Increasingly, across the telecommunications industry, business communications products are based on a technology called voice over internet protocol or VOIP.
Unlike traditional phone systems, where users placed analogue phone calls down a copper wire, VOIP systems transmit voice calls over the internet.
Some VOIP services, such as Microsoft’s Skype, work entirely through mobile apps or computer programs.
However, often professional VOIP services use a piece of equipment – called an Analogue Telephony Adaptor or ATA – that allows users to connect regular telephones to their VOIP service.
According to Knight, VOIP systems are increasingly gaining traction in the business world as an alternative to PABX systems.
“Telecommunication companies and large businesses have used VOIP telephony for many years, generating significant call cost savings in the process. VOIP is not only a viable alternative to traditional fixed line phone services, but will become the norm for future phone services.
Irving agrees, saying VOIP systems are often a better option for businesses than traditional phone systems.
“Many VOIP systems have all the functionality of traditional on-site phone systems, without many of the complications of more complex systems.
“For example, you can set up simultaneous ringing of incoming calls, re-route calls between fixed and mobile phone, or even get your voicemail sent to you as email (yes, you can click to hear each message and do them in the order that suits you!).
“Telstra’s VOIP offerings are delivered across the Telstra Next IP network, and use tools to prioritise voice data, to deliver business-grade voice quality and reliability.”
“Telstra’s broadband solutions, including the Digital Office Technology bundle, enable multiple employees to connect at the same time, without the hassle or expense of setting up separate lines.”
Like Telstra, Knight says iiNet also offers a VOIP product that functions similarly to a traditional fixed-line service.
“iiNet offers a hosted PABX service called ‘Business Voice’ which provides your office with access all of the features of a normal PABX, for a predictable monthly cost. Business Voice even includes the cost of all local and national calls to give you greater budgetary certainty.
“As well as being an operating expense than rather capital expenditure, Business Voice offers the flexibility to grow with your business. You can add more lines, more handsets or upgrade to the latest handsets without the hassle, cost and delay of upgrading a legacy PABX system.”
Aside from sharing the same basic functionality, Knight says there are a number of key advantages for small businesses in using a VOIP system rather than a PABX system.
“Businesses can keep their existing telephone numbers when they move premises because VOIP allows you to transfer numbers beyond the traditional telephone exchange boundaries.
“Businesses can scale their VOIP phone systems up and down quickly and easily to meet changing demand. The only limit is the amount of broadband bandwidth available to support additional channels (what used to be called ‘lines’).
“So if your business grows, or has seasonal peaks, you can increase or decrease the number of lines in minutes – rather than days or weeks. This also means you don’t have to pay for spare phone lines every month just to wait for occasional bursts of demand.”
Another key advantage for many businesses, according to Knight, is in the price of calls.
“Businesses can save a lot of money on their phone bills. Typically, VOIP call charges are half that of the fixed line network today, although, of course, your individual call patterns will determine your overall savings.”
Irving explains VOIP systems can in some cases also integrate with other online or cloud-based tools.
“By having your telephony services delivered as an internet-based solution, you can better integrate your phone system with services like email and productivity tools. You can also easily access and manage clever call functionality like simultaneous ring or virtual receptionist.”
However, there is an important issue with VOIP systems some businesses might need to be aware of.
Telstra’s copper phone lines in Australia carry a small electrical charge – enough to power a single, corded fixed line phone. In turn, in the event of the background, many telephone exchanges are able to switch over to their own generators. .
That means a traditional hard-wired phone in Australia should be able to continue making and receiving phone calls during a blackout.
However, as Knight explains, the same does not apply for VOIP systems.
“While it’s important to be mindful that a VOIP phone system will not work during a power outage, it is possible to protect your broadband service and phone system with a Uninterrupted Power Supply system or similar. Businesses can also minimise the risk here by using mobile phones or putting in place other call routing solutions.”
Next week, we’ll examine whether it’s viable for your business to ditch landline phones and go mobile only.
Andrew Sadauskas is a former journalist at SmartCompany and a former editor of TechCompany.
