A VoIP phone system that's Voice over Internet Protocol, the same IP in the term 'IP address' are taking over the small business phone sector, and for good reason. Many people are still making use of a traditional business telephone system, but that's largely an issue of ignorance. People who know about the advantages of a voice IP phone system tend to use them. Of course, Traditional phones still work just fine, and they are quite reliable, but there are many advantages to VoIP systems that traditional business phone systems can't match.
Installing even a mini PBX (Private Branch Exchange, the 'traditional' business phone system) requires an extreme amount of physical setup. With lines running to each and every extension, all with connections to the main PBX switchboard, getting started the traditional way is an exercise in meticulous, painstaking detail and lots and lots of plugging jacks into ports. VoIP systems, rather than being centralized and thus requiring a complex tangle of cords, has a small unit that gets installed easily between each computer on your network and the network trunk; a much easier process to manage.
A phone call over a VoIP system very inexpensive compared to a phone call made on a traditional phone it's literally the few millionths of a penny worth of electricity it costs to carry your voice from here to there over the Internet. Local or long distance, it doesn't matter, because the Internet doesn't recognize distance as a factor the way that phone lines do when the data is transmitted.
A PBX system has one huge disadvantage over VoIP; it's limited to the building it's installed in. You cannot utilize a PBX's features from your home, but a VoIP system has the ability to easily follow you home or on a business trip or literally anywhere in the world all you need is a high speed internet provider and a computer to access it with.
VoIP systems suffer from the Federal Excise Tax... and that's all! Compared to the myriad of Federal, State, and Local taxes that are placed on normal phone use and PBX systems themselves, the low cost of VoIP phone calls combined with the neat sidestepping of so many taxes make VoIP phone services very attractive.
There are some disadvantages to VoIP systems. First, by choosing VoIP, you are limiting your phone use to those times that you have electricity. Because computers and thus Internet vanish without power, customers will not be able to reach you on your VoIP phone number during a blackout. Second, PBX systems generally come with an automated attendant that can answer and direct calls for you; VoIP systems lack this feature one of the things that adds that 'polish' to a big business phone system.
All things considered, for a small business, the advantages that a Voice over IP phone system offers far outweigh the downsides. It is a low cost and flexible telecom solution that has similar quality to a conventional landline phone. Call your TRI-STAR Telecommunications representative at (800) 211-6200 for more details about how VoIP systems can benefit you and your business!