Remember the days when making a phone call felt like a mission? You had to dial each digit, wait, and hope the call connected. Those bulky, costly phone systems were no walk in the park either. Traditional systems weren’t practical for anyone, from installation headaches to high call rates.
Since its introduction in 1995, VoIP has revolutionized communication. It is a tool that greatly eases daily tasks and is affordable for businesses of all types while being easy to deploy. Old phone nets just aren’t the same. With VoIP, no expensive gear is needed and long-distance call cost is not an issue. It uses the internet to rapidly connect people, whether they are scattered across the office or around the globe.
VoIP technology can be the most affordable way for small businesses to compete with the big guys. For larger companies, it simplifies managing communication across multiple locations. The facts speak for themselves: VoIP is growing fast. The global market is expanding at a steady 10.2% each year and could reach $140.74 billion by 2027.
What’s next for VoIP? In this article, we’ll share the important trends that are shaping this year for the industry and why.
What is VoIP?
VoIP stands for Voice over Internet Protocol. It means making phone calls over the Internet, not through regular phone lines. First, your voice is changed into very small digital packets, which then go over the Internet. The packets move fast, so there is no delay between what you say and what the other person hears.
So long as you have decent Internet, like fiber, DSL, or cable, VoIP allows calls. Businesses love it because it’s cheaper and simpler to install than regular phone lines. It has many extra features over the normal telephone, including call forwarding and voicemail-to-email.
Best VoIP Features
Have you wondered what makes cloud-based business phone systems so great? Here’s a quick rundown of the coolest VoIP features your business will like:
i. Auto Attendant
You can create a menu for callers to select from when using an auto attendant. Do you want them to hit 1 for sales or 2 for assistance? Done. You can change these settings at any moment using a web browser, negating the necessity for in-person visits.
ii. Desktop & Mobile Apps
VoIP apps give you access to your phone system from anywhere. Stay connected with your laptop or phone while working from home or on the road. This will come in handy for sales teams, technicians, and anyone else always on the go.
iii. HD Call Quality
VoIP makes things simple, and the call quality is excellent. It provides clear, high-quality voice as long as your network is stable. Thus, one can project himself professionally.
iv. Unified Communications (UCaaS)
This ranges from calls, video meetings, and chats to everything in between, all on one platform. With UCaaS, you have everything in one place and would never have to switch between different tools. This will simplify working collaboratively with others and staying flexible.
v. Call Encryption & VoIP Security
VoIP encrypts your conversations in order to protect the calls you make. Anyone sniffing through call logs will find only general details, such as the time and length of the calls, not the contents. Therefore, you do not need to agonize over someone listening to your calls.
vi. Call Recording
Want to track call quality or keep a record for compliance? VoIP lets you record calls and store them in a cloud portal. You can even upgrade to advanced features like sentiment analysis to spot unhappy customers or identify opportunities to upsell.
VoIP Trends
VoIP technology is always changing, and here’s a look at some main trends:
i. AI and VoIP
2024 was a big year for AI, and its influence is spreading even further into the VoIP world. We’re seeing AI features like sentiment analysis that can track the tone of a caller throughout a conversation. This helps agents identify when a call might be heading in a bad direction and act quickly to fix things. AI can now take over the tedious task of summarizing conference calls and providing a written recap for employees instead of requiring them to sift through hours of recordings. As AI keeps developing, it’s likely that more VoIP platforms will integrate these smart capabilities, offering businesses even more ways to automate tasks and improve service.
ii. Hybrid Work Models
Even as some companies encourage a return to the office, hybrid and remote work are showing no signs of disappearing. Infact, hosted VoIP systems are becoming a need for maintaining communication across dispersed teams. Softphones, are a great option instead of traditional desk phones and can be used by employees on their laptops or mobile devices. They let people work from virtually anywhere without losing any functionality.
Even when some employees work from home and others are in the office, video conferencing is still important for maintaining team connections. VoIP technologies facilitate this by linking callers and remote workers. Because of features like interactive voice response (IVR) systems and virtual receptionists, calls can be easily routed to any location, including a satellite office, a person’s home office, or even while they are traveling.
iii. Mobility and Mobile VoIP Apps
The flexibility of work environments is becoming a given, and mobility has taken center stage. Softphones are a big part of this change, letting employees use their laptops, phones, or even web browsers to make calls, check voicemails, and join video meetings without needing office equipment. VoIP apps are becoming all-in-one tools for businesses, allowing workers to see team availability, adjust call settings, and join meetings anytime. This flexibility means employees aren’t stuck at their desks anymore.
iv. WebRTC and VoIP
WebRTC, short for Web Real-Time Communication, has been around for more than ten years and is still a major innovation for VoIP. It’s an open-source tool that allows people to share voice, video, and data directly through web browsers without needing any downloads or plugins. This makes VoIP systems easier and more user-friendly. For example, OnSIP has used WebRTC from the beginning, offering a softphone that works right in the browser with no extra software. By 2025, we’ll likely see more VoIP apps using WebRTC to push communication even further.
v. Security
VoIP security matters a lot, and for good reason. As cyber threats keep growing, it’s important to protect sensitive information. VoIP providers keep improving security with things like encryption, extra login steps, and firewalls. Companies also train their employees to spot phishing scams, check for weaknesses, and use antivirus software to catch threats early. As hackers get better, VoIP providers are staying ahead with stronger protection and smarter security.
vi. Sustainability
Arjun Narayan, Founder of SalesDuo said, the concern for sustainability now reigns in cloud computing also. Amidst the current broader effort to reduce carbon footprint, big cloud providers like Amazon, Microsoft, and Google are putting their best foot forward to be entirely dependent on renewable sources of energy and reach a state of net-zero emissions in the coming years. VoIP falls into this category since it eliminates the need for physical hardware and the energy required for its upkeep and power. Businesses can save waste and energy usage by using cloud-based VoIP services instead of as many physical phones and wires.
Disadvantages of VoIP
While VoIP has most of the advantages, it also has some downsides on its own. Some of them are as follows:
i. Dependence on a Stable Internet Connection
VoIP calls depend on your internet connection. So if your internet keeps dropping, expect calls to get fuzzy or even cut off. The connection needs to be solid for good communication.
To avoid issues, aim for at least 100 kbps of upload speed per device. If your internet’s slow, you might experience things like dropped calls or laggy conversations.
VoIP is pretty good, so you won’t need to spend on fancy internet plans. A regular, reliable plan works for most people, especially if you’re working from home.
Consider these types of internet for VoIP:
- Fiber
- Cable
- DSL
- LTE or 5G cellular
For businesses using VoIP, the amount of bandwidth you’ll require will depend on the number of simultaneous users. It is always better to test your network first to determine that it is capable of carrying the traffic before committing.
ii. Latency and Jitter Issues
Latency and jitter can also affect your VoIP connection quality along with the internet speed. Latency is a term that describes the time it takes to send and receive information.
Higher latency means it takes longer for whatever you say to reach the other person, so it creates a lag. Jitter is when that delay jumps around unpredictably. High jitter means your connection will feel jumpy and unreliable.
In a good connection, data travels in “packets,” reaching their destination in order and on time. But when there’s latency or jitter, these packets might get delayed or mixed up, creating disruptions.
These issues can stem from a bunch of things, like a busy connection, old gear, or bad cables. To fix it, you can:
- Upgrade to a higher bandwidth plan
- Get a better router that prioritizes VoIP traffic
- Swap out old cables for faster, more reliable ones like Cat-5e or Cat-6
- Enable jitter buffering on your VoIP device to smooth out small inconsistencies
iii. Emergency Calls and Location Tracking
VoIP isn’t as good as traditional phone lines in terms of tracing your whereabouts in an emergency. VoIP uses IP addresses, which are less accurate than cell towers, to determine your location.
While this isn’t a major problem for routine calls, it’s important to keep your E-911 information current with your precise address in case of an emergency. This will help emergency personnel locate you more rapidly.
iv. Compatibility Issues with Older Equipment
James Owen, Cofounder of Click Intelligence said, some old tech, like certain alarm systems or fax machines, doesn’t work well with VoIP. Traditional landlines use analog signals, while VoIP works on digital data. This mismatch can cause problems when trying to connect older equipment.
There are two ways to fix this:
- Upgrade your gear: Many businesses opt to update old systems to newer tech that works well with VoIP, like cellular devices.
- Use an ATA (Analog Telephone Adapter): An ATA can help convert analog signals so older devices can work with VoIP systems.
v. VoIP Security Concerns
Just like any online service, VoIP is vulnerable to security threats in the form of hacking or phishing. A hacker who succeeds in gaining access could listen in on your calls, steal sensitive information, or disrupt service.
To protect your company:
- Choose a reliable VoIP provider: Pick a provider with strong security features like encryption and two-factor authentication
- Train your team: Make everyone use strong passwords and they should know how to spot phishing attempts
- Keep everything updated: Make sure your devices and VoIP software have the latest security updates
VoIP has changed how businesses communicate. It offers great benefits, and with new trends, it’s becoming a must-have for companies everywhere. However, it’s still important to keep in mind potential issues, like internet reliability and how well it works with older systems.
Read More : Top 9 Benefits of VoIP Technology Adoption for Efficiency
