The future of telecommunications is here. Is your business still stuck on traditional phone lines?
Twenty years ago, the idea that people and businesses could host regular video conferences or talk to someone on the other side of the world through the internet was still cutting-edge. Less than 5 percent of business calls were made with Voice-over-Internet Protocol (VoIP) in 2001.
By 2008, the trend had turned significantly. In that year, 80 percent of installations for new corporate lines were VoIP systems.
Why the growth?
Cost is the biggest factor
Overall, VoIP costs less than traditional landlines—and that means a better bottom line for businesses.
The average cost for VoIP for businesses ranges from $15-$50 per month, and some personal VoIP services, such as Skype, have subscription rates starting at around $3 per month.
In contrast, Traditional landline costs generally start at around $50 per month. Businesses with VoIP can save an average of $35 per month, and businesses that switch from landlines to VoIP can save around 30 percent on their phone bills.
The long-distance calls are lower, too. VoIP domestic calls range from two to four cents per minute or unlimited at a flat rate like us, but landlines cost five and a half to twelve cents per minute. VoIP customers can save three and a half to eight cents per minute.
Then there are the start-up costs. With VoIP, startup costs can be as low as $107 or as high as $1,000. Traditional landlines can cost anywhere between $100 and $40,000, and the average savings for VoIP customers is around $9,200.
The features add up, too
VoIP packages generally come with a ton of great features, often at no extra cost. Businesses can get unlimited calling, very low rates for distance calling, and the ability to set up local numbers in different areas so they can be listed in more than one local directory.
There’s also call waiting, call forwarding, caller ID, call blocking and the ability to set up toll-free numbers.
Depending on your Internet Service Provider and if you have the correct connections you could potentially make calls from just about anywhere in the world.
For businesses, this means streamlined services that increase efficiency without costing a whole lot more. It makes them more competitive, more reliable for their customers, and more productive.
What’s the downside?
There are a few things to keep in mind with regards to VoIP. Depending on where you’re located, the quality of calls might not be as good as you’d get with a landline. If you lose your internet service or the electricity goes out, the phone lines go down, too. There’s also a risk of phone calls being hacked, and a large number of phone calls going out at one time can slow down your internet speed.
What’s the future outlook for VoIP?
While there are a few cons to address, the outlook for VoIP services looks great, especially based on recent growth patterns. The comparatively low cost of using VoIP and the many feature options have been winning out for the past ten years now. Business VoIP subscriptions rose from 6.2 million in 2010 to 41.6 million in 2018.
As the corporate world becomes more mobile, the demand for VoIP is going to continue to rise. Infonetics Research projected that business cloud VoIP and unified communication seats will reach $70 million in 2020. Now even landline companies are looking to switch over to VoIP services, and the FCC is starting to shut down the analog system.
Conclusion: VoIP isn’t going anywhere but up
The increased mobility of the corporate world, the need to provide excellent customer service worldwide, and the ability to streamline business expenses have made VoIP essential to the business community. Businesses who switch over from landlines to VoIP services are doing the smart thing. As the #1 most trusted VoIP service provider San Diego, Transparent VoIP makes your business success our top priority by using tomorrow’s technology, today. Stay ahead with the most advanced telecommunication systems on the market. Learn how we can help your business save money on operation costs and click on the tab to the right to request a free demo.