Voice Over Internet Protocol or VoIP was first introduced in the 1990s and since then has become one of the most fundamental communication methods on the market. It offers security, flexibility, and efficiency, so it is not surprising that most businesses want to invest in a VoIP company.
In this article, we want to cover the following aspects:
- Definition of VoIP;
- Reasons to choose VoIP companies;
- How to choose a company for investing;
- The best VoIP service providers on the market to invest in 2023.
What is VoIP?
Before we move on to the companies you should invest in, it is important to understand what this technology really means. Instead of using traditional telephone lines, VoIP offers multimedia and voice communication sessions through the Internet. Audio signals are then converted into digital packets that are sent through IP networks.
Sounds complicated? Well, we won’t bore you with definitions and will just enumerate the main benefits VoIP has over traditional telecommunications:
- Flexibility. With VoIP, there is no need for physical phone lines because users communicate through the Internet from their smartphones, tablets, and computers. This is huge for maximizing mobility, working remotely, and connecting with people on the other side of the globe;
- Cost-efficiency. On average, companies save 50% of their costs by switching to VoIP because they don’t have to pay for long-distance international calls, transmissions, or other issues imposed by the telecom company.
- Worldwide accessibility. VoIP erases borders making it very easy to communicate across countries and continents. As long as there is the Internet, there is a connection which is extremely beneficial for distant areas where laying a telephone line is expensive or impossible;
- Diverse functionality. Leading VoIP companies usually offer lots of features like call waiting and forwarding, conference calls, voicemail, and so on. They are especially important for businesses and individuals who make many calls;
- Cross-platform integration. You can easily integrate VoIP with other systems like CRM to improve and optimize customer service and your daily workflows;
- Adjustable. Depending on your goals, you may easily scale your VoIP if needed by adding or removing the lines.
Despite a big number of advantages, VoIP remains very dependent on the Internet connection. Given the connection quality, bandwidth, and other related factors, the capacity of the call may change. However, advancements in the industry and infrastructure make VoIP as stable and convenient as ever before, not depending on whether you are a private user or a growing business.
Why do VoIP companies have potential?
To invest in a certain company or industry, you need to understand whether it has potential and in the following paragraphs we will try to answer this question. Some of the answers can already be found in the section above because VoIP’s advantages equal its potential. But some of the reasons may be eye-opening. For example:
- A growing market. Although VoIP is not a new technology, it continues to grow at a fast speed. Every day, thousands of companies switch from traditional phone lines to VoIP and the market is expected to increase year after year.
- Constant reduction of costs. We have already explained that VoIP is much cheaper. Still, the financial gap between this technology and traditional systems will continue to increase because VoIP companies and related industries will come up with more and more changes and improvements.
- System advancements. As we said above, VoIP companies are constantly developing and offering better security and call quality, improved network stability, integration with IoT and AI, and more. Keeping up with the times gives VoIP businesses a competitive advantage and ensures that they will never lag behind in technological regard.
- Mobility first. After the pandemic breakthrough, many companies started working remotely and never returned to their offices. All of them need secure and fast communication like VoIP. Statistics show that remote work is the future, so VoIP companies will not go anywhere.
- Convenience. Businesses don’t need to interfere in installing phone lines, ensuring their safety and maintenance. With VoIP, everything is done automatically, so companies and individuals can concentrate on their own tasks. Time is money, they say.
The VoIP industry is extremely competitive and new companies join it almost every month. This means that they need to do their best to stand the competition by adding new features, improving customer support, and reducing fees. This gives end-users a bunch of advantages and makes the market attractive and vibrant.
How to choose a company for investing
Finally, we are getting closer and closer to the main topic of the article – investing in the top VoIP companies on the market. But first, you need a list of criteria for evaluating these companies and we are happy to give it to you. There are 8 main factors to take into account:
- The financial health of the company. Evaluate its financial performance over the years – revenue growth and profitability, financial papers, debts, and so on. Give preference to companies which evolve steadily over time.
- Position on the market. If it is possible, collect information about the company’s competitive advantages, market share, and base of customers. Make a list of things that help it stand out.
- Technology that it uses. VoIP is a very dynamic industry and a worthy company should always be several steps ahead by implementing new features and technologies. Evaluate how much it invests in research and whether the company regularly improves call quality and integration.
- Future prospects. Consider such factors as emerging technologies that could be applied, international growth, and new partnerships. However, such information may be often closed and you will get only a general overview of the overall growth strategy. Who knows, maybe you are a competitor secretly trying to find out valuable information.
- Management. It is impossible to imagine a stable and successful company without strong leadership. Talk to its management, and ask whether they have relevant experience and success stories. People leading a company should have a strategic vision and the ability to withstand constantly-growing demands.
- Potential risks. This criterion is extremely important and can be applied not only to a particular company but to the VoIP industry as a whole. Potential risks include different types of cybersecurity threats, changing interests of the customers, technological collapse, legal changes, and so on. Evaluate how a company is able to resist these risks.
- Regulatory issues. Another important issue is the legal climate the chosen VoIP company operates in. It involves telecom laws, licensing requirements, and data privacy policies. They may greatly differ from one country to another.
- Customer retention. Pay attention to the existing customer base and to the overall satisfaction rate. Is the company able to gain the loyalty of its users and keep it in the long run? Getting familiar with several regular customers will be a great advantage for understanding the company.
Investing in a business is inseparably connected with risks, so it is very important to conduct detailed research and communicate with financial advisors before making a decision. Conducting a SWOT analysis and getting as many reports as possible will give you lots of valuable insights and will help to make an informed decision.
Top 5 VoIP companies for investing
If the above didn’t scare you away, let us discuss the best 5 companies in the VoIP industry that are worth investing in. We have made this list based on a detailed analysis, so choosing them will surely give you a competitive advantage.
It is the right VoIP company for individuals and businesses of any size. The main advantages of MightyCall include responsive customer support, different payment plans depending on your team’s size, and over 30 calling options. The main features that MightyCall offers include various types of numbers (toll-free, local, business numbers, and so on), SMS and MMS, call waiting and recording, conference calls, call screening, and multi-level IVR.
Thanks to its simple design, MightyCall is very user-friendly and easy to understand even if you have never tried VoIP communication before.
Price: from $15 per user or from $150 for an unlimited number of users.
Another great VoIP phone system to invest in is Grasshopper which combines the best practices of traditional lines and modern technologies. It provides all the standard business features and can boast a very decent UI and UX. Grasshopper is usually chosen by medium-sized companies that need solid connections without any extra features.
This software can be integrated with Zapier and API although can’t be used with CRMs. You can use Grasshopper to make audio calls and send messages, as well as to join conferences and opt for business numbers.
Price: $29 – up to 3 users/month and $49 – up to 6 users/month.
8x8 is a well-known VoIP company with great quality and lots of customers across the world. Being one of the largest players on the market, 8x8 has a global plan across 40 locations and a big number of features. For example, document sharing, analytics, and meeting streaming. This provider is best for companies with lots of international calls and large workloads.
8x8 has excellent integration with Microsoft Teams and different productivity apps when choosing advanced payment plans.
Price: Between $15 and $57 per user/month.
This company is usually chosen by large teams and call centers thanks to a big number of payment options and a wide range of features. For example, phone apps, IVR, webphone, call forwarding, and SMS/MMS.
What we like about OpenPhone is its integrations with a wide range of apps and software – email, Google Contacts, Zapier, Slack, and more. Most customers say that OpenPhone is easy to use thanks to its simplicity and smart design. Priority customer support is available in the Enterprise payment plan.
Price: starts from $13 per user/month.
The last recommended VoIP company for successful investments is Nextiva which has been called the best business phone service several times. It is best for small and middle-sized companies that are not seeking advanced features. Still, you can make unlimited phone and video calls, use voicemail, integrate with Google Contacts and Outlook, and get a toll-free number.
What’s special about this provider is its dedication to the community. Through the Nextiva Cares initiative, the company gives back to local communities and those in need. Customer support at Nextiva is very helpful with setting up the account.
Price: start with $21.95 per user/month.
VoIP is the future
In 2022, the number of VoIP users has reached 3 billion - more than 1/3 of the world's population. This technology has numerous advantages and continues to improve to give businesses and individuals a stable, convenient, and secure connection on a daily basis.
We hope that now you know more about VoIP, its importance, and the main communication companies to invest in. If you have any questions left, don’t hesitate to ask. We are always happy to help!