Traditional business telephone systems are slowly being replaced by modern VoIP (voice over internet protocol) systems.
These telephone systems route calls across the internet rather than using standard telephone lines. They’re flexible and can be much cheaper.
VoIP can be an excellent option, but there are some pitfalls to avoid. Dave Millett from telecoms brokers Equinox say these are the ten key questions to ask any potential supplier.
Being part of the Telecoms Ombudsman scheme demonstrates that the supplier is willing to accept independent, binding arbitration in the event anything goes wrong
Many providers will be part of the Internet Telephony Services Providers’ Association (ITSPA). This trade body aims to promote competition and self-regulation, and therefore does not offer the same protection.
Ideally, you want to use a VoIP system that’s built on large, carrier-grade platforms. These scale easily, providing confidence that the supplier can cope as demand for its services increases.
Any conversation about your VoIP provider’s platform could get technical quickly, so don’t be afraid to ask them to explain things in simple terms.
Look for a provider that your hosts its system from several locations, so you know there’s a backup in case one suffers problems.
Calls that are routed across the public internet can be more vulnerable to delays and quality problems caused by network congestion. It’s better if your provider has its own dedicated network for calls.
Also check how regularly they measure the quality of their connections (in technical terms, this is how often they check the ‘latency’ and ‘packet loss’ of calls).
If they’re monitoring these items constantly, they’ll be able to identify and fix problems faster.
Check whether the VoIP provider can issue phone numbers itself, or whether it sources them from another operator.
If the numbers are sourced from elsewhere, taking numbers to another provider in future could be more complicated.
It’s easy to look up the issuer of a phone number online.
Many VoIP providers simply sell on a service that is run by another company. It’s hard to tell when this is the case, except by asking outright.
In general, it’s best to have direct contact with the company that actually runs the service. It can take longer to resolve problems if you buy through a reseller, because you always have to deal with a middleman.
These days, most VoIP services can be hooked up to desk phones, so your employees can dial out and receive calls as normal. They don’t need to know that calls are being routed over the internet.
Most suppliers will provide phones from reputable manufacturers like Cisco, Polycom and Mitel. Watch for companies that supply phones that are poor quality or soon to be superseded. These can be harder to replace if they break.
As a guide, it should cost less than 1p a minute to call UK landlines. UK mobiles should come in below 6p per minute.
For most businesses, it’s best to find a provider offering no minimum charges, no call set up fees, and with per-second billing.
If a provider’s rates seem very low, check who carries the call traffic. Some super-cheap services use lower-quality call carriers. And that can result in lower-quality calls.
There’s not much point in signing for more than 12 months unless there is a significant financial advantage.
The VoIP market is still moving fairly quickly, so if you lock in for longer you could miss out if services that are more affordable or with better features become available.
VoIP is meant to be flexible, and that should extend to the number of people using it. If your business grows, it’s important you can add extra people to the system.
And if things go the other way — or you operate a seasonal business — you won’t want to be paying for capacity you’re not using.
Most VoIP systems will offer an online control panel (they might call it a ‘portal’). You can sign in to this to set up the system the way you want it.
Ask the provider to give you a proper demonstration of this control panel before you sign up. If it’s easy to use, this can be a good indication that you’re dealing with a supplier willing to invest in its customer experience.
On the other hand, if it’s hard to achieve even simple tasks, think twice before committing.
Overall, VoIP is an attractive prospect for many businesses. But as with any major investment, it pays to ask the right questions.
Finally, always remember that the cheapest package may not be best for your business in the long term.
Copyright © 2014 Dave Millet, Equinox
As the popularity of voice over internet protocol (VoIP) telephone systems grows, more businesses are considering switching from their traditional telephone setups.
But if you’re considering taking the plunge and evaluating VoIP suppliers, how can you make sure you get a reliable, high-quality service?
Never heard of VoIP? Learn the basics of VoIP.
If you don’t have a decent internet connection, there’s no point in even considering VoIP.
To enjoy decent call quality, you really need a dedicated internet connection for your VoIP system. The number of people who can make calls at once depends on the speed of your connection, so some companies need more than one connection.
Determine out how many people are likely to be making calls at the same time and then check your broadband connection has enough capacity.
Some VoIP services — like Skype — work on slower connections by significantly compressing the data they send and receive. However, this can sometimes reduce the quality of calls dramatically.
Worried about call quality if you switch to VoIP? A large volume of regular phone calls already get routed over the internet, so there’s an excellent chance you have already experienced VoIP call quality without noticing the difference.
When you’re choosing a VoIP phone (or another device) to use with your connection, choosing the cheapest equipment is a false economy.
As with anything, you get what you pay for. If you spend a lot of time on the phone then it’s wise to spend a little extra for hardware that will perform consistently and stand the test of time.
One of the most attractive features of VoIP is that you can replace a traditional physical switchboard (often called a PBX) with a virtual switchboard. A virtual switchboard is basically software running on a server in the cloud.
This saves you a small fortune in purchasing, maintaining, repairing and ultimately replacing a physical unit.
When choosing a VoIP provider, make sure they offer a fully featured, reliable virtual switchboard. Many providers offer basic services, but not all have the advanced options your business may need as it grows.
It is also a good idea to look for a supplier that is an Ofcom registered SS7 carrier, rather than a reseller or VoIP only provider, as this ensures a direct connection to the UK network.
It pays to shop around when you’re choosing a VoIP supplier. When you do, be sure to compare the call rates you’re signing up to. Virtually all VoIP services will be cheaper than a traditional telephone system, but some are better value than others.
Watch for headline rates that seem too good to be true. Often there are hidden costs that will mount up. Some providers offer all-inclusive fixed priced deals. These can be worth investigating as they mean your costs are predictable.
With so many businesses already using it, it’s hard to argue that VoIP isn’t the future of telephony. If you’ve not yet taken the plunge, now is an excellent time to make the change from a traditional system.
Matthew Guise works for hosted telephony firm Callagenix.
Image: Flickr user opopododo.
Have you noticed how frequently the term 'disruptive' is used to refer to technology? I often think it's off-putting for many businesses. After all, the last thing that any of us want is more disruption.
Cloud telephony services are often described as being disruptive. But in reality, cloud telephony can be much less disruptive to businesses than other types of telephone system.
However, cloud telephony certainly is disruptive to traditional telecoms service providers and carriers, because it offers features that they cannot provide.
Let's take a closer look at how cloud telephony compares with traditional on-site telephone systems.
Cloud telephony can offer significant cost savings over traditional digital lines or even VoIP telephone systems. As with other cloud services, you eliminate many of the infrastructure and maintenance costs of an on-site system.
You can either introduce cloud telephony alongside your existing telephone system or as a complete replacement. Either way, you will almost certainly save on line rental and call costs. Expect to pay as little as 0.75p per minute for calls to landlines, or 2p per minute to call mobiles.
In addition, you should get the flexibility of a per-user, per-month pricing plan, without a lengthy contract. The cost can start from around £10 per person per month.
Cloud telephony is inherently scalable, making it ideal for growing businesses. This means you never have to pay for more services than you need at any given time.
Because cloud telephony is delivered over the web, it's easier to bring branch offices and remote workers onto a single phone system. You can scale up and down easily and economically without the headaches of changing or merging lines.
Furthermore, employee mobile phones can be integrated with your cloud telephony system, enabling business calls to be logged and even recorded in the cloud.
Employees can be given a business phone number which routes to and from their mobile, meaning they don't have to use their personal number for business. It's a great way to allow staff to bring their own device, without revealing their personal numbers or running up unnecessary call charges.
Overall, you'll get more control over mobile call costs (which can be a significant proportion of your total telecomms bill) and be able to manage employee mobiles more effectively.
Cloud telephony can give your business access to sophisticated features that were once the preserve of large companies.
You may be able to integrate your email, CRM or other business systems with a cloud telephony system. This will allow you to click-to-dial, or display information about a caller on screen before your telephone agent answers the phone.
In contrast, it's usually much harder to integrate traditional phone systems into your other business systems.
A cloud telephony system also provides flexible call recording. You can choose to record every call, or just those that fit criteria you set.
Call recordings are stored in the cloud, meaning you can access and play them from any internet-connected computer. Recordings can also be linked to customer records in your software.
Combined with comprehensive reporting, you'll get a complete, detailed insight into your company's sales processes, from initial enquiry to closing the deal.
So, with its inherent flexibility, lower costs, and business-enhancing features, cloud telephony can be compelling for almost every company. Since when has this kind of good business sense been disruptive?
This piece was written by Mark Seemann, CEO of SYNETY, a cloud telephony firm.
It can be a challenge for freelancers working from home to keep their business and personal lives separate.
The humble telephone number is a great example of this. Many freelancers end up using the same landline for personal and business calls. This can lead to all kinds of awkward situations, like your kids answering when your most important client calls.
But landlines are expensive, costing as much as £15 a month from BT. Getting a second one installed hardly seems worthwhile, especially if you mostly use your mobile for outgoing calls.
Well, here's a cheaper, more flexible alternative. Skype - the internet telephony and instant messaging service that's now owned by Microsoft - can give you a landline number for a fraction of that cost.
It works really well - I've been using it to take business calls for the last few months.
You need to have a Skype account to buy a number (it's free to sign up). Once you have a number, the Skype app on your computer will 'ring' when someone calls it. You can answer and speak to the caller using a headset connected to your computer.
If you'd prefer to have a separate phone on your desk, you can buy a Skype phone instead.
Price aside, there are other advantages to this approach too:
If you have a Skype account, it's easy to add a number to your package. Just go to the Skype website and sign in. Then:
That's it. Now when you're signed in to Skype, people will be able to call you on your landline number. And they'll never know that you're not using a normal telephone.
(Image: Flickr user dno1967b.)