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What is the Difference Between VoIP and IP Telephony?

With landlines soon to be permanently switched off, small businesses and sole traders up and down the UK are switching to a digital phone system. But if you’re not feeling too confident, it’s not much fun being faced with endless jargon that leaves you scratching your head and more than a little frustrated.

The terms VoIP and IP telephony are often used interchangeably, but there are some key differences between them. Let’s take a look at some of the basics.

 

VoIP (Voice over Internet Protocol)

We’ll start with VoIP.

VoIP is the technology that allows you to make a voice call over the internet. The Internet itself uses certain protocols (called Transmission Control Protocol/Internet Protocol or TCP/IP), and it’s this development that’s known as Voice over Internet Protocol (VoIP).

Any system that uses the internet to transmit sound as data in ‘packets’ over the internet is VoIP.

VoIP phone systems come with huge benefits to small businesses over traditional landlines. Not only do they protect from the effects of the landline switch off, but they’re cloud-based too which means they can be used on other devices like tablets and smartphones. As long as you have a stable (preferably fibre) internet connection, you can then work from anywhere. The sound quality of calls is also higher and you don’t need to worry about poor signal or dropping out like you do with a mobile.

VoIP phone systems also come with a range of features to help you manage your calls more efficiently and professionally. With bOnline for instance, you can get calls to divert, call analytics data, voicemail, hold music and much more. Plus, our contracts are only 12 months long (rather than 18 or 24 months) for maximum flexibility, and our pricing packages are some of the best value around. You can even choose a local number for an area your business isn’t based in, like a 020 number!

 

So, What is IP Telephony?

IP telephony is built on the back of VoIP capability and comes with a whole load of extra software-based features that run on computers to replace the traditional copper landline telephone network.

Sometimes referred to as SIP phones, IP phones are designed for VoIP. They are connected to the data network (or broadband router in smaller businesses) instead of the phone network.

IP telephony is effectively just the business term for VoIP. When people speak about IP telephony, they’re just talking about the phones used to make a VoIP call rather than the VoIP call itself.

 

What are the Benefits of IP Telephony?

IP telephony gives small businesses more than a phone line. Calls run over your broadband, so you can take and make them from a desk phone, laptop or smartphone. That means your team can work from the office, home or on the road with the same business number.

It usually costs less than a traditional landline. There’s no line rental, calls to UK numbers are often included, and you pay for the users you need. You can add or remove users in minutes, so the system grows with your business.

IP telephony also brings features that landlines can’t offer. These include call divert, call recording, voicemail, call analytics and CRM integrations. It also keeps you ready for the UK landline switch-off, because it doesn’t depend on the old copper network.

 

What Infrastructure and Hardware Do You Need for IP Telephony?

You need very little. The essentials are a stable internet connection (fibre is best), a router and a device to make calls on. That device can be an IP phone, a softphone app on your computer or smartphone, or a headset plugged into your laptop.

IP phones look like normal desk phones but connect to your router or network switch instead of a phone socket. If you already have analogue phones, an adaptor (ATA) can often connect them to your new system. You don’t need an on-site phone exchange (PBX), because the system is hosted in the cloud by your provider.

 

How Much Bandwidth Does IP Telephony Need?

A single call uses roughly 100 kbps in each direction, so most modern broadband connections can handle several calls at once. What matters more than headline speed is a stable, low-latency connection. If your team makes many calls while others stream video or upload large files, a fibre connection with enough upload capacity will keep call quality clear.

 

Is IP Telephony Secure?

Yes, when it’s set up properly. Reputable providers encrypt calls and protect their networks against fraud and unauthorised access. You can help by using strong passwords, keeping your router firmware up to date and only allowing trusted users to access your account.

 

How Does IP Telephony Help With the Landline Switch-off?

The UK’s traditional phone network (PSTN) is being retired, with the switch-off due to complete by January 2027. Landline services that rely on it will stop working. IP telephony doesn’t use that network, so moving now avoids a last-minute rush and lets you keep your existing number.

 

Is IP Telephony Right For My Business?

If you make regular calls, work across more than one location or want to look bigger than you are, it’s usually a good fit. It suits sole traders, small teams and growing businesses equally well. A free trial is the easiest way to check if it works for you before you commit.



Fancy a Free VoIP Trial?

At bOnline we only focus on small and micro businesses and start-ups. We know that for many people there just aren’t enough hours in the day and the thought of signing up for a new VoIP phone system isn’t exactly appealing.

How are you supposed to know what VoIP features you need? How do you set up VoIP and what does it all cost?

That’s why at bOnline we offer a free 7-day trial so you can test out all our cutting-edge VoIP features with no commitment. Everything is set up remotely for us by us, so you don’t need any ‘techie’ knowledge yourself and we won’t be turning up at your home or workplace! There’s also no downtime, and you could well end up saving yourself some serious money too.

Get signed up for a free trial today, and don’t forget to check out some of our other handy articles too, including:

 

Got a Question or Concern?

If there’s something you’d like to know about any aspect of VoIP or the landline switch-off, feel free to contact our expert team on 0203 617 9950.

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Chad Scholtz
Chad Scholtz