Using Your Internet Connection to Save on Telephone Expenses with VoIP: A Cost-Effective Solution for Home or Business
Business owners are always looking for ways to save money. Every dollar saved the dollar in the pocket of the owner or funds that can be reinvested into the business. However, the biggest cost-saving opportunity for your business is being overlooked. In this article, we will be talking about how you can save money on the cost associated with your telephone system.
Why Pay More
Today, every small business uses a telephone system to conduct their business. These telephone systems are typically offered by your local telephone company or cable television service provider. These companies will typically bundle Internet and telephone services together in a package for one low price. However what you may not know, is that your telephone service is being provided through your Internet connection. Thus, in effect you are paying twice for your telephone service. In addition, some telecommunication companies will charge you a monthly fee for equipment on your business premises or in your home. The main benefit of using VoIP is a significant reduction in your business telecommunications charges by communicating over your existing Internet connection and eliminating traditional telephone, fax, and answering machines related operating expenses.
Cost Saving Opportunities
There multiple ways a typical customer can save money using VoIP:
1) First, business owners should consider switching their service to a voice over IP provider. These companies will provide business customers with a free interface adapter that will plug directly into your router and your analog telephone(s) or you can purchase IP telephones that plug directly into your local router. Within minutes your business will be realizing cost savings up to 70% of your existing telephone expenditures. Voice over IP service providers have many plans (click here) to fit the needs of any type of business from pay-as-you-go to flat rate monthly or annual pricing for the small office or large call center. Perhaps the greatest benefit of using a voice over IP service provider is the ease of installation (See video below).
2) Second, you can order direct inward dial (DID) numbers from anywhere in the country so that long distance calls are local. For example, if you have a relative in California and you live in New York, you can configure a California number to ring your number directly in New York. This in effect gives your relative a "local" number to call you without the cost of ordering service from the telephone company. You will also be able to receive faxes which can be converterd into pdf files and emailed to the recipient eliminating another dedicated telephione line for your fax machine. In some cases, you may be able to transfer your existing telephone numbers to your VoIP service provider.
Top Ways for Small Business to Reduce Costs
- VoIP Services - Compare Plans
- Cloud Computing
- Using Refurbished Computer Equipment
- VoIP Telephone Systems
3) Third, some companies recycle one of their old computers to operate as a Internet PBX (telephone system) that can provide advanced features such as music on hold, teleconferencing, intercom paging, rule based call forwarding, call blocking, call center capabilities, and more all for a one-time expense under $500. No more paying the telephone company $30 - $40 per month just to have a dedicated telephone line. Another benefit of VoIP is the ability to receive up to 25 calls on a single VoIP channel. For businesses with multiple offices, you can link your VoIP telephone systems together and all your long distance calls between offices (both domestically and internationally) will be free.
Low Cost Global Calls
4) Fourth, because all telephone call are transmitted over the Internet, international calls to all countries are less expensive. So if your company makes frequent calls overseas, this is an excellent way to realize additional savings.
5) Fifth, VoIP also allows companies to reduce telecommunication maintenance and upgrade expenses.
Telecom Expense Categories
Telephone Company Price
VoIP Provider Price
$15 - $40 per month
Based on plan, but significantly higher than VoIP
As low as $0.015 per minute
Features (Call waiting, private number, Caller ID, etc)
Yes, depending on plan
Yes, prices are higher to unbundle
Optional; Lower Prices without bundling
Typical Business Monthly Expense
$50 - $200 per month
$40 - $60 unlimited calling
Installation is Easy
The setup of a VoIP telephone line is quick and simple. See the video below for basic instructions after you receive the equipment from your VoIP service provider. Most VoIP providers pre-configure and rest your hardware so the user only has to connect the VoIP adapter to a telephone and their Internet connection to begin making calls.
VoIP telephone service is an excellent choice for small businesses on a budget or for residential owners seeking ways to lower their monthly telephone bill. VoIP is easy to set up and there are no long term commitments. What most consumers and business customers may not realize is that their calls are using VoIP, especially if you are on a bundled plan offered by the telephone company. Best of all, since you already have an Internet connection, you can make/receive multiple telephone calls simultaneously without additional equipment and international calls are significantly less expensive.
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