VoIP Advantages and Disadvantages

Businesses large and small are constantly on the lookout for ways to cut costs. One way to tighten the belt a little is by cutting phone service expenses by using Voice over Internet Protocol (VoIP). Here is a hard look at the advantages and disadvantages of business VoIP services.

What is VoIP?

Simply put, it’s the ability to make and receive calls over the internet for very little cost, or quite often, free. Since it’s just another digital signal, it’s already paid for in a monthly high-speed internet subscription. It allows calls to and from any phone in the world, regardless of the network, carrier, software, or make of phone. If there is an internet connection, calls can be made.

What are the Advantages?

Cost
Since there is no need for a traditional phone line, one extra monthly bill is immediately removed. Calls connected from PC to PC over VoIP are free. Calls between PC and a landline will usually have a service fee; however, they are significantly less than with a traditional phone line.

Mobility
Physical location and distance are irrelevant with VoIP technology. Whether calling next door or across the world, it doesn’t matter, it’s like sending an email. If traveling frequently, it’s much more convenient, and again cheaper, to use a VoIP service to stay connected. All that is needed is an internet connection and a laptop with a headset, a VoIP phone adapter, or an IP phone. And, calls will work in foreign countries where a US-based cell phone would not.

Portability
With a traditional phone service, it’s impossible to just pick up and move the system. With voice over internet protocol, simply reconnect the VoIP system and make a call. The phone number doesn’t even have to change. This also means that if there’s an office in New York and a warehouse in California, the New York office could have a local California number so that all calls would be charged local call rates.

For larger companies using their own Private Branch Exchange (PBX), a private phone network within an organization, switching to an IP PBX allows them to have more phones than physical phone lines, with huge cost savings. And, calls would be free between all users on the PBX.

Features
Business VoIP services offer feature-rich packages that phone companies can’t match. Most VoIP companies provide unified communication features like call waiting, caller ID, conference calls, voicemail, and call forwarding at no extra charge. These are usually expensive add-ons with Ma Bell. It’s even possible to send documents and pictures while engaged in a conversation.

The Disadvantages of VoIP
Business decisions are all about weighing pros and cons. While VoIP does have plenty of significant benefits, there are a few caveats to consider.

Connectivity
As mentioned already, as long as there is an internet connection, calls can be made. But what if the internet goes out, or there is a spotty connection? In the case of an internet outage, that’s it, no phone. Having a backup phone is the only way to save those calls.

Bandwidth Issues
VoIP is a bandwidth hog, no question about it. In an office setting, the VoIP service is sharing that same internet connection with multiple users accessing a server, sending email, and generally using the web. If there is inadequate bandwidth, call and voice quality suffer.

Power Outages
If there is no electricity, calls are not coming in or going out. Again, having a backup phone in this situation is the only answer. No calls for a business is disastrous, and in a natural disaster, it could be dangerous.

Emergency Calls
VoIP phone services usually do not offer emergency 911 service. When dialing 911, the phone company sees the phone number on a landline or the closest cell tower and routes the call to the nearest 911 office. Although one of the advantages of VoIP is choosing a different area code, dialing 911 from a VoIP system won’t connect with a local dispatcher.

Voice Quality
Voice quality is dependent on many factors. VoIP service is directly affected by the quality and reliability of its internet connection. Things like broadband speed, the VoIP provider’s service, even the quality of the hardware it's being run on. As such, voice quality does tend to lag behind traditional phone service. The voice data is compressed, transmitted, decompressed, and then delivered. If there are even a few milliseconds of delay anywhere in the chain, echoes or spottiness can occur.

For most businesses, the facts are clear. The advantages far outweigh the disadvantages of VoIP. It cuts expenses, clutter, and hassle. If only all business decisions were so simple.