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Blogs

What is VoIP and how does it compare?

Blogs

By Sean Johnson
Sales Engineer Associate

Read time: 4 minutes 

Realtors talk about turnkey houses. Move-in ready houses – no renovation needed with minimal work required over the next five to even 10 years. A pretty nice concept, right? 

In my world, the world of business telephony at Midco, we also believe in the turnkey concept. You come into the office or log in from your home office, and your phone system works. From the network to the equipment, you don’t have to do any work – well, aside from your actual work, that is.  

Turnkey phone systems are often called “managed” or “hosted” phones, voice over internet protocol (VoIP), voice or even PBX. And if you’re shopping for a new business phone service, I’m sure you’ve come across a variety of these terms.  

For our purposes, we’re going to focus on one of the more popular options on the market – VoIP. Read on to find out what it is, how it’s different from other solutions and its benefits.

What is VoIP?

VoIP stands for voice over internet protocol. In a nutshell, it’s a phone system that uses a reliable internet network to route calls through server equipment connected directly to the telephone network.  

With VoIP, you’ll experience:

  • Flexible calling features 
  • Customizable setup options
  • User-friendly phone hardware
  • Cheaper setup than similar PBX options

Together, it means there will be less equipment maintained at your business.  

In my experience, most of the VoIP services out there are only partially managed or hosted. There is usually a piece missing. It’s important to know exactly what you’re getting when committing to a new phone provider. 

Option X might provide the equipment, but not the network. Or, Option Y might provide the network, but you need to purchase and maintain the equipment. Keep in mind, for example, if you decide to purchase your equipment, then your IT team will be responsible for rolling out updates during off-hours and ordering new phones when the manufacturer discontinues phone models.  

VoIP vs. Hosted PBX  

PBX stands for public branch exchange – and is essentially a business phone system. Traditionally speaking, PBX systems used digital or analog connections to the telephone network, but anything modern used today is going to have a network connectivity component. 

VoIP vs. Digital Phone Lines 

When comparing hosted VoIP to a standard phone solution, hosted VoIP will provide more flexibility – in large part due to the long list of calling features. Regardless of how many employees you have, there are several smart call routing and admin control options to make changes on your own instantly – without calling support. 

Scalability is also a definite benefit of hosted VoIP solutions compared to digital phone lines. Hosted equipment is provided and maintained by your provider, meaning there’s a lower upfront cost – and the ability to add hardware and lines as your business grows with a single phone call to your provider.   

  Digital Phone VoIP
Alarms and/or Elevator Hook Ups X  
Midco Fiber Network Access X X
Voicemail with eVOICE X X
Call Transfer & Caller ID  X X
Call Forwarding  X X
Auto-Attendant   X
Online Portal   X
Equipment Included    X
Long Distance Included1   X
Softphone   Available with VoIP Pro

VoIP vs. SIP  

SIP stands for session initiation protocol. SIP phone lines are also often called trunk lines and are great for customers who need to own their PBX for specific functionality – or already own PBX equipment.  

Phone usage is also a key factor when comparing VoIP with SIP lines. For example, SIP works well for hotels that require lots of phones but are rarely used. SIP also works well for schools, as they usually have complex paging needs that can’t be met by VoIP solutions.  

VoIP Features and Benefits  

Many times, when you’re shopping for a turnkey house, you may need to build it from the ground up. You’ll work with a contractor who will give you the finish options and then you can pick and choose from there to create your customized turnkey solution. Midco’s process for setting up VoIP is similar.  

VoIP Phone vs. VoIP Pro 

VoIP is a great solution for many businesses. It’s robust, customizable and full of features. At Midco, we offer two products that utilize VoIP technology. Check out which one could be the best fit for you.

VoIP Phone Benefits

This simple voice solution delivers a robust set of customizable features for businesses looking to add between one and eight lines. With VoIP phone, you can experience:

  • No upfront capital costs
  • Plug and play setup
  • Easy self-management with our online portal
  • Scalability
  • Installation in seven business days from time of purchase

Learn More

VoIP Pro Benefits

This custom solution gives you ultimate control over your connection. Your setup will help maximize reachability and productivity through:

  • The ability to have multiple locations on a single business group
  • Access to auto-attendant features
  • Remote worker connections with softphone options
  • Complex automatic routing

Learn More 

World-class business phone, from a locally based company.

Midco is based in the Midwest, and we have account executives throughout our footprint to provide one-on-one phone consultation and support.  

 Request a Consultation  Find a Consultant  Call 1.800.888.1300

About Sean Johnson

Sean Johnson focuses on matching solutions with customer needs. Since starting at Midco in 2014, he has developed a deep understanding of Midco Business phone solutions – including hosted VoIP. Johnson earned his bachelor’s degree in biology for information systems from Dakota State University.

About Sean Johnson

Sean Johnson focuses on matching solutions with customer needs. Since starting at Midco in 2014, he has developed a deep understanding of Midco Business phone solutions – including hosted VoIP. Johnson earned his bachelor’s degree in biology for information systems from Dakota State University.

Midco data service may be required for some VoIP pro services.