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As technology advances and companies adapt to ever-changing environments, many are ditching traditional landlines in favor of voice-over-internet-protocol (VoIP) services. These cloud-based utilities can help cut costs, improve remote collaboration and increase efficiency by integrating with other software.
Hundreds of VoIP providers exist, each with its own features and pricing. Matching your business with the right service can be a challenge, so Forbes Advisor examined the top options on the market and has ranked the best VoIP phone services. Find the best option for your needs and budget today.
The Forbes Advisor Small Business team is committed to bringing you unbiased rankings and information with full editorial independence. We use product data, strategic methodologies and expert insights to inform all of our content and guide you in making the best decisions for your business journey.
We selected the 12 best providers and rated them according to factors such as transparent pricing, types of calling included in plans, integration compatibility, access to customer support and customer ratings. All ratings are determined solely by our editorial team.
| Company | Forbes Advisor Rating | Toll-free numbers | Voicemail transcription | Pricing from | LEARN MORE | ||||
|---|---|---|---|---|---|---|---|---|---|
| RingCentral |  |
4.9 |  |
Yes | Yes | $19.99 per user, per month on an annual basis | Learn More | On RingCentral's Website | |
| Nextiva |  |
4.7 |  |
Yes | Yes | $18.95 per user, per month | Learn More | On Nextiva's Website | |
| Grasshopper |  |
4.6 |  |
Yes | Yes | $26 per month | Learn More | Read Forbes' Review | |
| 8x8 |  |
4.5 | |
Yes | Yes | $15 per user, per month | Learn More | On 8x8's Website | |
| Vonage |  |
4.4 |  |
Yes | Yes | $19.99 per month | Learn More | On Vonage's Website | |
| Dialpad |  |
4.3 |  |
Yes | Yes | $15 per user, per month | Learn More | Read Forbes' Review | |
| magicJack |  |
4.3 | |
No | Yes | $43 per year | View More |
A VoIP system is a communications system that uses a computer, smartphone, VoIP phones or WebRTC-enabled browsers to make telephone calls and transfer information from one location to another. It accomplishes this through an internet connection. It differs from a traditional phone, also called a landline, in how it sends information and data.
A landline uses copper wires to transmit analog signals. On the other hand, VoIP uses a broadband internet connection to transmit data. The data is transformed from the original analog data, transmitted as digital data and then turned back into an analog signal so that you can understand what is being said.
VoIP systems are often comprehensive office solutions offering voice mail, call recording, custom caller ID and voice mail-to-text features. Many offices use VoIP technology to create a unified communications system for the office that makes it easy for teams to communicate with customers and among themselves.
SIP and VoIP are two acronyms that you will see when considering phone systems.
VoIP technology can exist independent from more comprehensive SIP systems when all you need is phone call capabilities. When you need other data-sharing abilities, you need a SIP system. However, the marketplace often refers to more comprehensive solutions as VoIP solutions, creating confusion among consumers.
There are many VoIP service providers vying for your business. It can be hard to distinguish the best VoIP service for you. There are even some free VoIP providers. Here are some key things to look for in the best business VoIP services.
VoIP costs can vary depending on several factors, including the type of service, the number of users and the features included. Some providers offer flat-rate pricing, while others charge based on usage or the number of phone lines needed.
Factors that impact cost include:
To reduce costs, you can:
When choosing between a more expensive and cheaper option, consider the following:
Several factors can impact call quality and uptime when using VoIP services. These include:
To assess a provider’s call quality and uptime during the buying process, you can:
Some key VoIP phone features to consider as you select a provider include:
There are many other features to consider when selecting a VoIP system, beyond the twenty popular features we’ve noted above. As such, it’s essential to do your research in deciding what service plan to sign up for and what features will work best for your organization.
When selecting which VoIP system features to purchase through service plans or add-ons, you should consider the following:
Once you can answer a similar list regarding which VoIP features to invest in, you should move forward with choosing the best options for your business.
VoIP is a reliable system, because it uses the more reliable fiber optic and broadband cables that move internet data. Copper wires for landlines tend to be less efficient than fiber optic cables, leading to more dropped calls or noise on the line.
When you get a VoIP phone system, there are a lot of features that come with it. As a reminder, many of these benefits are the result of SIP technology but are packaged as part of your VoIP system.
For everything that it does, VoIP systems are still usually cheaper than getting landlines for the same number of phone numbers.
There are many advantages of VoIP, but there are also some disadvantages that you should consider before making the switch. One of the main disadvantages is that the phone system, thus the quality of calls, is completely reliant on the internet connection quality—the better the connection, the better the calls. However, if your internet connection goes down for any reason at any time, your phones also go down. Lesser-speed internet connections can also lead to call problems with dropped calls or jitter on the line.
Another problem with VoIP is that the connection is not always secure. This means that the calls can be breached easily with others listening to calls. It is important to check with the company you are contracting for VoIP services to see if they use high-level encryption to protect you and your company data.
A final disadvantage of the VoIP system is its use in emergencies. Numbers are not always local as businesses work to develop a presence in specific parts of the country while callers are in other locations. In an emergency, responders first look to the telephone number to locate the caller to render aid. If you don’t have an E911 emergency address connected to the VoIP line, it may take longer for responders to get to you.
VoIP needs an internet connection to work. You’ll need certain hardware to transfer the data. The hardware includes a personal computer and cable modem. If you are calling from a telephone, you’ll need a phone adapter or you’ll need to use a VoIP-ready phone. The adapter converts analog signals into digital signals that allow them to be transferred over the internet. During the call, the data is transferred back to an analog signal so that the other party can understand what is being said.
If you’re using VoIP from a mobile phone, you can connect to the internet wirelessly to transmit the data. Data is stored in the cloud and accessed via a dashboard on the computer or mobile device. Data may include contacts and business phone numbers.
Most business owners think that all VoIP systems are the same. There are some differences in the types of VoIP services that you can get.
A hosted VoIP service is different than an on-premises VoIP solution. When things are on-premises, everything from the equipment to the connection is installed and maintained by the company deploying the system. When hosted, the VoIP system is maintained by the provider of the system. The business deploying the phone system really only needs to supply the phones and internet connection. The provider assumes all other expensive hardware costs.
Cloud-based VoIP phone systems use the internet to make calls and host everything on the provider’s server network. When a business chooses this type of phone system, they don’t have to manage hardware; they simply plug the phones in and dial.
Unified communications as a service (UCaaS) is a cloud-based communications technology relying on six key communications functions. The six communications functions are:
The UCaaS goes beyond just the VoIP solutions and incorporates SIP solutions as well. Systems can be customized to serve particular business needs. The best UCaaS providers help businesses improve their processes and streamline daily operations.
Communications platform as a service (CPaaS) offers cloud-based, customized communications services for unified communications systems. Because it is customizable, it is fully adaptable to any business and its needs. Everything is integrated to work in real time on the platform and doesn’t need to access outside systems.
Fixed VoIP services are provided through a dedicated internet connection, such as a DSL or cable line. They are typically more reliable and consistent in terms of call quality and uptime. They are also more secure, as the internet connection is not shared with other users. Examples of fixed VoIP services include:
Non-fixed VoIP services, on the other hand, are provided through a shared internet connection, such as a Wi-Fi or cellular network. These services are typically less reliable and may be subject to dropped calls or poor call quality due to network congestion. They are also less secure, as the internet connection is shared with other users. Examples of non-fixed VoIP services include:
Fixed VoIP services are more suitable for businesses that require a high level of reliability and security, while non-fixed VoIP services are more suitable for individuals or businesses that require mobility and flexibility.
VoIP hardware and equipment refers to the devices and peripherals needed to make and receive VoIP calls. While this varies by provider, there are four main types of equipment.
The types of equipment needed for VoIP typically include:
Service providers typically offer a variety of equipment options and some providers include the cost of the equipment as part of their plans, while others may charge extra for the equipment or require the customer to purchase it separately.
Companies can also use their existing equipment, such as analog phones, with an adapter. However, the quality of the call may not be as good as it would be with an IP phone designed specifically for VoIP systems.
A lot of the work to set up the VoIP system starts with choosing the right VoIP system. Choose a provider that offers the hardware support, such as phones that you will need for your office. It is also helpful to choose a provider that provides E911 calls that give emergency responders the callback number and location of callers.
Decide how many lines you will need. As you select a provider, you will also want to address needs such as porting over an existing number to your new system. If your business has been around for a while, maintaining the consistency of numbers is important. Be sure to let the provider know this as you sign up for the service.
Once you have chosen a provider and allowed them to do the initial setup on their end, the next item of business is to plug the system in. This means connecting the communications device (phone or computer) to the internet. Your provider will walk you through the configuration steps to ensure that your calls are transferring across the network properly. Test the system to see if any issues need troubleshooting.
Because VoIP is a comprehensive solution that most providers offer, there are add-ons that you can request to customize your business and serve its unique needs.
When requesting a phone number, you can ask the provider for a virtual phone number or a vanity phone number. A virtual phone number allows you to have a number from a geographic region that you are not residing in, helping you better serve customers from anywhere in the world. A vanity phone number is easy to remember because it associates letters with the numbers, often representing part of the company name or slogan.
Businesses can use video conferencing to host internal meetings or to have a virtual face-to-face with customers. This is part of the new business model, particularly post-pandemic, and is something most businesses will want as an add-on to their business model. VoIP integrates the best video conferencing software with call functions.
Hosting conference calls is an important way to hold a virtual meeting or seminar. Top VoIP providers use the best conference call technology and make it a seamless experience.
Most businesses want their phone system to integrate with their customer relationship management (CRM) software. This means that your phone representatives have access to pertinent client details and purchases as they make the call. It’s an efficient way to provide your people with data. Top VoIP providers work with the best CRM systems.
VoIP technology has many uses and can be beneficial for various industries and business scenarios. Some of the most common use cases include:
VoIP technology can also be used for other industries such as construction, finance, nonprofits, government agencies and many more. As the technology continues to evolve and improve, the possibilities for VoIP use cases will continue to expand.
VoIP is subject to a variety of regulatory concerns. In the United States, the Federal Communications Commission (FCC) has established regulations for VoIP services. These regulations are intended to ensure that consumers have access to reliable and affordable VoIP services and promote market competition. Some key regulatory concerns for VoIP include:
It’s important for companies to be aware of these regulations and to comply with them to avoid any potential penalties or fines. The FCC provides detailed information and guidelines on its website. Check them frequently, as the regulations may change over time.
There are a number of burgeoning 2023 VoIP trends, and being aware of them will help your business remain competitive in our rapidly evolving digital world.
VoIP technology is the cornerstone of Unified Communications as a Service (UCaaS) models. These systems and cloud-based service packages have been gaining traction in recent years, especially following the events of the COVID-19 pandemic. Remote working mandates highlighted the usefulness of VoIP-based systems, allowing employees to maintain effective communication through various methods without relying on a physical connection.
UCaaS now includes a wide variety of communication tools, including voice calls, instant chat, video calling, email integration and file sharing. These functions are critical to communication on a global scale, and VoIP technology is the basis for all of them. UCaaS companies that offer more ways to connect with their partners and customers will be more competitive in the future.
We expect to see the UCaaS market continue to grow in 2023 and beyond. In 2020, the market value of UCaaS was around $38.74 billion, and this number is projected to reach $210.07 billion by 2028.
Adding VoIP systems into existing business operating systems and tech stacks is becoming easier than ever. With cloud-based systems, it is possible to add additional components to a current system without much effort. Easily modifiable VoIP tools that work well alongside existing systems will be at a distinct advantage in the coming years.
Advancements in language processing and machine learning have resulted in smarter and more effective voice assistants. AI can quickly classify and redirect incoming messages, accurately answer basic customer questions and interpret user behavior and sentiment from conversation content and tone. The assistant automatically sends data about the interaction back to the system for analysis so that future interactions can be further optimized. AI voice assistants will continue to improve in 2023 and beyond.
As with any internet-based entity, VoIP is vulnerable to cyber threats and attacks that can have major consequences for the businesses they serve. Breaches in security can lead to disruptions in business operations and potentially risk litigation from affected parties. Some of the most common risks to VoIP systems are phishing, DDoS attacks, call tampering, malware and viruses, voice over misconfigured internet telephones (VOMIT) and spam over IP telephony (SPIT).
In 2019, 38% of small businesses had no systems in place for managing cybersecurity threats, and about 46% of illegal calls were made through VoIP systems. In 2023, we expect companies utilizing VoIP technology to devote more resources into securing the networks that businesses rely upon. This way, businesses can function without issue and continue to protect and serve their customers.
Here’s how to ensure you’re staying protected:
When determining the best VoIP services, Forbes Advisor researched the industry and selected 12 providers to analyze in-depth. We then ranked these providers using several factors such as pricing, features, ease of use and customer support. Hard and fast criteria such as price and features were weighted higher than more subjective data points such as reviews.
VoIP services usually charge a monthly fee per user. However, some providers may charge a flat rate for unlimited users or minutes. Be sure to check the fine print—some providers charge additional fees for features such as call recording or transcription, while others include these features for free. We weighed pricing and value at 20% of the total score.
As we mentioned earlier, VoIP services come with a variety of features. The most basic include unlimited calling and voice mail, while more advanced features include visual voice mail, call forwarding, toll-free numbers and CRM integrations. Consider which features are most important to your business before making a decision.
We also considered the international coverage of the VoIP service, rating providers higher if they offered more coverage and better rates for international calls. This is especially important for global businesses. Advanced features account for 30% of the total score.
Our team also provided insights to help rank the services we reviewed. We considered the provider’s popularity among users, taking into account the number of customers and positive reviews. Providers with a higher percentage of satisfied customers and positive reviews were rated higher. Altogether, these aspects account for 20% of the total score.
Scalability
We considered the scalability of the VoIP services, rating providers higher if they offered flexibility in terms of the number of users and minutes. Providers that offered flexible plans and easy upgrade options were also given higher scores.
Integrations
VoIP services that integrate with other software and systems, such as CRM, project management and other business tools, allow for expanded communication capabilities. Providers that offered seamless integration options with other software were given higher scores.
Security
We considered the security measures that VoIP providers had in place, such as encryption and authentication methods, to ensure the confidentiality of the communication and protect against cyber threats. Providers that offered advanced security measures were given higher scores.
The top three VoIP phone services for business available today include RingCentral, Nextiva, and Grasshopper. These providers offer toll-free numbers, voicemail transcription and other popular VoIP features at affordable pricing from as low as $19.99 per month.
To use VoIP, you’ll need a reliable and fast internet connection. Because it’s a cloud-based tool, a lack of online service means you wouldn’t be able to use it.
VoIP and Wi-Fi calling are similar. VoIP sends digital data packets over the internet that are converted to analog phone signals at the recipient’s end. Wi-Fi calling connects a phone call through the internet rather than a cell tower.
In general, using a VoIP phone, including a VoIP cellphone is very secure. However, there are steps that you can take to increase the security levels even more. These include verifying that your VoIP provider offers an encrypted connection, implementing a session initiation protocol (SIP)-capable firewall that filters all incoming calls for any content that puts your system at risk, and having your information technology (IT) staff create a virtual local area network (VLAN) for all of your internal calls to take place, keeping them from being put at risk from outside sources. Make sure that your staff remains diligent when using their VoIP phones so that they can avoid risks like voice phishing, also known as vishing.
To get VoIP phone service, you will need to find a VoIP provider that offers service in your area and sign up for service. You can search online, ask for recommendations, or check with your internet service provider. Once you have chosen a provider, it will send you the necessary equipment and instructions for setting up and using the service.
Yes, most VoIP providers allow you to port your existing phone number to their service. This means that you can keep your current phone number when switching to a VoIP service, which can be convenient for businesses and individuals. Check with the provider for additional costs or requirements for the number porting process.
No, not all phones are VoIP compatible. Some phones may require an adapter to work with VoIP service. If you are using a traditional landline phone, you will need to check with your VoIP provider to see if an adapter is required or if it provides IP phones that are compatible with its service.
Yes, it is possible to fax over VoIP using a fax machine or a computer with a fax modem. Some VoIP providers offer fax-to-email services, which allow you to send and receive faxes via email. However, it’s important to check with the provider for any additional costs or requirements for this service.
VoIP phones depend on having a consistent, reliable internet connection. Without the web, you won’t be able to place or receive any calls with them. For this reason, your internet speed must be fast and stable enough so as not to impede VoIP performance—critical for ensuring communication between your business and its stakeholders runs smoothly every time.
