VoIP phone systems are becoming widely popular in the UK and around the world. According to a report by Techopedia, they not only slash international calling rates by 90% but save employees 32 calling minutes per day as well.
Not only that, with the rise of remote work culture after COVID-19, switching to VoIP is a smart decision for all types of businesses. But how to set up a VoIP phone in the UK and what is the necessary equipment? Let’s have a look.
What Is VoIP?
VoIP is short for Voice over Internet Protocol. In simple words, it is a technology that allows you to make or receive phone calls using your internet connection instead of a telephone line. VoIP doesn’t send your voice through copper wires as traditional landlines do; instead, it breaks your voice into small data packets and sends them over the internet, where they reach the other person.
The idea has been around since at least the 1990s, but it is now much more reliable and ubiquitous than in the past few decades, not least as high-speed broadband became widespread across many parts of the UK. Today, VoIP is the most used phone system for businesses of all sizes, including sole traders and large enterprises.
There is another key factor providing traction for VoIP specifically in the UK: the upcoming deactivation of the Public Switched Telephone Network (PSTN), which is the traditional copper-wire telephone system that serves many landlines. The announcement means that all UK businesses will eventually need to transition to a digital alternative, and VoIP is the natural successor.
But aside from that forced transition, VoIP has some genuine benefits: much cheaper calls (even international calls can be 90% cheaper than landline rates), many features included as standard, like call forwarding and voicemail-to-email, and the ability to make calls from any device anywhere.
How Does VoIP Work?
Understanding the inner workings of VoIP is not necessary for daily use, but it can aid in making more informed decisions about providers and improving problem-solving skills.
Here is how it works:
- A microphone built into your phone, headset or computer listens to your voice.
- The VoIP software (or hardware phone) then digitises that audio, transforming it into binary data.
- This data is compressed and split into tiny packets, each with routing info, like an email address that can be split and reassembled.
- These packets are sent over your internet connection to the servers of your VoIP provider.
- If the recipient is on a VoIP-based system as well, the packets are sent directly to their device, where they’re assembled back into audio. If the recipient is using a standard landline or mobile phone, your VoIP provider translates the data back into an analogue signal and sends it through the Public Switched Telephone Network (PSTN).
- This entire process happens in real time, with a round trip usually taking less than 150 milliseconds when your connection is functioning properly.
The protocol most frequently used to handle this process is SIP (Session Initiation Protocol). It takes care of the lines that establish, manage, and terminate each call. When you search for VoIP providers, you might come across the term ‘SIP trunk’, which is simply the virtual line that connects your phone system to the broader telephone network.
Having a fast internet connection is crucial for VoIP call quality. Here are three factors in particular that influence your call quality:
- Latency: It is the lag between when you speak and your conversation partner hears it, which can affect call quality. Anything less than 150ms is generally acceptable; above 400ms you start sounding awkward in conversations.
- Jitter: It refers to the variability in the delivery time of packets. Too high jitter leads to choppy or robotic-sounding audio.
- Packet Loss: It is the failure of data packets to reach their destination. Low packet loss (1 to 2%) can lead to audible degradation in call quality.
Most broadband connections nowadays will do VoIP without any trouble, but it’s worth running a speed test before you install your system to make sure that your connection can handle the task.
Setup requirements of VoIP
What do you need to get started with VoIP? There are 8 pieces of equipment you would/might need as a business.
- Internet connection: VoIP calls are made via the internet therefore you would require a stable and high-speed internet connection.
- Router & switches: The router transfers data between your internet and the devices while the switches manage the VoIP traffic, ensuring optimal call quality.
- VoIP software: These are necessary software or applications that allow you to manage calls on devices like computers, mobile phones and laptops.
- VoIP phone adapters: The analogue telephone adapters (ATAs) convert traditional landline phones into VoIP phones.
- SIP trunks: SIP trunking enables you to connect your VoIP phone system to the Public Switched Telephone Network (PSTN) for external calls (voice & video).
- Power over Ethernet (PoE): PoE switches provide power to your VoIP phones without needing separate power adapters.
- IP PBX: This telecommunication device will provide centralised voice connectivity to the VoIP phones present within the vicinity of your office.
- VoIP service provider: A professional VoIP provider meets your business requirements and offers robust support.
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How to Set up VoIP for Business? 8 Steps
The process of setting up VoIP starts with accessing your business’s requirements and ends with testing the system. Let’s have a look at the steps in detail.
1. Test the internet
As a rule of thumb, VoIP calls take 85 – 100 Kbps of internet bandwidth per line. Considering that most internet providers in the UK now provide speed packages in gigabytes, your existing network connection will likely be sufficient for the VoIP phone system, but you have to consider the number of lines you want to operate with your internet network.
When testing your internet connection, you also have to consider issues like jitters, latency, low bandwidth and packet loss. These issues can lower the quality of VoIP calls and create customer service problems. To overcome them, choose a wired internet connection (fibre, DSL, twisted pair or cable) instead of Wi-fi or 5G.
It is also recommended to configure quality of service (QoS) settings on your router. By prioritising VoIP traffic, you ensure that internet calls are preferred over other types of data (like streaming and downloading), thus enabling better and uninterrupted call quality.
Talk to your VoIP provider if your existing internet connection is sufficient for your business needs and upgrade it, if needed.
2. Access your business needs
Before choosing the right type of VoIP provider and system, you have to analyse the requirements of your business. Some of the questions that you may ask yourself and your team are:
What are the cost implications?
Will switching to VoIP help us save costs when compared to the existing phone system? And can we afford the system?
What is the magnitude of our communication needs?
This includes information regarding the number of daily customer inquiries and client calls, the time wasted during call transfers, etc.
Can the VoIP system scale with my business?
Determine whether a VoIP system is suitable enough even when your business expands in the future.
Do we have the network infrastructure to accommodate the VoIP system?
Determine whether you have the space to add the IP PBX, SIP trunks, additional routers, VoIP phone sets, etc.
Will my employees easily understand the new phone system?
Analyse if your employees can be trained to handle the VoIP system quickly and efficiently. Since it’s a new technology, some of your employees might face difficulties in adhering to it.
Which package is suitable for my business?
This includes considerations like the cost, type, flexibility, scalability and features of the available VoIP packages.
3. Choose the right VoIP type
There are generally 2 distinctive types of VoIP systems – on-premise or hosted. On-premise system means the hardware and software are installed in-house and you’re responsible for its maintenance and handling.
Hosted systems mean the hardware is located on the premises of the VoIP provider and it’s linked to your business through the cloud. In that case, the provider is responsible for all the maintenance.
You have to decide which ones suit your needs.
| Property | In-house system | Hosted system |
|---|---|---|
|
Budget
|
The in-house system requires capital for the initial installation of the infrastructure. |
The hosted system doesn’t incur the upfront installation costs of the infrastructure.
|
|
Scalability
|
Scaling can be complex and costly.
|
Easily scalable.
|
|
IT resources
|
Needs a dedicated IT professional in-house to handle the system.
|
No need for an IT professional as the VoIP provider will look after the technicalities.
|
|
Customisation
|
Gives you complete control over the customisation of features & integrations.
|
Limited to the features allowed by the package you choose.
|
|
Scope of control
|
Gives you complete control over the system.
|
The provider has control over the system.
|
4. Choose the VoIP provider
According to a report by Succurri, some of the major phone communication problems for businesses include static noise, choppy sounds, delay in transmission and no ring on forwarding calls.
If you choose a professional and reputable VoIP provider, your chances of fixing these problems increase which leads to better customer satisfaction and more revenue as a result. So how do you decide which VoIP provider is suitable for you?
- One that provides cost-effective plans: Cost is a big consideration when choosing a VoIP provider. Consider choosing a provider that offers affordable, flexible, and customisable packages.
- One that provides sufficient features: The features should align with your business needs. E.g. if you have remote teams, you might want to have the conferencing call feature necessarily. Or if you handle customer inquiries every day, an effective call forwarding and voicemail greeting message will be crucial.
- One that offers software integrations: Choose a provider that allows you to integrate applications like customer relationship management (CRM), etc. with your VoIP system.
- One that provides assistance in SIP trunking: The difference between SIP and VoIP is that SIP trunking enables the transfer of video alongside voice calls. If your VoIP provider supports this, it can help reduce costs and maintenance compared to maintaining two separate channels for each type of transfer.
- One that has good customer support: Choose a VoIP company that provides 24/7 and quick customer support so issues can be resolved timely.
5. Buy the hardware
The next step in VoIP installation is purchasing the needed hardware. This will depend on your personal needs but generally, it includes VoIP phones, headsets, ATAs and softphones.
VoIP phones are available in the range of £40 – £300 depending on the manufacturer and the number of features (ethernet ports, LCD display, conferencing, noise cancellation, etc). Choose a high-quality VoIP phone that provides clear audio quality and is long-lasting.
VoIP headsets are a great support to your phones. With the headsets, your company’s agents can take customer calls on the go while looking up customer information, noting down details and chatting with the team members simultaneously.
ATAs allow you to convert your existing analogue phones into VoIP phones. These adapters not only save costs on buying new desk phones but give your employees peace of mind since they have to keep operating on the existing phones they’re competent with.
Softphones are another method of reducing hardware costs. These are applications you can install on devices like computers and smartphones to manage VoIP calls.
Although computers and smartphones have built-in microphones and speakers, it’s recommended that you attach external headsets with the softphones to improve the call quality.
6. Choose a VoIP number
How do I get a VoIP phone number in the UK? You can choose a new phone number from different types like local, vanity and toll-free or transfer your existing number on the VoIP phone system through the provider via number porting.
Let’s first see the types.
- A local number is assigned to a specific location. If your business operates in a specific market, it could be a good option. Also, if your business is spread across multiple locations, you can choose multiple local numbers for each location. They are usually free.
- A toll-free number is an 800 number and looks more professional. Your customers don’t have to pay for the long-distance charges when calling toll-free numbers and all the cost will fall upon the business (but don’t worry since VoIP calls are way cheaper than traditional landline calls).
- A vanity number is customised to spell out a word or phrase related to your business, making it memorable. E.g. 1-800-FLOWERS. These numbers help with brand recognition but can come at a high cost.
You can use your existing phone number as a VoIP number as well. The process is called porting. It’s the process of transferring your existing number from one service provider to another.
The process involves submitting a porting request to the new provider, who coordinates with the current provider to transfer the number. The verification and authorisation steps are completed within 15-20 business days and the transition gets completed.
7. Connect the VoIP equipment
Now, you need to connect the hardware together i.e. VoIP desk phones and headsets.
To connect PoE-enabled VoIP phone:
- Use a CAT5e or CAT6e Ethernet cable and plug one end into the PoE-enabled port on the router or switch.
- Plug the other end into the Ethernet port on your VoIP desk phone. The phone will receive both network and power connectivity through this single ethernet cable.
To connect VoIP phones that are not PoE-enabled:
- Plug one end of the Ethernet cable into the port on your router.
- Plug the other end of the Ethernet cable into the Ethernet port on your VoIP desk phone.
- Plug the AC adapter into an electrical outlet and connect it to your desk phone. Complete the initialisation process.
To connect VoIP headsets with Electronic Hook Switches (EHS):
- Plug the EHS adapter into the EHS port on the VoIP phone.
- Connect the other end of the EHS adapter to the assigned port on your headset base station.
- Connect the base unit with the power outlet. Access the desk phone’s settings and enable EHS functionality before testing the EHS connectivity through a call. You should be able to answer, end and mute calls directly from your headset controls.
To connect headsets with phone jacks:
- Connect the jack from the headset to the headset port on the desk phone. If your headset has an RJ-9 connector, insert it into the corresponding RJ-9 port on the phone.
- Adjust the headset settings on the phone and make a test call to ensure the headset works correctly.
You might also need to connect your desk phones with the IP PBX and SIP trunks for which you’ll require professional help. After the connections are completed, the configuration of VoIP devices should be executed.
This will include assigning phone numbers to each VoIP phone, setting up IP addresses and gateways, activating voicemail boxes, connecting with the CRM system, implementing firewalls and security protocols and controlling features like hold, call forwarding, and transferring.
8. Test and train
Once the VoIP is set up for your business, test all components to ensure they work smoothly. It is crucial because only with effective testing can the probable issues be addressed and solved before the system goes live for business usage.
Make multiple calls from different devices at different times and analyse the clarity, consistency, stability and latency of the calls. Especially, look out for issues in case of high traffic.
After your technical staff is confident about the VoIP system, you also have to train your employees about the usage of this new technology. Hold sessions and demonstrate the functioning of different features like call forwarding, auto-attendant, video conferencing, ring groups, etc.
Additionally, teach them how to download apps, manage calls on softphones while on the go, and integrate third-party apps with the VoIP phone system.
What Do You Need For A VoIP Setup?
A key factor behind the warm reception of VoIP among businesses is that it simply doesn’t require a complex infrastructure to be installed and configured before you can get started. Here’s a rundown of what you will need:
1. A Reliable Internet Connection
This is the gist of all VoIP systems. Generally speaking, you require approximately 85 to 100 Kbps of bandwidth per concurrent call. This requirement isn’t a problem for most businesses with a standard fibre broadband package, but you should keep your total number of concurrent calls in mind when determining whether your connection is sufficient.
When it comes to VoIP, a wired (Ethernet) connection is always better than WiFi because it’s more stable and less vulnerable to interference. If some of your team members are using wireless connections, make sure that your router has quality-of-service (QoS) settings to prioritise VoIP traffic.
2. A VoIP Service Provider
You’ll need to register with a VoIP provider, which will provide your phone numbers, host your calls and maintain the technical infrastructure. RingCentral, 8×8, Vonage, bOnline and Gamma are UK-based providers. The provider you choose will dictate which features are available for you, the cost of your calls, and the level of customer support you receive.
3. VoIP Phones or a Softphone App
You have several options when it comes to actually making and receiving calls:
- IP Desk Phones: These are physical phones that connect via Ethernet and look like your more traditional office phone. These phones are ideal for employees who are frequently at their desks. The cost depends on the features but tends to be between £40 and £300.
- Softphones: Software applications installed on a laptop, desktop or smartphone that work like a phone. Softphones are the most flexible and cost-effective solution for individuals working in remote or hybrid teams.
- Headsets: Using headsets with a desk phone or softphone greatly improves call clarity and reduces background noise.
4. A Router That Supports QoS
All routers are not created equal when it comes to VoIP. Quality of Service (QoS) is a feature that lets your router prioritise voice traffic over other data (such as streaming or file downloads), ensuring calls are clear even when the rest of the network is in heavy use. Most current business-class routers support this, but it’s worth a check prior to setting up your system.
5. Optional: Analogue Telephone Adapter (ATA)
If used with any existing desk phones, the Analogue Telephone Adapter (ATA) can convert traditional desk phones to work in a VoIP system. If you have just purchased physical phones and prefer not to replace them quickly, this system is an inexpensive alternative.
5 Best Practices To Set Up Your VoIP Phone System
But getting the technical setup in place is only part of the battle. Here are some best practices for getting the most out of your VoIP system from day one:
1. Try Out Your Network
Perform an audit of your network before signing with a provider or buying hardware. Check not only your download and upload speeds with a free VoIP speed test tool but also your latency, jitter, and packet loss.
If your results show latency above 150ms or packet loss above 1%, you’ll need to either upgrade your broadband package (or switch from wireless to wired) before VoIP will ever work reliably for you.
Pro Tip: Be sure to ask the provider you choose if they offer a demo call or free trial period; these features will allow you to test real-world call quality on your specific connection before signing a contract.
2. Configure QoS On Your Router
Even if your internet connection is fast, it might not perform well during peak hours of use if VoIP traffic is competing with video streaming, large file downloads or other data-intensive applications. This configuration, known as Quality of Service (QoS), tells your router to prioritise voice packets, preventing call quality from degrading when your network is at capacity.
You can access the QoS settings menu on most business-class routers through the admin portal. If you have a question about how to set these options up, your VoIP provider or IT team should be able to help.
3. Choose A VoIP Number
Consider what kind of phone numbers you need before setting up your system. UK businesses typically choose between:
- Local Area Number: These inspire trust with local customers and indicate a real presence in an area.
- 0800 Freephone Numbers: Customers can call the number free of charge, facilitating inbound enquiries and lower friction, perfect for the sales and support lines.
- Non-geographic numbers (for example, 03xx): These are standard chargeable calls that aren’t linked to specific grounds. These numbers are an excellent option for individuals seeking a nationwide reach without being associated with a specific city.
Most providers also do number porting, which is transferring your existing phone number over to them if you already have a phone line. This usually takes between 10 to 20 working days, so plan ahead.
4. Set Up Key Features
Ensure that your core call features are configured before you hit go-live. Make sure the following are set up and tested before your VoIP system goes live:
- Auto-attendant (IVR): The electronic greeting that leads callers to the correct department or extension.
- Voicemail: Have clear, professional voicemail greetings and set up voicemail-to-email so that messages are not missed.
- Call forwarding and ring groups: Determine what happens if a call isn’t answered or when the department is busy.
- Hold music and on-hold messages: A minor detail that matters in every caller’s journey.
- CRM integration: If your team uses a CRM (Customer Relationship Management) system such as Salesforce or HubSpot, find out whether your VoIP provider has a direct integration to automatically log call data.
5. Train Your Team Thoroughly
Ultimately, a VoIP system will only work effectively if the people using it are comfortable with it. Hold mini training sessions before going live to walk your team through the features they will use on a daily basis, such as transferring calls, setting availability status, using the mobile app, retrieving voicemail and joining conference calls.
Focus closely on remote or hybrid workers, who will most likely be using softphones on their laptops or mobiles. Make sure they know how to manage call quality across different networks.
VoIP vs Analogue: Which One Is Better?
With the UK PSTN switch-off coming, it is less a case of ‘Which is better?’ It would be beneficial to seek more information on ‘When should I switch?’. Still, it’s helpful to know the practical differences between the two sensors so you can better plan out the transition.
Here is a side-by-side comparison of VoIP and analogue:
| Feature | VoIP | Analogue |
|---|---|---|
|
Call Costs |
The costs are particularly low for long-distance and international calls. Most plans include unlimited calls to UK numbers. |
The call rates are expensive, particularly for long-distance and international calls. |
|
Setup Cost |
Low |
High |
|
Scalability |
Add or delete lines via your provider’s dashboard with ease. |
Installing new lines takes time and is expensive. |
|
Features |
Features such as call forwarding, auto-attendant, voicemail to email, video calling, CRM integration, and more are included. |
The service only offers basic call features like hold, transfer, and voicemail. Limited built-in functionality. |
|
Mobility |
Calls can be made from any device, such as a desktop, mobile or laptop. Basically anywhere with internet. |
Dependent on a place and a desk phone. |
|
Reliability |
Depends on internet connection quality. |
The quality of the call is not dependent on the internet. |
|
Call Quality |
It works great on a decent broadband connection, but it can degrade with poor connectivity. |
The quality remains consistent and remains unaffected by bandwidth. |
Final Verdict: When it comes to costs, remote working potential and the upcoming PSTN switch-off, VoIP is overwhelmingly the preferred solution for UK businesses. Analogue lines remain ahead only in a few locations with patchy broadband, a situation that is becoming increasingly rare as fibre reaches most places across the UK.
Want to learn more about the difference between VoIP and landline? Then see our guide: VoIP vs Landline Phones: Which is Best For Your Business?
Find The Best VoIP Providers With ComparedBusiness UK
With dozens of VoIP providers available in the UK market, each with different pricing schemes, features and levels of customer support, it can feel overwhelming when trying to find the right provider for your business. Making the wrong decision can leave you stuck in a contract that does not match your needs or cost you more than necessary.
ComparedBusiness UK makes this process straightforward. We match pre-vetted VoIP (Voice over Internet Protocol) providers in the UK to your exact needs, whether you are a sole trader looking for a simple softphone solution or an expanding business requiring a fully fledged cloud PBX (Private Branch Exchange) with CRM (Customer Relationship Management) integration and multi-site support.
Here is how it works:
- Fill out our fast quote request form: it takes less than two minutes.
- We connect you with reputable VoIP providers based on your business’s size, industry, and needs.
- You get free, no-obligation quotes from the providers themselves.
At ComparedBusiness UK, our job is to help UK businesses find the right VoIP system for them at the best price.
FAQs
There are 2 stages of converting your landline phone to VoIP. First is to port your number (through a VoIP provider) and get a VoIP number that matches your existing landline phone number. The second stage is to enable internet calling on your landline phone which will be enabled by an analogue telephone adapter (ATA).
Yes, you can choose your own VoIP number provided it is not already taken. Contact your VoIP provider and request the number of your choice. A VoIP number is available in either local, toll-free or vanity form.
VoIP numbers are assigned through the following process:
- The business signs up for a VoIP service and provides details.
- The VoIP provider offers a selection of available VoIP numbers. You can choose from a local, vanity or toll-free number.
- The VoIP provider assigns the chosen number to the user’s account.
- The number is configured in the user’s VoIP phone system.
- The number is activated.
