The Pros and Cons of VoIP Service
September 28th, 2008Only a few decades ago businesses and consumers had only a handful of choices for telephone service, but recent changes in technology have changed all that. These days many business owners and home consumers are taking a look at a technology known as Voice Over IP, or VoIP for short, and this promising technology can be an excellent choice for both commercial and home use.
While there are many important advantages to using VoIP technology, perhaps the most important is the cost. Compared to the cost of traditional business phone service VoIP can be a real bargain. It is this cost difference that draws many business owners to VoIP service, but it is important for any would be adopter to compare plans carefully.
The amount of cost savings will vary according to a number of factors, including the up front cost of the equipment, the ongoing cost of service and the cost associated with outages, upgrades and repairs. It is important for business owners to consider their options carefully if they are to maximize their savings and minimize their costs.
One of the most important considerations is the scope of service being offered by the VoIP provider. While many VoIP services allow subscribers to call anyone who has a phone, be it a cell phone, VoIP phone or a traditional landline, others allow calls only between VoIP subscribers. This restriction is a significant one, especially in the world of business, and it is important to be certain that the VoIP system is capable of reliably connecting with any type of phone.
It is also important to be aware that most VoIP providers will charge a flat monthly fee for calls within the United States, versus the minute by minute service offered by most traditional telephone providers. In addition some VoIP providers will charge a small per minute charge for calls to foreign countries. Business owners who need to make frequent international calls may want to inquire about flat rate plans for international calling.
The type of VoIP equipment will also vary quite a bit, and it is important for the business owner to shop around carefully and choose the type of equipment that best suits their own needs. Some VoIP service uses a computer, along with some sort of microphone, to transmit voice calls. In addition many of these systems can also transmit video data, making them a good choice for businesses who want to do frequent conference calls and long-distance collaborations.
Of course not all VoIP systems require a computer, and there are a growing number of systems that are indistinguishable from traditional phones. Many VoIP service providers will provide their own phone equipment, or even an adapter than can be used with any type of phone. Business owners will need to compare the cost of the required equipment and weigh it against the cost savings to be achieved by choosing VoIP service.
Of course nothing, not even VoIP service, is without its disadvantages. This technology is still relatively new, and it is still undergoing some growing pains. Business owners will need to be aware of the potential pitfalls of VoIP service as well as the benefits.
One of the most significant drawbacks of VoIP is sound quality. The quality of sound on a VoIP system can vary quite a bit, and many users still find it inferior to traditional landline service. Many businesses have discovered that they need to upgrade their networks in order to provide adequate bandwidth for a new VoIP system, and additional upgrades may be needed down the road to accommodate a growing phone system. Business owners should consider the possibility that sound quality will suffer before committing to a switchover to VoIP service.
There is also the risk that an undercapitalized VoIP service provider could suddenly go out of business, taking their customers’ phone service with them. While in many cases a new company will take over for the failed provider, there is no guarantee that their equipment will be compatible. Business owners may suddenly find themselves faced with the choice of shelling out thousands of dollars for new equipment or going back to their traditional landline service.
Since there is no universal standard for VoIP service it can be more difficult to switch providers in the VoIP world. While every traditional landline service is compatible with virtually every phone in existence, the same is not true of VoIP service. Changing from one VoIP service to another may require significant investment in new equipment, and business owners will need to be aware of these potential costs.
The bottom line is that VoIP can be a great choice for many business owners, and many businesses are already taking advantage of the cost savings and flexibility this new technology can provide. As with any type of technology, however, it is important to be aware of both the benefits and the potential drawbacks of this new type of phone service.