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If you need a phone service but don’t want to deal with an antiquated copper home landline, you might want to consider a VoIP system. These services allow you to make calls over the internet from any device, including your smartphone or a desktop computer.

Best of all, they come at a lower overall monthly price than traditional landlines and typically offer advanced features like video conferencing, text messaging and more. As a result, it’s a popular option for small businesses, especially those with a strong sales force, who need to make and receive calls.

Here’s what you need to know about how VoIP works in Australia and what it can do for you.

What Is VoIP? And How Does It Work?

Voice over Internet Protocol, or VoIP, is an internet-based technology that uses a broadband connection instead of a regular landline or mobile connection to send and receive text messages and phone calls. This means that as long as you have an internet connection, you can use your VoIP number just like any other phone number. Be aware, however, that the strength of your internet speed will determine the quality of your VoIP calls: the faster your speed, the more employees that will be able to make and receive calls at the same time.

VoIP works by sending your voice audio as packets of data through the internet. In the past, it was common for VoIP numbers to be attached to a physical phone that connected to the internet with an  ethernet cable. These days, you can just as easily make calls and send messages with your VoIP number via an app on your smartphone. This way, you can access your personal and work number through one device. Chances are you have made a VoIP call for free without realising it: any time you have called someone over WhatsApp or Facebook Messenger, you have been on a VoIP call.

Some providers offer free VoIP numbers, while others—usually those catering to small businesses—charge a monthly fee. The price of a VoIP number will almost always beat the cost of traditional mobile phone service. If you need a separate number for your small business, a VoIP number is likely the most convenient way to get an additional line without any substantial upfront fees (or a new phone). VoIP systems also come with several features that can be particularly helpful for small businesses. There are a range of apps in Australia, such as Aircall or VoIPline , that have been designed to enable teams to make VoIP calls, and many of these apps integrate with the company’s customer relationship management software, such as  Salesforce, HubSpot or Zendesk. These apps are often referred to as  ‘Hosted PBX’, which essentially means the data is hosted in the cloud.

Pros and Cons of VoIP

Have you ever missed a phone call on a mobile because you had no signal? This can be particularly frustrating when you run a business, as each call can represent thousands of dollars from a potential client. With VoIP, calling and messaging data is hosted on the cloud, which means you’ll always have access to it whether you were online at the time of the call or not. VoIP services can take the form of a smartphone app for iOS and Android phones, as mentioned above, or as a computer app for your Mac or PC. And no dedicated hardware is required, either. In most cases, you can use your device’s built-in microphone for calling.

VoIP numbers also come with a lot of flexibility that isn’t available from a traditional mobile provider. If you’re going on holiday and want to disconnect from work calls, you can turn off notifications on your app and check them later, while with a regular mobile phone, you risk missing calls when you turn off your phone, travel overseas or spend time off the grid. Many providers also offer the ability to receive your voice messages via email and to forward calls to multiple devices, as well as team members across the globe.

Pros

Because they transmit calls through the internet, VoIP systems make it easy and free (in some cases) to make international calls. A VoIP number is particularly convenient if you regularly travel overseas. As long as you have an internet connection, you can make VoIP calls. They really come in to their own however when they are harnessed by small businesses who rely on customer calls and interaction. With VoIP companies can easily scale their work to

The fact that VoIP works over the internet also lets it do things that landlines simply cannot. For example, Aircall can log the details of each call and allows teams to annotate customer requests and feedback on its platform. Managers can easily see how many calls are missed, call duration and the daily call rates.  This alone can make VoIP worth the price of admission for many users.

Cons

The downside with VoIP is that you need a high-speed internet connection for the software to work well. Therefore, you might not want to use VoIP if you are in a rural area where stable high-speed internet simply isn’t available to you. For those customers, a landline or a mobile might be the best option.

Who Should Use VoIP?

There are many different reasons you might need a VoIP system. A VoIP number is an ideal solution if you need a flexible, affordable and powerful phone service.

VoIP can be useful for small-business owners who have multiple customer service representatives and want to use one phone number and switch between them. Many VoIP providers offer the ability to forward calls to different physical phones.

If you and your business partner want to alternate who’s available to take calls, you’ll be able to switch through your VoIP online account. This wouldn’t be possible with a traditional mobile number without exchanging the physical phone. VoIP phone numbers also allow you to set up extension lines at a minimal cost. So if your business has five team members, each can easily have a separate extension.

Frequently Asked Questions (FAQs)

How do I choose a VoIP service?

If you are using VoIP for your personal line, there are many app-based free options available. However, if you intend to use VoIP technology for work, you’ll want to make sure the company you choose has reliable customer service and is specifically intended for business use. Many VoIP services are free but not intended for business owners. While this might be easy to overlook, when your business is on the line, the last thing you need is to worry about is missing important client calls without a way to troubleshoot the problem. Furthermore, many business VoIP apps integrate with modern marketing software, such as Salesforce and Zendesk.

How much does VoIP cost in Australia?

You can set up and use a VoIP number for free. The main limitation, however, is that both people on the call need to be using the same app. Paid business systems, such as 8×8 and RingCentralAU, can run anywhere from around $24 per month all the way up to more than $200, depending on the plan and the level of sophistication you require for your company.

Will I need to buy another phone for my VoIP?

No, you can use an app on a smartphone to make and receive calls. Some VoIP companies may provide you with a landline phone as well, but in general, you’ll be able to connect your number to your existing mobile phone through an app.

Can you use VoIP with the NBN?

Yes. Australia’s NBN supports the use of VoIP technology and, in fact, certain plans include a VoIP feature.

Are VoIP numbers reliable?

Yes. In some ways, they can be more reliable than mobile networks. With mobiles, you often don’t receive notifications of missed calls when your phone is off or on airplane mode. But with a VoIP phone number, all your calls, voice messages and texts are hosted on the cloud, so you won’t have to worry about missing an important contact when your phone is off.

Is WhatsApp a VoIP service?

Yes. WhatsApp now allows users to make calls through the messaging app.

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