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Voice over IP (VoIP), also referred to as VoIP Phone, Digital Phone, Internet Phone or Broadband Phone, is a type of phone system that uses an internet connection to transmit voice traffic. Because of this reason, VoIP service plans are considerably less expensive than traditional phone systems. VoIP offers standard features like voicemail, caller ID, and call waiting, as well as advanced features like video conferencing, call tracking, and online system management.

Since VoIP is an Internet-based system, you can track and manage your system from your computer. Thus, to avail a VoIP system, you will require high-speed internet connection, a VoIP service plan, and phone equipment. VoIP service providers offer various plans to suit small companies, large corporations with multiple offices, households, and almost every other type of users.

If you do not want to purchase VoIP phones you can opt for VoIP adaptors, or use the microphone and speakers connected directly to your computer to make calls. Many providers may also allow you to access your VoIP facility on certain mobile devices and cell phones. Do not be overly confused about VoIP Phone Systems as VoIP system is much less complicated than you think. You can easily get the right VoIP Phone System in keeping with your needs and budget.

In view of this, you should choose the VoIP plan based on the size of your business operations, the nature of communication facility your business needs, the features that will be truly useful to enhance your business productivity. The VoIP service provider should be able to give you all the standard features as also free long distance calls, e-mail, fax, Web conferencing, even videophone for no extra cost.

Many of VoIP features may be attractive but you must exercise caution and not buy features you may never need. At the same time, do not try to needlessly cut corners - pay a little more and get the best.

Insist on testing the sound quality and make a few sample phone calls before deciding finally. A symptom of overall bad voice quality would be significant lags or delays while talking with the person on the other side. If your VoIP service provider offers a trial, then seize the opportunity. Meantime, also check if you have a slow or less dependable internet connection.

You must eliminate the possibility that the delay is due to technical reasons. In fact, many businesses have networks that are unsuited for supporting VoIP. Make sure that your network is compatible for VoIP by having a network test.

If your business is already using a traditional phone system and you want to still use your current phones, you can merely buy the adaptors instead of fresh hardware. VoIP phones are indeed costly but they are still a sound investment if you are keen to have sophisticated communication facilities for your business and you plan to utilize the VoIP system on a long-term basis.

As for which VoIP service providers are the most reputed and reliable, search online and make an intelligent comparison. It is essential that your service provider should provide you 24/7 back-up customer support. Weigh all the issues, pros and cons, before making an informed decision on the right VoIP system and the most suited service provider.