Your team is exhausted from switching tools just to have a quick meeting or ping a coworker with an update. If you’ve ever felt a pit in your stomach when deciding between an email or text message or hunting for a Zoom link — you’ll appreciate what unified communications software can do. 

Unified Communications as a Service (UCaaS) helps businesses consolidate multiple communication channels on a centralized platform.  

Today’s UCaaS solutions offer notable cost savings with numerous advanced features in one package.

When exploring UCaaS service providers for your business, you’ll find many options, and narrowing them down can be overwhelming. We’ll tell you about the top five UCaaS platforms so you get a firm idea of their features, pros and cons, and pricing. 

Let’s take a closer look at the upsides of UCaaS and the features of an ideal provider.

Why More Businesses Choose UCaaS

UCaaS brings the benefits of the cloud to your communication system. It combines business phone systems, instant messaging, video conferencing, and other collaboration tools, creating a single place for all business communications. 

This unified interface offers several benefits for businesses. 

💰It lowers expenses

UCaaS works on cloud infrastructure. You need a computer or mobile device and an Internet connection to work with it. It makes costly physical maintenance obsolete, saving you time and money. 

Adopting a UCaaS system requires no upfront investment. In most cases, a simple subscription fee applies to each team member using the communication service.

It’s easily affordable for small- and medium-sized businesses (SMBs). Most importantly, UCaaS pricing is based on the number of users, which makes the costs predictable and doesn’t tie up your budget unnecessarily. 

If you compare cloud-based Voice over Internet Protocol (VoIP) systems and UCaaS, the former are comparatively cheaper as they primarily focus on voice calls. With UCaas, you get unlimited calling (including video calls) among its collaboration features. 

Businesses prefer UCaaS since it helps them manage not only their phone interactions but also the entire communication system. In 2021, around 57% of businesses increased spending on video meeting apps, such as Zoom, as a part of their UCaaS solution. 

📈 It scales

An organization’s communication needs aren’t the same all the time. There are busy months, and there are quieter periods. Your communication system should be able to grow and shrink as needed. 

A UCaaS solution makes adding new staff members very easy. And if needed, you can reduce capacity to meet business needs. This flexibility benefits high-growth businesses and companies with seasonality or a fluctuating market. 

When you expand operations on a global level, you won’t need additional on-premises private branch exchange (PBX) servers or new phone lines. You can just add more users to your subscription plan.

Since no physical maintenance or security is required, you can invest more in delivering a remarkable customer experience through unified communication. 

📍It promotes collaboration

UCaaS provides a centralized platform for communication and collaboration. For example, a retail business works with enterprise-grade telephony; messaging; audio, video, and web conferencing; and other communication channels. 

UCaaS software brings them together while adding contextual intelligence and real-time dashboards. Integrating different tools helps businesses collaborate better and be more responsive in communication. It facilitates file sharing and screen sharing while making team collaboration easier.  

UCaaS allows employees to sync while working in different locations so you can deliver a consistently remarkable customer experience wherever you are. 

🧮 It supports multiple teams

Customer-facing teams rely on customer relationship management (CRM) tools, analytics software, call recording tools, and others for their day-to-day operation. A UCaaS platform has these features built-in. It helps team members focus on their jobs rather than going back and forth between tools. 

The teams that benefit most include sales, support, and customer success. UCaaS benefits teams that deal with large volumes of calls daily — for example, a car dealership.

UCaaS comes with call routing capabilities to route potential or current customers to the appropriate department, helping you to serve customers with excellence. 

☎️ It’s the standard for office communication

Remote work and hybrid environments are a priority for both employees and employers.

On LinkedIn, more than 50% of job applications received in February 2022 expected remote work options. UCaaS solutions provide this much-needed flexibility for remote or hybrid work environments. 

UCaaS is easy to scale up or down without setting up any physical hardware. You can grant access to new remote team members, and they can collaborate internally and externally with UCaaS cloud communications features. Softphone functionality gives users the convenience of a mobile app to stay in touch. 

Most importantly, UCaaS vendors handle updates and platform security, helping businesses access the latest communication tech without worrying about the risks.

With these benefits in mind, here are several characteristics to look for when evaluating a UCaaS vendor.

What To Look For in a UCaaS Provider

Businesses’ priorities largely depend on their market segment. For example, small businesses may care much more about costs than mid-market or enterprise companies. 

On the other hand, larger enterprises need a UCaaS that can support a large number of team members in several departments, along with more extensive requirements. 

UCaaS for small businesses

• Ease of use: No one has time to waste learning new apps — UCaaS tools must be easy to work with. It reduces costs if your team can implement it without much external support.
• Affordability: Check whether the platform provides multiple pricing tiers so you can select the one that offers the required features. Add-on features come at a cost, but you can still save money. Compare what you currently spend on extra tools, such as Slack, conference call services, and virtual meeting platforms, to get a benchmark for cost savings. 
• Scalability: As your business grows, the UCaaS should adapt. If your company needs to add 20 or 200 more users, the platform should be able to accommodate it easily. When functionality such as video conferencing becomes a priority, the UCaaS platform should be able to add it for all users. 
• Proven reliability: Uptime is essential for your business operations. Check whether the UCaaS provider maintains a trust page or if its social media reflects an outage pattern. Opt for a solution with a strong communications industry history extending beyond UCaaS. 

UCaaS for mid-market and enterprise businesses

• Advanced features: A UCaaS solution should offer advanced telephony functions and features such as automatic call distribution, call forwarding, auto attendant,  and interactive voice response.
• Integration with other apps: UCaaS should bring together your CRM tool, email system, call center system, and other apps you use. It helps you get a holistic view of operations and lets your team level up their workflow. Beware if a UCaaS platform only provides an application programming interface (API) — it’s a sign that you’ll need to build the integration at your expense. Opt for ones with ready-to-use cloud-based integrations. 
• Enhanced security: Larger companies often employ sophisticated security technologies such as single sign-on. A strong UCaaS platform will offer deep integration with trusted identity systems to ensure your team can access it securely and reliably. In addition, calls and messages should be encrypted to prevent eavesdropping. 
• Contact center integration: Large enterprises with a call center or customer service team often manage separate communication platforms that lack tight-knit integrations. When evaluating UCaaS providers, check for CCaaS integration, which provides an enhanced user experience for team communication.
• No-code infrastructure: The primary reason for switching to a UCaaS platform is that you don’t have to build and maintain on-site servers or telephony. Essentially, your IT team should only need to concern themselves with adding and removing access as needed in a secure admin portal. 

Top UCaaS Providers

As the UCaaS market keeps expanding, selecting the perfect solution for your business is increasingly important. We have narrowed down a list of unified communication platforms known for their performance and reliability.

1. Nextiva

Nextiva offers an all-in-one UCaaS solution to bring voice, video, messaging, and fax together with other business applications. The platform is famous for its user-friendly interface and affordable price. You get dozens of highly rated features that serve over 150,000 companies. Nextiva’s pricing starts at $20 per user monthly. 

Nextiva allows companies to: 

• Work efficiently in on-site, remote, and hybrid work environments.
• Collaborate on multiple projects in a single workspace. 
• Deliver a fully integrated customer experience.
• Integrate with Microsoft Teams for unlimited calling with a familiar user experience.
• Connect numerous communication channels and business applications.

What users love about Nextiva 

• Integrated communication tool for email, voice, text, and meetings.
• Superior reliability across eight data centers in North America.
• Personalized customer support that tops the industry.
• 24/7 customer support with exceptional service quality (#).
• Regular updates for better usability (#).
• Seamlessly integrates with many CRM tools (#).

Areas where Nextiva can improve

• Video meetings are limited to 45 minutes on lower plans.
• Business texting and conferencing are only available in higher-priced plans.

Who Nextiva is best for 

Nextiva is suitable for businesses of all sizes. It addresses the needs of remote or hybrid businesses in the SMB market segment. For a large business that requires 24/7 support, Nextiva’s UCaaS solution is top-notch.  

👉 Get your custom quote from a communications expert for your business today.

2. Vonage

Vonage’s UCaaS platform has a wide array of communication features for global businesses. It offers advanced call routing to connect calls quickly to the right department.

The video conferencing feature manages virtual meetings, where teams from across the globe collaborate and share in real time. Its Premium plan starts at $20.99 per user monthly. 

Vonage helps global businesses operate efficiently. For effective UCaaS software geared toward international use, consider Vonage. 

What users love about Vonage

• Intelligent features such as smart numbers and real-time transcriptions.
• Simple collaboration.
• Remote call answering (#).
• Easy and time-saving connection (#).
• Simple user interface (#).

Areas where Vonage can improve

• Vonage has complicated pricing for businesses with multiple users and complex needs.
• Features such as switching from call to text directly are difficult to use. (#)
• The desktop app lags while sending SMS messages (#).
• The UIs for calls and messaging are separate (#).

Vonage is best for

Vonage is suitable for enterprises and multinational corporations. It may not be the right fit for high-growth businesses requiring a scalable solution. 

Related: Vonage Pricing: Is It Worth It for Small Businesses?

3. Dialpad

Dialpad provides an AI-powered communication solution as its UCaaS offering. Its features adapt to users’ needs. AI learns from interactions to improve call quality and offers real-time insights that lift productivity. Dialpad’s Pro plan starts at $25 per user monthly. 

Dialpad’s solution streamlines workflows for teams and simplifies call transcription and analysis. After you leave a meeting, it sends an automatic call summary to your inbox.

The platform comes with a 100% uptime service-level agreement and integration with applications such as Salesforce, Zendesk, and Google Workspace.

What users love about Dialpad

• Real-time AI transcription.
• User-friendly interface.
• Integration with popular business apps.

Areas where Dialpad can improve

• Options for calling international numbers are limited.
• Calling options are inconsistent.
• New CSRs take time learning to use Dialpad. (#)
• Sometimes calls fail to connect.(#)

Dialpad is best for

Dialpad is ideal for startup, tech-savvy SMBs deeply invested in AI communication tools. As G2 suggests, companies in the mid-market segment usually work with Dialpad for business communications.

4. RingCentral

RingCentral brings a phone service, messages, videos, and analytics together in a unified communications platform with over 300 integrations. You can leverage workflow automation to complete repetitive tasks. RingCentral’s Advanced plan starts at $25 per user monthly.

You can use RingCentral MVP on your phone, tablet, computer, or desktop via VoIP phones and headsets. 

What users love about RingCentral

• Comprehensive cloud PBX solution.
• Wide variety of telephony functions. 
• Unlimited audio conferencing.

Related: RingCentral Pricing, Plans, & Feature Breakdown

Areas where RingCentral can improve

• Some advanced features cost extra.
• The limited number of data centers can affect reliability.
• The extensive range of features can present a steep learning curve for users.
• Integrations with business applications could be improved (#).

RingCentral is best for

RingCentral is a good option for businesses seeking a user-friendly and versatile unified communications solution. It’s suitable for businesses of all sizes, but large businesses prefer it as their communications solution.

Related: The Top RingCentral Alternatives for Business Phone Service

5. 8×8

8×8’s UCaaS solution helps businesses deliver an exceptional customer experience. It comes with features such as omnichannel routing and contact center analytics.

The platform allows companies to engage their customers at scale with SMS, voice, chat apps, and video APIs. According to Forbes, 8×8 costs $24 per user monthly. 

Overall, 8×8 increases productivity by connecting to various business and CRM applications. 

What users love about 8×8

• Omnichannel contact center solutions.
• Strong international calling capabilities.
• Over 60 partner integrations.

Areas where 8×8 can improve

• The interface can be overwhelming for new users. 
• 8×8 doesn’t provide some settings and features (#).
• Sometimes, the support team isn’t helpful (#).

8×8 is best for

8×8 is a suitable option for businesses that need a flexible UCaaS solution. It’s a reasonable choice for companies that are growing or have a lot of remote employees globally. 

Related: 8×8 Pricing: Is It Worth It?

Considering a UCaaS Provider?

You’ve got to give Nextiva a try. 

Its unified communication platform adds flexibility and scalability to business communication in a cost-effective manner. Plus, you’ll get around-the-clock customer care any time you want it. 

Nextiva has the features that businesses care about — reliable cloud phone service, video meetings, team collaboration, Call Pop, voicemail transcription, online faxing, business SMS, email integration, and dozens of other features to improve business communication. 

With Nextiva’s connected and centralized platform, your team is always in the know when helping customers or collaborating with coworkers.

When you’re considering migrating to UCaaS, start by defining your goals and determining what you would need to accomplish them. Assess how many employees would be using it and what features and functionalities they would expect for their day-to-day operations. Then, use this guide to narrow down software options to one that best fits your expectations. 

Talk to a communications expert to see how Nextiva checks all your boxes for an ideal UCaaS platform. 

Everyone is familiar with the annoyance of cables cluttering up the office space. It looks messy and disorganized and can even be a trip hazard.

But what if you cut the number of power cables you’re using — even slashing it in half?

Power over Ethernet (PoE) technology lets you power office phone systems using a single network cable. Let’s talk about how they work, their advantages, and some recommended PoE-ready equipment. 

What Is PoE?

Power over Ethernet (PoE) is a standard that allows network cables to carry electrical power. A single Ethernet cord can provide both data connection and electrical power to devices instead of needing a cable for the internet and a cable for electricity. 

How PoE works

PoE uses existing Cat5e and higher cables to provide power to compatible devices. The electricity comes from power source equipment, such as a network switch or router. 

There are two types of PoE specs:

• Active PoE: The device interacts with the network switch to determine its power requirements, which operate between 15 and 100 watts.
• Passive PoE: The power source equipment supplies a fixed voltage — between 24 and 54 volts — to network devices.

What Is a PoE VoIP Phone? 

VoIP phones work by making calls via an internet connection instead of a landline or mobile network. This internet connection can be established in various ways, most commonly over a wired Ethernet connection. 

Almost all VoIP phones include a separate power supply that plugs into the user’s electrical outlet. However, these come with drawbacks: space and reliability.

A VoIP PoE phone lets team members make and receive business calls over a single Ethernet line that provides both electricity and an internet connection. 

How Does PoE Work With VoIP Phones?

Certain VoIP phone systems are PoE-compatible. In this situation, power is supplied through either a PoE switch or a PoE injector. 

An Ethernet cable will connect to the PoE switch or injector, which contains twisted wiring for both data and internet connections. The Ethernet cable transmits power to the device — in this case, the VoIP phone. 

This video from our friend Prince Rich explains how PoE phones work: 

Are All VoIP Phones PoE-Compatible?

No, not all VoIP phones are PoE-compatible. However, all phones that Nextiva sells are PoE-ready. 

VoIP phones come in a variety of models and specifications. PoE is a specific feature, and not all models possess it. 

1. PoE-compatible VoIP phone

PoE-compatible VoIP phones can receive power and data through a single Ethernet cable as long as it’s connected to a PoE switch or injector. We’ll discuss specific PoE-compatible VoIP business phone systems later in this post, including popular VoIP desk phones. 

2. Non-PoE VoIP phones

These phones require a separate power source and lack PoE compatibility. In many cases, they’ll require a traditional AC adapter plugged into an electrical outlet. This can cause cord clutter, which is one reason businesses may opt for PoE models instead.

3. Wi-Fi VoIP phones

Some VoIP phones may connect to the network wirelessly via Wi-Fi. These phones also typically require a separate power source, as Wi-Fi does not provide electricity. 

These phones also carry some risk. If there’s ever an interruption in the wireless network, the VoIP phone can lose connectivity or experience low call quality. 

Benefits of PoE VoIP Phones

Businesses that are choosing new communication systems often have a number of reasons for preferring VoIP phones that are compatible with PoE. The advantages of PoE-compatible phones are especially important when upgrading an office network.

Simplified wiring

Fewer cables are required since power and data are carried over a single Ethernet cable. This is easier to maintain and makes it much faster to install the VoIP system. The office will also look much more organized, with fewer wires cluttering the space. 

Cost-effective

With fewer wires needed and a faster installation process, there’s a reduced need for electrical wiring and outlets. This can reduce installation costs. 

Reliability

PoE VoIP phones typically include battery backup features, ensuring that phones remain operational during power outages. 

They’re also typically more reliable than Wi-Fi VoIP systems, which may be prone to connection issues and rely entirely on functioning routers. 

Scalability

All businesses should consider scalability, and VoIP PoE systems are, by definition, scalable phone systems.

You can easily add new phones or relocate them. You only need to manage your network connections, so there’s no need to worry about separate power supplies. Your system can easily scale up and down with your business. 

Energy efficiency

The latest PoE technology often comes with energy-saving functionality that provides a phone with only the amount of power needed to operate it. This can result in long-term cost savings, especially at scale. 

What Kinds of Businesses Use PoE VoIP Phones?

PoE VoIP phones are ideal for traditional office environments, call centers, and any in-person location where several phones are needed. They’re also invaluable for businesses that plan to grow rapidly and those that may need to either reorganize their office space or move to a new location in the foreseeable future. 

PoE is less common for people who work from home, but with a PoE switch or injector, home users can also use PoE. 

PoE-compatible VoIP phones can simplify infrastructure, are easy to manage, and can reduce clutter in your business location. 

Top 5 PoE VoIP Phones

PoE VoIP phone systems are only as strong as the VoIP service providers and the PoE devices themselves. 

So, it’s important to get started with the right device. Let’s discuss the top five PoE VoIP phones for 2024, all of which are available as Nextiva VoIP desk phones.

1. Yealink T33G IP phone

The Yealink T33G IP phone offers a dual-port Gigabit Ethernet with integrated PoE. 

It’s an entry-level IP phone with a color screen, high performance, and the ability to offer support for up to four lines. It supports a wireless headset and has an adjustable, multi-angle stand support. 

This is a high-quality, cost-effective solution, making it a popular choice for many Nextiva customers.

Price: $160

2. Nextiva X-835

The Nextiva X-835 is an IP phone offering a color LCD display and the ability to support up to 12 lines.

It has a multipage approach that allows users to program additional keys for speed dialing as they see fit for greater ease of use. This phone is also cost-effective, yet it still consistently provides high audio performance. 

Price: $160

3. Yealink T46U IP phone

The Yealink T46U IP phone is a mid-range option that provides extraordinary audio quality and a large, full-color display. 

It has dedicated call-handling buttons, a hearing aid–compatible handset, and the ability to handle up to 16 lines. It supports multiple options for headset connection, including a wireless Bluetooth option. It also allows for Wi-Fi connectivity. 

Price: $200

4. Poly Edge E350

The Poly Edge E350 has a sleek look that’s ideal for a modern office, but it’s still packed with features. It was designed for hybrid working, and it comes integrated with Wi-Fi and Bluetooth functionality for strong performance. 

This phone supports up to eight lines and has a 3.5-inch color LCD display.

Price: $230

5. Poly CCX 500

The CCX 500 is a relatively new addition to the Poly brand of phones and offers outstanding audio quality with strong functionality that makes it a great option for brands looking for a cloud communications platform. 

This phone has a five-inch color touch screen and can support up to 24 lines. 

Price: $420

Additional PoE Equipment You May Be Interested In

In addition to the PoE VoIP phones themselves, businesses should consider PoE switches and routers to integrate into their existing network infrastructure. 

PoE switches

PoE switches deliver both power and network connectivity to connected devices via Ethernet cables. They come with multiple ports, each one capable of delivering the power needed to run a device. 

PoE routers

Some routers have built-in PoE compatibility, allowing them to power devices directly. This is less common than in PoE switches, so you’ll want to ensure that you’re choosing a router with PoE functionality.

Choosing a PoE-Ready VoIP Phone System

Using a PoE VoIP phone system in your office allows for flexibility and scalability while still offering a superior level of reliability in call quality performance. 

Now that you have your list of PoE VoIP phones in hand, it’s time to find a VoIP service provider to help you get the most out of your devices.

Nextiva’s VoIP phone system is known for its consistent call quality and service uptime, and we offer the advanced call features a growing business needs, all with an intuitive interface. 

You can count on features such as the following:

• Call routing
• Call recording
• Call analytics 
• Auto attendants 
• Conference call solutions 
• 24/7 customer support 
• Team collaboration tools 
• Free local and toll-free numbers
• SMS messaging 
• Voicemail-to-email transcription

Every Nextiva plan offers unlimited calling and exceptional customer support. As a result, combining Nextiva’s PoE-enabled phone devices with your VoIP phone service is an easy way to quickly improve your communications system.

Picture this: A customer hangs up after getting a busy signal calling your sales phone number.

Scary, thought, isn’t it? That’s what you risk with a traditional phone setup that relies on analog phone lines.

These days, small businesses depend on a reliable and cost-effective approach to business communications. You shouldn’t limit your success by as far as landline copper wires can reach.

Voice over Internet Protocol (VoIP) is at least comparable to the telephone lines of the past but with dozens of advanced calling features.

As you weigh your options between PSTN vs. VoIP, we’ll make the case for both types of phone systems and technologies. But there are a few cases when PSTN beats out voice over IP.

New to VoIP? Check out our definitive guide to VoIP — it’s beginner-friendly!

But first, let’s tackle the acronyms.

Phone System Acronyms

Let’s navigate the alphabet soup – PSTN, VoIP, PBX, POTS, and SIP and give you a quick primer on them.

PSTN

PSTN is short for Public Switched Telephone Network and describes the physical network of dedicated lines connecting telephones globally. These phone lines transmit your voice data in analog format, allowing you to reach any other user on the network with their phone number. When referring to PSTN, it means you can dial anyone across the public telephone network consisting of area codes, switching centers, and various exchanges. The emphasis here is on the network established between telecom providers.

POTS

POTS stands for Plain Old Telephone Service, which is an informal alias for PSTN technology. It emphasizes the fundamental nature of traditional landline telephony, relying on dedicated copper wires and basic voice calls.

POTS lines refer to the actual technology consisting of analog wiring that runs from your building to a local central office. These voice signals traverse over various switches and network terminals to reach the PSTN.

PBX

PBX means Private Branch Exchange and is how a company establishes phone service for multiple users within an organization. PBXs can operate on a PSTN system or VoIP phone system.

Traditional on-premises PBX systems require a significant level of telecom expertise to manage, but VoIP flavors are much easier to set up and manage. Speaking of VoIP …

VoIP

VoIP is short for Voice over Internet Protocol. VoIP means that voice signals are sent over an internet connection through a business phone service provider rather than through analog-based phone lines.

SIP

Session Initiation Protocol (SIP) is the technical foundation of Voice over IP. A lot of real-time communication apps use this technology for high-quality audio, video, and messaging.

Most commonly, SIP is used for SIP trunking, which is like a bulk set of VoIP lines often used for call centers.

PSTN vs. VoIP Differences

If you’re thinking of switching to a new business phone service, you should know some key differences between VoIP vs. PSTN.

PSTN

PSTN refers to the traditional landline phone networks that have been around for decades. PSTN uses analog signals transmitted over copper wires to make phone calls. The telecommunications system relies on dedicated circuits being opened between exchanges to connect your call to the other person — hence long-distance charges.

In addition to this, it’s important to note that the PSTN uses a variety of signaling techniques to manage the calls:

• Dual-tone multi-frequency (DTMF): Used by touch-tone telephones where each key press sends a specific sound frequency. This system replaced older pulse dialing used by rotary phones.
  
• In-band Signaling: Early signaling method where the signals (like dial tones and busy signals) are carried over the same path as the voice. This was susceptible to interference and fraud.
  
• Out-of-Band Signaling (Common Channel Signaling): Modern method where signaling (call setup and control information) travels on a separate digital channel, not through the voice channels. SS7 (Signaling System #7) is the standard set of protocols used globally, allowing more efficient and secure management of calls and services like caller ID and call forwarding.

How PSTN Works

To fully understand how the PSTN works, we need to break down its components and also the process involved in establishing a phone call. 

Key Components of the PSTN:

• Telephone Lines: Copper wires that connect homes and businesses to the local exchange. These are also known as ‘subscriber lines’ or ‘local loops’.

• Exchanges: Facilities that house switching equipment to connect calls locally or route them to long-distance services. These can be small for rural areas or massive buildings in cities.

• Trunks: Larger capacity lines that connect exchanges to each other. Unlike the local loops, trunks carry multiple calls simultaneously using multiplexing techniques.

• Switches: Devices at exchanges that connect incoming calls from one line to another, enabling communication between two endpoints. Originally mechanical, modern switches are digital.

• Signaling Systems: Methods used to communicate information necessary to set up and manage telephone calls.

Call Setup Process in PSTN:

Initiating a call:

• The caller lifts the handset, which sends a signal to the local exchange.
  
• The exchange provides a dial tone, indicating readiness to receive the dialing input.
  
• The caller enters the destination number using DTMF tones.

Routing the call:

• The local exchange processes the received number and determines the route for the call through the network of switches and trunks.
  
• If the call is local, it might only pass through one or a few switches. For long-distance calls, the routing becomes more complex and may involve several exchanges and trunks.

Sending the ring signal:

• Once the route to the destination is established, the exchange sends a ring signal to the receiver’s phone and a ringback tone to the caller, indicating that the call is being connected.
  
• The receiving phone rings until the call is answered or disconnected.

Establishing call connection:

• When the receiver picks up the handset, the circuit between the two phones is completed, allowing voice signals to flow through the network.
  
• This connection is maintained as an open circuit for the duration of the call, with voice converted to electrical signals via the microphone, transmitted across the network, and converted back to sound at the receiver’s handset.

Disconnecting the call:

• Once the conversation is over, hanging up the handset at either end disconnects the call.
• This signals the exchange to disconnect the circuit and release the network resources.

The PSTN’s analog nature and dedicated circuit for each call provide a very reliable and high-quality voice transmission but lack the flexibility and scalability of more modern technologies like VoIP. The transition to digital has been driven by the need for more efficient use of the network and broader service capabilities.

Voice over Internet Protocol (VoIP)

VoIP is a better phone service technology that works using the Internet. With VoIP, your voice is converted into digital data packets that are transmitted over the Internet, similar to how emails or downloading files work. Since the data packets take different pathways through the Internet, no dedicated circuits are kept open.

VoIP Protocols

• Session Initiation Protocol (SIP): The most commonly used protocol for initiating, maintaining, and terminating real-time sessions that include voice, video, and messaging applications.

• Real-Time Transport Protocol (RTP): Carries the actual stream of digital voice data (and sometimes video) in packets across the network.

• Real-Time Transport Control Protocol (RTCP): Works alongside RTP to provide control and quality feedback for the data delivery.

How VoIP Works

VoIP involves several key components and processes to effectively convert, transmit, and reconstruct voice communications over IP-based networks.

Key Components of VoIP:

• IP Phones or Softphones: These can be physical devices similar to traditional telephones or software-based phones that run on personal devices like computers or smartphones.

• VoIP Servers: Typically manage calls within the network, handling functions such as call routing, voicemail, and connectivity with traditional phone networks.

• Media Gateway: Converts data between different formats or networks, such as converting VoIP calls to a format suitable for the PSTN.

• Session Initiation Protocol (SIP) Servers: Facilitate the setup and teardown of VoIP calls, handling signaling and control for initiating, maintaining, and terminating communication sessions.

• Routers and Switches: Network devices that manage traffic within VoIP networks, ensuring data packets are sent to the correct destination.

VoIP Call Process:

Initiating the call:

• A user initiates a call through a SIP invitation from a SIP client (softphone or IP phone).
• The SIP server processes the invitation and sends a request to locate the recipient of the call across the network.

Signal setup process:

• SIP messages are exchanged between the initiating and receiving SIP clients to negotiate session parameters using SDP (Session Description Protocol) contained within the SIP messages.
• These parameters include codec selection (e.g., G.711, G.729), which determines the method of compressing and decompressing the voice data.

Transmitting voice data:

• Once the session parameters are agreed upon and the call is accepted, RTP packets begin to flow between devices. 
• Each packet contains a portion of the encoded audio data, packet sequence information, timestamp, and payload type. 

Reception and reconstruction of voice data:

• At the receiving end, RTP packets are decoded back into a voice signal that can be heard by the receiver.
• Packets may arrive at different times or out of order. However, the receiving device uses sequence information and timestamps to reorder packets and smooth out delays, ensuring a coherent conversation.

The RTCP monitors delivery statistics and network conditions, such as packet loss and jitter. This information can be used to adjust the quality of the service dynamically. For instance, switching to a lower bitrate codec during periods of high network congestion to reduce bandwidth usage. 

The main advantage of VoIP is that it allows making phone calls using any IP address rather than needing a landline. VoIP also tends to have lower costs compared to traditional landline services. The sound quality can be lower than landlines in some cases, but VoIP call quality keeps improving.

VoIP vs. PSTN Comparison

🗞️Case Study: Media Publisher Thrives with Flexible Phone System 👇

VoIP & PSTN Limitations

PSTN limitations

Here are some of the common issues with PSTN that compel business owners to move on from traditional phone lines.

Infrastructure Dependency

PSTN relies heavily on physical infrastructure that includes copper lines, telephone poles, and exchange centers, which can be susceptible to damage from natural disasters and aging. This infrastructure requires regular maintenance, which adds to its operational costs. 

Additionally, expanding service or adding new lines requires physical construction that can be both costly and time-consuming, making it less adaptable to rapid changes or business growth.

Cost Considerations

Operating a PSTN system incurs higher costs due to the need for ongoing maintenance and repairs of its extensive physical network. Moreover, the charges for long-distance and international calls are typically higher with PSTN compared to VoIP. These costs can accumulate significantly for businesses that require frequent international communication, making PSTN an expensive option in the globalized market.

Scalability Issues

Scaling up a PSTN system can pose logistical challenges and often requires significant financial support. Adding additional lines and hardware involves not just cost but also considerable effort, which can hinder a business’s ability to adapt quickly to changing demands.

Now, let’s take a look at some of the limitations of a Voice over IP system.

VoIP limitations

When researching VoIP technology, there are a few concerns that you want to plan around. In most cases, most businesses are unaffected by these — we’ll share solutions below.

• Reliability issues: VoIP call quality and functionality depend on a high-speed internet connection. Slow internet speeds or high traffic volumes can cause lag, jitter, or call drops. Power outages will cause the hosted VoIP phone system to go down unless proper battery backups are connected.
  
  ✅ Solution: Test your internet connection for VoIP call capacity and set up redundant battery backups on critical systems.
  
• Emergency call limitations: VoIP users must register their location so 911 operators can identify their address. Without registration, operators may be unable to pinpoint the caller’s location. In a power outage, VoIP users typically cannot make emergency calls unless using a softphone installed on their mobile device.
  
  ✅ Solution: Update the actual physical address (E911) of each user on your VoIP phone system. Recommend users download the free VoIP app that works on Wi-Fi and cellular connections.
  
• Legacy hardware challenges: Using VoIP requires new IP phone hardware or adapters for analog phones. Installation and setup take some time across an office. As a cloud-based system, VoIP relies on servers rather than direct copper wiring. This transition could mean replacing old telephony equipment.
  
  ✅ Solution: Retire analog phone equipment that no longer meets business needs, such as fax machines. Set up the equivalent of cloud communication, such as online faxing.

Comparing VoIP vs. POTS Lines

POTS uses dedicated infrastructure, so it has high resilience and emergency call traceability. But upgrades require new analog lines and hardware, which is costly as the business grows.

VoIP also enables value-added features like auto-attendants, voicemail-to-email, and softphones. Upgrading is a lower cost since it leverages your existing data network.

20 Popular VoIP Phone System Features

• Audio conferencing – Host large conference calls with many participants with your same VoIP provider
• Auto-attendant – Customizable automatic voice greetings that route calls to correct people and departments
• Call analytics – Advanced analytics on the number of calls, durations, missed calls, and more
• Call forwarding – Direct calls to your cell phone, another phone number, or a voicemail box automatically based on business owners or your availability.
• Call pulling – Switch phone devices on the fly, such as a desk phone and your mobile phone.
• Call queuing – Manage calls so incoming calls wait in line to be answered
• Call recording – Record inbound and outbound calls for quality assurance
• Call rejection – Block incoming calls if they don’t disclose their caller ID
• Group calling – Seamlessly connect multiple people/offices on a single call
• On-hold music – Upload your own audio files instead of default hold music
• Presence detection – See if colleagues are available, busy, away, and more
• Softphones – Make and receive calls on computers and mobile devices
• Team messaging – Real-time text chat integrated with the phone system
• Text messaging – Send and receive SMS or MMS text messages from your VoIP line
• Toll-free phone numbers – Get a trusted toll-free number (800, 866, 888) and pay pennies per minute for incoming calls. 
• Unlimited calling – No per-minute fees for domestic or international calls
• Video conferencing – Meet with team members and clients over HD video conferencing
• Virtual phone numbers – Set up a virtual phone number in any area code desired, regardless of your physical location
• Voicemail transcription – Convert voicemails into text for reading inside your email or text messages

The Bottom Line on PSTN vs. VoIP

While PSTN has its place for some use cases where internet access is limited or legacy telecom installations prevent an upgrade, the best option for businesses is VoIP phone service.

VoIP beats PSTN in every category:

• Scalability: Easily add or adjust the number of lines or users whenever your business needs.
• Advanced calling features: Access dozens of calling features your team needs to help customers, collaborate, and outmaneuver competitors.
• Emergency services: Have confidence that you can dial 911 accurately with E911 capabilities.
• Redundant internet service: Reliable broadband is the norm, and even if you lose service, cellular (4G/5G) has you covered.

Change can be hard, but resisting change is even harder. 

Go easy on yourself and choose a reputable business VoIP provider. See why over 150,000 businesses choose Nextiva for their company’s phone service. Get a customized quote today!

Related Article

The Ultimate Guide for Moving Your PBX to VoIP

Remember landlines? Yes, those ancient things are still around. Though mobile phones are the norm, landlines or Plain Old Telephone Service (POTS) are still used for personal and business communication.

In this post, we’ll take a closer look at POTS lines. We’ll go over the history of the traditional landline, how it works, and why its popularity is dwindling. 

We’ll also touch on the most common POTS alternative and help you decide whether to move to Voice Over Internet Protocol (VoIP).

What Is a POTS Line?

Plain Old Telephone Service (POTS) is an analog-based phone line implemented over twisted-pair copper wires. Its service is provided directly by the local telephone company.

Its technology dates back to the late 1800s. POTS lines use a low-energy power source to carry the sound and signal for the ringer. This powers classic telephones that don’t need batteries or charging.

At its peak in the 90s, POTS had hundreds of millions of subscribers in the United States. Most millennials grew up with a POTS line at home.

POTS is sometimes called the Public Switched Telephone Network (PSTN). While they are similar, the difference is that POTS refers to the technology around the phone service, and PSTN refers to the public calling network. 

Though POTS lines still exist, modern methods are replacing them. The most popular is the VoIP phone system, as it is cost-effective.

📚 Further Reading: What is the PSTN & How Does It Work?

How Do POTS Lines Work?

The Plain Old Telephone Service setup has remained virtually the same for decades. POTS has seen many upgrades to phone handsets, but the copper wire connection stayed put.

POTS works by creating a dedicated circuit between two telephones during a call. In the past, an operator had to connect the two telephones for the call manually. But switching is now automated, and today, the system is almost entirely digital.

Here are the different steps to make a call work over a POTS line:

📞 Analog signaling

Voice, as we speak it, cannot be transmitted by itself. The handset’s microphone converts sound waves from the caller’s voice into analog electrical signals. The signals flow through the copper wire network and reach the receiver’s phone.

The building’s separate telephone lines combine into a network interface box where the phone lines converge into one line of service from the phone company. 

☎️ Transmission

After creating analog signals, they are transmitted from the caller’s telephone to the receiver’s phone over copper lines.

In the early days of telephony, this required actually running wires between them. This meant the longer the distance, the more expensive the phone call. No wonder long-distance calls in the past cost a fortune.

To cut costs, switches were placed at centralized points in the network. These central offices are known as telephone exchanges. They connected multiple POTS lines and determined the most efficient path for the call to reach its destination.

Switches act as communication nodes between any two points in the network. To connect one phone to another, calls are routed through one or more local, regional, national, or international switches.

🎛 Dedicated call circuits

When the caller dials the phone number to initiate a call, the receiver’s phone rings. Once answered, a direct, exclusive connection (a dedicated circuit) is established between the phones.

This dedicated circuit is as reliable as circuit technologies come. The only limitation is that the line has to be reserved for one call and one call only. This is known as circuit switching. It allows both parties to converse without interference from other calls.

🗣 Signal decoding and voice reconstruction

At this stage, analog signals are decoded to reconstruct the original sound waves at the receiver’s end. This means the caller’s voice, as spoken, is heard through the telephone speakers as audible sound.

This step completes the communication loop. The receiver hears the caller’s voice as if they were speaking in person.

One of the two communicating parties must hang up the phone to end the call. The dedicated circuit created during the call is disconnected. This returns the telephone line to standby, ready for another call.

What Is a POTS Line Used for?

POTS lines aren’t entirely outdated yet. They’re used for consistent, secure, and straightforward communication. Let’s look at a few common use cases:

• Fax transmission and reception — Fax machines used to be quite common some two decades back. Fax (short for facsimile) technology can transmit scanned documents from one machine to another via POTS lines.
• Credit card processing systems — The connectivity that POTS offers is great for processing credit card authorizations. Traditional credit card processing services sit atop POTS lines in areas with limited internet access.
• Security and alarm systems — POTS is a consistent technology for older security and alarm systems because of its dependability. It provides a dedicated line for these systems to talk to monitoring centers or emergency services. These analog phone systems typically work even during a power outage.
• Elevator communication systems — Internet connection is often limited inside elevators. POTS has no such problems. It is perfect for elevator communication systems because of its wired connectivity. It provides a direct line from the elevator to emergency responders with a solid connection in case something goes wrong.
• Digital subscriber lines (DSL) — DSL, an acronym for Digital Subscriber Line, is a high-speed connection delivered via a POTS line. It requires additional investment in the telephone company to provide high-bandwidth connectivity. DSL also requires that users purchase a special modem and noise filters to separate traditional voice and data signals. 

There’s a more modern answer to all of these use cases. For instance, online faxing has become a better alternative to analog faxes. And alarm systems have cellular service now.

Pros and Cons of POTS

The POTS technology has stood the test of time. However, its advantages are offset by the disadvantages. Let’s see how they stack up.

✅ Advantages of POTS lines

• No dependency on power or the internet
• Compatibility with legacy equipment and infrastructure
• Ease of use
• Stability

POTS is user-friendly. Most people already know how to make a phone call! POTS is a dependable, secure, and easy-to-use communication channel, especially during emergencies.

Unlike digital communication methods, it doesn’t rely on an active internet connection. It even works without a hitch during a power outage. Moreover, people can continue using their familiar traditional landline phone to make POTS calls, reducing the need for expensive, complicated upgrades.

Though these advantages make a strong case for people to continue using POTS, it has certain limitations. Let’s take a look at the disadvantages of the technology.

❌ Disadvantages of POTS lines

• Limited features
• Higher costs
• Maintenance-heavy telephone systems and copper lines
• Lower voice quality
• Inflexible technology

One of the significant drawbacks of POTS as a business phone is its lack of features. Traditional phones rarely have caller ID, call forwarding, call waiting, or voicemail options. Video conferencing is out of the question.

There’s also considerable maintenance that comes with POTS lines. These telephone lines aren’t as ubiquitous as the network cables for computer network connections. This also adds to the costs, including installing each phone jack wherever you want to use a phone. 

Analog-based lines often have poor call quality. They are prone to inclement weather and wire cuts, which can take hours (or days) to resolve.

Compared to cloud communications, the overall experience on analog phones is relatively poor.

Lastly, the technological obsolescence of POTS is a major issue. In fact, the UK is phasing out POTS by 2025 as the end-of-life technology is no longer viable for service providers. It’s being replaced with fiber optics. 

All this is making people consider alternatives for POTS. The most popular contender is VoIP.

POTS vs. VoIP

Landline usage has declined every year since 2004. People have since turned to mobile phones and VoIP for personal and business use. But what is VoIP?

Voice over Internet Protocol (VoIP) lets you make and receive phone calls over the Internet. VoIP connects calls using any internet connection. In addition to voice calls, VoIP allows you to make video calls, share multimedia, and send instant messages.

VoIP offers unparalleled flexibility, too. You can use VoIP on your mobile phone, desk phone, or computer, which makes VoIP an attractive option for businesses. You also no longer have to be near your fixed POTS line at all times to avoid missing phone calls!

Over time, the cost of broadband connections has fallen significantly. This means businesses can save — up to 60% — when using VoIP phones.

Business VoIP adoption is also on the rise to account for work-from-home employees. More and more remote organizations are ditching their POTS service and analog lines for VoIP service.

Even on the personal front, people are increasingly choosing apps like WhatsApp, Viber, or FaceTime to talk to loved ones. They all use VoIP technology.

VoIP is undoubtedly the future of telecommunications. It is rapidly taking over market share from POTS. But if you have a POTS line, don’t write it off just yet. You might still be able to get some use out of it.

⚡️ Case Study: Tricoci Salons Upgraded Its On-Prem Phone System to the Cloud

​​Should You Still Use a POTS Line?

The short answer is yes. But, conditions apply. If you already have a POTS connection and telephone at home, keep it.

This telecom technology is helpful for emergencies or those who find mobile phones hard to use. POTS is still a good option for personal use or small businesses.

However, VoIP might be a far better value if you are part of a large business or want to video call loved ones cost-effectively. Its features and flexibility make it a must-have for personal and business communication.

Eventually, businesses will move to internet-based phone services as POTS is increasingly becoming outdated. If you want to stay ahead, consider switching to VoIP.

The Best POTS Alternative: Nextiva

While there are many POTS alternatives in the market, choosing one that is feature-rich, reliable, cost-effective, and scalable is paramount. That’s why over 150,000 businesses trust Nextiva.

Nextiva is the leading business phone service provider, offering advanced features and 99.999% uptime. Teams work faster and smarter using Nextiva for phone service, video conferencing, and text messaging software.

VoIP features our customers love:

• Unlimited nationwide calling
• Business text messaging
• Unlimited online faxing
• Video conferencing
• Smart call routing
• Voicemail transcription
• Customizable Caller ID
• On-demand call recording
• Business call forwarding
• Mobile and desktop softphones

Communication, collaboration, connectivity — VoIP can bring a marked improvement in all aspects. All this is for a lower cost as compared to POTS. So, what’s stopping you from moving to VoIP?

😎 Case Study: Simmons Bank Simplified Business Communications with Nextiva

FAQs

Small businesses must take every opportunity to stand out from the competition. Vanity phone numbers, those catchy numbers that often spell out a word or phrase related to a brand, are a powerful tool worth considering.

They can enhance your brand recognition, strengthen your marketing campaigns, and make it easier for existing and potential customers to contact your business. They’re also highly likely to drive conversions and are easy to set up.

Let’s explore how to secure the best vanity number for your brand and uncover a few tips for choosing a provider that meets your business needs.

What Is a Vanity Phone Number?

A vanity phone number is an easy-to-remember custom phone number typically associated with a specific word, phrase, or numeric pattern related to a business or brand. It’s an impactful tool for enhancing brand recall and brand identity, strengthening marketing campaigns, and improving the customer experience.

Generally, vanity phone numbers can be up to 10 characters, including numbers and letters. Famous examples of vanity phone numbers include 1-800-FLOWERS and 1-800-CONTACTS.

So, how do they work? Just like any other business phone number! When a customer dials the telephone number, it gets routed to your business’s regular phone line, such as a landline or VoIP. The only difference is that the number is more memorable and relevant to your brand.

Toll-free vanity phone numbers vs. local phone numbers

Vanity phone numbers can either start with a local area code or a toll-free prefix (1-800, 1-888, 1-844, etc.).

Toll-free phone numbers are free and convenient for nationwide and local phone calls from customers. They often work for business calls across the US and Canada. The business pays a per-minute fee for incoming calls.

Local business numbers provide a trustworthy route for customers based in a particular area code. They also help customers identify incoming calls from legitimate local businesses.

Here’s an example of a local vanity number: 1-904-ADOPT-A-CAT.

Why Do Brands Use Vanity Numbers?

Vanity phone numbers can be used in various ways to benefit your business:

• Print marketing: Include your vanity number on your business cards, brochures, vehicles, and marketing materials for easy access.
• Outdoor advertising: Use your vanity number on billboards, bus benches, and other outdoor advertising to drive traffic to your business.
• Online marketing: Share your vanity number across your website, social media platforms, and digital ads to make it easy for followers and potential customers to contact you.

Brands use a vanity phone number for these tasks rather than a random string of digits for the following reasons:

It’s easier to memorize

Vanity numbers are more recognizable, easier to remember, and quicker to share than standard numbers. Memorable numbers stay in people’s minds, making them more likely to recall and choose your brand over your competitors’ brands.

According to one study, 72% of consumers remembered a vanity phone number correctly after watching a 30-second ad, but only 5% correctly remembered a standard phone number after watching the same ad.

That may be why 58% of customers prefer vanity numbers — it helps them remember contact info without much effort.

It improves brand recognition

A catchy, relevant phrase or word aligned with your company, products, or services immediately catches people’s attention and tells them what your brand is about. For example, you know exactly what service 1-800-FLOWERS provides.

This brand messaging reinforces your brand identity, increases brand awareness, and helps distinguish your business from your competitors. It also strengthens your marketing outreach.

While local vanity numbers resonate with customers in your hometown, toll-free vanity numbers amplify your brand recognition nationwide.

It shows professionality

A clever vanity phone number projects a professional, trustworthy, and well-established business image. It can legitimize your brand and position it as an authority and expert in the field. 

Customers will appreciate that your company put the thought, time, and energy into making a phone number that’s easy and convenient for them.

It’s convenient for callers

Unlike a random string of digits, an easy-to-remember vanity number simplifies the process of customers contacting your business, making it more convenient for them to do so.

Research shows that consumers are three to four times more willing to contact a company with a vanity number. When more customers ring your line, you gain more opportunities to convert leads into customers.

It makes tracking marketing ROI easier

You can easily track vanity numbers, providing insights into the effectiveness of different inbound marketing campaigns and the level of customer engagement. Online advertising stats show that ads with vanity numbers outperform those with generic numbers by 33%.

It’s flexible and portable

Like virtual phone numbers, vanity numbers are not tied to a fixed location or landline. They can be transferred between service providers. 

Note: Nextiva doesn’t provide vanity numbers. However, you can obtain a vanity number from one of the top providers and then seamlessly port it over to Nextiva. This empowers your brand to combine the benefits of vanity numbers with Nextiva, voted the best business phone system by U.S. News four years in a row.

It integrates well with VoIP

Vanity numbers are compatible with VoIP service providers, allowing your business to take advantage of advanced features such as call analytics, auto attendant, call recording, call forwarding, and call routing.

How To Come Up With a Memorable Vanity Number

Now it’s time to flex your creative muscles! Follow these best practices for choosing a vanity phone number for your business.

Play with easy patterns and rhymes

Catchy vanity numbers often include memorable patterns or number repetition. An “easy dial” number has a pattern of repeating digits, such as 1-888-888-8888. So try to leverage repetition to make your number simple to recall and dial. 

Rhythmic or rhyming patterns are even better. Incorporating one of these can be akin to a jingle that gets stuck in your head. Think 1-877-CALL-KEN or 1-833-SAVE-BEES.

Create a narrative connection

Some of the most effective vanity numbers spell out words or phrases directly associated with a brand’s service or product. These create a narrative or image that’s easier for the human brain to store and recall than random numbers. 

For example, a taxi service using 1-800-CAB-RIDE creates a mental image of the service provided.

To find word associations for your business, consider the following:

• Be specific: Brainstorm as many words/phrases that clearly describe what your business does. Choose words that are easy to read when glanced at and even easier to spell when heard aloud. Don’t go for words with spelling variations (for example, read and red).
• Avoid cliches and trendy phrases: Stick to classic or evergreen words/phrases rather than using new slang that will soon become outdated.
• Perform market research: You don’t want your number to look similar to your competitors’ numbers.

Ensure marketing consistency

Businesses use their vanity numbers across all marketing materials, creating a consistent point of contact. This repeated exposure in ads, on websites, and in physical marketing assets reinforces memory.

So, take a cue from your marketing materials to find a phrase that strongly correlates with your brand and your campaigns to motivate consumers to take action.

Choose a number that reflects your brand messaging and personality. For example, a spa may use something like 1-888-PAMPER-ME.

Choosing Your Vanity Phone Number Provider

It’s never been easier for small business owners to get a customized phone number from a reputable vanity phone number provider. Follow this game plan to secure yours:

Check the availability of the desired numbers

Most provider websites have an extensive database of available phone numbers. Enter your area code and prefix to see if your first choice is available. If not, you may receive a list of similar suggestions for new phone numbers. 

It’s a good idea to have a list of words, phrases, and numbers as backup choices in case you’re not thrilled with the suggestions.

Compare pricing and fees

Compare the pricing structures of your top providers, including initial setup fees, monthly charges, add-on options, and any additional costs for premium features or services.

Consider a provider that offers flexible plans to suit your business’s current and future scaling needs without going over budget.

Confirm if there are any port-out or cancellation fees — consider that as part of the cost of a vanity number, too. 

Verify number portability

Porting is the ability to move your vanity number to your new or existing business phone service. Verify that your provider allows you to keep your number even if you decide to switch services in the future. Bonus points if they help you seamlessly port the number out.

Related Article

What Is VoIP Number Porting? How Does It Work?

Look for additional features 

Evaluate the range of additional call-handling features offered, such as call forwarding, voicemail transcription, call tracking, caller ID, SMS capabilities, custom greetings, and integrations with other business apps.

Prioritize reliability, ease of setup, and customer support

Check review sites to find providers with a proven track record of reliable service and call management. If your phone number routinely goes down, that means not only lost business but also lost customer trust.

Your provider should also offer a simple and quick setup process. Check the estimated time it will take to get your number up and running.

And always choose a provider with responsible, knowledgeable customer support. Often overlooked when things are going well, the right customer support makes a huge difference when there’s a problem and your team members need help ASAP.

The Top 3 Vanity Phone Number Providers

Nextiva doesn’t offer vanity phone numbers. However, you can seamlessly port your vanity number from a provider. Nextiva includes free porting of any phone numbers you’re authorized to use.

Here are a few places to get a coveted vanity phone number for your business. 

1. NumberBarn

NumberBarn is a leading provider of vanity phone numbers, offering a vast inventory of easy-to-remember and memorable phone numbers for businesses of all sizes. They specialize in helping companies find the perfect vanity phone number to match their brand, target audience, and marketing goals.

Here’s a rundown of their most popular plans:

• Porting out starts at $2 per number. You can search and choose from their database of over 46 million numbers, then activate it, with 30 days to port out. Call logs, call blocking, a mobile app, number security, and a customizable 30-second message are included.
• Forward: New numbers start at $5 with a $5 port-in fee. For $6/month per number, you’ll get 300 minutes per month ($0.03/min for additional minutes), call forwarding, voicemail, auto attendant, text messaging, caller ID, outbound calling, and more.
• Unlimited includes everything in the Forward plan plus unlimited minutes for $19 per month per number.

NumberBarn offers email/chat support. Their no contract, no commitment, month-to-month plans make it easy to scale or cancel at any time.

2. 800.com

800.com is a leading provider of toll-free and local vanity phone numbers. Their built-in call tracking tool helps businesses improve customer engagement and achieve their inbound marketing objectives. 

You can search their online database to see if your perfect pattern of numbers/keywords is available. Then, you can select one of three plans:

• Personal starts at $29/month and includes 1,000 minutes and one toll-free number. 
• Unlimited starts at $75 per month and includes unlimited minutes and one toll-free number.
• Pro starts at $149 a month and includes 5,000 minutes and five toll-free numbers.

There’s a one-time $35 activation fee for toll-free vanity numbers, and it will take approximately three to five days for them to be activated. 800.com charges a one-time port-out fee of $100, and the process can take up to six weeks to complete.

3. eVoice

eVoice is another leading provider of vanity phone numbers, offering a wide selection of memorable phone numbers for businesses of all sizes. However, its process has more hoops to jump through than NumberBarn or 800.com.

First, you’ll need to request a vanity number by submitting a short form or calling the customer service team.

The customer service team will contact you by phone to confirm whether your number is available. If you give them the green light, they will add your vanity number to your eVoice account, and you’ll receive a temporary number until your vanity number is fully activated (after 72 hours).

eVoice doesn’t allow you to port your vanity number to your existing business phone service provider, so you’ll need to sign up for their virtual phone system, which starts at $14/month per user.

Become a Memorable Brand With a Vanity Phone Number

Vanity phone numbers are an impressive tool for small businesses striving to enhance their brand presence, improve customer engagement, and track marketing ROI.

Once you brainstorm and select a memorable number, you can harness the power of vanity numbers across print, digital, and outdoor advertising avenues.

Follow our tips for partnering with a reputable provider and ensure that you can port your new number to your existing business communications platform.

Remember, you can seamlessly port your vanity number to Nextiva to leverage the best business phone system for your brand’s soon-to-be-skyrocketing growth.

Now it’s time to ignite your creative spark and craft a few witty, catchy, on-brand vanity numbers to grab your customers’ attention and keep your phone ringing with new business!

Scaling a call center operation is a big responsibility.

It requires you to adopt technology that can balance several critical aspects, including call quality, costs, scalability, and flexibility.

A call center private branch exchange (PBX) solution helps you maximize agent efficiency and control costs. A PBX is a private telephone network within a company; it connects internal telephones to the public telephone network.

A PBX comes in several types. Traditional ones are costly to maintain, and adding more lines greatly increases expenses. Moreover, when tech-enabling call center operations, you have to think of addressing the real-world demands of hybrid and remote call center teams.

A cloud PBX serves such demands. Read on to learn more about different PBX solutions.

Types of PBX Systems in Call Centers

As a call center manager, you could equip your team with an efficient phone system to better manage phone calls. However, having various options can make it challenging to choose the right one.

Explore the following PBX types to understand the benefits and limitations.

Traditional PBX

Traditional PBX systems allow users to make and transfer phone calls in a single building or office. These systems also handle external phone lines for inbound and outbound calls.

Legacy PBX technology was around before the Internet’s emergence. It used copper wires to connect Plain Old Telephone Service  (POTS).

Before cloud-based PBXs, companies used central exchange (Centrex) lines where local service providers billed them for internal communications. Centrex is like a central telephone exchange: It aggregates multiple telephone lines into a unified communication group.

PBX systems made internal communications free. However, they came with a need for significant investment in on-premises installation and maintenance.

As the infrastructure investment became considerable, Voice over Internet Protocol (VoIP) providers later removed expensive hardware requirements, making phone service more cost-effective.

Internet Protocol (IP) PBX

Unlike traditional PBX, an IP PBX can switch, forward, or route calls between VoIP networks and PSTN lines. It uses an IP to deliver voice communication and integrates the Internet service and VoIP.

With an IP PBX, you can make and receive inbound and outbound calls over the Internet while managing analog phones in the office.

An IP PBX uses session initiation protocol (SIP) trunking to offer multiple voice channels. In an IP PBX, the internal phone extensions work the same way as a PBX.

A VoIP service provider offers credentials for SIP trunking connectivity externally. When authenticated, incoming calls reach your PBX.

IP PBX is a minimal change from analog PBX but offers cloud reliability and low communication costs. However, it comes with some challenges.

Your system administrator needs to be technically competent with the Linux operating system to configure an IP PBX. Moreover, most on-site PBX systems don’t cater to remote work, which is a pressing need for modern workspaces. A cloud PBX solution can better serve the needs of remote teams.

Hosted PBX

A hosted PBX sits off-site, and a third-party provider maintains it. You would find professionals referring to hosted PBX as a cloud PBX or virtual PBX.

It eliminates the need for on-site hardware installation, saving businesses money. Additionally, you can access all business phone numbers on the cloud from anywhere, which is the prime motivator for choosing a hosted PBX in a call center.

A hosted PBX is easy to set up and allows employees to work remotely. Unlike on-premise PBX, it doesn’t incur costs upfront and uses the network’s bandwidth modestly. It also lets you use any SIP phone to connect.

This phone system is fast and comparatively easier to work with, capable of more customization and flexibility. The information transfer happens over the Internet with enterprise-grade performance and reliability.

Related: 5 Types of Call Centers: Which Is Right for Your Business?

How To Tell If Your Call Center Needs a Cloud PBX

You would have to make a few trade-offs regardless of which PBX system you choose. 

Traditional PBX offers better call quality since it relies on physical line connections. Cloud PBX delivers better scalability and more robust features. 

Take a deep dive into whether a cloud PBX is the most suitable choice for your call center.

Outgrew on-premises phone system

Call volumes can trend upward or downward depending on callers’ needs. If you go for a traditional PBX, you need physical infrastructure changes to adapt to dynamic demand.

Here are a few signs that you need a more scalable solution:

• Unable to add more call capacity
• Callers receive busy signals frequently
• Calls drop because of longer wait times

A cloud-based system is fully equipped to adapt to your evolving needs. Adding new users happens instantly when you purchase additional subscriptions.

Slowed down by maintenance

System downtime is no excuse for stopping customer communication. It can have severe outcomes, for example, a bad review on social media.

Cloud PBX can help when you encounter these situations:

• IT staff is burdened with the physical maintenance of traditional PBX.
• Downtime and system failures increase.
• System maintenance costs exceed resources.

Technology changes fast, and keeping it current becomes a challenge when you have a traditional PBX system in your office.

Crave a unified messaging solution

Unified communications keep your team on the same page with a single shared platform. To simplify omnichannel communications management, you need a holistic view of voice, email, and video messaging.

Here are a few situations where a cloud-based call center PBX can help:

• Customer requests are falling through the cracks.
• Call center agents are updating information across separate apps, such as customer relationship management (CRM) tools.
• Team members are using personal phones and several different meeting apps for corporate messaging.

Have a remote team

A hosted call center PBX lets call center agents work from anywhere. It helps them take calls remotely while managing the needs of a distributed workforce.

In a place where 63% of call center leaders believe working from home is the future, you need solutions that can cater to this environment.

Here are a few easy signs to tell whether you need to move your call center to the cloud:

• Increasing numbers of remote team members
• Employees can work in the office or at home consistently
• It’s difficult to reach team members or route calls efficiently

Need more robust features

More than eight out of 10 customers prefer automated responses to avoid waiting to interact with a human agent. It makes cloud PBX features such as auto-attendants, call routing, and interactive voice response (IVR) indispensable for call center teams to improve customer experience.

Below are some situations where cloud call center features can help:

• Calls drop because of long wait times
• Managers have a tough time monitoring calls and coaching their teams
• Multiple call transfers occur before customers are connected to the right agent

You have a range of customizable features with a cloud PBX. These can be tailored to your call center’s needs and workflows.

10 Notable Call Center PBX Features

Call center PBX systems provide several additional features where on-premises options fall short. These features are easy to configure, and it doesn’t take long to start using them. Check out what features can make your call center operations more effective and scalable.

Go through these PBX features to learn about what you actually need for your contact center.

1. Automatic call distribution (ACD)

Call centers use ACD to answer incoming calls and route them to the best available agent. This routing is subject to various factors, such as caller ID, business hours, customer support level, and IVR selections.

ACD makes sure the right agent and department receive the call, and the caller doesn’t need to frustrate themselves by dialing different numbers.

Here are some notable techniques call centers use to distribute calls:

• Round-robin distribution distributes calls evenly across the team. For instance, in a team of five agents, the first call goes to the first agent, the second to the next, and so on. After the fifth agent, the cycle restarts with the first agent.
• Talk time-based distribution equalizes the total talk time among agents. Calls are routed to the agent who has spent the least time on calls.
• Fixed-order distribution routes calls based on a predefined order. If certain agents are designated as primary contacts, they receive calls first. If they are unavailable, the call moves down the hierarchy.
• Uniform call routing sends calls to the agent who has been idle the longest.
• Simultaneous distribution routes calls to all available agents simultaneously, and the first to respond takes the call.
• Weighted call routing allows managers to allocate a percentage of incoming calls to specific agents. The allocation is based on the agent’s expertise, language skills, or customer satisfaction ratings.

ACD is similar to IVR, but the former focuses more on directing calls to available agents, while IVR tries to direct callers to the right place as soon as possible. 

For customer experience, opt for an IVR. If agent balance is your priority, choose ACD. But it’s best to implement both.

2. IVR

Interactive Voice Response (IVR) asks customers to select options using their voice or the telephone keypad to reach call center agents.

You might have heard, “Press one if you’re a customer or press two to talk to sales.” This is exactly what an IVR does.

It greets callers and assists them in reaching the most appropriate agent or resource, based on the choices they make during the call.

An IVR is prone to sounding robotic. It’s best to record your greetings in a quiet room and smile as you read your script.

Keep wait times short or use these times to share promotional or important messages. 

You can consider multi-level IVR and integrate it with an ACD to maintain agent balance while providing a good customer experience.

3. Call queuing

Call queuing places incoming calls into a virtual line to be answered by the next available agent based on pre-established criteria.

Call queues hold the caller’s place in line until the call is directed to a call center agent. When callers are in the queue, play hold music and let them know about self-service options. You can even share some helpful tips to get the most out of your product or service.

Call queues help call centers effectively use the existing agent hours to manage high call volumes with a lean staff.

4. Call recording

Call centers can record agent calls to monitor and evaluate their performance, provide feedback, and improve service. However, when you’re recording calls, make sure to let the customers know this by playing a message such as “This call is being recorded for quality and training purposes.”

You must have heard a similar message when connecting to the support staff of the companies you’ve called.

Call recording helps you pinpoint areas where agents need to improve so that you can offer more targeted training. When escalations happen, call recordings help provide the context for the customers’ issues.

These recordings uncover challenges customers frequently face, and they help refine the support documentation with more information to help customers address their pain points with the product in a self-serve manner.

Related: How to Record Customer Service Calls & Why You Should

5. Real-time analytics

Team leads and supervisors can monitor calls in real time while generating detailed reports on call center metrics. You can discover how long customers waited on hold before connecting with an agent. These insights can help you perform workforce optimization.

After each call, you will have details about metrics such as the customer satisfaction score and the number of repeat callers. These metrics are the basis for optimizing your call center strategy.

6. Call barging or call monitoring

Call monitoring and barging are essential call center features.

Call barging helps the call center manager join a live call. It comes with a call-whispering function where the customers won’t hear the manager joining the call. It allows managers to ensure call quality and provide advice and feedback to agents when they need it the most.

The manager can enable a conference call or simply shadow the agent to help them quickly resolve the customer’s issues and provide the best experience to the customer.

7. CRM integrations

A cloud-based call center PBX lets you integrate your phone system with your CRM or customer data sources. It helps you log calls to provide context later to other teams that may not be directly involved.

For instance, if the customer interacted with the social media team, you can view those interactions.

Your agents can click to call and manage their tasks without going through a lot of back and forth between different applications. Integrations save time and provide context to make communication more effective.

Overall, customers feel more supported and heard, improving their experience with you.

These integrations help your team respond to customer questions with confidence and lower your average handle time.

8. Skills-based routing and after-hours services

Skills-based routing automatically assigns incoming calls to agents specializing in a particular skill set. You can configure the skills of each agent based on their competency levels.

Newer call center PBX systems come with omnichannel skills-based routing where customers reaching out through messaging, social media, live chat, SMS, and other digital channels can connect with relevant support agents.

You can enhance skills-based routing with ACD and IVR to better manage agent productivity while elevating customer experience.

For contact centers offering after-hours services, you can configure the call center PBX to route calls to live agents who can resolve customers’ issues.

9. Softphone app

With softphone functionality, contact center agents can use an app or their web browser on an Internet-connected workstation to make and receive calls. A softphone app has various PBX features, all within the software, which is easy to operate.

Your agents receive customer notifications, with the added feasibility of answering calls from comfortable workstations, improving their service delivery.

10. Security and compliance

A call center PBX uses encryption and secure voice protocols to keep communication safe and secure. The technology adopts the right security posture to comply with standards such as GDPR and HIPAA, protecting sensitive data and information.

These systems enforce access control procedures, ultimately preventing unauthorized access. It uses security measures such as endpoint security and call authentication to protect customers’ data and information.

How To Get the Most Out of Your Call Center PBX

Let these best practices help you drive maximum value through your call center PBX. Here’s what you can do.

Train your staff in workflow and software capabilities

Train agents and supervisors in every aspect of the PBX system. Cover basic operations and advanced features while making sure they gain hands-on experience to familiarize themselves with the system. It’s advisable to update the training material regularly to include feature changes.

You can develop handy guides or manuals with step-by-step instructions and diagrams if someone needs a quick refresher. This training would go beyond the initial onboarding process to include regular workshops.

Monitor and analyze performance data

Make sure to review call reports and analytics to understand agent performance. Look into metrics such as first call resolution, average response time, average waiting time in queue, and customer satisfaction score.

These metrics help you identify areas where you can improve. Let these insights guide your way toward making informed staffing decisions.

Optimize incoming call flows

When configuring your inbound call flows, make sure to remove unnecessary menu items. Keep options simple, clear, and straightforward to prevent customers from scratching their heads.

Focus on delivering the best possible experience while efficiently using your agent pool.

Reduce the number of steps a caller must take to reach their desired outcomes. It’s frustrating to go through an IVR simply to realize there’s no option to speak to a human.

No matter how many support areas you cover, provide an option to reach a live agent for customers with unique issues.

Give callback options to prevent customers from navigating long hold times. Let them know when they can get in touch with the agent.

Schedule system maintenance

A cloud-based call center platform doesn’t need any maintenance, updates, security patches, or hardware replacements, and it doesn’t have power failures. However, an on-premises PBX needs frequent updates and technical oversight.  

Nextiva requires zero maintenance, so you have continuous availability.

Grow Your Call Center With the Right PBX Provider

Think long-term. When choosing the best call center platform, move beyond what you need today.

Opt for a call center solution that scales in a flexible and cost-effective manner to meet your rising call volume. Don’t overlook indirect costs, such as maintenance, complexity, and overall IT burden, beyond the sticker price.

With these in mind, a VoIP or cloud-based solution stands out as the best approach to scale a call center. But if have an IP PBX and need a reliable trunking provider, we’ve got you covered.

Canopy Technology, a banking platform, made a reasonable choice by choosing Nextiva’s contact center solution to deliver a customer-first approach to finance. The company was looking for a tech-forward, omnichannel solution, and Nextiva checked all the boxes. It became a natural fit.

Ready to give Nextiva a try? Speak to a Nextiva expert.

Voice over Internet Protocol (VoIP) has been around for nearly three decades, but it’s so commonplace these days, that you might not be aware of the ways in which VoIP helps people communicate reliably. 

While the technology has evolved, it’s become a standard function in communication apps and a linchpin in business communication to meet increasing consumer and workforce demands. 

Let’s look at real-world examples of how VoIP is used across major industries and applications. We will also discuss several scenarios of how Voice over IP has helped companies scale their communications. 

VoIP Overview

VoIP phone service has been used since the late 90s as a way to make and receive phone calls from your computer or desk phone in an office. It uses your internet connection to establish voice calls together.

Today, VoIP technology real-time audio, streaming video, and exist at the heart of call centers. It’s the preferred choice instead of installing analog phone lines.

To appreciate the versatility of cloud-based telephony, let’s take a look at some of the sectors where it has made a big impact. 

• Healthcare: From telemedicine appointments to staff communication.
• Education: Distance learning and virtual classrooms have benefited greatly from VoIP.
• Business: Startups and enterprises use VoIP for scalable, cloud communications.
• Telecommunications: The telecom industry relies on VoIP and related technologies for its backbones.

Types of VoIP Communications

When thinking about examples of VoIP, consider the nature of the communications. Typically, all voice communications consist of the following scenarios: 

• User to User VoIP
• User to Traditional Phones 
• Traditional Phones to VoIP

User-to-User VoIP

Calls between users are where a VoIP phone provider would establish voice communications between multiple users internally. In many cases, these calls occur over the Local Area Network, such as in an office building.

Popular in both personal and business contexts, this allows two or more users to communicate directly through the Internet. Examples of user-to-user VoIP include virtual meeting platforms like Google Meet or Skype.  

User to Traditional Phone

Calling phones outside of the communication system is a core function of an office phone service. The service provider maintains superior call quality with data packets and relays voice calls to the traditional phone system.

This form of VoIP facilitates calls from users to reach the public telephone network, such as cell phones, landlines, and other phone numbers. The practicality here is that users can talk with customers, partners, and employees on and off the phone system.

This is where voice over IP telephony delivers the goods. Anyone can make and receive calls, including international calls, for up to 90% less than landline phones. In addition to low-cost calling, users can also send and receive SMS/MMS business text messages.

Traditional Phone to VoIP

Calls that originate from the PSTN are connected through a VoIP service provider. From there, the private branch exchange, known as a PBX, routes calls to the assigned user or team.

This arrangement is best for high-volume applications, such as at a call center. Incoming calls are held until they can be distributed to the appropriate team member. And since VoIP calls work over any broadband internet connection, the team can work from anywhere.

When thinking about VoIP applications for your organization, consider how users actually need to communicate with each other, customers, and partners. For instance, when replacing a traditional PBX, you might opt for a more cost-effective cloud PBX instead. 

In some cases, your team might not need the most advanced features immediately, but the advantage of VoIP is that they’re available when you want them.

Related: What Is a Contact Center? Definition, Features, and Uses

Examples of VoIP In Action

VoIP has a variety of uses. Here are several everyday examples of how each solution drives communication forward.

• Business phone service
• Call centers
• Paging systems
• Team collaboration
• Video conferencing
• Online gaming
• Personal messaging

Business Phone Service 

One of the most prominent applications of VoIP technology is in modern business phone services. Companies of all sizes are increasingly relying on VoIP for their unified communication needs. It’s cost-effective, improves efficiency, and adds flexibility to the work environment. 

Employees can stay connected from their desktops and mobile devices for phone calls, instant messaging, and more.

Case Study: Simmons Bank Moved their On-Premises PBX to VoIP

Call Centers 

In a call center scenario, VoIP is a game-changer. Voice over IP is the technology that lets customers operate efficiently and scale up as their company grows. VoIP technology also provides features such as call recording, auto attendants, CRM integration, and automatic call distribution. With VoIP, team members can work from anywhere. 

Case Study: Heaton Eye Associates Used Contact Center to Improve Patient Experience

Paging Systems 

Many facilities, such as hospitals, schools, or warehouses, employ VoIP-enabled paging systems for instant, on-demand communication. These systems utilize your existing IP network and do not need separate wiring, making them a practical and efficient choice. They can even work on Wi-Fi. 

Case Study: Mountains Community Hospital  Improved Communications with Group Paging

Team Collaboration 

In the era of remote work, VoIP technology shines. Professionals can easily collaborate with colleagues across the globe using VoIP phone systems, which offer features like real-time messaging, caller ID, voice and video calls, multimedia sharing, and even virtual whiteboards. 

Rather than shuffling between separate meeting apps, simply use the collaboration features built into your business VoIP solution.

Case Study: On the Map Marketing Improved Client Outcomes with Better Team Collaboration

Video Conferencing 

Whether it’s a company-wide meeting or a one-on-one interaction, video conferencing is essential to business communications. Video meetings use VoIP functionality to deliver real-time video and audio between computers and smartphones.

When team members want to call in from the road, they can — no extra meeting apps or softphones are needed. 

Case Study: PetRelocation Enhanced Team Communication with Video Meetings

Online Gaming 

VoIP isn’t only used in the corporate world. It’s also found its place in online gaming. In games that require team coordination, in-game VoIP allows players to communicate in real-time, enhancing their competitiveness and overall gaming experience.

The current pace of scalable, low-bandwidth, low-latency audio could be traced back to the days of TeamSpeak or Ventrilo, popular voice chat servers used by gamers.

Personal Messaging 

Interacting with friends and family on apps like WhatsApp, Viber, or FaceTime? That uses VoIP, too! These VoIP apps provide voice messages, video calls, and group chats. So, without even realizing it, you’ve been using VoIP in your everyday life. 

Essential Business VoIP Functions

Communication is at the heart of business. These communication features improve how work gets done and how customers are helped, thanks to VoIP.

• Call recording – Since VoIP is all-digital, voice conversations can be securely recorded in the cloud without additional equipment. Listen to past calls to identify areas to improve. 
• Call forwarding – Direct calls to another phone extension or phone number based on any criteria you want. Ensure every call is answered the way you want on your terms. 
• Interactive Voice Response (IVR) – An IVR routes incoming calls with a simple number-based menu so callers can reach their desired person or department. Since the call flows are virtual, you can update it anytime in just minutes. 
• Three-way calling – Bring on a third person into a conversation instantly with a cloud-based phone system. VoIP makes it easy to dial another person and bridge the calls together. 
• Group paging – When you need to broadcast a voice message to a department or all IP phones, VoIP provides the ability to dial a special extension to provide audio messaging. 
• Call parking – It’s simple to switch devices (e.g., desk phone, mobile phone, computer, etc.) to continue your conversation uninterrupted. VoIP technology makes this a big advantage over traditional landlines. 
• Call queues – When your company has more telephone calls than people to answer them, you need to place them on hold. This is known as a call queue. VoIP services specialize in the ability to provide on-hold messaging, call back functionality, and call routing. 
• Voicemail transcription – One of the benefits of VoIP is to get voicemail messages in your email. They arrive with accurate transcriptions made better with the power of AI.

Take Your Telephone System the Next Level with VoIP

Now that you’ve seen several examples and possibilities of VoIP, it’s time to take the next step. 

We recommend getting a personalized price quote. Why? 

Because VoIP is highly customizable, and all its features can be tailored to your company’s needs. If you need a simple “voice only” service, you can choose that. Or, if you want a more complete solution to improve the customer experience, that’s available as well.

Plus, you’ll also know the actual VoIP costs so you can see the savings and avoid surprises. 

VoIP opens up many possibilities for business communication. It allows you to do everything: talk to customers, run meetings, close sales, and schedule appointments. It’s there at every stage of growth in your business.

Choosing a VoIP phone system for your organization can be overwhelming. When researching providers, it’s easy to get lost in lists of features and pricing, especially when you need to account for qualities like great customer support and service reliability. 

Nextiva and Ooma are two of the leading VoIP business phone line providers for 2024, but which one is right for you? Both offer comparable pricing and have plenty of happy customers, so the devil is in the details.

This guide compares both platforms to help you choose the best VoIP service for your business, looking at features, pricing, and customer ratings. And while we believe Nextiva is the superior option in most cases, Ooma could meet the needs of those looking for micro-level offerings. 

Nextiva vs. Ooma VoIP Comparison

Looking to compare Nextiva and Ooma at a quick glance? This side-by-side comparison table can help. 

Nextiva’s Enterprise VoIP plan costs slightly more than Ooma’s Pro plan, starting at $32.95 per user per month compared to Ooma’s $29.95 per user per month. 

That said, the $3 a month difference is well worth it, with Nextiva delivering higher customer support and call management ratings and unlimited video participants. Nextiva also includes significantly more toll-free minutes, app integrations, and customer support hours. 

Nextiva vs. Ooma VoIP Product Features & Pricing

Both Ooma office VoIP technology and Nextiva’s business phone system offer similar features at comparable pricing. That said, Nextiva offers more “bang for your buck,” and includes personalized support and advanced functionality that businesses need. 

Nextiva plans, pricing & features

Nextiva has multiple price plans to help you balance the cost and functionality of your business communication needs. 

Nextiva’s Core plan is priced at $30 per user monthly, and gives you these features:

• Unlimited calling in the United States and Canada
• Customizable outbound caller ID
• HD video calls
• Desktop and mobile apps (iOS and Android) for softphone functionality
• Call logs with detailed history
• Smart call routing with spam call blocking
• A toll-free number with 1,500 minutes included monthly
• Microsoft Outlook and Google Contacts integrations
• Video meeting recording
• International calling rates are as low as $0.01/min
• Unlimited internet faxes

Nextiva’s Power Suite plan gives you additional functionality for just $60 per user monthly:

• Unlimited video conferencing participants with screen sharing
• Multi-level auto attendant IVR
• Toll-free business phone number with 12,500 minutes included
• Up to 20 integrations, including HubSpot and Salesforce add-ons
• SMS/MMS text messaging, with up to 2,000 text messages per user.
• Call recording (on-demand and automatic)
• Voicemail transcription to email or SMS messages
• Single sign-on support

Nextiva offers advanced functionality, with reliable features that can help you with all of your company’s phone system needs. 

Nextiva also offers attractive multi-year and volume-based discounts to keep your VoIP costs low. For example, if you have a team of up to 20 and prepay for three years, the Core plan drops from $35 to $30 per user monthly. 

Ooma plans, pricing & features

Ooma’s Essentials plan starts at $19.95 per user per month, with features including:

• Phone tree
• Call parking
• Ring groups
• Virtual receptionist
• Extension dialing and monitoring.
• Call transfers
• Hold music 
• Basic call logs 
• Call forwarding

Ooma’s highest-tiered plan is their Pro Plus plan, which costs $29.95 per user per month, and it includes additional features like the following:

• Call queues
• CRM integrations, with up to 5 integrations 
• Video conferencing of up to 100 participants
• Team chat
• Meetings recording
• Hot desking
• Call screening 

Ooma’s pricing is slightly less than Nextiva’s, but the comprehensive features Nextiva offers is well worth the difference. Nextiva also offers 12,500 toll-free minutes, a multi-level auto-attendant, and powerful video conferencing capabilities. 

Ooma vs. Nextiva Analytics

With the Ooma Office Pro plan, you can utilize the new call analytics functionality to get an overview of when your calls come in with easy-to-use charts. You can view metrics like:

• Call volume trends
• Call metrics by day of the week/hour of the day
• Call distribution
• Missed calls
• Outgoing and incoming calls
• Peak periods

Most of Ooma’s metrics are basic, though effective. Nextiva offers more advanced versions of these analytics. You can see more here: 

Nextiva features a built-in business intelligence tool that helps you make smarter business decisions, find hidden insights, and boost staff performance. Our analytics includes all of the above metrics and more.  

Nextiva’s analytics also has a voice analytics tool that provides a real-time synopsis of all actions in your contact center. You can see the voice analytics data that you need with Nextiva’s interactive maps and graphs.

While Ooma’s analytics aren’t quite as sophisticated as Nextiva’s, they’re fine for businesses that don’t need advanced tracking or that are on a budget. They are not, however, a good fit for businesses that need advanced tracking and may be looking for custom reporting and advanced integrations to understand (and optimize) call data and performance. 

Nextiva vs. Ooma Reliability

Nextiva has 99.999% uptime and carrier-grade data centers, which means you’re always online around the clock, even if the internet at large has an occasional hiccup. 

Nextiva’s data centers use fully uninterruptible power sources, with impeccable uptime in the industry. This is supported by Nextiva’s eight points of presence within North America, which leads to better call quality, less latency, and greater redundancy. 

On the other hand, Ooma boasts call quality but does not have an uptime guarantee like Nextiva and other VoIP providers. Ooma also only has four points of presence in North America, which is half of what Nextiva offers. 

Ooma vs. Nextiva Customer Support

Customer support is a key consideration that all brands should take into account when choosing a VoIP or business communications provider. 

Nextiva offers several ways to get help, including:

• Phone support
• Live chat
• An online ticketing system
• Video tutorials 
• An online knowledge center 

Phone lines are open Monday through Friday from 5 a.m. to 6 p.m. MST, seven days a week. 

While on weekends, their phone lines are open between 6 a.m. and 4 p.m. MST.

Ooma also provides phone support available every day of the week and during office hours. Their support personnel are reliable in terms of ensuring that you get the needed help at any time.

Because every business claims to deliver great customer experiences, it’s important to let existing clients chime in here. Reading customer reviews online that specifically mention customer support should be a vital step in your decision.

Nextiva is known for delivering outstanding customer support experiences, with expert agents with a commitment to customer satisfaction. 

Over 3,000 Nextiva reviews are posted on GetVoIP, many of which mention our customer service. Here are a few of them:

• “Switching to Nextiva was a transformative experience for us. Their support team ensured a seamless transition, and the improvement in call quality was remarkable. What truly sets Nextiva apart is their ability to customize their service to our specific needs, like communication wizards. They have become an invaluable communication partner, delivering top-notch support and service quality. I highly recommend Nextiva for anyone looking to elevate their communication solutions.”
  — Camilo D. 
• “What truly sets Nextiva apart is their unwavering commitment to meeting our unique company needs… they took the time to understand our specific requirements and tailored their services specifically to us… With their top-notch support and service quality, Nextiva has become an invaluable asset to our organization.”
  — Ari M. 
• “I’ve worked closely with Nextiva over the past two years, and I’ve been really impressed. They helped us set up our communication systems as our company grew from 20 to over 150 employees. Their call center reporting platform is robust and user-friendly. Of course, we’ve had a few hiccups along the way, but Nextiva has always been quick to help us resolve any issues. Unlike many companies where you want on hold forever, with Nextiva, I’m rarely on hold for more than a minute.”
  — Angelica M. 

When it comes to Ooma’s customer reviews, some customers have recently reported struggling to get in touch with their support team. 

One customer review on TrustPilot, for example, noted that they couldn’t connect with support when they tried to follow up for charges after cancellation. Another review mentioned that the customer service policies created an unpleasant experience. 

Ooma vs. Nextiva Setup and Usability

Initial setup and overall usability can directly impact your experience. It’s essential to choose a tool with intuitive usability and strong ease of use so that all members of your team can use the technology. 

Ooma’s three-step system makes the setup process simple, enabling users to get the system up and running in your company efficiently. Ooma also provides straightforward interfaces for desktop and mobile devices, and devices are pre-configured. 

Nextiva’s user interface is incredibly intuitive, even with complex requirements. Robust features like user administration, call flows, and voicemail transcription are easy and straightforward, ensuring that even tech novices can navigate the software.

If you have any questions during the setup process, don’t worry — Nextiva’s customer support team can help you every step of the way. 

While both Ooma and Nextiva offer simple setup and usage, NextivaONE (including desktop app and mobile app) is more intuitive than Ooma’s, with a more visually appealing and feature-rich interface.

Which VoIP Service Is Right for Your Business?

Every company has its pros and cons, so you’ll need to consider those when choosing a VoIP service.

A small five-person business relying heavily on a call center, for example, will have starkly different needs from a large company with 20 customer service teams. 

That said, Nextiva consistently offers more extensive features and functionality for only $3 more per month with comparable plans. 

Nextiva’s customer support and reliability both consistently outperform Ooma’s scores on multiple platforms, including GetVoIP. Nextiva has a 4.6 score, while Ooma has a 4.3 customer support rating.

Nevertheless, the best phone service for your business ultimately depends on your budget, unique needs, and which specific features are most important to you.

Nextiva works best if:

Your company has more demanding communication needs, such as:

• CRM or help desk integrations
• Virtual and toll-free phone numbers
• Intelligent call flows and forwarding
• Real-time call analytics
• Easy setup and administration
• Friendly and knowledgeable customer support

Ooma is ideal if:

You are interested in either residential or micro-level offerings. While Ooma’s features are sufficient for a small business, larger organizations will need a more feature-rich solution. 

Ooma, however, is great for residential VoIP phone service. It’s one segment that Nextiva doesn’t cover. 

So, which VoIP service should you choose? 

We may be biased, but we believe that Nextiva is a stronger solution for most business needs when you’re considering a VoIP phone system. Customers get the most calling functionality at a great price, all backed by the company’s signature Amazing Service®. 

Nextiva takes cloud-based business VoIP and unified communications to the next level with advanced features that go beyond basic functionality. And when your business expands, you’ll have a tightly integrated contact center that scales with your team. 

Nextiva’s all-in-one communications platform can help your business improve, assess, and optimize communications performance with exceptional uptime and reliability.

For decades, traditional landline phones relied on circuit-switched networks to make calls. But in recent years, Internet Protocol (IP) telephony has taken over voice communications.

By transmitting voice conversations over data networks rather than traditional phone lines, IP telephony systems enable unified communications that integrate voice, video, messaging, fax, conferencing, and more at a much lower cost.

The global IP phone market is valued at over $20 billion and is expected to grow steadily in the coming years. Businesses need to step up and use this emerging tech to their advantage.

To get you up to speed, we’ll discuss what IP telephony is, how it works, and how you can use it to improve customer communications.

What Is IP Telephony?

IP telephony (Internet Protocol Telephony) refers to any phone system that uses an internet connection to send and receive voice data.

Unlike a regular telephone that uses landlines to transmit analog signals, IP phones connect to the internet via a router and modem.

The first publicly available IP phone arrived on the market as early as 1995. But, compared to a standard phone system, it had low audio quality and was prohibitively expensive.

Since then, internet-based phone technology has improved by leaps and bounds. IP telephony now offers HD voice quality, cheaper running costs, and advanced business phone features.

And the need for up-front investment is next to nothing.

IP telephony doesn’t stop at voice calls. Here are some more of its use cases.

• Video calling
• Audio and video conferencing
• Text messaging
• Instant messaging
• Faxing

How Does IP Telephony Work?

IP telephone systems use the Internet Protocol — the fundamental data communication protocol of the Internet and modern networks — or other digital protocols to transfer voice communications over the internet.

IP telephony digitizes analog voice signals into data packets that are then transmitted using the Internet Protocol. As data packets traverse networks, they encounter devices such as routers that read packet headers and forward them to their destinations.

The major protocols that enable IP telephony include SIP (Session Initiation Protocol) for signaling and call session management, RTP(Real-Time Transport Protocol)/RTCP (Real-Time Transport Control Protocol) for transmitting voice media streams, and H.323 (call control and signaling protocol), an early VoIP protocol.

When packets complete their journey, the software reassembles them in the correct order to reconstruct the voice stream.

If you use an IP PBX system, the data is transferred digitally on a Local Area Network (LAN), and then transformed to analog voice signals and sent to the Public Switched Telephone Network (PSTN).

However, because of high hardware and installation costs, IP PBX is no longer the leading solution.

Hosted VoIP has become the most popular IP telephony solution. It lets businesses take advantage of advanced PBX features without hardware installed on-site.

Here’s a breakdown of how the VoIP system works: 

With hosted VoIP, your IP phone sends data (in the form of digital signals) over the internet to your provider. Your provider handles the routing of calls, call queues, and everything else in the cloud.

You can also use SIP trunking to connect a legacy IP PBX to a modern VoIP provider to take advantage of missing features.

IP Telephony vs. VoIP

IP and VoIP telephony are often used interchangeably, but there’s a subtle difference between them.

IP telephony is a broader term that covers any telecommunications system using the Internet Protocol to transmit voice and data. This includes traditional phone systems that have been upgraded to use IP, as well as newer VoIP systems.

Voice over IP (VoIP), on the other hand, is a specific technology that uses IP to transmit voice calls. It’s a subset of IP telephony that specifically deals with the transmission of voice traffic.

In other words, all VoIP systems are IP telephony systems, but not all IP telephony systems are VoIP systems.

The term VoIP was initially more specific. It only referred to the technology used to make and receive phone calls over the internet.

In recent years, though, even VoIP providers and telecommunications companies have started to use these terms interchangeably. IP telephony and VoIP technology both cover phone systems that use a LAN (local area network) to connect to the internet via a modem/router.

Key Components of IP Telephony Systems

IP telephony systems comprise several key components that work together to facilitate voice communications over IP networks. These include:

• IP PBX: The IP PBX, or Private Branch Exchange, serves as the central switching and control unit for the IP telephony system. It manages call routing, voicemail, and other features.
• Softphones: Softphones are software-based alternatives to traditional hardware phones. They run on computers or mobile devices and allow users to make and receive calls directly from their devices.
• VoIP Gateways: VoIP gateways connect IP telephony systems to the PSTN, enabling calls to be made to and from traditional phone numbers.
• Session Border Controllers (SBCs): SBCs act as gatekeepers for IP telephony traffic, providing security and management functions. They ensure that only authorized users can access the network and protect against unauthorized access and attacks.
• Network Infrastructure: A robust and reliable network infrastructure is essential for supporting IP telephony. This includes high-speed network connections, adequate bandwidth, and proper network configuration.

Protocols play the most important role in IP telephony. Which protocols IP telephony uses depends on how your phone system is set up and your VoIP provider.

To effectively send voice data over the internet, you need a way to compress and decompress it. Because phones stream data in real-time and the focus is on human voices, they can’t use general codecs like MP3.

Most IP telephony service providers, including Nextiva, use the specialized G.711μ codec — the same as the new digitized PSTN.

Related Article

What Are VoIP Codecs & How Do They Affect Call Sound Quality?

Benefits of IP Telephony

More software buyers go with VoIP phones than any other type of voice service.

Why are so many businesses making the switch? 

1. Reduced costs

VoIP is significantly cheaper than traditional business plans. Switching to an unlimited VoIP plan can save you up to 50% over a comparable business landline plan.

Nextiva Core, for instance, starts at $30/month per user and includes unlimited calling for the US and Canada.

Consolidating voice and data networks saves businesses long-distance and international call charges.

2. More features without extra hardware

IP telephony offers access to advanced features like advanced call routing, call recording, instant messaging, and video conferencing without having to invest in extra hardware.

Nextiva lets you choose advanced enterprise plans that include all key VoIP features. Businesses can also upgrade and enrich their plans with different add-ons or add more users as they grow. This makes IP telephony highly scalable.

3. Increased accessibility

With IP telephony you can make and receive calls from anywhere in the world as long as you have an internet connection.

Users can make and receive calls from their computers, mobile phones, or any device with a softphone or VoIP app installed. This mobility is particularly valuable for businesses with remote or mobile employees.

4. Unified communications

VoIP also makes it a lot easier to integrate voice communications with your CRM and other business tools.

Centralizing data and providing consistent customer service across multiple channels (at a lower pricing) makes IP telephony and VoIP a no-brainer for many businesses.

Challenges With IP Telephony

Quality of Service (QoS): VoIP calls can be susceptible to network jitter and latency. This can lead to choppy audio, dropped calls, and other issues. Make sure you have sufficient bandwidth and a reliable internet connection to support VoIP.

Security: VoIP calls can be intercepted and eavesdropped on if not properly secured. Implement encryption and authentication measures to protect your calls.

Compatibility: VoIP systems may not be compatible with all existing telephone devices. Investing in the right VoIP phone service that can connect your existing systems via SIP trunks is key to switching to IP telephony.

Reliability: VoIP systems rely on the internet. VoIP calls may be interrupted by power outages or other internet outages. Make sure to have a backup plan in place if the VoIP system fails.

Although IP telephony can present its own challenges, you can easily get around the common issues. It all starts with choosing a VoIP service that understands your needs, has a reliable and scalable system, and offers excellent technical support.

Save Big on Monthly Bills by Switching To VoIP

Want significant cost savings and a new and more multi-line phone system with advanced PBX features?

Nextiva offers tailored solutions to businesses of all sizes. Our small business VoIP plans start at $20/month per user and go up to $60/month per user for companies that require unified communications and more advanced features.

Our Amazing Service Team will be with you every step of the way and ensure that the switch to VoIP is seamless.

Ready to make the switch to IP telephony? Speak to a Nextiva expert for an all-in communications solution.

Related: What Is Digital Telephony? Is It Right for Your Business?