Compare Complete VOIP Small Business Telephone Solutions

I recently found out how many different small business telephone solutions are available today when I was asked to help recommend and install a phone system for a small company.

In my research, I chose to focus on VOIP solutions for several reasons:

1. low cost
2. ease of installation
3. convenience of online management

After much background research and comparisons, I narrowed my search down to two providers, Packet 8 and RingCentral.

Here are the benefits of each:

Packet 8

Packet 8 offers both VOIP telephone equipment and service for a reasonable monthly cost. The phone equipment is well designed, fairly easy to use and plugs in using normal RJ11 telephone jacks. High speed internet access is required and the routers connect your telephone lines to your cable modem.

All phone lines are managed online through a control panel, which is a bit confusing at first, where you can modify your settings, phone extensions and system functions.

You can also add dedicated voip fax lines as well by adding an additional router you can purchase from Packet 8.

All plans include unlimited calling in the US, advanced call forwarding, outlook integration, and an auto attendant option that basically manages your incoming calls and routes them to any phone in your system. Each physical phone has a direct number as well as an extension that is available through the attendant.

You can either rent the telephone equipment or purchase it outright.

There are many service plans that start at $39.99 (auto attendant and single phone) depending on where you'd like to call and whether you want to rent or purchase the telephone equipment.

Customer service is available Monday-Saturday during working hours.

RingCentral

RingCentral is setup differently by providing all services except VOIP digital telephone through an online control panel allowing you to get started within minutes of signing up. RingCentral is basically a virtual PBX where you either setup a new business phone number in area code available (or transfer an existing number) and allows you to setup how your callers will be directed without any hardware or equipment.

You can have extensions going to phone numbers anywhere in the world, setup custom greetings, voicemail, setup rules based on time of day, dial by name directories, call forwarding, call screening, music or personalized recorded messages on hold, call screening, caller id, click to call from your web site, outlook integration, call logs, fax on demand, email fax, calling card function and many more.

Service plan costs start at $9.99 a month although you'll most likely end up with the more robust plan at $24.99 which is very reasonable for the features offered. VOIP digital telephone service is available for as little as $4.99 a month and is available in addition to the RingCentral Virtual PBX service.

A 30 day free trial is currently available without obligation. It's one of the only services I found where you can try it and if it's not for you, you can just cancel and walk away.

Support is available 24 hours a day and is quite helpful.

Bottom Line

In comparing these two services I took the following into consideration.

The company I was helping already had phone lines and numbers active in their office and had many contractors working with them throughout the country. The office was small and the principals often worked from home and traveled.

With these factors the RingCentral plan made the most sense for their company. I recommended the Digital VOIP service for their physical office and the RingCentral virtual PBX service that would manage all their incoming calls through one phone number. They could choose to add a toll free number (currently RingCentral is offering 800 numbers at no cost) or user their existing business telephone number.

The positive testimonials and press that RingCentral has received is hard to overlook and gave me comfort in making the recommendation.

If the company was new and didn't already have existing equipment, the Packet 8 service may have been a cost effective alternative, depending on how many 'virtual' employees or contractors were involved.

How Does VoIP Work?

VoIP is Voice over Internet Protocol. Standard telephone lines are referred to as PSTN or the Public Switched Telephone Network. PSTN works on circuit switching. A good example of circuit switching is the old switchboard operator who would connect callers to receivers by the use of electrical circuits. VoIP is Packet Switching. Packet Switching consists of data packets, or packets of information being carried across the Internet, from your computer to either another computer or PSTN telephone.

VoIP operates in different forms. For instance, you can use VoIP when you use an Instant Messaging program with voice on your computer. These are very popular and now Yahoo, AOL, MSN, ICQ, and even Google have VoIP Instant Messaging programs. The benefits of these programs are that they are free to download off of the Internet, and by using a microphone and your speakers; you can talk over the Internet with any of your buddies. As long as your friends and family members download the same program, you will be able to talk with them as long as you like, and absolutely free. You can talk to anyone, anywhere in the world with VoIP Instant Messengers.

Another method of VoIP technology is to use a VoIP service provider for your basic telephony needs. A very familiar company is Vonage. For a monthly fee, you will receive VoIP services, the same as you pay for your regular telephone services. You can choose to use your VoIP service over the Internet, or you can choose to connect your VoIP to your standard telephone. By connecting a VoIP phone adapter to your modem and standard phone, you will be able to use your VoIP service and your telephone as you would with any other telephone service provider.

Many people prefer to use a VoIP service provider because the cost of local and long distance calling with VoIP is very inexpensive. Many providers offer unlimited, flat rate calling plans. There are other features that are often bundled with your service plan. Features such as Voicemail, Caller ID, Call Waiting, Call Transfer, and 3 Way Calling are often included for free in your selected VoIP plan. By choosing your VoIP service provide and installing a phone adapter, you will be on your way to making low cost VoIP calls in minutes.

You can also purchase a specialized VoIP phone. These phones come in both cordless and corded styles. The cordless VoIP phones work the same as standard cordless phones. Many of these phones also come with conferencing features and are suitable for small or home business needs.

Another form of VoIP telephones are the VoWiFi phones. These are wireless VoIP phones. This is the same technology as VoIP, only you are not limited to a plugged in connection. You can use your VoWiFi phone wherever there is a wireless High Speed Internet Connection. These phones are slightly more expensive then mobile phones and are now becoming popular options for consumers. They are a cost effective choice for those who would like to save a little money.

Another form of VoIP is a hybrid service that is more like a softphone application, making and taking calls directly from your computer (no handset) as well as providing an extensive voicemail system with additional features. PrivatePhone is one example of this service and includes additional features like 'call me back', downloading and posting voicemail messages online and many more. It's an effective choice for classified ad replies, advertising, lead collection and private phone calls.

VoIP has proved to be a viable source of telecommunications. Many companies are now offering VoIP services and those who aren’t have plans to do so. Companies such as Verizon and Sprint offer VoIP services. Other companies are working on creating VoIP phones and VoWiFi phones. There are Hybrid phones on the market, which allow for both VoWiFi and Cellular calling. These phones have many people excited. They can work in a network range as a cellular phone, and then, they can work as a VoWiFi phone, avoiding all roaming charges.

The FCC has issued some regulations regarding VoIP and the ability to call 911. Because VoIP uses the Internet and not a landline phone, when a call is made to 911 from a VoIP connection, the operator who receives the call receives none of the caller’s pertinent information. This includes address or location of the call. Some service providers do not supply 911 at all; others have what is known as Enhanced 911 services. To use these services you may need to activate your service, as well as register your information with 911. However, you will need to sign a statement when you apply for your VoIP services stating that you understand your 911 capabilities may be limited.