Many people have heard about Voice over Internet Protocol (VoIP) systems, but they know nothing or very little about this innovative communication technology. This blog has been created to help you understand exactly what VoIP is, how it works and what the cost benefits are. 

VoIP is a communication technology, which allows the business to convert regular analog telephone signals—the kind that you hear when you talk on the phone—into digital signals that can be transmitted over the Internet. VoIP lets the user place phone calls using specific software that can bypass a traditional telecoms phone company altogether. The online nature of the system means that a phone company is unnecessary as all the calls will use an internet connection instead of a telephone line.

VoIP has been around for many years and continues to evolve quickly with ever-increasing software development technologies that complement VoIP and its ongoing potential to continue to transform the world's phone systems completely. 

How does VoIP pricing work?

To better estimate data usage rates, it's important to understand how VoIP technology works. Voice over Internet Protocol makes calls possible without a standard phone line by assembling digital files, such as video or voice data, into packets. Generally speaking, there are two things to consider when estimating bandwidth use or VoIP data.

• The number of minutes phone calls typically last.
• The amount of data that each minute of call consumes. VoIP calls work over the Internet, and since data use is directly dependent on the office's already-existing broadband Internet service. This means that the per-minute cost of VoIP calls is less important for business phone system users.  

The cost of setting up the VoIP system is very similar to the cost of setting up any other hardware and software system. There will be costs associated with the materials required and costs associated with the volume of product that will be needed.

Is VoIP cheaper than a landline or phone system alternatives?

For the vast majority, it is. VoIP is indispensable to offices that make many calls per month. VoIP billings are usually packaged into a flat monthly fee. This is why it makes sense for a business where the staff is routinely on the phone for business. This is especially relevant if overseas or long-distance calls are regular. 

There is the possibility for a business to be confused and overcharged, leading to an unnecessary waste of money, CircleLoop offers a comprehensive business phone system package that is pay-as-you-grow and can be adapted to meet your specific business needs. VoIP data consumption ranges between 0.5 megabytes (MB) per minute of call and 1.3 MB/minute on G.711. This number fluctuates based on the technology being used by the VoIP provider and the caller's usage habit. The monthly rate for a VoIP service can add to the higher Internet bandwidth and the cost of replacing all the phone terminals; this is why VoIP plans are adaptable to a company's size, a number of features, expected amount of data use, and so on.

VoIP and landlines offer very different experiences and benefits and two completely different pricing points. 

Here are some of the main cost differences to consider:

VoIP benefits with CircleLoop

• VoIP allows a cloud-based solution to give you maximum flexibility.
• Easily record your calls to improve your internal processes.
• Integrate with Hubspot, Pipedrive, Xero, and all your other favourite tools
• Add virtual numbers to your account to appear local.
• You can take calls anywhere you have the app and an internet connection.
• Call analytics give you complete oversight of your team's performance.
• You can customise your IVR menus, call forwarding, and call routing.

What costs are involved for the installation of VoIP systems?

With some providers, like CircleLoop, there are no installation costs involved; however, we recommend running a VoIP system on a wired Ethernet connection or on WiFi instead of mobile data for the best performance.

Why choose CircleLoop for your VoIP phone system?

Most customers interested in a VoIP system choose to purchase new VoIP phones to take advantage of all of the features that cloud phone providers offer. VoIP offers the Standard version of the traditional private automatic branch exchange systems by default. VoIP prices depend on the company's size, meaning a small company will pay less, regardless of the amount of use.

If you are still unsure about whether a VoIP phone system is a more viable alternative to traditional phone lines for your business, contact our Customer Success Team to discuss our available price plans and VoIP phone system prices.