What Is VoIP and Why Does It Matter?
VoIP (Voice over Internet Protocol) routes phone calls over the internet instead of traditional phone lines. For small businesses, this means:
- **No more desk phone hardware** (use apps on laptops and mobiles)
- **Professional features** (auto-attendant, call routing, voicemail-to-email)
- **UK numbers from anywhere** (work from home with your office number)
- **Lower costs** (especially for international calls)
- **Flexibility** (add/remove users easily)
The catch: you need reliable internet. But if you're reading this guide online, you've probably got that sorted.
Do You Actually Need a Phone System?
Before investing in VoIP, consider whether you need traditional calling at all:
**You might not need a phone system if:**
- Clients contact you via email, chat, or video calls
- You use mobile phones for the occasional call
- Your business is entirely digital-first
**You probably need a phone system if:**
- Clients expect to call a business number
- You need call routing (sales line, support line)
- Professional credibility matters (especially B2B, legal, medical)
- You have a reception/front desk function
- You make/receive high call volumes
How VoIP Works
The Basics
1. **Your phone number** lives in the cloud with your VoIP provider
2. **Calls come in** via the internet to their servers
3. **You receive calls** on apps (desktop, mobile) or VoIP desk phones
4. **Outbound calls** appear to come from your business number
What You Need
| Component | Options |
|-----------|--------|
| Internet connection | Existing broadband (minimum 100kbps per call) |
| End devices | Software apps (free), VoIP desk phones (£50-300 each) |
| VoIP service | Monthly subscription (see comparison below) |
| UK phone numbers | Included or small monthly fee per number |
Key Features to Consider
Essential Features (All Business Plans Include)
- **UK geographic/non-geographic numbers**: Local numbers (0161, 0207) or national (0333)
- **Auto-attendant**: "Press 1 for sales, 2 for support"
- **Voicemail**: With email delivery of messages
- **Call forwarding**: Route calls to mobiles when away
- **Call transfer**: Move calls between colleagues
- **Caller ID**: Show your business number on outbound calls
- **Desktop and mobile apps**: Make/receive calls anywhere
Valuable Features (Worth Paying For)
- **Call recording**: Essential for compliance, useful for training
- **Call queues**: Hold callers in order when busy
- **CRM integration**: Log calls automatically in Salesforce, HubSpot, etc.
- **Video meetings**: Some VoIP systems include this (RingCentral, 8x8)
- **SMS from business number**: Text clients from your main number
- **Analytics**: Call volumes, wait times, missed calls
Nice-to-Have Features
- **AI transcription**: Automatic call summaries
- **Sentiment analysis**: AI assesses call quality
- **Advanced IVR**: Complex call routing trees
- **Contact centre features**: Wallboards, supervisor monitoring
VoIP Provider Comparison
RingCentral MVP
**Best for**: Growing businesses wanting an all-in-one platform
**Pricing**: From £7.99/user/month (Essentials)
| Plan | Price | Users | Key Features |
|------|-------|-------|-------------|
| Essentials | £7.99 | Up to 20 | Calls, SMS, voicemail |
| Standard | £14.99 | Unlimited | + Video meetings (100), integrations |
| Premium | £19.99 | Unlimited | + Call recording, analytics, CRM integrations |
| Ultimate | £24.99 | Unlimited | + Unlimited storage, device status |
**Pros**: Feature-rich, excellent mobile app, strong integrations
**Cons**: Can be complex, cheaper plans are limited
**UK support**: Yes, UK numbers included
8x8
**Best for**: Businesses prioritising international calling
**Pricing**: From £10/user/month
| Plan | Price | Key Features |
|------|-------|-------------|
| X2 | £10 | Voice, video (500), unlimited UK calls |
| X4 | £32 | + Supervisor analytics, call quality management |
| X6 | £90 | + Contact centre features |
**Pros**: Unlimited international to 48 countries (X4), good video
**Cons**: Jump from X2 to X4 is steep
**UK support**: Yes, strong UK presence
Microsoft Teams Phone
**Best for**: Businesses already using Microsoft 365
**Pricing**: From £6.80/user/month (add-on to Microsoft 365)
| Plan | Price | Requirement |
|------|-------|------------|
| Teams Phone Standard | £6.80 | M365 license + calling plan |
| Calling Plan (UK domestic) | £9.50 | 3000 minutes pooled |
| Calling Plan (International) | £19.50 | Domestic + international |
**Pros**: Integrated with Teams (one app for everything), familiar interface
**Cons**: Requires Microsoft 365, calling plans add cost, some features less mature
**UK support**: Yes, via Microsoft 365
Zoom Phone
**Best for**: Businesses already using Zoom
**Pricing**: From £8/user/month
| Plan | Price | Key Features |
|------|-------|-------------|
| Metered | £8 | Pay-per-minute calling |
| Unlimited (UK & Ireland) | £12 | Unlimited domestic |
| Pro Global Select | £16 | Unlimited to one country |
**Pros**: Simple interface, integrates with Zoom Meetings
**Cons**: Calling costs extra on metered plan, fewer advanced features
**UK support**: Yes, UK numbers available
Others Worth Considering
**Vonage Business** - From £9/user/month
- Strong API capabilities
- Good for businesses wanting custom integrations
**GoTo Connect** - From £10/user/month
- Simple interface
- Combines phone and meetings
**3CX** - Free (self-hosted) or from £1.35/user/month (hosted)
- Very cost-effective
- More technical to set up
**Aircall** - From £30/user/month
- Designed for sales and support teams
- Excellent CRM integrations
Cost Comparison: Traditional vs VoIP
Traditional Phone System (10 Users)
| Item | Cost |
|------|------|
| PBX hardware | £2,000-5,000 (one-off) |
| Desk phones (10) | £500-1,500 (one-off) |
| Installation | £500-1,000 (one-off) |
| Line rental (4 lines) | £60/month |
| Call charges | £50-100/month |
| Maintenance contract | £50/month |
| **Monthly total** | **£160-210** |
| **First year total** | **£5,000-10,000** |
VoIP System (10 Users)
| Item | Cost |
|------|------|
| VoIP service | £100-200/month |
| Desk phones (optional) | £0-1,500 (one-off) |
| Headsets | £200-500 (one-off) |
| **Monthly total** | **£100-200** |
| **First year total** | **£1,400-4,000** |
**Typical savings**: 50-70% in first year, ongoing savings after.
Choosing the Right System
If You Use Microsoft 365
**Recommendation**: Start with Teams Phone
- Already integrated with your email and calendar
- One app for chat, video, and calls
- Familiar interface for staff
- Cost-effective if you have M365 Business Voice
If You Use Google Workspace
**Recommendation**: Consider RingCentral or 8x8
- Google Voice is limited in the UK
- RingCentral/8x8 have good Google integrations
- Or accept separate phone and productivity platforms
If International Calls Are Significant
**Recommendation**: 8x8 X4
- Unlimited calling to 48 countries included
- No surprise international bills
- Good for businesses with overseas clients/suppliers
If You're a Small Team (Under 10)
**Recommendation**: RingCentral Essentials or 3CX
- RingCentral Essentials is simple and affordable
- 3CX is very cheap if you're technically capable
If You're Scaling Fast
**Recommendation**: RingCentral or 8x8
- Add users instantly
- Enterprise features available when needed
- Good analytics for growing teams
Number Porting: Keeping Your Existing Number
You can usually keep your existing business number when switching to VoIP:
1. **Request port** from new VoIP provider
2. **Provide details** of current provider
3. **Authorisation** via current provider
4. **Port completes** (typically 10-20 working days in UK)
5. **Old service cancelled** automatically
**Important**: Don't cancel your old service until port completes, or you'll lose the number.
Hardware Options
Softphone Only (No Desk Phones)
Pros:
- No hardware cost
- Works on existing computers/mobiles
- Most flexible
Cons:
- Requires headset for quality
- Battery/app issues on mobile
- Some staff prefer physical phones
VoIP Desk Phones
**Budget (£50-80)**: Yealink T31, Grandstream GRP2612
- Basic calling, acceptable quality
- Good for occasional use
**Mid-range (£80-150)**: Yealink T43U, Poly VVX 250
- Better audio, more features
- Good for daily use
**Premium (£150-300)**: Yealink T54W, Poly VVX 450
- Colour screens, Bluetooth, Wi-Fi
- Executive desks, high call volume
Headsets
For softphone use, a good headset matters:
**Budget (£30-50)**: Jabra Evolve2 30, Poly Blackwire 3200
**Mid-range (£80-150)**: Jabra Evolve2 55, Poly Voyager Focus 2
**Premium (£200+)**: Jabra Evolve2 85, Poly Voyager Focus 2 UC
Wireless headsets are worth the premium for people who move around.
Common VoIP Pitfalls
Pitfall 1: Inadequate Internet
Each call uses 100-150kbps. Not a problem for most connections, but:
- Check your upload speed (often lower than download)
- Consider QoS settings on router to prioritise voice
- Have a backup plan (mobile failover)
Pitfall 2: Ignoring Call Quality
Cheapest isn't always best. Poor call quality damages professional reputation. Test before committing.
Pitfall 3: Forgetting Mobile Workers
Mobile apps vary in quality. Test specifically for:
- Background operation (does it ring when phone is locked?)
- Battery impact
- Switching between Wi-Fi and mobile data
Pitfall 4: Underestimating Setup
VoIP is simpler than traditional systems but still needs thought:
- Auto-attendant scripts
- Call routing rules
- Voicemail greetings
- Number assignment
- User training
Pitfall 5: No Emergency Call Plan
VoIP 999 calls work but location reporting can be imprecise. Ensure:
- Registered address is accurate
- Staff know to state location clearly
- Consider mobile phones as 999 backup
Authority Resources
- **Ofcom VoIP Guidance**: [ofcom.org.uk/phones-telecoms-and-internet/advice-for-consumers/voip](https://www.ofcom.org.uk/phones-telecoms-and-internet/advice-for-consumers/costs-and-billing/voip) - UK regulator information
- **ICO Phone Recording**: [ico.org.uk/your-data-matters/be-data-aware/recording-and-monitoring-phone-calls](https://ico.org.uk/your-data-matters/be-data-aware/recording-and-monitoring-phone-calls/) - Legal requirements for call recording in UK
- **Ofcom 999 and VoIP**: [ofcom.org.uk/phones-telecoms-and-internet/advice-for-consumers/advice/emergency-calls](https://www.ofcom.org.uk/phones-telecoms-and-internet/advice-for-consumers/advice/emergency-calls-and-smartphone-apps) - Emergency calling information
Implementation Checklist
**Before Signing Up**
- [ ] Assessed whether you need a phone system
- [ ] Tested internet speed and stability
- [ ] Listed required features
- [ ] Compared 2-3 providers
- [ ] Requested trials/demos
**During Setup**
- [ ] Planned number porting (if keeping numbers)
- [ ] Designed call routing/auto-attendant
- [ ] Ordered any hardware needed
- [ ] Created user accounts
- [ ] Tested internally before going live
**Going Live**
- [ ] Trained users on apps and features
- [ ] Updated website/materials with new numbers
- [ ] Confirmed port completion
- [ ] Cancelled old service (only after port!)
- [ ] Documented admin procedures
Getting Started This Week
**Day 1**: Audit current phone usage (volume, features used, pain points)
**Day 2**: Determine requirements (users, features, budget)
**Day 3**: Sign up for trials of 2-3 providers
**Day 4-5**: Test thoroughly (call quality, apps, features)
**Week 2**: Choose provider, plan implementation
**Week 3-4**: Set up, port numbers, train staff, go live
VoIP isn't complicated, but taking time to choose right and set up properly ensures you get a system your team actually uses effectively.