What is VoIP?
VoIP is a technology that lets you transmit your voice over an internet connection instead of a regular (or analogue) phone line. First, your voice gets converted into data packets, unlike electric signals in traditional telephones.
Since the internet has become more accessible to everyone, VoIP takes advantage of that and connects people through it. Instagram, Discord, Telegram, Skype, Zoom and many other social media apps that support voice or video calls are using VoIP technology to achieve it.
VoIP systems have become a popular part of modern business communication systems.
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What is ToIP?
You can consider ToIP (Telephony over IP) as a sub-category for VoIP. The working model is quite the same: ToIP doesn’t require a wired infrastructure to set up communication. It makes use of a widespread infrastructure that is already laid down called the Internet.
ToIP focuses more on providing communication solutions for businesses instead of consumers (WhatsApp, Skype, and Instagram are all customer-centered). ToIP provides additional advanced features like call management, IVR-interactive voice response, integration with CRM, and call routing to match the needs of any business in the UK.
To explain it further, ToIP is designed to blend in and work with other components of a business’s software. It uses tools like Private Branch Exchanges (PBX) and Session Border Controllers (SBCs) to ensure high-quality calls and manage other advanced features.
Here’s a simplified look at how ToIP operates:
- Voice conversion and transmission: Like VoIP, ToIP converts voice signals into digital packets, which are transmitted over the internet.
- Advanced infrastructure: ToIP relies on tools like Private Branch Exchanges (PBX) and Session Border Controllers (SBCs). These systems ensure secure, high-quality calls and allow for advanced functionalities such as automated call routing and interactive menus.
Key Differences Between VoIP and ToIP
Here’s a breakdown of the key differences between VoIP and ToIP:
Who should use VoIP vs ToIP?
VoIP has one main focus- voice communication. It’s perfect for teams who need to keep things simple. Not just limited to businesses, anyone can use VoIP. Students working through a communication platform like Zoom, Microsoft Teams, or Skype is an instance of using VoIP for non-commercial use. A small business in Brighton might use VoIP to communicate with clients and team members across the UK.
ToIP, on the other hand, offers comprehensive communication tools to cater to a complex model of a business. A consumer might need VoIP for one call at a time, but it’s not the same for businesses. Businesses need a network to manage multiple calls, queue them, require interaction, and provide personalised support. ToIP does exactly that.
Infrastructure needs:
When it comes to infrastructure, VoIP is as light as it gets. All you need is a stable internet connection and VoIP software; no bulky equipment, no elaborate setups.
ToIP, however, requires a bit more elbow grease. It relies on specialised infrastructure to deliver its advanced features. For a multinational corporation with offices in London, Glasgow, and Birmingham, this investment is well worth it. The infrastructure supports their complex telecommunication needs, ensuring smooth, secure, and reliable communication across locations.
Cost Comparison of VoIP vs ToIP:
For businesses on a budget, VoIP is best suited. VoIP costs often consist of a subscription fee and an IP phone. VoIP software subscription in the UK can cost you anywhere from £7.99 to £29.99 per month for each user, depending on the range of features your business demands. If you have more than one user, the cost per person will keep multiplying.
ToIP involves utilising IP phones and other additional hardware. In the UK, IP phones can cost you £20, and they can go up to £400. Moreover, there are also other expenses for PBX systems and installation costs. Consult your provider to know whether these costs are covered in your plan.
Advantages & Disadvantages: VoIP vs ToIP
Pros of VoIP:
- VoIP eliminates the need for installing and maintaining traditional line phones that charge you high fees to make local and international calls. The clutter of wires and limitations of users are also not your worries anymore with VoIP.
- One major benefit of VoIP is that it supports calls from any device with an internet connection – be it a laptop, a smartphone or a tablet. Specific IP phones are not a necessity when using VoIP.
- VoIP doesn’t require heavy hardware or a complex installation process.
Cons of VoIP:
- VoIP calls are only as good as your internet is strong. That’s why it’s important to choose a provider that provides you with a strong internet connection otherwise, you’ll have to face poor sound quality, lagging, and interruptions during your call.
- Like anything else connected to the internet, VoIP also faces an issue of cyber threats. Hackers can join calls or use phishing tactics to exploit critical information of your customers.
Pros of ToIP:
- You can do more than just make calls with ToIP. It supports advanced features like Interactive Voice Response (IVR), call routing, and conferencing.
- Unlike VoIP, which routes calls through any random servers, ToIP uses a dedicated internet connection that means you get consistently high-quality audio.
- If your business relies on tools like CRM or ERP systems, ToIP can integrate with your existing IT infrastructure. Then you can use ToIP to provide customer support, get call analytics and additional information.
Cons of ToIP:
- Setting up a ToIP system requires a heavy investment. VoIP software, hardware, and installation costs can all add up.
- As compared to VoIP, ToIP requires a bit of complex infrastructure. It often requires hardware like PBX systems, which can increase the complexity of installation and maintenance.
VoIP vs ToIP: Choosing the Right Option for your business
Selecting between VoIP and ToIP boils down to your specific needs, business size, and budget. To help you make the decision, we have explained the needs for small and medium to large businesses so you can get a better outlook.
- For small businesses:
If you’re running a startup, VoIP is often the smarter choice. Because it’s cost-saving and incredibly flexible. As your business grows, VoIP allows you to scale with time so there’s no pressure to switch.VoIP is also perfect for businesses with remote teams. Take, for instance, a freelance graphic designer in Brighton working with your clients across Europe. With VoIP, they can handle international calls, thanks to VoIP numbers, without worrying about exorbitant charges. Plus, the setup is so simple that they can get started in a matter of minutes.
- For medium to large enterprises:
Think about a nationwide retail chain with customer service centres in London, Birmingham, and Glasgow. Handling high call volumes, routing queries to the right departments, and ensuring seamless integration with customer management systems is no small feat. This is where ToIP shines.With ToIP, your large enterprise gains access to features like Interactive Voice Response (IVR), call queue management, and CRM integration. Think about the betterment in the customer service – a customer calling to check on their order. Instead of being bounced around between agents, they’re greeted with an automated menu that directs them to the right person.
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FAQs
Most small businesses operate on a small scale with a few clients, a small team of employees, and most importantly, a limited budget. So yes, you can use ToIP for small businesses. But using VoIP is always a better and cost-effective choice for a small business.
No, as long as you have an internet connection, you can use VoIP on any working device like a smartphone, tablet, or laptop.
Traditional analogue phones require a wired infrastructure that can be costly depending on your location. Moreover, the features are limited and there’s a higher risk of data theft with old technology. So switching to VoIP can be a good option for you. Also, don’t worry about buying a whole new hardware system to set it up, as you can use it with any device capable of connecting to the internet.
