In making the business case for small business VoIP solutions, SMBs can consider a variety of key factors. Two examples: infrastructure, and taxes and fees.

From an infrastructure standpoint, the traditional Public Switched Telephone Network (PSTN) is much less efficient than VoIP. That’s because when a call is placed, it ties up one entire circuit (phone line). With VoIP, by contrast, many calls can be routed over the same “line,” saving on capital and operating expenses.

PSTN networks are heavily regulated by the government, so the true cost of service includes taxes and fees that can really add up. The internet, which is used to transport digital, packet-based calls, is much less regulated so service providers are usually able to offer plans with a flat monthly rate that covers all calls no matter what they destination.

In the past few years, there has been an explosion in the number of small business VoIP solutions available. And, with good reason. SMBs stand to benefit in a big way to making the move to this newer, more flexible technology.

Traditionally, one of the major up-front and operating costs associated with running a business of any size was the Private Branch Exchange (PBX (News - Alert)). This large, expensive piece of equipment is what’s used to connect internal phone lines to the PSTN. VoIP eliminates the need for a pricy PBX.

To set up a small business VoIP system, all that’s needed is a broadband internet connection, subscription to a business VoIP service, and a router with enough ports to route each outbound, packet-based call to the internet. The expensive, time-consuming, behind-the-scenes task of bridging calls from the internet to their destination is handled by the VoIP service provider.

This type of setup is referred to by a number of different names, including virtual PBX, IP PBX, hosted VoIP and hosted PBX. It’s a flexible, nimble choice that allows small business owners and managers to access and configure calling and routing features (e.g. adding or deleting lines, forwarding calls) through a secure, web-based dashboard.

The sophistication and low-cost of small business VoIP solutions is possible because digital, packet-based communication systems take advantage of technology that allows many phone calls to be simultaneously routed over the same local area network (LAN) used for computer data transport. In other words, it allows one set of equipment and infrastructure to do double duty—and to be managed by a single IT department within the small business.

For geographically distributed SMBs, VoIP has another advantage: it eliminates the need for traditional communication infrastructure, such as wide area networks, used to connect employees in different locations. Small business VoIP systems create inexpensive extension-to-extension dialing that costs the same regardless of location.

Small business VoIP systems also come with a variety of sophisticated features that would likely not be affordable as part of a traditional phone system. These may include internet faxing, conference calling, and caller ID. Plus, employees traveling on business can effectively take their phone line along by packing the associated IP phone or analog telephone adapter (ATA). If that’s inconvenient, call forwarding is usually a standard feature. 

For more benefits about VoIP solutions, including details on simplifying portability and installation using Dynamic Host Configuration Protocol (DHCP), visit WhichVoIP.com.