Business VoIP Featured Article

How Business VoIP Helps Small Businesses Overcome Telephony Costs

October 28, 2013

By Rajani Baburajan, Business VoIP Contributor

Communications expenses eat up a major share of the budget in any business. Small businesses often struggle as they don’t have enough funds to meet these expenses. Business VoIP comes to their rescue as they help them meet the communications needs at a fractional cost of the traditional telephony services.


Voice over Internet Protocol (VoIP) uses unlicensed spectrum for sending voice and data, so the service does not incur fee typically associated with spectrum license and other regulatory requirements.

VoipReview.org now helps small businesses reduce the cost of communications by showing how they can leverage VoIP over traditional telephony. In fact, VoipReview also identified a number of charges and malicious fees coming from traditional telephony providers. These unnecessary charges can be eliminated by shifting to business VoIP.

One of these charges includes unnecessary monthly expenses which small businesses are forced to pay. VoipReview.org thinks traditional service providers mislead these businesses to purchase many extra, unnecessary premium features, which go unused but yet add to the monthly bill.

Business VoIP, on the other hand, does not incur monthly charges. Most VoIP providers deliver pay-as-you-use model or give customers the option to choose the plan that suits their business requirements. At any time, businesses can add or withdraw features.

Equipment and setup fees comprise a big share of the traditional telephony costs. For example, small businesses need to invest thousands of dollars to install a new in-house PBX system, but with VoIP technology they can access and use a virtual PBX from a remote location. Such services eliminate the need for costly equipment and setup fees.

With traditional telephony systems, small businesses often find it difficult to scale their telephony system. They end up paying unreasonable amount for adding new telephone lines for a business. Providers also force subscribers to add more lines than they need in large bundles.

On the other hand, VoIP allows these businesses add additional lines or extensions at the click of a button. This makes the service easier to deploy and manage. Since VoIP is delivered via IP, businesses are not bound by geographical limitations. They can move the VoIP phone system from one location to another without any effort. 

Maintenance and service is quite easier with VoIP. Since VoIP providers take care of all software and hardware, maintenance does not fall in the purview of customers. In the case of on-premise VoIP systems, customers are required to take care of the equipment. On the other hand, traditional phone systems require dedicated service to fix complicated issues and these expenses often go beyond the control of small businesses.

“The best phone system for a small business is one with no hardware on site. Let the providers worry about maintenance by taking advantage of Hosted PBX services,” says VoipReview.org.

Another area where small businesses suffer is the upgrade in traditional telephony. Every small business fears that when they install their traditional phone system, it will become obsolete in years or even months. With VoIP, upgrading the telephony system is much easier and cost effective for small businesses.



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