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After a pandemic that forced companies to figure out distributed work arrangements, most employees are already used to voice over IP systems like Skype or WhatsApp. These apps provide digitally clear audio calling for free. It is not difficult to see why business owners would start to look to VoIP systems for business calls, rather than opt for archaic public switch telephone networks (PSTNs).

According to HubSpot, more small and medium-sized businesses (SMBs) will be choosing VoIP in 2022 than ever before. Here are some of the reasons VoIP works for SMBs and not just enterprise companies.

Lower Costs

According to GetVOIP’s analysis of multiple studies, small businesses can save up to 90% of startup communications costs by investing in a VoIP system rather than a PSTN system. 

Traditional phone systems are wired and require physical installation along with service and maintenance. VoIP systems only require software installation and cloud servers. The lack of material costs makes it cheaper upfront to choose VoIP.

PSTNs often charge fees for service as well as installation. They might charge per minute or call, but they are paid for the use of the lines they own. VoIP service is usually charged monthly and often offers unlimited service. There are even some free VoIP services that don’t charge for their service at all.

Higher Audio Quality

Traditional phone systems are limited in audio quality, while VoIP can provide incredibly clear and high-quality audio. The difference is immediately noticeable. If high-quality audio is important for your calls, there is no competition between VoIP and PSTNs – the clear winner is Voice over IP.

Video Conferencing Support

Zoom meetings have become a fixture of corporate life as a result of the pandemic, and businesses of every size are looking for more teleconferencing options. PSTNs weren’t built for this and they simply can’t offer it. The best you can hope for is a conference call. 

VoIP services that focus on audio are increasingly incorporating video conferencing as well. A secure VoIP network that allows both audio and video calls is an asset for small businesses trying to bring employees together effectively without using a dozen different apps. 

More Analytics

Phones don’t keep records of who they called, or who called them, and there aren’t many options in PSTNs for call logs and tracking. In many cases, employees end up entering this information into a separate system (like a CRM) manually so that this data can be collected and mined for insights.

A VoIP system has the advantage of constantly recording data – how many calls are outgoing and incoming, how long callers spend on the phone, which numbers are being dialed, and even what the quality of the audio is like.

These analytics can help drive business decision-making regarding scheduling, sales, and customer service.

Better Integrations

VoIP services can be integrated with other systems to reduce work and redundancy. Linking a VoIP service with a CRM allows employees to make immediate updates to customer files based on their calls. In 2022, more and more integrations will become available as VoIP services use their APIs to connect to other apps adding new functionality.

Improved Security

There are some security vulnerabilities that VoIP systems have which PSTN systems don’t. However, digital security is always improving and the security measures that protect PSTN systems haven’t been updated in decades. The security weaknesses of the eighties are still present in traditional telephone systems.

Overall, small businesses see VoIP as a more secure option. Conversations can be encrypted, and protected behind firewalls and data can be stored on secure servers. 

VoIP for Small Business

With better audio quality, security, and analytics, VoIP has a lot to offer both enterprise companies and SMBs. Small companies in particular are eager to get on board rather than invest in old PSTN systems. Although VoIP networks are sometimes more complex to set up than traditional networks because they have more options and features, they also offer advantages, including potential cost savings. In a competitive business environment, an excess of features and possibilities is not a drawback. The technological limitations and upfront costs for PSTNs are becoming harder to justify.