What Is a VoIP Number?

What is a VoIP number?

A VoIP number is a virtual phone number that operates via an internet connection. With a VoIP number, users can select an area code or even access multiple phone numbers with different area codes. These virtual numbers make it easy to conduct business from numerous locations and environments and bring a host of benefits, including convenience, cost savings and flexibility. 

VoIP numbers look like standard phone numbers and can be dialed from ordinary phones. However, calls to and from these numbers rely on the internet, thereby freeing users from the constraints of typical phone connections. Many business phone system providers can issue VoIP numbers that serve as business phone numbers. You can also port a traditional phone number to a VoIP service. 

How does VoIP work?

VoIP technology uses the internet to make calls and isn’t attached to a specific device. VoIP technology converts analog signals from the phone into digital form so the internet can process them. By contrast, traditional landline phone numbers are attached to specific phone lines, and calls are made using circuit transmissions over the public switched telephone network (PSTN).

Although it’s become more popular recently, VoIP has been around in some form since 1995. Since then, there have been massive increases in quality and speed, along with lower costs and additional features.

Types of VoIP systems

While all VoIP systems use the same essential mechanisms, there are several types.

• Basic VoIP systems: The most basic VoIP phone system is simple software run through an internet provider. This system provides a virtual phone number that you can access anywhere, through any device. These systems are similar to software like Skype. Due to their simplicity and low setup costs, they are ideal for individuals or small organizations. 
• On-premises VoIP systems: These systems convert the technology used in traditional landlines to a VoIP version. They are the most complex and challenging to maintain, as companies must control and monitor everything themselves. Larger companies may utilize these systems.
• Cloud-based VoIP systems: A cloud-based VoIP system is hosted by a third party that leases the solution, sets it up and maintains it when necessary. Businesses that use cloud-based VoIP systems have less overall control but enjoy more convenience. Cloud-based VoIP systems are the most popular option for businesses. 

VoIP numbers vs. traditional phone numbers

Traditional business phone numbers are tied to landlines. They’re supported by an analog phone system hosted by a local phone company and function via copper wiring infrastructure through a PSTN. Businesses with landline service — including multiple extensions and features such as call transferring — must have private branch exchange (PBX) hardware. This setup is costly and complex, but it comes with valuable business features, like call forwarding.

In contrast, VoIP phone numbers are tied to VoIP phone systems that run via the internet. You don’t need PBX hardware and thus avoid the costs and complexities of those setups. Today’s VoIP systems come with numerous features and provide functionality rivaling or exceeding that of PBX systems. 

Pros and cons of VoIP vs. traditional phone numbers

If you’re debating VoIP vs. landline for your business, it’s important to weigh the upsides and downsides of both systems. 

Pros and cons of VoIP 

VoIP has considerable advantages over traditional phone systems, but its disadvantages may dissuade you. 

Pros:

• VoIP systems have sophisticated features. Today’s VoIP systems provide sophisticated features at an excellent price, including call routing and forwarding, extension dialing and three-way calling. Robust features make it easier for smaller businesses to appear professional and established, even if they can’t afford an on-premises phone-switching system.
• VoIP systems are flexible. VoIP systems don’t limit you to specific locations or devices when you need to make calls. You can even choose an area code outside your physical location. This is an excellent perk if you want your business to be associated with a specific location or multiple locations. It can also help callers avoid long-distance charges.
• VoIP systems support high-quality calls. As long as you have enough bandwidth for a call, VoIP systems are clear and crisp. 

Cons:

• VoIP systems have bandwidth requirements. VoIP requires a reliable and robust internet connection. If you have shaky bandwidth, you’ll likely have issues with call quality and connections.
• Some VoIP systems are expensive. Some VoIP systems use PBX switching hardware to gain control and security. However, these systems can be expensive and require significant maintenance, putting them out of reach for many organizations.

Pros and cons of traditional phone lines

Traditional landline systems also have upsides and downsides. 

Pros:

• Traditional phone lines are familiar. Traditional phone lines and numbers have been around so long that everyone in your company will likely feel confident using them. There’s generally no need to read a manual before you use a traditional phone line.
• Traditional phone lines don’t require an internet connection. Traditional phone lines are reliable in rural locations or anywhere the internet connection is slow or intermittent.

Cons:

• Traditional phone lines have limited long-term support. Many phone providers are phasing out traditional phone lines. You might run into trouble repairing or replacing them in the future.
• Traditional phone lines are expensive to maintain. Traditional phone lines and switching hardware can be complicated and expensive to maintain. These systems often need physical lines to phones within your office and may require in-house IT support.

How to get a VoIP number

How you obtain a VoIP number will differ depending on whether you choose an on-premises or cloud-hosted VoIP system. We’ll focus on cloud-hosted VoIP systems, which are the most popular and straightforward option. Follow these steps to get a VoIP number:

1. Choose a business phone system provider. Evaluate vendors that offer robust VoIP services with all of the features you need. The best business phone systems for VoIP provide essential calling features, as well as software integrations, analytics capabilities, interactive voice response (IVR) systems, auto-attendants and more. (We’ll highlight some of the best providers below.)
2. Work with your provider to obtain a VoIP phone number. After choosing a provider, you’ll select an area or country code for your VoIP phone number. You may even be able to use an existing business phone number as your VoIP number. This process should be quick, possibly just a few hours. However, it could take longer if you need a country code associated with a highly regulated nation.
3. Set up your VoIP number and system. Your provider will guide you through the onboarding and setup. The process is often as simple as creating an online account and selecting the features you need. You must also decide how many phones, computers, tablets and other devices you want to use with your VoIP system and connect them.
4. Test your VoIP number and system. Perform a quick test to verify that everything is working properly. If anything goes wrong along the way, your provider should be able to help.

Best business phone systems for VoIP numbers

Many of the best business phone systems can provide VoIP services and VoIP numbers, along with features like unlimited calling, voicemail transcription, integration with the best CRM software, and support for calling via smartphone apps. Here are some of our top recommendations.

Zoom

Zoom’s VoIP phone service offers inexpensive and flexible calling plans starting at $10 per month. However, if you make many outbound calls, you may want to opt for a higher-level plan. Zoom also allows you to purchase additional VoIP phone numbers, including toll-free numbers. Zoom plans include access to the company’s well-known video conferencing tool. Our Zoom review outlines the service’s various plans and robust features.

Vonage

Vonage allows you to make and receive VoIP calls through desktop and mobile apps; higher-level plans support VoIP calls through more traditional phone hardware. The vendor also offers numerous integrations with other software and extensive customization for companies willing to write their own code. Vonage generally requires a year’s commitment and charges an early-termination fee, so ensure this service is right for you before you sign up. Our Vonage review explains that companies with at least 100 users can often get significant discounts.

Nextiva

Nextiva offers VoIP service and allows businesses to customize various accounts’ features — a valuable perk if different teams in your company need specific services. Every plan includes unlimited calling in the U.S. and Canada, 24/7 customer support, and the ability to make calls with desktop or mobile apps. Our Nextiva review explains how this platform integrates with Microsoft Outlook or Google Contacts so you can easily dial people in your contact list.

RingEx

Many VoIP services let you select numbers in different area codes. However, RingEx stands out by allowing customers to choose numbers in more than 100 countries — a significant upside for international businesses. The company also offers connections to many internet providers and numerous data centers to help ensure reliable service and good connection quality. Our RingEx review highlights this vendor’s numerous integrations. 

VoIP fraud to be aware of

Although VoIP systems and VoIP numbers are convenient and feature-rich, they’ve become tools for scammers trying to establish credibility with their victims. When scammers call someone using a VoIP number, they can appear like a legitimate organization (like a bank) instead of a random person from a random place.

No matter how legitimate a caller seems at first glance, it’s always best to err on the side of caution. If you have any doubts, say you’ll return the call and dial the organization’s verified number directly. 

Alternatives to VoIP and traditional phone numbers

There are other options besides VoIP and traditional phone numbers. For example, virtual phone numbers are an in-between solution. They essentially work by forwarding calls: The caller dials a landline number but is forwarded to a different number, usually one that belongs to a remote worker who answers the phone from their home. Virtual phone numbers help businesses appear more professional while keeping costs low.

You can also have the best of both worlds with a hybrid system that connects a standard phone line with a data network. Just use an analog-to-VoIP adapter with your current phone.

Setting yourself up for success

Technology is making it easier than ever for small businesses to present a professional, polished presence. VoIP numbers are an excellent example, allowing organizations of any size to access robust communication features and conduct business from anywhere. With a VoIP number, you can take calls from anywhere in the world, address customer concerns promptly, and make a big impression with a relatively small investment. 

David Cotriss contributed to this article.