A Comprehensive Guide To VoIP Advantages And Disadvantages

VoIP, or Voice over Internet Protocol, is a widely used communication technology with various names such as Voice over IP, internet calling, IP Telephony, etc. When considering a switch to a new service provider, it’s important to evaluate the benefits and drawbacks. It will help you in finding out whether VoIP calling software is right for your business or not.

This guide provides a comprehensive overview of the advantages of VoIP calling software.

Advantages of VoIP

Here are the four most significant advantages of getting on board with this cloud-based solution:

1.     Lower Running Cost

VoIP can reduce your expenses in multiple ways, such as eliminating the need for copper wiring and enabling a fully wireless setup.

Additionally, VoIP addresses one of the costly downsides of traditional telephony, as taxes, repair, and maintenance expenses are included in the VoIP subscription, starting as low as $1 per user per month with some providers.

  1. Portability

VoIP also offers portability benefits, as a virtual number can be used for calls and texts from any location. Furthermore, teams can project a local presence by selecting a country or area code that matches their target audience.

It makes it very useful and practical for working settings, particularly those with remote teams.

  1. Scalability

Switching to VoIP offers flexible scalability at a low cost. Rapidly increasing or decreasing extensions or departments can be done easily in minutes without a complex onboarding process, unlike traditional PBX systems. Most providers use per-user pricing, allowing adjustable numbers to fit changing needs without incurring unnecessary expenses. It makes VoIP a cost-efficient and agile solution for businesses.

4.   Increased Accessibility

Accessibility is a significant advantage of VoIP. Clear calls can be made with a reliable internet connection and adequate bandwidth. No longer are you limited to areas with phone signals, and there’s no need for additional wiring installation. As long as both parties have a strong internet connection, calls will go through, making VoIP widely accessible and straightforward.

What are the Disadvantages of VoIP?

While VoIP is often less expensive and more accessible than other systems, it’s important to consider some disadvantages.

1.     A Stable Internet Connection is Required

One of the major drawbacks is that since the signals travel over the internet, fluctuating connections can lead to increased lag times and poor call quality, among other interruptions.

A connection speed of 100kbps or higher is generally sufficient for a stable VoIP system, but alternative options should be considered in areas with weaker connections. However, as internet providers continue to improve their services, this may no longer be a disadvantage.

2.    Latency and Jitter

VoIP works by transmitting sound through data packets, which carry bits of information and are reassembled to form a coherent message upon arrival at the receiver’s end.

A delay in transmission causes latency, and a jitter is caused by disruptions in reassembling data packets at the receiving end. These problems are often due to poor internet connection, inadequate routers, and insufficient Ethernet cables. It can lead to scrambled conversations and the need to reschedule calls, making it a major disadvantage.

Types of VoIP Phones Systems

Another factor to consider before choosing a VoIP solution is the type that best suits your needs. There are two options – on-premise and cloud-based – each with its benefits and drawbacks.

·       On-Premise

Choosing an on-premise VoIP system requires obtaining the server hardware through ownership or leasing and installing it at your business location. This type of solution can be capital-intensive as you are responsible for its ongoing maintenance. It is one of the drawbacks to consider.

Despite its disadvantages, on-premise solutions are still viable for small to medium-sized enterprises. A leading provider, 3CX, offers a PBX system starting with a Raspberry Pi, making it accessible for SMEs.

On-premise solutions, despite being capital-intensive, offer the benefit of in-house control and can be an option for small to medium-sized enterprises. For example, 3CX, a leader in the industry, offers a PBX system with a Raspberry Pi appliance that is small, energy-efficient, and pre-built to reduce setup time, allowing smaller companies to enjoy on-premise benefits.

·       Cloud-Based or Hosted

Cloud-based VoIP solutions have the advantage of requiring no upfront costs for installation or maintenance, as the provider manages everything. It makes it a cost-effective option for SMEs who may not have the resources or personnel to dedicate to running the system. The provider takes care of all the setup and maintenance, allowing SMEs to focus on their business and enjoy a sophisticated system without hassle.

Hosting your business phone system in the cloud by a third-party provider like 3CX is the idea behind cloud-based solutions. They offer numerous benefits, including integrating multiple features into one platform. With features like live chat, CRM integration, and video conferencing, cloud-based solutions can meet all your business communication needs.

Types of VoIP Services

There are numerous varieties of VoIP services on the market, each with its benefits and drawbacks. The top three choices are listed below for you to consider before determining which is best for your company.


To make and receive calls over the internet, you must typically purchase a USB adaptor straight from the service provider and plug it into your current phone set. It is merely a step away from the drawbacks of the conventional PBX, but it does present the chance to start saving by doing away with monthly phone expenses.


It entails using a computer to access an online VoIP platform or software already installed on your PC. With this choice, a desk phone is not required to make a call. With a strong internet connection and a laptop, you and your coworkers can connect from anywhere you like because no wiring or special adapter is required. It is another benefit that can easily be added to the list.


It’s comparable to the software service, but you must download an app directly to your tablet or smartphone. Once more, this approach ensures mobility and maybe even more practical than accepting calls through a browser.


VoIP has many more benefits than drawbacks, and deciding to adopt this technology by any company is easy. You can always modify the system to meet your demands without paying additional fees by keeping your corporate communication objectives in mind. Additionally, it is not just a cost-effective but also a trustworthy solution, as uptime, security, and call quality have all increased over time.

Bijoy Pal

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