Internet Phone Systems - Benefits For Business

Internet phone systems are gaining popularity as a fundamental communication tool for businesses today. First gaining prominence in 2004, virtual phone systems are now recognized for providing a tremendous value for large corporations and home offices alike.

Internet phone systems are available from a number of VoIP phone providers. VoIP, or Voice over Internet Protocol, phone services convert the analog signal used for telephone conversations into digital transmissions that can travel over the Internet. The technology is also known as "Voice over Broadband" and "IP Telephony". This type of service is secure and high quality, indistinguishable from traditional telephone service.

Any business with an Internet connection can utilize an internet phone system; although for best quality a broadband connection of 256K or higher speed is usually recommended. Some virtual phone provider services are based on open source standards, while others utilize proprietary protocols. An open source service is usually more flexible over time.

For a company of any size, the cost savings realized by utilizing a virtual phone service are attractive. While the rates charged by each provider will vary, most fees are much less than traditional phone services. Many internet phone service plans include unlimited calls throughout a specific region or country for one monthly fee, eliminating long distance charges. On average, businesses report saving 30% annually by converting to a virtual phone system. Further, there are currently no taxes or miscellaneous fees tagged on to VoIP services, although several governments worldwide are actively regulating this industry.

For the small business, a virtual phone service is compelling for several additional reasons. First, since many VoIP phone providers offer powerful feature options, a small business can enjoy all the advantages of a state-of-the-art, big business phone system by subscribing to a full virtual business office. Available features include:

• "Desk-to-desk" calling between multiple office locations.
• Voice mail; some services also forward voice mail messages to email.
• Call forwarding.
• Caller ID.
• Automated attendant.
• Customized 'on hold' messages and music.
• Conference bridges.
• Ability to set up 'hunt groups' or 'ring groups', as needed for inbound care or sales teams.
• Video conferencing.
• Fax services.

With these types of capabilities, a small business or home business can present a professional image to customers, ensure reliable communications and good customer service. Another appealing aspect of internet phone systems for business is the ease of activation. If a broadband connection is in place, VoIP service can be implemented almost instantly.

The equipment required will vary depending upon the VoIP phone provider, but is generally quite simple to install. Some services utilize an "ATA", or Analog Telephone Adapter, which connects a standard phone to a computer connected to the Internet. With VoIP software running on the computer, phone calls can be made and received over the Internet.

Standard PBX systems can often be easily converted to VoIP with minor software and hardware upgrades. Other virtual office solutions utilize special IP phones and routers, which are networked to a central broadband connection.

An internet phone system is highly scalable. New users can be turned up quickly, the only limitation being the capacity of the Internet connection. For the growing business, this translates to additional cost savings. Maintenance is simple, usually in the form of periodic software updates.

Another benefit of a virtual phone system for business is portability. If the business moves to a new location, bringing the phone system along is an easy, do-it-yourself task. Whether a sole proprietorship or an international firm, businesses can benefit by converting to an Internet phone system and profit from a great business virtual office.

While running two home based offices, Laurence Brette has found that when selecting an internet phone system, it is important to choose based on your needs. This will save you time and money.