While doing a little research on VoIPs, you have probably learned its various types. The most prominent options you may have come across are business and residential VoIP phone systems, but how are they different? For all you know, they might just be packaged and sold as separate options without much distinction. They do have significant differences and it is important that you make the distinction.

How VoIP works

Before we differentiate residential from business VoIP, let us go over how it works. VoIP, or voice-over internet protocol, converts analog signals into digital so you can bypass your telephone company’s rates, and improve audio and video quality. It can even allow you to access your phone system from any location in the world, which is handy for when you go on vacation or a business trip.

More features mean higher prices

Compared to their residential counterparts, VoIP phones are generally loaded with more features. Residential VoIP phone systems are pretty straightforward and only include a limited number of features. They usually have voicemail, call waiting, caller ID, call blocking, e911, and a ‘do not disturb’ function.

On the other hand, businesses require more functions to optimize productivity and efficiency. A business VoIP phone system normally has call routing, conference bridging, call forwarding, call recording, conference calling, mobile apps, and more, on top of the usual residential features. However, the additional functions make business VoIP more expensive.

Business VoIP is more flexible

Since residential VoIP phones are more simple and basic, there is little room for customization, whereas business VoIP offers this in bundles. For one, you may choose to get extensions that are specifically for new employees, or change up the admin portal and see the results reflected in real-time. Business VoIP also has more mobility settings so employees can stay in the system even while working from home.

Handle more calls with business VoIP

business VoIP

Residential VoIP systems focus primarily on simplicity, and offering an affordable solution that has everything you need. Businesses handle a much larger volume of calls, and business VoIP addresses this with unlimited calling plans. These plans provide extended call duration and easy access to international calls, but are still subject to an “acceptable use policy” to keep users from abusing the plan.

Business VoIP gives you more numbers

As a part of residential VoIP installation service, you will be given the option to keep your existing number or change to a brand-new one. Business VoIP lets you create virtual extensions to keep people in different locations on the same phone system.

This way, home workers will stay in the loop when away from the office and eliminates the problem of poor signal for not staying updated. The numbers are usually toll-free, too, so customers can call businesses for free, and speak to an employee of their choice even if the latter is not in the office.

Each VoIP type was made to cater to specific needs. Getting a business VoIP for your home or vice versa can be a costly mistake. At home, you will end up paying extra for unnecessary features, while you will be needing a lot more in your business. Any type of VoIP can help you; just make sure to get one that suits your needs.