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Business VoIP Services Save Money while Upgrading Phone Service

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Business VoIP Services Save Money while Upgrading Phone Service

May 14, 2014

By Matt Paulson, TMCnet Contributing Writer

When upgrading to a new business phone system, businesses often lock into the illusion that they have to make a choice: either go with an expensive phone plan with good quality and a variety of services, or cheap out and pick a sub-par phone system at an affordable price. This is the trap that traditional landline phone carriers try to lock businesses into, but the simple question businesses should be asking is, “Why not both?”

Voice over Internet Protocol (VoIP) phone systems route calls over the Internet instead of the public switch telephone network, and transforms clunky analog signals into digital ones. Because phone signals are compressed into hyper-efficient packets of data, a higher audio quality can be stored in the transmission while taking up only a small fraction of the bandwidth normally used by a phone call. As a result, VoIP providers need far less infrastructure to deliver their high-quality service, resulting in monthly bills at around half the price of a comparable landline provider.

CarrierVid co-founder John Gelhard lists several ways that businesses can lower their phone bills, such as eliminating long distance bundles if they're rarely used and discarding frivolous or unneeded features like anonymous call rejection. However, these goals and more are achieved by switching to a VoIP phone system.

For example, VoIP providers often include long-distance calling absolutely free as part of their service – which even includes international calling in some cases. Long-distance charges exist on traditional phone systems because callers need a direct copper-wire connection that stretches over miles and miles and are effectively “renting” the phone line during the period of a phone call. When calls are routed over the Internet, geography is completely removed from the equation.

Furthermore, VoIP services often include several business-class calling features absolutely free as part of their service, simply because subscribers are already using their hosted PBX services, which have these features pre-installed. Simply put, using a VoIP phone system gives businesses more phone for less cash.

Edited by Rory J. Thompson
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