |
| Flexibility | Works anywhere with an internet connection | Fixed to an office location |
| Setup time | Quick setup — download an app and start calling | Requires in-person installation by a technician |
| Devices | Laptops, smartphones, or VoIP desk phones | Desk phones |
| Monthly cost | $15–$30 per user | $50 per line |
| Scalability | Add or remove users instantly | Limited by the number of phone jacks |
| Advanced features | AI call tags, call summaries, transcriptions | X |
| Integrations | Connects with Slack, HubSpot, and other apps | X |
| Maintenance | Managed in the cloud | Needs an on-site technician |
| Best for | Businesses looking to scale their revenue and customer relationships | Old-fashioned office setups |
What are the types of VoIP phone systems?
If you’re making the switch to VoIP technology, you’ve got some decisions to make. There are several different kinds of VoIP phones you can choose from, depending on your business needs:
Hard phones
Hard phones are probably what come to mind when you imagine traditional phone systems. But there are several different kinds of hard phones to explore.
- Desk IP phones: They’re usually wired to computers to maximize connection strength. Most desk phones allow you to view caller ID and other features on a small screen. Desk IP phones work as standard phones, in call centers, or as receptionist phones.
- Wireless phones: Otherwise known as handsets, wireless phones allow you to move around during your voice calls. They don’t tether you to a specific wire or computer. As a result, wireless phone connections can be spotty if you happen to wander outside a strong WiFi connection. Their convenience is worth it in some office settings, however.
- Conference phones: A phone designed for conference calling to help everyone hear and speak to each other without issues. However, for hybrid and remote working teams, they’re less convenient than more modern business phone options.
- USB phones: USB phones are aptly named. To use a USB phone, you plug it into your device using a USB cable. These are a popular option for stabilizing your softphone connection.
Softphones
The opposite of hard phones is softphones. But what is VoIP phone software, and how does VoIP work? You install a softphone on a device by downloading a VoIP provider’s software application. This app gives you access to a virtual phone number that can be used like a normal phone. But it isn’t tied to any particular geographic location.
Softphones are Quo’s bread and butter. They allow you to get the most from your device’s capabilities. You can also juggle multiple softphone numbers without having to manage multiple phones.
Softphones on our platform let you easily call and text from your computer or smartphone, as long as your WiFi connection is strong.
Softphones are an excellent, affordable way to connect your teammates and clients. We’ll explore more of their advantages, so keep reading.
How do VoIP phone systems work?
Rather than transmit your voice data through copper wires like POTS lines, VoIP phone systems take a different approach:
- VoIP systems break your voice data into digital signals known as “data packets.”
- The system compresses these packets and sends them between IP addresses via your VoIP provider.
- Once the voice signals reach their final destination, they’re uncompressed, and the person on the other end hears your voice.
This whole exchange occurs repeatedly and in a matter of milliseconds. Glitches may occasionally occur in the form of jitter or other disturbances, like latency. Most of the time, though, VoIP connection issues are due to a poor broadband internet connection rather than an inferior VoIP service. That’s why it’s especially important to invest in a strong internet plan before setting up a VoIP phone system.
The Federal Communications Commission, or FCC, recommends a minimum download speed of less than 0.5 Mbps for VoIP calls. Plus, they typically need 100 Kbps of bandwidth per concurrent call.
You should also try a VoIP speed test to assess your upload and download speeds. If they aren’t adequate, you’ll need to upgrade your internet service to have a high-quality VoIP phone experience.
Why VoIP exists
Before VoIP became common, many companies used an on-premises PBX, short for Private Branch Exchange. This type of system relies on physical hardware inside your office and traditional phone lines to manage business calls. It connects to the PSTN, so calls travel over landlines rather than the internet. If something breaks, you need a technician.
As call centers grew in the 1990s, these old-fashioned phone systems quickly hit their ceiling. You can’t:
- Easily add new users
- Support remote staff
- Scale during busy seasons without paying for more hardware
That said, businesses still needed a reliable way to manage calls — just without the limitations.
This pushed the industry toward cloud-based phone systems. Instead of relying on copper wires and a PBX in the office, calls could run over the internet. Plus, the cost of maintaining landline infrastructure keeps rising. AT&T has even been accused of raising prices by more than 150% over a decade.
For teams not ready to remove their PBX, SIP trunking, or Session Initiation Protocol, became a helpful middle step. This is because you can keep your on-premises hardware while making and receiving calls over the internet. Just keep in mind you’ll need to purchase extra hardware, such as an Analog Telephone Adapter, or ATA, and VoIP headsets. This will let you connect your analog phone to the internet. Also keep in mind that specific providers may not support SIP trunking.
What are the advantages of using a VoIP phone service?
When you sign up with a VoIP service provider, you’ll want to know what value you’re getting for your money. Some of the chief advantages of using VoIP phone systems are:
- Scalability. A VoIP phone system can scale up alongside your business. Adding new users doesn’t mean purchasing new desk phones or installing new phone lines. Plus, with Quo you can use their computers or smartphones and maintain a work-life balance, thanks to our business hours features.
- Low cost. Because VoIP phone systems route calls through your internet connection, you can avoid high fees. You’ll be responsible for paying a monthly bill for your VoIP phone service, which is usually determined by the number of users who need access. All in all, VoIP is a more cost-effective solution than traditional analog telephone services.
- Connectivity. The copper wires used by traditional telephony tend to exhibit connectivity issues, especially as they age. With an adequate internet connection, your VoIP phone’s call quality can sound clearer.
- Mobility. Users can connect to VoIP phone systems via mobile devices and desktops, making it a versatile communications option. You won’t have to worry about missing incoming calls because you stepped away from your office phone.
- Features. VoIP phone providers like Quo have a number of features that ensure you leave a great impression with your contacts. There are the standard call forwarding and voicemail, but beyond that, it’s a whole new ballgame. Enjoy instant messaging with your teammates, shared phone numbers, and address books. Plus, you’ll get access to features like an AI voice agent that can automatically answer the phone when you’re unavailable.
What are the limitations of VoIP phones?
While VoIP phones come with a lot of pros, there are a few drawbacks you should know:
- Power outages. Many VoIP phones plug into a power outlet, so they shut off when your electricity goes out. That can leave teams without a working phone in an emergency. A business phone system like Quo helps you stay available by letting you forward calls to another device. You also get shared phone numbers, so a teammate in another location can answer calls even if your office loses power.
- Internet dependency risks. Slow or unstable WiFi can affect call quality.
- Not ideal for every scenario. Businesses that rely heavily on emergency calling or operate in areas with poor internet may still prefer a traditional landline.
How to get a VoIP phone number
Are you ready to sign up for a VoIP service and start using your new VoIP phone number? First, you’ll need to choose a provider. Some businesses like using Google Voice and other similar, free apps when first starting out. But these aren’t sustainable business choices. They simply don’t offer the features and customer support that Quo does. Plus, Quo makes it easy to sign up for a VoIP phone plan.
Here’s how to get a business phone number with Quo in three easy steps:
1. Create a Quo account
Opening a Quo account is simple. Enter your email address or sign in with your Google account.
2. Choose your phone number
You can select the area code or toll-free area code you wish to use. You can pick a specific number, and our system will let you know if it’s available.
3. Customize your business settings
One of our favorite Quo features is the ability to customize your business settings. No two businesses look alike, and neither do the business settings of any two Quo accounts.
How do you choose a VoIP phone for your business?
Ready to take the plunge, but don’t know where to begin? You can learn how to choose the best VoIP phone system in five steps:
1. Narrow down VoIP provider options
With so many providers on the market, choosing one can be difficult. Focus on things like cost, features, user interface, and customer service. It also helps to browse software review sites like G2 to see what real teams say about each platform. Quo is a standout option in all of these categories.
2. Check compatibility with your existing devices
Depending on how your team works, you might be comparing physical desk phones against cloud-based options. But instead of juggling hardware requirements, it’s easier to choose a VoIP phone that runs on every device your team already uses — PC, Apple, Android, and iOS.
3. Look for easy settings management
When choosing a VoIP phone, look at how easy it is to manage the settings your team will use. With a VoIP system, you’re not just dealing with a dialpad — you’re adjusting to things like caller ID, auto-attendant, and video conferencing settings.
Growing teams shift quickly, so you’ll want a system that lets you make changes in seconds without needing IT support.
4. Consider how many team members need phone access
When choosing a VoIP phone, think about how many team members need to handle calls. Some reps may need their own VoIP phone, while others may only need access to a shared phone number to help manage call volume. Taking a moment to map out who needs what will make it easier to choose your setup.
5. Evaluate security features and compliance requirements
VoIP phone services can be very secure, but it depends on the protections your provider puts in place. Each provider handles security differently, so it’s important to know what to look for.
Choose a VoIP provider that offers:
- Data encryption. Your calls and messages should be encrypted when they’re being sent and when they’re stored. Strong providers use AES-256 encryption — the same method approved by the US government.
- SOC 2 Type II certification. This certification shows that independent auditors have verified the provider’s security controls. It means the provider is held to high standards for protecting your data — not just once, but continuously.
- HIPAA compliance. If you work in healthcare, make sure your provider is HIPAA compliant. This will ensure you can safely communicate protected health information, or PHI.
💡Related: How to set up VoIP phone systems
Try out Quo, the #1 VoIP phone system
If the above VoIP phone solutions sound optimal for your organization, why not try out Quo? You’ll have all the benefits of a traditional landline, plus modern features, with none of the hassle.
For example, you’ll have access to business communication features like call recording and SMS messaging. Want to know in real time how your team is performing? Quo’s analytics provide a list of your reps’ calls with filters so you can quickly find the call you’re looking for. You’ll also be able to make and receive long-distance and international calls at lower rates than with traditional phone solutions.
Testing our advanced features firsthand is the best way to understand their value to small businesses. Sign up for a free trial of Quo today to learn what the hype is all about — you’ll never go back to landline phones again.
FAQs
Yes, you can use VoIP as a normal phone. The only difference is that you need an internet connection to access the service. Plus, you may be unable to receive certain text notifications, like shortcodes.
Depending on your VoIP provider, VoIP calls may be free, or they may come with a charge. In the VoIP industry, standard practice is to pay a monthly or annual fee for all of your lines.
VoIP phones can help lower your overall phone costs. A VoIP phone system like Quo’s also makes it easier to implement more flexible communication plans for your employees to telecommute.
Depending on the VoIP phone you choose, you’ll need to configure your IP phones either locally or remotely.
– Locally: Setting up an in-office or at-home VoIP phone system doesn’t have to be complicated. Your new phone system will probably look similar to your old one if you opt for a hard phone setup. You’ll need a PBX installed before you can hook up your phones. Hint: Make sure they’re IP or SIP phones compatible with VoIP. After that, you may have to make a few adjustments to your router and install your VoIP software before your system is up and running.
– Remotely: With VoIP softphones, things are easier. For starters, IP phones aren’t necessary. Some VoIP providers manage and host any equipment you use off-site, while others, like Quo, keep everything beyond the computer or phone you use in the cloud. You just need to download VoIP software in the form of a mobile or desktop application, and you’re good to go. You can also complete future app updates with the tap of a button.
Here are two physical VoIP conference phones to consider:
– Poly VVX 250: Offers clear Poly HD Voice audio and background-noise reduction with Acoustic Fence. It also comes with a built-in Microban antimicrobial protection to keep the device cleaner over time. It includes dual RJ-45 ports, PoE support, a USB port, and can be used on a desk or mounted on a wall.
Price: $224.95
– Yealink T57W: Features a 7-inch adjustable touch screen for easy navigation. It comes with built-in Bluetooth 4.2 and dual-band 2.4G/5G WiFi. Plus, you’ll have access to a USB 2.0 port and support for up to 16 VoIP accounts.
Price: $369
That said, these hardware options can get pricey. If you choose a business phone system like Quo, you don’t need conference phones. You can run conference calls right from your laptop or mobile phone.
Here are two options:
– Snom C520: A flexible SIP phone that uses Bluetooth and supports hands-free calls. It includes one built-in mic, call history for up to 200 entries, and HD voice. Plus, it lets you use DECT expansion speakers.
Price: $269
– Polycom Trio 8500: A VoIP phone that comes with built-in Bluetooth. It has a color display, a full speakerphone setup, PoE support, and a USB port.
Price: $214.50
That said, physical VoIP phones can get expensive — and they’re not always necessary. With a business phone system like Quo, you can handle calls, texting, and team communication right from your computer or smartphone, without buying any extra hardware.
Yes. To use VoIP technology, you need a VoIP service provider. VoIP technology runs over the internet instead of traditional telephone lines, so you need a provider to handle your calls.
Some providers require special hardware, while others, like Quo, let you make calls from any computer or smartphone with an internet connection.
Yes, your cell phone can work as a VoIP phone. All you need is an app that lets you make calls over the internet for business use — similar to how WhatsApp works for personal calls.
Business phone systems like Quo let you call and text customers from your
regular phone. They’re a popular choice for businesses because they’re easy to scale as your team grows.
No, VoIP phones need an internet connection to work.
Yes, you can keep your existing phone number with a VoIP phone. This process is called porting, and it lets you transfer your current phone number to a VoIP provider.
Most VoIP phone systems only need a reliable internet connection and a device to make calls. For many businesses, that means you can get started with equipment you already have.
Here’s what you may need:
– A device for making calls: This can be a computer, smartphone, tablet, or a VoIP desk phone.
– A stable internet connection: VoIP technology runs over the internet, so you’ll need enough bandwidth to support call quality.
– A VoIP service provider: This is what gives you your phone numbers, call routing, voicemail, and all the features behind the scenes.
Yes, VoIP phone services can be secure when they’re built with the right protections in place. The level of security depends on your provider and the measures they take to protect your data.
Look for a unified communications system that uses AES-256 encryption. You’ll also want a provider that hosts on platforms like Amazon Web Services to get enterprise-level security. If you work in healthcare, make sure your provider meets HIPAA requirements so you can safely communicate PHI over phone calls.
