Pros and Cons of VoIP For Small Business

VoIP is a hot topic in small businesses, and many companies have already switched to the best VoIP for small business leaving their traditional phone system behind. Like any other communication system, VoIP is not without disadvantages. If you are planning to make the switch, it is better you should get detailed information about the pros and cons of VoIP.

Advantages of VoIP

Low Cost

VoIP system is cost-effective in comparison to a traditional phone system. In a conventional phone system setup, you have to pay for the number of calls. If you are calling international numbers, your monthly phone bill can swell significantly increasing your operating costs.

On the other hand, VoIP uses your internet connection for communication. The ISP generally levies a fixed monthly charge, and the calls are free. The service provider collects a small fee for calls outside national boundaries

In a traditional telephone system, you have to pay for a telephone line and also invest in a PBX system on the premises. Costs related to subscribing for a physical telephone line and PBX system are higher.

On the other hand, the initial setup costs in terms of VoIP are also low. The initial costs include a one-time fee payment while signing up for the service and the monthly recurring charges as per the plan. There is no specialized hardware or software required for VoIP. All this translates into lower costs initially and also in the long run.


In VoIP, you can add telephone numbers quickly, and the bandwidth generally limits the maximum number of telephones you can add.. Once you reach maximum VoIP numbers, the call quality suffers.

Regardless of the geographical area, users can access their VoIP service provides even from remote areas. Users can carry their IP phones wherever they go and use them to make and receive calls.

With PBX, you have a limitation on the number of lines you can add. If you have reached maximum connections supported by PBX, you have to get a new PBX system that might be quite expensive.

Voice Quality

The voice quality in both communication types depends on the network. If your office is in an urban area or city with high bandwidth and high-capacity connection, the call quality would be similar to that on a PBX or traditional phone line.

If your internet connection is not stable or slow, the voice quality of the VoIP calls is significantly reduced. Also, if there are any traffic bottlenecks, the quality of the VoIP call is low. However, most of the issues related to voice and call quality are eliminated by the best VoIP for small businesses by using advanced equipment and tools.

Call Analytics

Call analytics is a useful feature that provides essential data about inbound and outbound calls. Some advanced VoIP systems have an in-built feature to capture important call metrics such as time, length, and duration of the call. 

Advanced analytics also provide information like hold time, per-minute cost of calls, how often the call is transferred, and length of time in queue. Businesses can use this information to know the most productive sessions, high and the peak time for calls and adjust their customer service staff accordingly.

Feature Rich

Many service providers offer feature-rich VoIP plans. Some of the features that you might get are call forwarding, conference calls, call-waiting, voice mail, and caller id at no extra charge.

Disadvantages of VoIP


The reliability of communication is an essential factor for small businesses. If the internet network fails, the VoIP communication system also fails.  The internet connection can go down even with the failure of the electric supply between nodes. Thus, there is a high probability of network failures that makes VoIP less reliable.

In a traditional phone system, the communication lines are fed with power, and they continue to function even when there is power failure in your area. Many companies use VoIP systems for daily communication but keep one telephone line active to be used during emergencies.

Thus you can see the advantages offered by VoIP are far more significant than its disadvantages. By choosing the best VoIP for small businesses, you take business communication to a different level without added costs.

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