What Are the Advantages and Disadvantages of Using VoIP?

In the modern global service economy, accessibility and information are everything. To streamline communications with clients, employees, leads, and customers, you need a phone system to line up calls with different departments. Businesses at this stage are faced with the dilemma of choosing between analog/landline and Voice over Internet Protocol (VoIP) technology. So, what is VoIP, and what are the advantages and disadvantages of using VoIP over an analog connection?

What Is VoIP, and How Is It Used?

VoIP is a phone service technology that connects to people on the caller’s end through an internet connection. Unlike landline phones, VoIP phones often have mobile capability, which allows users to call from anywhere using a powerful WiFi connection. VoIP can also be connected through an ethernet cable to a router.

Many large businesses use VoIP as a more versatile alternative to landline or analog phones, which tend to drop calls more easily. VoIP uses cloud-based software and internet protocol code to connect with customers on a mobile connection.

What Are the Advantages of VoIP Phone Systems?

Lower Cost

Because of cost restrictions, many businesses choose to operate their calling services over the internet using VoIP technology versus an analog phone line. Not only is it cheaper to make international and long-distance calls over VoIP, but it is also cheaper to make local and toll-free calls.

VoIP bypasses traditional telephone companies that can raise rates at a whim. Instead, VoIP systems are operated over a cloud-hosted PBX system, with many additional features not included with analog phones.

With the power of VoIP, you can save money by having a team of remote workers. Businesses that had to be tied down to location due to a lack of technology can have staff from around the world to answer customer inquiries 24 hours a day.

Additionally, you can have specialized and trained agents familiar with VoIP and call management systems by utilizing a virtual call center. This option is especially wise if you want to save money and time training people in-house.

Scalability

It is much easier to scale business communications with VoIP than with landline phones. Integrating many employees into a VoIP is easy, whether your company is opening a new branch or restructuring departments because of new hires.

VoIP software has many additional features exclusive to it that benefit business operations. Automated call handling, call queues, caller information, and call tracking are some of the many things agents can use when on the phone with a client or customer.

Reliability

One of the worst things that can happen when acquiring new leads is dropping someone. Additionally, having an important client mishear you can lead to various difficult situations in the future.

Because VoIP systems operate over the internet versus mobile connection, calls are rarely dropped, and the connection stays consistent. Using Ethernet or high-speed internet makes audio quality crisp with no static.

Ease of Use

A VoIP system allows employees to integrate easily into existing communication networks with minimal hassle. It does not require much-specialized software or hardware knowledge to get a new employee on and trained to use VoIP.

All you need is a smartphone or wired phone, calling software, and an internet connection. Everything is digitized now, so it shouldn’t take more than ten minutes to set up a new unit.

What Are the Disadvantages of VoIP?

Offline Functionality

As the name implies, VoIP does not work if the internet is down. While most VoIP systems operate using mobile technology, people will not be able to call anyone if their devices do not have internet.

If there is a power outage, your call lines will not be functional unless you have a generator. A great workaround to this is that most companies hire remote workers from all over. With a decentralized calling staff, business inquiries, complaints, and outbound marketing efforts can continue as usual, even if some staff members cannot work.

Audio Jitter

While call quality and connection are typically consistent when using VoIP, data can sometimes be dropped or delayed. When the data is dropped or delayed, it ends up causing choppy audio, also known as “jitters.”

Faulty hardware, poor VoIP service, limited network bandwidth, and router issues may cause audio jitters. You should not have audio jitters as long as you have high-speed internet.

call center agent on headset

How Does VoIP Work?

Before getting VoIP to work, you must first discuss cloud options and services with a VoIP service provider. VoIP service providers give businesses exclusive SIP servers to manage all calls regardless of location.

Essentially, SIP servers work as a proxy to transfer mobile and web data. Employees connect mobile phones to the unique server address associated with the SIP server to ensure a secure connection. Once connected to the SIP server, employees can place calls as usual.

What Equipment Is Needed for a VoIP System?

Not much equipment is required to operate a VoIP system from the user side. You can use VoIP for communications with a basic internet connection, a calling device, and calling software.

A business needs these things for employees to use VoIP:

  • A Modem
  • A Router
  • Traditional Internet Service
  • A Subscription with a VoIP Service Provider
  • Mobile or Hard Phones with Specialized Software

Is VoIP Secure?

Because VoIP operates through an exclusive network and proxy, employees and customers do not face much risk of getting their information leaked. Data transferred using a SIP protocol is encrypted, so caller identities are secure and anonymous.

Advanced funding in the cybersecurity industry has warded off many major attacks, but like analog calling, the risk still exists. IT security threats, call interception, IP spoofing, and DoS attacks are used by criminal hackers to steal information and scam people.

Trust a Call Center That Uses VoIP

VoIP systems have made it much more reliable to outsource communications without sacrificing quality. Additionally, VoIP helps businesses scale and save money.

If your company is looking for a virtual call center that utilizes VoIP, contact ROI Call Center Solutions for a free quote.

Share This Story, Choose Your Platform!

About the Author: Han Butler

Avatar photo
Over the course of his tenure at ROI Solutions, Han Butler has led the charge on creating a company that is truly a leader in the Business Process Outsourcing (BPO) industry. His drive, and enthusiasm for creating a culture of inclusion, and camaraderie from the top down within ROI is only exceeded by his love for his family, and his ever-growing collection of LEGOs. Through his keen eye for creating value and opportunity, Han has been able to help usher in an unprecedented era of revenue and growth for ROI Solutions.

Interested in a Free Quote?

Get in touch with us today to discover what ROI Call Center Solutions can do for your business.