A beginners guide to VoIP telephony for SMBs
Even though you may not have noticed, the telephone business sector is undergoing a critical transition: More and more companies are switching from traditional phone technology to voice over internet protocol (VoIP) technology. The underlying technology that enables VoIP telephony calls is fairly straightforward.
And, once you get an understanding of how this technology works, it’ll be easier for you to identify the benefits it can provide to small and midsize businesses. In this post we take a deeper look into how voice over internet protocol works and the underlying reasons why more businesses have severed their ties with traditional phone companies for a more cost effective solution.
Business Telephone Before The Advent Of VoIP
Phones were always viewed as being a critical aspect of running a business. Phones are great due to the fact that they take a human’s voice and essentially, convert it into an electrical signal. This electrical signal is then transmitted at near light-speeds over great distances. Once the signal reaches its location, the signal is then converted into an intelligible voice. This is how phones enabled businesses to communicate with suppliers and customers over vast distances.
But, the prices associated with long-distance calling were rather expensive. So much so, that it could add hundreds and thousands of dollars to the operating expense of an outbound call center. The problem with traditional analog phone calls is that, when you use the phone, the wires that are responsible for transmitting your calls, are basically dedicated to your conversation and you have to pay for that dedication, or in essence, a rental fee.
For instance, if a business that’s located in San Francisco makes a call to Canada, said business would essentially ‘rent’ 2,000 miles of wiring. Competition associated with these wires is what enables phone companies to continue to increase the fees associated with making long-distance calls.
What Is Voice Over Internet Protocol?
Voice over internet protocol can be best described as being an internet based phone system whereas traditional phone technology is an analog, wire based phone service. With this technology, as opposed to transmitting conversations through copper wire lines, conversations are routed through the internet.
The concept of VoIP was introduced in the 1990s. The technology has drastically improved since then, and so has its popularity amongst Small-Midsize businesses. This is because of the numerous benefits it provides.
How Does It Work?
As mentioned above, VoIP uses the internet to achieve the same result as a traditional phone system. When a user installs a VoIP software and speaks into the computer’s microphone, the sound driver on their computer converts their voice into an electrical signal. After that, other underlying software, known as ‘voice codecs’, converts the electrical signal into binary data.
At that point, your computer’s operating system splits binary data into even smaller pieces of information known as ‘packets’. These packets are then transmitted to the internet from your computer, through your internet router, as to which it can connect with other internet based devices and traditional phone systems.
Benefits Of VoIP Telephony For SMBs
One of the major benefits of using this technology is based on the way it transmits signals. Traditional call center technologies send electrical signals in a slower, linear fashion over copper wires. The internet is able to send packets of information at a much faster rate than a telephone system is able to. And, since no exclusive wire has to be rented or dedicated to your conversation, this technology is much more affordable than traditional phone systems. In addition to that, SMBs stand to gain several distinctive benefits.
1) International Calls Cheaper
As mentioned above, each time you make a long distance call on a traditional phone system, you essentially rent wires that have to be dedicated for your conversations. And, competition for these lines is what increases the expenses that are associated with long distance calling. VoIP uses packets of data and the internet to transmit signals, as opposed to analog telephone lines. As such, digital signals which are sent via broadband are able to avoid ‘ rental’ fees that are associated with traditional phone lines, making call center services far cheaper.
2) Mobility In the Workplace
Business owners can enable a higher level of mobility, by switching to this technology. As opposed to tying employees down to a desk phone, employees are able to use this technology by accessing any internet connected device, such as a tablet or smartphone.
3) High Voice Quality
As noted above, VoIP systems use codecs to convert voice into digital signals which get converted into packets that your computer transmits over the internet. In today’s technologically advanced world, VoIP systems are now able to make good use of high-definition codecs, which drastically improves voice call quality. This enables VoIP systems to provide higher voice quality than traditional landline systems.
4) Simplified Equipment
One of the things that have been making VoIP a more hassle free and viable option for SMBS is the utilization of cloud technology. As opposed to running an excessive amount of wiring, as well as to install special equipment, businesses that utilize a cloud-hosted VoIP solution don’t have to spend money on an IT staff to install the system or purchase additional equipment. Said in simpler terms, cloud-based voice over internet protocol systems, eliminates the need to use additional software or hardware, and only requires a broadband connection to get up and running.
When it’s all said and done, VoIP telephony provides businesses with a wealth of benefits that can’t be ignored. It’s more cost effective, it eliminates the need to purchase additional equipment or to hire a repair tech, and it can help to provide a better customer experience with its ability to provide high quality calls.
About babelforce
babelforce is a global cloud communications platform focused on No-Code integration and automation. It allows non-technical people to build even the most complex integrated processes for customer-facing teams, particularly in the call center.
