Senior Writer: Rohit Rajpal
Reading Time: 10 MinutesPublished : December 2, 2022The best VoIP providers make business communications cost-effective and help quickly set up an office phone system. In addition, VoIP providers have advanced features for modern businesses, including auto-dialer, auto-attendant, team messaging, call recording, voicemail transcription, business hours, and more.
According to Verified Market Research, the VoIP market was valued at $23.28 billion in 2020. It is expected to reach $52.84 billion by 2028, growing at a CAGR of 10.8%. This indicates more and more businesses are adopting VoIP phone systems. Implementing a VoIP system could reduce the cost of phone calls by 50%.
However, with hundreds of providers, each with its pricing and features, finding the right VoIP phone system for your business could take time and effort. But don’t worry. This article will help you understand what VoIP is, how it works, its benefits, and how to choose the best VoIP service, providers. Let’s get started.
What is VoIP and How Does it Work?
VoIP, or Voice over Internet Protocol, is a technology that allows you to make and receive calls over the internet rather than traditional phone lines. As a result, local and international calling becomes more affordable.
VoIP services don’t require installing phone lines in your office or purchasing desk phones. Instead, you can use a mobile device or desktop to manage business communications from anywhere as long as you have an internet connection. This makes it easier for remote teams to collaborate cost-effectively.
VoIP system converts your voice signals into data packets and sends them over the internet. Then, the receiving end reassembles the data packets into audio to make communication possible. And all of this happens within microseconds, eliminating potential delays.
Source: Webex
Different Types of VoIP Providers
Based on the applications, there are three main types of VoIP (Voice over Internet Protocol) providers: residential, business, and wholesale. Let’s take a brief view of each one to understand their purpose better.
A. Residential VoIP Providers
As the name suggests, residential VoIP providers offer VoIP services for home users. They typically come with affordable plans that cater to the needs of individuals or startups. They usually comprise basic features such as unlimited calling, call waiting, voicemail, and call forwarding. Some examples of the best residential VoIP providers are DialerHQ, Ooma, and Vonage.
B. Business VoIP Providers
Business VoIP providers offer VoIP services for businesses of all sizes. They are equipped with advanced features such as IVR, smart call forwarding, call queuing, and integrations with other business software. They also offer flexible pricing plans that can be tailored to the needs of each business. Some examples of the best business VoIP providers include CallHippo and Nextiva.
C. Wholesale VoIP Providers
These VoIP providers offer VoIP services to other VoIP providers, resellers, and carriers. Their major services include the infrastructure and support necessary for other businesses to offer VoIP services to their own customers. Some examples of wholesale VoIP providers include Twilio, Telnyx, and Voxbone.
These three types of VoIP service providers are categorized based on their applications. However, we can also categorize VoIP service providers based on their implementation, as listed below:
D. On-Premises VoIP Providers
On-premises VoIP providers offer VoIP services that are installed and maintained on-premises– typically within a company’s own network. This type of implementation requires dedicated hardware and technical expertise to manage, making it suitable only for larger businesses. Besides, in the case of on-premises VoIP providers, businesses have complete control over the system and can customize it to meet their specific needs.
E. Cloud-Based VoIP Providers
Cloud-based VoIP providers offer VoIP services that are hosted and maintained by the provider in the cloud – eliminating the need for on-premises hardware and maintenance. Cloud-based VoIP providers offer greater flexibility, scalability, and cost-effectiveness, making them suitable for small to medium-sized businesses.
Additionally, they offer easy integration with other cloud-based software and services. Some of the examples of the best cloud-based VoIP providers include CallHippo, DialerHQ, and RingCentral.
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Do I Need a VoIP Service Provider?
Yes, if you are running a customer-centric business or want to establish a local or global presence in other regions or countries, you certainly require a VoIP service provider.
Another reason you need a VoIP service provider is to reduce operational and maintenance costs, as well as gain a better understanding of customer behavior and preferences. Additionally, a VoIP system also enables you to streamline and automates business communication.
Besides that, many of the best VoIP service providers, such as DialerHQ, offer a wide range of features and capabilities that can greatly enhance agent productivity while providing management with real-time insights into key call center operations. This eventually empowers management to make timely and informed decisions, leading to greater output.
For all these reasons, a VoIP service provider is essential for your business, and you must get one right away!
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What to Consider When Choosing the Best VoIP Service Provider?
As mentioned above, hundreds of VoIP business phone systems are in the market and choosing one could be overwhelming. We have identified the four most critical aspects of business VoIP service providers to make things easier. Let’s look at them.
- Price: Since VoIP service is often subscription-based, you’d need to consider long-term costs when buying one. Check if VoIP offers the necessary features in your budget. Or do you have to buy an add-on for the features you need?
- Call Quality and Uptime: You’d want to partner with a VoIP provider that offers excellent call quality rather than the one that frequently experiences call drops. The best VoIP providers, like DialerHQ and CallHippo, offer a 99.99% uptime guarantee. This highlights that their technology can withstand all incoming and outgoing calls.
- Customer Support: Even the best technology faces challenges at some point. Therefore, choosing a VoIP provider that offers 24/7 support or a dedicated account manager to whom you can reach out instantly is critical.
- Local and Toll-free Numbers: Local numbers help establish and strengthen your presence in different locations. On the other hand, a toll-free number allows your customers to reach out to you for free. If you’re a small business, a local number would be sufficient. However, as your business grows, you’d also need toll-free numbers.
How Much do VoIP Services Cost?
The cost of a VoIP business phone system can vary immensely based on its features. Besides, there are numerous free VoIP service providers with basic features like one ring group, one auto-attendant, video conferencing (up to 20 participants), and team messaging. On the other hand, premium plans range from a few dollars to hundreds per month for businesses with high-end requirements.
Most VoIP service providers offer unlimited calling and messaging across specified parts of the world (like the US and Canada). In addition, subscriptions are often offered on a per-user basis. However, companies like the DialerHQ and CallHippo allow you to add unlimited extensions to each number, making them more pocket-friendly.
Top VoIP Phone Services Comparison
| Brand Name | Key Features | Pricing | Free Trail |
|---|---|---|---|
| DialerHQ | Connect on [email protected] | 10 Days | |
| CallHippo | Starting from $16/month | 10 Days | |
| RingCentral MVP | Starting from $18.95/month | 14 Days | |
| Nextiva | Starting from $18.95/month | 10 Days | |
| Dialpad | Starting from $15/month | 14 Days | |
| 8x8 | Starting from $15/month | 30 Days | |
| GoToConnect | Starting from $27/month | 14 Days | |
| Ooma Office | Starting from $19.95/month | 30 Days | |
| 1-VoIP | Starting from $14.97/month | NA | |
| AT&T Business | Custom Price | NA |
11 Best VoIP Providers in 2024
Let’s compare VoIP providers so you can make a more informed decision.
1. DialerHQ – VoIP Service Provider
DialerHQ is the best VoIP provider that makes business communications look more professional. Another thing that makes it a top VoIP provider is its seamless setup and exceptional portability. You can set up and start using your virtual phone system in less than four steps. However, it is best suited for small businesses and entrepreneurs.
Features of DialerHQ
- Free number (standard)
- Business hours
- Call recording
- Firepower threat defense (FTD)
- Unlimited calling
- Free SMS
The features depend on the plan you choose.
Pros and Cons of DialerHQ
- Offers seamless call forwarding.
- Provides cost-effective communication solutions.
- Presents a user-friendly interface.
- Includes international calls and texts at no extra cost.
- Provides limited safety features.
- May experience lagging call quality.
- The mobile app requires improvement.
DialerHQ Pricing
As an enterprise-specific solution, DialerHQ caters exclusively to large teams or organizations. Connect with the DialerHQ sales team at [email protected] for personalized quotes, or start a free trial for first-hand experience.
2. CallHippo – Business VoIP Service Provider
CallHippo is one of the best business VoIP service providers offering advanced features at pocket-friendly prices. Plus, its unmatched call quality empowers you to offer the best possible experience to your callers. Another reason to choose CallHippo over VoIP telephone service providers is its in-depth call reports that provide actionable insights to help you improve.
Features of CallHippo
- Click to dial
- Global connect
- Call forwarding
- Voicemail
- AI-based call routing
- Webhook
- Campaign management
- Power dialer
- Voice broadcasting
- Multi-level IVR
- Call barging
- Intelligent reports
- Automatic machine detection
- 85+ integrations
Pros and Cons of CallHippo
- Offers seamless call forwarding.
- Provides cost-effective communication solutions.
- Presents a user-friendly interface.
- Includes international calls and texts at no extra cost.
- Provides limited safety features.
- May experience lagging call quality.
- The mobile app requires improvement.
CallHippo Pricing
CallHippo has four plans. Here’s how much they cost (when billed annually).
Basic: $0 per user per month
Bronze: $16 per user per month
Silver: $24 per user per month
Platinum: $40 per user per month
3. RingCentral MVP – VoIP System Service Provider
Formerly known as RingCentral Office, RingCentral MVP is a leading VoIP provider with all the features that a modern business will ever need. Built for businesses of all sizes and industries, this phone VoIP service provider makes it easier to comply with data regulations like GDPR and HIPAA.
Features of RingCentral MVP
- Business phone or toll-free numbers
- Unlimited calling within the US and Canada
- Business SMS
- Voicemail transcription
- Document sharing
- Call log reports
- Video conferencing
- Integration with Microsoft 365, Google Workspace, and Slack
- Call recording
Pros and Cons of RingCentral MVP
- Unlimited texting and calling.
- WiFi texting and VoIP calling features.
- No need for cellular data.
- Line2 is extremely affordable and reliable.
- Line2 only offers U.S. and Canadian phone numbers.
- Analytics and reporting are limited and require additional costs.
- No video conferencing or collaboration tools.
RingCentral MVP Pricing
RingCentral offers four plans. Here’s how much they cost (when billed annually)
- Essentials: $19.99 per user per month
- Standard: $27.99 per user per month
- Premium: $34.99 per user per month
- Ultimate: $49.99 per user per month
4. Nextiva – Phone VoIP service provider
Nextiva is one of the best VoIP providers, bringing all your business communications (voice, video, messaging, and email) to one place. It also makes team collaboration more effortless, so you get necessary information faster.
Features of Nextiva
- Unlimited calling
- Video conferencing
- Team messaging and collaboration
- Calendar and meeting scheduling
- Integration with HubSpot and Salesforce
- Call recording
Pros and Cons of Nextiva
- Manages multiple numbers from a single app.
- User-friendly interface.
- Offers price flexibility.
- Facilitates creating and destroying numbers easily.
- May have issues with receiving incoming calls.
- Suitable for short-term use only.
- Call lags.
Nextiva Pricing
Nextiva has three plans. Here’s how much they cost (when billed annually).
- Essential: $18.95 per user per month
- Professional: $22.95 per user per month
- Enterprise: $32.95 per user per month
5. Dialpad – Featured VoIP Service Provider
Powered by artificial intelligence, Dialpad is a VoIP service provider that offers advanced features to make the customer experience seamless. For example, it has built-in speech recognition and natural language processing to help you analyze all the inbound and outbound calls.
Features of Dialpad
- Unlimited calling and text messaging
- AI-powered call and voicemail transcription
- Unlimited video conferencing
- Web and chat support
- CRM integrations
- Open APIs and webhooks
- Multiple phone numbers per account
Pros and Cons of Dialpad
- The Phoner app is available on desktop and mobile devices.
- Enjoy 24/7 customer support.
- You can cancel your subscription anytime.
- Call and send texts from over 20 countries, including the US, Canada, Australia, the UK, and France.
- Lacks business-oriented features.
- The user interface is tricky.
- Customer support is slow to respond.
Dialpad Pricing
Dialpad has three plans. Here’s how much they cost (when billed annually).
- Standard: $15 per user per month
- Pro: $25 per user per month
- Enterprise: Custom quote available
6. TeleCMI – Business VoIP Service Provider
TeleCMI is a leading VoIP service provider that delivers advanced cloud communication solutions to transform business efficiency and operations. With AI-driven calling functionalities and industry expertise in delivering high-quality call experiences, TeleCMI provides the best VoIP phone system for businesses of all sizes, customized to meet their needs.
Features of TeleCMI
* Call Recording & Transcription
* Virtual Receptionist (Auto Attendant)
* Click to call
* Call barging
* Call masking
* Call whispering
* Call monitoring
* Call transfer
* Conference Calling & Voicemail
* Cross-Platform Accessibility
* Real-Time Reporting & Call Analytics
Pros and Cons of TeleCMI
- Reduce communication costs by up to 40%.
- Quick setup with no hardware requirements.
- 99.99% uptime guarantee and ISO certification.
- Flexible plans for all business sizes.
- Needs slight improvements in Mobile App.
- Technical assistance needed while setup.
TeleCMI Pricing
TeleCMI offers flexible pricing plans to accommodate various business needs.
7. 8×8 – Business VoIP Service Provider
8×8 is yet another top VoIP services provider that offers a variety of features at competitive pricing. Designed for businesses of all sizes, 8×8 allows you to buy local and toll-free numbers from different countries to gain a competitive edge. Its analytics and reports help you understand agents’ performance and take corrective actions to improve them.
Features of 8×8
- Unlimited calling in the US and Canada
- Auto attendant
- Music on hold
- Voicemail
- Team messaging
- Hot desking Call queues
- Presence detection
- Call activity analytics
Pros and Cons of 8×8
- Easy-to-use and user-friendly interface.
- Reserve number.
- Auto-reply (text and call).
- Identify and block spam calls.
- Poor customer service.
- Calls and texts are deducted from your carrier plan.
- Subscriptions are expensive.
8×8 Pricing
8×8 has three pricing plans. Here’s how much they cost (when billed annually).
- Express: $15 per user per month
- X2: $24 per user per month
- X4: $44 per user per month
8. GoToConnect – VoIP Service Provider
What makes GoToConnect one of the best VoIP service providers is it’s in-built messaging and meetings feature that allows you to collaborate more efficiently. Plus, the VoIP provider offers all the necessary features in every plan, making it perfect for small businesses with a limited budget.
Features of GoToConnect
- Number porting
- Local, toll-free, and vanity numbers
- Smart call routing
- Unlimited extensions
- Call forwarding
- Instant response
- Customizable dial plans
- Auto attendant recorded greetings
- Ring groups
- Hot desking
- Intercom
Pros and Cons of GoToConnect
- Useful features, including voicemail, group texting, etc.
- Conference calling.
- Free calling and texting over Wi-Fi.
- Impressive tech support.
- Frequent pop-up ads.
- Security concerns.
- Dropped calls.
GoToConnect Pricing
GoToConnect offers three plans. Here’s how much they cost (when billed annually).
- Basic: $27 per user per month
- Standard: $32 per user per month
- Premium: $43 per user per month
9. Ooma Office – Customize VoIP Service Provider
Ooma Office is the right choice if you’re looking for a small business-hosted VoIP service. It has 50+ standard features in every plan, making it one of the most cost-effective VoIP telephone service providers. Furthermore, it has a mobile app that lets you manage your business communications from anywhere.
Features of Ooma Office
- Virtual receptionist
- Ring groups
- Music on hold
- One toll-free number
- Email audio attachments
- Text messaging
- Video conferencing
- Call recording
- Enhanced call blocking
- Voicemail transcription
- Google and Office 365 integrations
- Call analytics
Pros and Cons of Ooma Office
- Allows you to choose your area code.
- Offers unlimited text and picture messaging.
- Free mass texting.
- Lets you select a custom phone number.
- An overwhelming number of ads with the free plan.
- An inefficient user interface.
- Poor call quality.
Ooma Office Pricing
Ooma Office has three plans. Here’s how much they cost (when billed annually).
- Essentials: $19.95 per user per month
- Pro: $24.95 per user per month
- Pro Plus: $29.95 per user per month
10. 1-VoIP – Best VoIP Service Provider
1-VoIP is a leading VoIP services provider that offers HD call quality and numerous features at a pocket-friendly price. However, what makes it different than other companies in this list of VoIP providers is that it offers all the features in every plan.
Features of 1-VoIP
- Music on hold
- Call queues
- Digital call forward
- Auto attendant
- Virtual fax
- Extension transfer
- Business hours
- Voicemail
- Custom announcements
Pros and Cons of 1-VoIP
- Handles Team Lines.
- Transcribe calls.
- Customize your phone number by region within the United States.
- Free video conferencing
- No desktop app.
- Does not allow for group messaging.
- The payment plan is challenging to understand.
1-VoIP Pricing
1-VoIP has three plans, and they’d cost you:
- Metered: $14.97 per extension per month
- Corporate: $19.97 per extension per month
- Professional: $29.97 per extension per month
11. AT&T Business – Business VoIP Service Provider
The last one on our list of VoIP phone service providers is AT&T Business. It integrates with more than 30+ third-party tools, including Microsoft and Salesforce. Besides, you can use your analog phones as well with AT&T VoIP. Its standard edition includes 1000 toll-free minutes per month and unlimited internet faxing.
Features of AT&T Business
- Unlimited calling to Canada, the US, and Mexico
- Advanced call handling and routing
- Automatic and on-demand record
- Three-way calling
- Flexible caller ID
- Voicemail transcription
- Call screening
Pros and Cons of AT&T Business
- Telos offers the ability to send faxes using your mobile device.
- Telos provides a credit-based scoring system that allows you to earn free calling and texting points.
- It allows you to send texts to more than 200 countries.
- Seamless conference calls.
- The user interface could be improved.
- Poor call quality.
- Limited accessibility.
AT&T Business Pricing
AT&T has various plans depending on your needs.
Learn more About VoIP Systems
VoIP services are cost-effective, offer more features than landlines, and help you provide better customer service. Therefore, you must understand what VoIP is and how it can help your business grow. Then, choose from our list of top VoIP providers to speed up the process!
Frequently Asked Questions
The best VoIP service provider depends on your business needs. However, if you are looking for a pocket-friendly VoIP services provider with numerous features, DialerHQ and CallHipp are great choices.
No, you cannot use a VoIP service without a provider. You will need a reliable VoIP system like the 2nd Number to make and receive calls over the internet.
DialerHQ is the cheapest VoIP provider. But cheap doesn't always mean low quality. In fact, 2nd Number ensures a 99.99% uptime guarantee, and the voice is always clear.
Rohit Rajpal simplifies intricate technical ideas into practical insights through his articles and publications. His journey in VoIP and cloud telephony reflects a profound grasp of the evolving landscape, a flair for innovation, and a dedication to creating user-friendly blogs. Rohit’s broad expertise encompasses VoIP protocols, codecs, and cloud-based telephony systems, ensuring accessible knowledge for all.
Updated : December 18, 2024
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