Before we delve into discussing hosted VoIP, let's look at some information regarding internet penetration in the United States in 2012. By the end of 2012, 75% of the entire population of the USA is expected to be an internet user with this growing by a few percent every year thereafter. Actually getting connected to the internet can cost anywhere from $20 per month upwards depending on the level of service that you need. So any individual or small business can get some internet connectivity for a very low monthly fee. For larger businesses this cost will obviously increase as they need to move away from a DSL or Cable connection to a T1, T3, Fiber or Ethernet connection to the internet. For the purpose of this discussion, let's assume that a small business can get really good internet connection for $25 per month.
Now let's assume that your business has some form of interaction with customers and they need to wait while you perform a service. This could be anything from a small doctor's office to an oil change facility. Because there is regular customer interaction, there is likely a very frequent need to make and receive phone calls. If we assume that you currently use a regular old telephone line that does not send voice over the internet, then some prices that we have found (AT&T Bellsouth - Oct. 2012) are as follows:
Note - Additional features include
caller-id, call waiting, etc
Now let's assume that your small business has 2 phone lines and you need to make calls to any area code nationwide, as this is highly likely in this digital age where people in any location can choose any area code for their phone number.
So to summarize, here is the best case monthly cost and features:
Now let's compare what can be had with a hosted VoIP service and explain why every business needs it. We will of course add the additional cost of the internet connection as it is a requirement for a hosted service to function as this is after all, voice over the internet.
So with a hosted VoIP phone service, a small business can actually save
money every month even with the additional cost of the internet service.
Even if the business owner does not think the business will ever need an
internet connection for any other reason, it could be a nice free
service to offer customers a free wireless internet connection while
they are waiting. You want your customers to keep coming back after all
and a lot of people actually go to Starbucks just for the wireless
internet. Even bigger savings can be had by using a residential phone
service for your business such as
Phonepower with rates starting at $4.99 per month. You will not get
quite as many features as a business level service but it could suffice
In summary, every business needs hosted phone service because:
There are many alternatives for
consumers when it comes to choosing a phone service. The obvious
alternative to a home service is to simply only use a cell phone and
dump the home service altogether. This can be an expensive option though
as both calling and data charges can mount up very quickly. If we take
the cell phone out of the picture and assume that most people have
internet access at home, then it is a fairly easy decision when trying
to decide between a legacy phone solution and a hosted phone solution.
The benefits are mostly the same as described above for businesses with
the cost per month being the biggest reason to change, as a hosted VoIP
service will ultimately save most consumers hundreds of dollars per
Author: Tony Campbell
Many businesses are saving a lot of money by switching telecom services over to voice over IP technology. Identifying a reputable VoIP provider that can deliver on promises is becoming a challenge for most businesses as new providers enter market on what seems like a daily basis. We welcome you to use our free quote request form to get in touch with qualified providers directly and get some initial pricing information.
Use the form below to add your comments/thoughts and to interact with us. All comments will be moderated by WhichVoIP.com before going live. We try to answer all questions within 24 hours.
Posted by Al on April 30th, 2013:
Good comparison. Seems like a no brainer to move my business over to this type of service.