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What is VoIP and How Can it Work for Small Business?

Do you need enterprise-level business phone capabilities on a small budget?  Taking advantage of VoIP systems for small businesses helps you level up your services.

What is voice over internet protocol?

Voice over Internet Protocol (VoIP) technology routes calls over the internet instead of using a traditional phone line. A VoIP telephone converts voice information into Internet Protocol packets. This digital data is sent via your business local-area network (LAN) to your internet service provider (ISP) connection. With cloud-based phone services, you don’t need specialized hardware or wiring. Voice over Internet Protocol gives you the freedom to set up and scale your business from any location.

VoIP headset and phone screen

What is hosted VoIP?

Many VoIP systems allow you to bring your own device (BYOD). Companies may also provide you with IP-enabled phones, called softphones or VoIP handsets, and analog phone adapters (ATAs) to plug your older equipment into the network.


This simple setup is called hosted VoIP. It’s an excellent option for small businesses, because you don’t have to maintain, repair, or update an on-premise system while retaining the flexibility and scalability to meet your needs as you grow.


Learn about Cox Business Hosted VoIP Solutions

The benefits of VoIP for small companies

Small businesses gain a competitive edge using VoIP systems. Previously, only large corporations had access to such customer-friendly features. With Voice over IP technology, even small business owners present themselves as global competitors. The advantages of VoIP include:


  • VoIP Phone Systems Include Many Features
  • VoIP Setup Offers Flexibility for Growth
  • VoIP Systems for Small Business Are Budget-Friendly
  • An Advantage of VoIP Is Access to Data
  • IP Systems for Business Improve Customer Experience
  • VoIP Phone Systems Include Many Features

Key VoIP features

With Voice over IP services, you won’t give up standard offerings like call waiting or call routing. You’ll also gain access to a variety of new features designed to help small business owners do more with less. For example, some plans provide options for:


  • Voicemail-to-email
  • Receiving and responding to text messages
  • Conference calls and video calls
  • Call monitoring and recording

Increased portability from VoIP

Changing locations or opening a new store used to be a hassle. With VoIP, your voice service goes anyplace you go.


If you add remote workers or send your team on the road, then your Voice over IP lets you access customer data from anywhere and on any device. With flexible communications, it’s easy to keep up with changes. Plus, you can update services without expensive infrastructure upgrades.

VoIP systems continue to improve

Early implementations of VoIP systems were plagued with connectivity and call quality problems, mainly because bandwidth was limited. The main disadvantages of VoIP included dropped calls and more downtime.


As internet infrastructure improves, so does Voice over IP quality. Whereas traditional phones rely on aging copper wires and struggle to keep up with advancements, VoIP tech adapts to changing environments. As small business owners get used to cloud applications, it makes even more sense to manage communications using their internet connection.

Internet modem with lights

Is VoIP less expensive than a normal business line?

Whether you start small using your current devices or equip an entire contact center, VoIP is priced for small business use. Voice over IP services cost significantly less than standard landlines and come with more features. Startup and installation costs are very low, local and national calls are less expensive, and global calling packages can also help you save big.

VoIP allows small businesses to make data-driven decisions

Information drives the best-made decisions. Standard phone lines can’t offer the same capabilities of VoIP on a small business budget.


Voice over Internet Protocol services delivers unified communications. Your team can access customer and call data from any device and from anywhere in the world. With data at your fingertips, you can act on problems immediately. For instance, call information helps you increase staffing during high-volume hours and encourages cross-team collaboration to recognize a troubling situation. VoIP makes it easier to prioritize leads for your sales teams and reduces wait times on customer service lines.



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What can VoIP do for your business?

Learn about our cloud-based business VoIP phone system, IP Centrex. Get reliable, business-grade voice service to help you manage your business's call volume effectively and efficiently.

Learn all about the small business phone features that are included with any Cox Business VoIP plan.

Female small business owner using laptop and speaking by phone in flower shop

How to choose a business phone provider

What should you ask before a signing a contract? Learn how to choose a business phone provider.

Got Questions?

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  • Provide a comprehensive plan on how we can help your business.
  • Share our contact information, giving you time to research other options.