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Updated : September 10, 2025

Mobility is the new baseline. In fact, after rolling out VoIP, 68% of small businesses saw an increase in employee mobility. That means calls, video, and messages from anywhere, not just a desk, with the help of VoIP phones. If you’re still stuck on copper wires, you’re already behind.

This blog gives you insights into what VoIP phones are, how they work, the different types, core features, pros and cons, and how to set them up.

What Is a VoIP Phone?

A VoIP phone, also known as an IP phone, is a modern communication device that uses the Internet connection rather than the public switched telephone network for calls.

Unlike a traditional phone system, it doesn’t require copper wiring. Instead, it connects through software or hardware, enabling mobility, lower costs, and features such as call routing, voicemail, and video support.

Example: An office may keep its existing phone number but migrate to VoIP hard phones connected via USB, Ethernet port, or wireless connections.

Also Read What is a VoIP Caller? A Complete Guide

How Does a VoIP Phone Work?

When you speak into a handset or headset, your voice is digitized into packets and sent over IP networks. A server or VoIP provider manages the call routing, ensuring it reaches the intended recipient, whether on a landline, mobile phone, or other devices.

The process requires:

• A phone system (cloud PBX or hosted solution)
• A stable Internet connection for reliability
• Supported devices like softphones, hardphones, or a computer with VoIP apps

All in all, VoIP over IP phones offer flexibility, scalability, and exceptional global connectivity.

Types of VoIP Phones

The right VoIP phone depends on how your team actually works: remote, office-based, or a mix of both. Let’s understand each in brief.

1. Softphone

A softphone is software installed on a computer, mobile device, or Android/iOS app. It enables voice, video, and text messaging, all without a physical handset. Softphones integrate easily with tools like Microsoft Teams to support collaboration.

2. Hardphone

VoIP hard phones look like traditional landlines but run on VoIP technology. They often have Bluetooth connectivity, USB ports, and forwarding options. Many Cisco and Poly Trio phones are preferred in conference rooms because they enable HD calls, connect multiple devices, and support customers with reliable audio.

3. Analog Telephone Adapter (ATA)

An ATA bridges a traditional phone system with VoIP. It lets older desk phones and landlines connect to IP networks. This reduces long-distance charges while reusing existing hardware.

Also Read Best Enterprise VoIP Phone System For Business Communication

VoIP vs Traditional Phones

What are the Top VoIP Phone Features for Businesses?

A new VoIP cell phone system has many more features than just calling. These features are designed to promote efficiency, provide a better customer experience, and support teams collaborating effectively!

1. Auto Attendant: An auto attendant is a virtual receptionist that auto-directs the caller to the correct person or department. It creates a professional and first-class experience.

2. Voice Calls: VoIP provides voice calls with a better static experience in comparison to traditional phone systems and ensures better conversations.

3. Instant Messaging: The use of real-time messaging allows employees to connect quickly on mobile. It is a good way to simplify internal communications.

4. Voicemail: Voicemail messages can be accessed from a computer, smartphone, or any other supported device and they allow employees to never miss an important communication.

5. Call Forwarding: With call forwarding, calls are automatically redirected to your mobile phone or another device. This guarantees availability even when employees are away from their desks.

6. Ring Groups: Ring groups allow the user to have several devices and all of them ring simultaneously. They allow inbound calls to be answered quickly.

7. Call Queue: A call queue can help a business manage customer wait times by putting incoming calls into a queue in an orderly manner.

8. On-Hold Music: Silence makes people hang up. On-hold music or short branded messages keep callers engaged and give you a chance to share updates or promos without sounding salesy.

9. Call Recording: Recordings help with compliance, speed up training, and settle disputes quickly. It’s one of those features you don’t realize you need until you really need it.

10. Call Analytics: Call analytics gives you the hard numbers, such as volume, duration, and response time. So you can spot gaps, optimize workflows, and make sharper business decisions.

Also Read Top 9 Free VoIP Phone Service for Businesses

What Are the Benefits of VoIP Phones?

The VoIP services market size stands at USD 172.49 billion in 2025 and is forecast to expand to USD 308.41 billion by 2030, reflecting a 12.32% CAGR through the period. So, VoIP isn’t just a phone system. It’s how modern teams stay connected without drowning in complexity.

• Cost-Effective: Why pay more for the same thing? VoIP helps you minimize phone bills, especially if you’re making international calls, without cutting call quality.
• Low Maintenance: No complicated hardware. No waiting on IT. Everything runs in the cloud and updates automatically, leading to less hassle and more focus on goals.
• Enterprise-Class Features: Auto attendants, forwarding, analytics, and video meetings. Big-company features that small teams can now access without big-company budgets.
• Local Numbers, Global Presence: You don’t need offices everywhere to look local. VoIP lets you set up numbers in multiple regions, so customers trust you and feel comfortable calling.
• Better Call Quality and Reliability: VoIP calls sound sharp. With HD codecs and modern devices, you’ll often get better clarity than you would get on a landline.
• Improved Security: Your calls aren’t just conversations, they’re data. Encryption and secure protocols keep them locked down, so your business stays protected.

Downsides of VoIP Phones

VoIP internet phone certainly has its advantages, but it also has its difficulties. Knowing what limitations you’ll be working with first (such as VoIP is dependent on power and internet) prepares businesses for the future.

• Requires Continuous Power Supply : Conventional phone service (PSTN/landline) allows you to initiate a phone call from a physical phone during a power outage. However, VoIP has specific requirements when using a constant power supply for flat service, and any outage also requires a wireless access point for service. Hence, no power leads to no phone service.
• Requires a Quick and Reliable Network Data Connection: VoIP usually needs dedicated bandwidth or it is very dependent on the quality of the user’s internet connection. So, if your business does not have sufficient bandwidth and speed or a reliable network, you might suffer from dropped calls and quality of service issues.
• Susceptible to Latency and Packet Loss with Unreliable Internet: There’s latency (delayed transmission) or packet loss (data that’s missing), when the network is congested. As a result, it might cause echo, call latency, or just distorted audio.

Pro Tip:

• Don’t buy on features alone. Buy on fit. A phone that’s perfect for an executive will frustrate a call center agent and vice versa. Match the device to the work, not just the budget.

Best 5 Picks for VoIP Phones

The “best” VoIP phone isn’t about the fanciest features; it’s about how well it fits your day-to-day. A call center agent, a scaling startup, and an executive on back-to-back meetings don’t need the same device. So, here are five phones worth looking at and why they matter in reality.

1. Cisco 8845 IP Phone

This is the boardroom favorite phone. Big, sharp display, video call support, and Bluetooth so you can pair it with your headset. If you’re leading teams or in client-heavy roles, it makes every call feel polished.

2. Polycom VVX 450

Polycom VVX 450 is a phone you want in a call center; it handles multiple headsets, supports PoE, and won’t slow down when your team is back-to-back all day.

3. Yealink T57W

Hybrid work? Then this phone is for you. Wireless, Bluetooth, and a responsive touchscreen make it easy to bounce between home office, desk, and meeting rooms without much effort.

4. Grandstream GXP2170

For businesses that are growing fast, this phone scales with you. Handles 12 lines, multiple ports, and still keeps call quality high. That means no painful upgrades every time you hire.

5. Avaya J179 IP Phone

This phone is modern and mobile-friendly. It looks sleek, plays nicely with Android apps, and has solid forwarding options. If your team expects their desk phone to feel more like their smartphone, this is it.

Also Read 10 Best VoIP Apps for iPhone

Best 5 Picks for VoIP Conference Phones

Conference rooms bring all types of requirements: clear audio pickup, multi-person integrations, and flexible connectivity. This list of five conference phone systems delivers reliable experiences from small huddles to enterprise-level meetings:

1. Poly Trio RealPresence 8800

Built for large conference rooms, this system demonstrates advanced audio pickup integrated with platform technology systems. It includes high-end microphones that allow everyone in the room is heard.

2. Yealink CP960

This is a modern conference phone that has wireless microphones and Bluetooth connectivity in one device. With an intuitive touchscreen interface, it’s perfect for quickly managing calls, especially in a fast-paced corporate meeting.

3. Cisco 7832

This compact and sleek device is appropriate for office meeting spaces. With native Microsoft Teams integration, it takes the hassle out of working in collaboration with hybrid teams.

4. Grandstream GAC2500

Powered by Android, this unit delivers access to a wide range of applications. It offers strong flexibility for businesses that need more than just voice conferencing.

5. Konftel 300Wx

A fully wireless device that integrates well in dynamic environments. Capable of good mobility due to DECT technology, this device doesn’t compromise audio quality. So, it is great for teams working in more than one space.

What Type of VoIP Phone Does My Business Need?

Choosing the right VoIP phone comes down to how your employees work and where they’re located. A remote sales team won’t have the same needs as a corporate office or a conference-heavy organization. Below, we’ve broken it down by common business environments so you can quickly identify the best fit.

Special Use-Cases of VoIP Phone

VoIP isn’t just for offices. It works for anyone who wants communication that’s simple, reliable, and flexible. From home users to teams leaving legacy systems behind, the right setup keeps calls smooth and accessible.

Seniors & Home Users

For seniors or home users, VoIP offers intuitive devices, large displays, amplified audio, and Bluetooth support for wireless headsets. The result? Calls become clearer, easy, and stress-free.

Also Read What is VoIP Phone and How Does it Work? – Beginner’s Guide

Security and Compliance Features of VoIP Phones

Following all these steps will reduce the stress of business by making their VoIP convenient, secure, and compliant. A  VoIP solution will surely give you a measure of flexibility and efficiency that is essential for every aspect of business these days.

How to Implement Your VoIP System?

Implementing VoIP is easier than you think! Here are the detailed steps:

• Step 1: Choose your provider – Make sure the plans, features, and integrations align with your business.
• Step 2: Set up your devices – Desk phones, softphones, or mobile apps setup is crucial as per your preference.
• Step 3: Investigate your network – Quality of Service (QoS) settings will prioritize voice traffic, so you can have reduced drop rate and less lag time.
• Step 4: Provision – Use the portal associated with your provider, which will speed up your implementation. (In most cases, provisioning can occur automatically with a number of devices simultaneously.)
• Step 5: Train your people – Show your team how to access voicemail, forwarding, conference calls, and any other advanced settings your VoIP system has.

In Summary

VoIP is not just another phone system but a smarter way to connect! Your VoIP systems can save money and scale your business in whichever direction you want, and that alone is worth the price! It provides you with all the features of an enterprise-grade level to deliver a customer experience above and beyond the competition.

Pro Tip:

• Run a “VoIP fire drill.” Simulate peak call hours or a temporary outage before going live. It surfaces hidden gaps so you’re not scrambling when it matters.

FAQs

1. What’s the Difference Between a VoIP Phone System and a UCaaS Solution?

The significant difference between the two is that a VoIP system is focused on voice calling, while UCaaS (Unified Communications as a Service) combines calling with video conferencing, instant messaging, and multi-device support. So, it is a more complete collaboration suite.

2. Are VoIP Phones More Cost-Effective Than Traditional Phone Systems?

Yes. VoIP drastically reduces costs, especially for long-distance and international calls, making it a better option for global teams.

3. Can I Use My Current Cell Phone for VoIP?

Absolutely. By installing a softphone app, you can make and receive VoIP calls directly from your smartphone.

4. Can You Use VoIP for International Calls?

Yes. VoIP providers let you place international calls at a fraction of the cost of traditional landline carriers.

Published : September 9, 2025

Shaily Aditya, AVP of Sales, has extensive experience leading sales teams and driving revenue in the VoIP and SaaS sectors.  He leads revenue growth initiatives by developing scalable playbooks, managing high-impact teams, optimizing pricing strategies, and using AI tools to enhance team productivity and consistently exceed revenue targets.

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