How VoIP could save you money

 In Connectivity

What if I told you that you could save hundreds of dollars a year by changing one small thing about the way you do business?

VoIP (voice over internet protocol) allows you to make voice calls using an internet connection instead of a regular phone line. I’ve used VoIP in my business for many years; and I’ve saved many thousands of dollars as a result.

Most of us know that you can use the internet to make phone calls and that this most likely will save you money but internet based telephony has a bad rap both for call quality and reliability.

In this article I want to dispel some of the myths about VoIP, help you decide whether VoIP is something you should consider, and explain what’s required to make this technological leap.

VoIP is a reliable alternative to a landline phone

You may have doubts about using VoIP as replacement for a regular phone line because you’re worried about the quality and reliability of the service. I’m pleased to tell you from personal experience that these are never issues for us.


It is true that that VoIP phone call quality is not the same as normal phone calls however, for the most part, it’s difficult to tell the difference. My team spend many hours on the phone each month and call quality is never an issue.


Due to the nature of the technology, VoIP is never going to be as reliable as a standard phone line. However, I am happy to excuse the very occasional dropout ­ less than one a month ­ for the cost savings I make in my business. I would say that our VoIP service is more reliable than my mobile phone.

VoIP will save you money

VoIP is really a powerful money saver if you make a lot of local, national or international calls; less so if you make a lot of mobile calls.

Many providers will give you a bundle which includes unlimited local and national calls, but you’ll pay extra for the mobile calls.

Here’s an example of the kinds of savings you could make each month:

Landline VoIP
Phone line rental ($40 per line)

  • Originally 8 lines. VoIP solution requires only 2 lines – one for primary internet and one for second internet and fax connection.
$320 $80
Internet connection ($70 per connection)

  • Originally a single internet connection. Second connection added for VoIP.
$70 $140
VoIP provider fees $70
Phone calls

  • Local and national calls included in VoIP plan.
$400 $100

Here’s what you’ll need to start saving

1. A phone system that supports VoIP.

If your current phone system doesn’t support VoIP, and spending some big dollars to replace your system doesn’t excite you, then there are options.

You can go with a cloud PBX which has your phone system being hosted in the cloud. This saves you from needing to have an expensive phone system onsite – although you might need new handsets. Some providers will provide handsets for a monthly fee, further saving you on upfront costs.

2. A good internet connection ­ and by good I mean fast!

For most people this will mean running a second internet connection dedicated to your VoIP calls. This will help to ensure your phone calls are clear and reliable.

If you have fibre internet, or a similarly fast connection, then you might be able to get away with maintaining just the one.

As a rule, if you are sharing your internet with your phones, you need a connection that is at least 20/20 Mbps. This means that the minimum download speed (from the internet) is 20 Megabits per second, and the minimum upload speed (to the internet) is also 20 Megabits per second. For comparison, a standard ADSL2+ connection is around 12/1 Mbps.

3. A good VoIP provider

Not all VoIP providers are created equal. The cheaper ones are best avoided unless you want trouble with your phone calls.

Why not make the switch?

It makes sense for your business to minimise expenses wherever possible; and cutting phone bills by switching to VoIP is a simple way to see a big return. That’s why Proactive IT Solutions uses VoIP, and that’s why we recommend it to our clients.

We can assess your needs and talk you through the options to customise a quality, cost effective VoIP solution. Why not make the switch and start saving?

Recommended Posts
Video thumbnail: Travelling with technologygoogle chrome