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IP telephony, or Internet Protocol telephony is a term used by businesses that use the Internet Protocol in order to send packet data across connections to make communications such as voice, fax and other mediums of communication possible. Previously, information was sent over the dedicated circuit-switched connections of the public switched telephone network (PSTN). Now, through the extensive use of the internet; calls, fax, and other forms of communication can travel as packets of data on shared lines, which help to avoid using the detrimental results of the PSTN.

What are SMBs?

What Are Smbs

SMBs stand for small or medium sized businesses. These organizations employ a limited number of personnel and work on a smaller scale as opposed to larger organizations. Sometimes, SMBs are subsidiary companies under a different name.  Since SMBs are able to utilize smaller amount of space, thus reducing overall costs and are able to hire a higher amount of employees (more SMBs in number compared to larger organizations) for the sake of increasing the level of productivity, these form of businesses are starting to be preferred over larger scale businesses. In the technological era, SMBs are also startup companies that are able to drive business by bringing out products that deliver innovation and flexibility.

Where is IP Telephony used?

Where Is IP Telephony Used

IP Telephony is used in a variety of small and medium sized businesses that focus on smaller form of operations compared to larger organizations. Primarily, businesses that focus on the following driving factors to generate revenue are the ones that adopt the IP Telephony system:

  • Lower equipment administration costs
  • Centralized network control and management
  • Increased communications capabilities and productivity for remote and mobile employees
  • Increased customer satisfaction through the use of distributed call center applications

Specifically, businesses that stick to a very strict regime to communicate with one another, as well as maintaining communication with customers, clients and/or other small businesses use the IP Telephony system in order to reduce its costs substantially.

How does IP Telephony fit in SMBs business structure?

How Does IP Telephony Fit In Smbs Business Structure

The two primary objectives of running a business are as follows:

  • Generating revenue to increase profit
  • Reducing costs to increase profit margin

Adopting an IP Telephony system can help to reduce costs and increase the level of efficiency in the organization. This is because on major occasions, employees of the organization will not be required to waste tremendous amounts on time tracking their co-workers and their progress when the IP Telephony system helps to aid them in that department. Furthermore, in an organization which facilitates customers by providing them a product or a service, customers will no doubt want to give their feedback or report a problem. IP Telephony helps to serve customers better by receiving their feedbacks and their complaints instantaneously without making them wait incessantly.  

How can IP Telephony benefit the SMBs with their business communications?

How Can IP Telephony Benefit The Smbs With Their Business Communications

There are several ways how IP Telephony can help SMBs with their business communications. They are given below:

  • Combining multiple locations into a single system.
  • Call anywhere in the world for a fraction of the usual cost. In addition, employees can dial any other VoIP extension within the office or to remote office extension without being charged for it.
  • Small businesses can avoid purchasing expensive PBX hardware, thus reducing costs even further.
  • Customer frustration level will be substantially reduced due to lower frequency of busy lines, which will help to increase customer satisfaction.
  • Up to 40 simultaneous calls over a single connection can be made, while maintaining a robust voice quality.


In order to help businesses thrive, strengthen the channels of communication as well as reduce overall overheads to increase the profit margin of the organization, several investments are required to achieve the aforementioned results. With IP Telephony, business will be able to achieve this and more.

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