VoIP (Voice over Internet Protocol) represents the latest in phone system technology. With it, regular voice calls are sent over a computer network instead of traditional phone lines. There are two main types of VoIP to consider.

Small business VoIP dealers replace your existing phone system with new hardware. Instead of using separate phone lines, calls are sent over your internal network. While these systems offer many potential benefits, they're not a guaranteed way to save money.

The main reason to choose a small business VoIP system is if you have multiple branches, telecommuters, or remote sales offices that are already connected to a company network. With a VoIP system in place, all your locations will have access to the full features of your phone system. In addition VoIP allows calls between all locations - no matter where they are - via extension dialing, making them completely free. For businesses with hefty monthly long distance charges for calls between locations, that can be a very attractive reason to upgrade.

A small business VoIP system will not reduce charges for calls outside the company network, though. To do that, you should turn instead to small business VoIP service. With VoIP service, your calls are sent over the Internet as data until they near their destination, then converted back and transmitted on regular phone lines.

 

This doesn't require much hardware on your end - you can usually keep your existing phones - but it does require a monthly subscription to the VoIP service. Also known as Internet telephony, this allows for extremely cheap long-distance and international calls.

 

 

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