Help! What’s a VoIP Phone System & How Does It Work? [Updated 2024]

With technology moving at an overwhelming pace, it’s easy to get lost when it comes to updates and upgrades. It’s hard to stay up to date with what you need and what you don’t. And what about the incessant use of acronyms?! If only someone would just tell you simply, what you need to know about VoIP.

You asked, so here it is, laid bare for you. The what’s, where’s and why’s of VoIP, in a language that we can all understand!

What VoIP means

VoIP means Voice over Internet Protocol. In simple terms, this means that you can have a telephone conversation via the Internet (or other networks) instead of the copper wire PSTN. Such calls can be made using an IP Phone or phone for VoIP which is calibrated for digital use.

Additionally, what you may not know is that the traditional technology that powers your landline (known as Public Switched Telephone Network or PSTN or Integrated Services Digital Network or ISDN) will no longer be supported by the end of January 2027. Your landlines will be switched off in favour of Voice over Internet Protocol and digital voice.

Do I need a VoIP phone system for my business?

Absolutely! Just like back in October 2012 when analogue TV was turned off and replaced with digital television, landline phone lines will be obsolete by the end of January 2027. The phasing out has already begun, with providers no longer offering analogue phone lines to new customers. So if you want to keep in contact with your customers, then you should switch to a VoIP phone system asap.

Why before 2027? Well, VoIP is significantly more beneficial for businesses compared to traditional analogue systems. With IP phone VoIP, you gain access to advanced capabilities that can dramatically improve your customer service and overall business operations. Unlike analogue systems, VoIP offers features like call routing, voicemail-to-email transcription, and integration with customer relationship management (CRM) software. These tools allow you to manage calls more efficiently. You can track customer interactions more effectively, and provide a more professional experience for your clients.

Moreover, with a phone for VoIP or a mobile app, you’ll have access to remote work features. These allows your team to access the business phone system from anywhere with an internet connection. This flexibility can lead to increased productivity and better work-life balance for your employees. In contrast, analogue systems are tied to physical locations, limiting your ability to adapt to changing work environments.

Will I need a VoIP service provider?

Yes, just like you do for your current landline or mobile phone. You could opt to stay with your current landline provider and let nature take its course. However, in doing that, you pose the risk of being moved onto and tied into a contract and system that doesn’t support all of your business needs. We recommend shopping around for a VoIP service provider to find a company that can match your budget and business requirements.

What does the setup involve? Is it easy?

We don’t know about other service providers, but here at SwitchboardFREE, we make it quick and painless! Unlike landlines where you need lots of wires, hardware, equipment and space, with VoIP you need nothing additional to switch initially. All that’s required is to spend a few minutes with one of our VoIP account managers relaying some of your business details and we’ll do everything for you. Alternatively, you can simply set it up yourself online and even keep your existing business number if you wish. It can take up to 2 weeks to port from your current provider but we’ll give you a free temporary number whilst you wait (and £50 call credit). Alternatively, you can choose a new number from our extensive library to level up your business straight away.

Are VoIP phone plans more expensive than analogue?

Definitely not! VoIP phone plans work out significantly cheaper than their landline counterparts. Our basic package is only £5 per month, and for that, you get unlimited inbound calls, and 100 outbound calls, all with no contract. On top, we also give you access to more than 45 free features that will help you streamline your call management. So why wait until 2027 to save some cash?

Will my current phone work with a VoIP phone service?

Possibly. It depends on how old your current phones are and if they are enabled for the technology. We find that most aren’t compatible, but that’s not a problem when you get started as you can use what we call a softphone or our specifically designed app. Once your VoIP phone system is up and running, you can then browse our choice of phones for VoIP and find new hardware that suits your needs and allows you to take full advantage of all the call management capabilities.

So what are the benefits of having a VoIP phone system in place? 

There are so many that it would take a whole new article to go through them all in detail! But here are just a few, to give you an idea:

• No need for bulky hardware
• Portability – use your phone anywhere
• Scalability – have more phone lines instantly at very little cost
• Call management including:
  • Call transfer & routing
  • Multiparty calling & teams
  • Conferencing & video calling
  • Call log & recording
  • CRM integration & analytics
  • Auto attendant & disaster recovery

Voice over Internet Protocol is imminent

Whether we like it or not, the full switch over to an IP phone VoIP system is happening; but it’s not a bad thing. In fact, VoIP services for small businesses and medium businesses automatically bring call management systems into play, where previously they were unaffordable. This enables a more even playing field when it comes to having the capacity and facility to nurture existing customers and onboard new leads. Many small to medium businesses experience missed calls on a daily basis, but having a VoIP system in place frees up time and heavily cuts down on the volume of missed calls.

To see how much you can save by setting up VoIP with SwitchboardFREE, you can sign up for a free account, or call our friendly team on 0203 189 1213.

We can also provide a VoIP service for home phones, so you can sort both out at the same time. Don’t wait until 2027 to save money, switch both your home and business to VoIP today!