VOIP SERVICES

What is a VoIP phone & how does it work?

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Written by Eric Kenney
Director, Product Marketing
Reviewed by Esther Yoon
VP, Product & Industry Marketing
Updated: 09 September 2024

A VoIP phone service could be key to futureproofing your business communications. Being able to make and take calls via the internet, and better integrate your telephony with other communication channels, can mean greater productivity organization-wide.

RingCentral are specialists in cloud-based business communications. Whether you’re looking to use physical IP phones in your office or need a VoIP telephony solution to cater for a fully remote workforce, we can help.

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What is a VoIP phone?

A Voice over IP phone—sometimes also known as an IP phone or internet-based phone—is any device that uses IP technology to transmit calls. 

That’s likely a broader VoIP phone meaning than you may have expected. There are, in fact, two main types of VoIP phones:

Different types of VoIP phone

When you picture internet phones, you might be thinking of a traditional looking deskphone that plugs into your office Ethernet port. That’s the first of the two main types of Voice over IP phones; known as hard phones.

The other variety are softphones. Softphones are basically software apps installed onto your computer or mobile device so they can be used like a hard phone. In essence, they’re virtual phones that are not restricted to any physical location.

How do VoIP calls work?

From a user’s point of view, IP phones work no differently to traditional landlines or cell phones. The only difference is in the technology that drives them.

Whatever its ultimate nature and appearance, a VoIP telephone takes the sound you generate and converts it into packets of data. It then sends that data over the network and out through the internet. The phone on the other end decompresses the data and plays it back for the other person to hear.

Making a call with a Voice over Internet phone, then, isn’t really any different from using a traditional telephone. There are some significant differences for businesses when it comes to which type of phone system they choose, however.

VoIP line vs landline: Differences between traditional & internet-based telephony

VoIP phone systems use the internet for calling, whereas traditional systems rely on the public switched telephone network (PSTN) of copper wire landlines and related infrastructure.

If you’re a business looking to choose between the two for your communications solution, there’s some significant areas of difference to be aware of:
  • Ease of installation and use - A traditional, landline-based, phone system requires physical installation at your premises. You need someone to come and connect actual landlines and then to install the hardware infrastructure to support them. Setting up a VoIP system can be as simple as downloading some software and customizing it as you see fit.
  • Upfront and ongoing costs - As installation is so much simpler, upfront costs associated with VoIP phones are also often much lower. You don’t have to pay for as much hardware and will typically have less downtime that can also be costly—after all, your phones won’t be down while someone installs VoIP lines. What’s more, you won’t have hardware maintenance to worry about, and the associated costs which that can bring.
  • Mobility, flexibility, and customizability - A traditional phone system works at a particular premises. That’s where your landlines, infrastructure, and desk phones are. VoIP phones can be whatever device you want to use at the given moment. They’re far more flexible to meet the needs of modern, fast-paced, increasingly mobile workforces.
  • Future-proofing - Traditional phone systems also increasingly have a definitive expiration date. Many nations around the world are starting to phase out their PSTN infrastructure. If your phone system relies upon that network, it may soon become obsolete.
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Finding the best VoIP phone for you

We’ve talked about the different types of VoIP phones. If you do want VoIP hard phones, precisely which ones are best? The following are some top picks that can give you everything you need and just so happen to work perfectly with RingCentral:

IP desk phones

Want traditional-looking desk phones but with all the extra benefits of VoIP technology? Then, these may be the VoIP phones for you:
Poly CCX 700 VoIP Phone

Poly CCX 700

The Poly CCX 700 is a modern desk phone that combines superior audio quality with video calling capability. Award-winning Poly audio technology ensures every call is clear and crisp, while an integrated four megapixel camera and seven inch LCD display has video meetings covered. 
$636 or $26.50 per month rental

with a RingEX multi-year contract
Mitel 6940w VoIP Phone

Mitel 6940w

Designed to meet demanding communications needs, the Mitel 6940w is an IP phone with connectivity at its heart. You can link it up to your network via wired Ethernet or WiFI and even connect it to a PC through the PCLink feature. That can turn the desk phone into a high quality audio device for PC-based video collaboration.
$402 or $17 per month rental

with a RingEX multi-year contract
Unify CP700 VoIP Phone

Unify CP700

The Unify CP700 is a great VoIP phone option for those businesses with budgets that don’t have much wiggle room. A simple, easy-to-use option, this desk phone still boasts great audio quality and a good range of features and functions.
$636 or $15.50 per month rental

with a RingEX multi-year contract

VoIP conference phones

Tired of trying to run meetings with a cell on speakerphone? If you’re looking for a VoIP phone for your conference room or to accommodate larger calls and meetings, the following may be the alternatives for you:
Poly Trio C60 VoIP Phone

Poly Trio C60 VoIP Phone

H4 Poly Trio C60
The Poly Trio C60 is a smart VoIP conference phone to suit any meeting space. Poly signature audio, easy to reach controls, and a 5” color touch display make it easy to use for even the biggest conference calls.
$1242 or $52 per month rental

with a RingEX multi-year contract
Yealink CP965 VoIP Phone

Yealink CP965 VoIP Phone

H4 Yealink CP965
Best for medium to large sized conference rooms, the Yealink CP965 has 13 in-built microphones to ensure everyone can hear and be heard. A flagship HD conference phone, the star shaped device also boasts built-in WiFi and Bluetooth connectivity.
$834 or $35.50 per month rental

with a RingEX multi-year contract
Mitel 6970 VoIP Phone

Mitel 6970 VoIP Phone

H4 Mitel 6970
The Mitel 6970 VoIP conference phone is designed to ensure your meetings go smoothly. It has a large 7” color touch screen that makes the device’s intuitive interface easily visible and 360 degree beam-forming microphones.
$808 or $34 per month rental

with a RingEX multi-year contract

Picking the best VoIP provider

That’s your Voice over Internet phone hardware sorted. Now you need to know how to pick the right VoIP provider. Here are a few considerations to keep in mind:

  • Features and functionality - Does the provider offer a plan with all the features and functionality your business needs? On the other hand, will you be paying for features you’ll never need? Weighing a solution’s capabilities against what you’ll use day-to-day is a good place to start when choosing a provider.
  • Track record, reputation, and user reviews - How do those businesses that have already used a provider’s offering rate it? Does the provider have a solid track record of success with companies in your industry?
  • Reliability and security - What uptime can a provider guarantee for its software? Do they adhere to industry standards of cybersecurity and do everything they can to protect your data and information?
  • Customer support - If things go wrong, is it quick and easy to get hold of customer support? Will you be able to find answers in a knowledge base, reach out by email, and pick up the phone if you need to?
  • Usability and customization - Is a provider’s solution easy to use? Can you access all features on desktop, Android, and iOS mobile devices, and more? Is it easy to tailor the solution to your unique requirements?
Find the right answers to the questions in all those areas, and you’ve found the right VoIP provider for you.

More than just VoIP phone features

If you choose RingCentral as your VoIP phone system provider, you get more than just a comprehensive set of telephony features. Sure, you do get call management functionalities, voicemail, call recording, and more, but you can also benefit from:

Lower costs

Unlike legacy PBX, a VoIP phone service like RingCentral RingEX only requires a strong internet connection. This means significant savings on infrastructure and hardware. VoIP also allows long-distance and international calls via the internet at no added cost.

Easy and simple setup

When you opt for an IP phone system, there’s no need to wait for tedious installations. We understand the value of time in business here at RingCentral. You can count on us to have your internet phone service up and running in no time.

Additional features

VoIP is not just about making calls. RingEX is a unified communications solution that includes an array of extra features, such as call forwarding, call routing, call recording, SMS messaging, voicemail, video chats, and more.

Mobility and flexibility

VoIP phones don’t tie you to a physical workstation, instead giving your business the means to meet the rising demand for remote work. With RingEX, employees can work from anywhere, anytime, and from any device.

Unparalleled security

RingCentral VoIP services are encrypted with secure voice between endpoints on the network. This translates to VoIP phone calls that are protected from interruption and threats like power outages, inclement weather, malicious attacks, etc.

Scalability

Traditional business phones are static, but VoIP evolves with you. Whether you have plans to expand to multiple locations or add international people to your team, you can scale easily with a VoIP business phone system like RingCentral RingEX.

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Get started with a VoIP phone system today

Talk to the RingCentral sales team today and learn more about how RingEX can provide all the VoIP phone system features you need, and a whole lot more besides.

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FAQs about VoIP phones

A VoIP phone system is a software-based solution that lets businesses make and take calls via the internet, rather than using traditional landlines. The system is hosted in the cloud by a third-party VoIP provider and you can access it from virtually any device with an internet connection.
If you pick the right VoIP phone provider, you can also manage your business text messages from the same platform. RingCentral RingEX, for example, is a unified communications solution that combines VoIP calling, text messaging, video meetings, and more.
VoIP phones are typically used by businesses to improve and streamline their communications. Being more flexible, cost-effective, and mobile than traditional phone systems, VoIP services offer a great many business benefits.
A VoIP phone line is a virtual telephone line associated with a VoIP phone system. Rather than being actually associated with a physical landline—and therefore the geographical location where that line is—a VoIP phone line is associated with your phone system account. That means you can use the line to make and take calls wherever you go.
VoIP phone system providers offer their services on a subscription basis, often with different pricing tiers that include varying features. It’s best to do your research into what you get for your money, and with that in mind, you can check out RingCentral’s plans and pricing.
A woman making a call using different VoIP ports such as 5004 UDP, 5061 TCP/ UDP, and 5060 TCP

What are VoIP ports?

In network terms, a port is a communication endpoint used by the transport protocol to facilitate the stream of information. Every single piece of data has a destination port associated with it, and this port is associated with a number to enable the server to sort traffic and deliver the data to the correct recipient.

Port numbers range from 0 to 65535. For VoIP traffic, the standard port is 5060, which is used for both TCP and UDP connections. Consider it the gateway for VoIP functions such as media streaming and video conferencing. Often, port 5004 UDP is preferred when transmitting packets of data within a computer network.

VoIP phone and communications providers use a variety of ports based on their specific product designs and requirements. They may also have a supplementary list of UDP ports for when they need to upgrade their products.

Apart from network ports, you may also need hardware ports in order to use complementary VoIP accessories. These can include headsets for devices not designed to be used like regular telephones and USB ports for USB phones.