The Best VoIP Providers and Phone Services for 2017

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It's true that your mobile phone is always with you, but you may not always want to rely on it as everyone who has ever had a dropped call knows. You can, of course, still get a landline number from your local telephone or cable operator—AT&T, Comcast, Time Warner, Verizon, and the rest. But you can do better. You can use a lower-cost Voice-over-IP (VoIP) service that takes advantage of your broadband internet connection for your phone service. It is possible to do this in many different ways, with numerous benefits. VoIP services offer some nifty calling and voicemail features beyond just a reliable connection for your home or small business. They offer features such as software phones (softphones), call routing and recording, SMS text, and video conferencing capabilities. Finally, there are higher-end, business-grade VoIP services for larger companies with more heavy-duty enterprise features.

VoIP providers come in all shapes and sizes. In this roundup, we review traditional VoIP providers that started with calling and have gradually added a wider array of features. We also review cloud-based services such as Skype that began as video conferencing services and have since rolled out significant VoIP capabilities. Some VoIP providers use entirely cloud-based user interfaces (UIs) and calling, while others offer both web-based calling and routing through physical handsets, which are available from a number of sources.

Polycom is one vendor that offers a wide variety of IP-based products including phones. RingCentral, for example, partners with Polycom for their handsets. Polycom also offers solutions which work with Microsoft Skype for Business. Whether you're dealing with a combined hardware and software solution or a fully cloud-based application, VoIP services provide a powerful combined communication platform to keep you connected in exactly the way that suits you.

What Is VoIP?

The way in which voice signals are transmitted nowadays has evolved significantly since the original invention. In the beginning, the method involved a very simple point-to-point connection between two devices. Over time, the concept of switching was introduced, enabling the routing of calls to multiple devices using an operator to physically "switch" a user's phone and connect the call to an incoming line. Early versions of automated call switching used electromechanical switches to connect outside lines to a specific handset. With the introduction of digital circuits came the ability to automate the switching functions and make it simpler for the user to make and receive calls.

The concept of the exchange came about as the number of telephone lines began to grow, and the grouping of numbers by a central office or local exchange became necessary. This concept utilized the idea of a three-digit exchange number, which is still used today as the first three numbers after the area code. With a four-digit extension number a single exchange could, theoretically, handle up to 10,000 numbers from 0000 to 9999. The same idea was used for large corporations with thousands of extensions in the form of a Private Branch Exchange (PBX).

VoIP is another evolutionary step in the transmission of voice over long distances. At the most basic level, it involves encoding voice into a digital form, which can then be transmitted over the internet. On the receiving end, the encoded signal must be decoded to let recipient hear the sender's voice. Other pieces of the puzzle include Session Initiation Protocol (SIP), which handles the setup of a VoIP call.

Technical details for SIP can be found in RFC 3261. Request For Comment (RFC) documents are maintained by the Internet Engineering Task Force (IETF) and document the bulk of protocols and services in use on the internet today. SIP can be used with a number of streaming protocols covering both voice and video. SIP is used to connect endpoints and establish a session which persists until disconnected.

Most VoIP providers incorporate a cloud-based PBX as a part of their product. This functions in much the same way a traditional PBX works on-premises in that it connects calls destined for a specific endpoint to an incoming line. Another key function of a cloud-based PBX is to provide a Public Switched Telephone Network (PSTN) gateway to facilitate the connection of VoIP calls to a physical phone number.

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Click image to expand full infographic. Image credit: Green.ch

VoIP Basics

For the best quality, you will need to meet a minimum upstream and downstream data throughput requirement. In addition, you'll also need to meet a minimum latency (time between when a signal leaves a remote computer and when your system receives it) number typically measured in milliseconds. It is possible to test your network connection to see if it will support a VoIP service. RingCentral offers this service from their website.

VoIP is usually very simple to set up. You get a box or special phone adapter unit from the service provider, plug it into power, your Internet router, and a standard telephone handset. An alternative that's becoming less common is to purchase a SIP phone, which includes electronics enabling it to sidestep the need for the adapter.

The price differences between VoIP and standard landline services are indeed significant. For example, in the New York area, a Verizon Freedom Value plan that includes unlimited local and long-distance calling costs around $59.99 per month depending on the bundle you choose. AT&T does better with an AT&T U-verse Voice Unlimited plan in Wisconsin costing around $35 a month, but there's a catch—you can't get it without adding at minimum a $14.95 per month Internet plan.

So you're looking at upwards of $50 just for landline service from the traditional Ma Bell duopoly. VoIP services cut that monthly bill significantly. 1-VoIP Residential starts at just $8.97 per month. A Vonage line or an entry level Phone.com plan will run you $9.99. RingCentral's Standard plan also starts at $24.99. Jive Hosted VoIP includes all voice features for $19.95, plus add-ons for premium services geared toward businesses. VoIPstudio starts at only $4.99 per user per month. Mitel MiCloud Office lets you choose different license levels of $19.99, $24.99, or $29.99 for each users depending on the level of features they need.

Not only do VoIP services cost less than standard phone line services, but they also add features on top of what you get from the legacy providers. For example, Mitel MiCloud Office, Phone.com, and Vonage offer mobile apps for Android and iOS that act as extensions to your main phone, including enhanced functionality rolled out specifically for new mobile operating systems (OSes) including iOS 10. Jive gives you browser-based, click-to-call functionality in Google Chrome and things such as drag-and-drop dial plan editing. RingCentral offers a host of additional features, from an auto-receptionist and role-based access control to call screening and team collaboration.

Skype and Skype for Business are, of course, better known for video calling than standard telephone system capabilities, but offer plenty of staples such as text messaging, call routing, speed dial, plus more robust tools such as Skype Translator. Another cool feature in most of the services is "phone hunt," which rings multiple phones or apps until you pick up or sends the call to voicemail depending on user preference. Other capabilities include caller blocking, three-way calling, and call waiting.

Skype also includes significant online chat functionality, which it is continually augmenting with new Moji (emoji-like stickers similar to that of Facebook Messenger), and a wide selection of bots representing an automated natural language helpdesk experience for users within the chat client for conversing and transacting with various brands and services.

Another core capability to mention is E911. Emergency service calling used to be a problem for VoIP providers, but the industry has developed a solution in the form of up E911 or Enhanced 9-1-1. When you sign up for Vonage or other providers, you have to specify an address for 911 service. This sets up E911, which lets the emergency operator see the location where the call is coming from to more quickly dispatch first responders. The services also have a fail-safe number you enter—another phone number to forward calls to in case your internet connection goes belly-up.

Business VoIP

The business-focused entrants in this roundup, as you might expect, go much farther in additional capabilities, serving as PBXes. These let your business present a professional appearance to the telephoning world with features like call routing, automated attendants, call recording, and conference call bridges. Interactive Voice Response (IVR) systems replace the need for an operator to route calls to departments or individuals using dial-by-name. For customer support the use of call queues complete with hold music and wait times help enhance the customer experience.

Most mobile phones have an integrated contacts feature which lets you dial directly from an entry. This is a key time saver for business customers and supported by most business VoIP services. Integration with popular services such as Gmail and Microsoft Office 365 bring an additional level of support. RingCentral Office offers these integrations plus other popular services like Zendesk and more.

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Click image to expand full infographic. Image credit: CommWorld

Another area of Business VoIP support covers the growing number of mobile employees using softphones for sending and receiving calls from a laptop or mobile device. With a cloud-based PBX solution, you can have employees at different physical locations to include multiple time zones. This makes it easier to support longer business hours to cover your entire customer base. Most of the business offerings offer call routing based on time of day and time zone.

It's also possible to switch a call from a mobile device to a desktop line or vice versa. Business products generally offer several pricing levels based on the number of lines needed, ranging from about $20 per line for large organizations to $35 per line for smaller groups; you also pay more for some added features like integration with cloud business services such as Salesforce, though products including Mitel MiCloud Office and VoIPstudio offer integrations with Salesforce and other CRM platforms built-in.

Make the Internet Your Landline

You could certainly get away with having a mobile line as your only telephone, but landline service retains its advantages, including never having to worry about how strong your cell signal is or whether your battery has any charge left. Landlines and VoIP also tend to provide clearer and reliable sound at all times. If those characteristics have undeniable appeal for you, then look through our summaries of the best VoIP services around and dig into the review links for more details.

Be aware that using a VoIP service puts you at the mercy of your internet provider. If your internet connection goes down, then so does your phone service. While this isn't the issue it once was, it still should be considered when making your purchasing decision. Heavy internet gaming or video streaming which consumes a large amount of bandwidth could affect your voice quality as well. Though, whether you're looking for a personal alternative to traditional telephone service or searching for an effective, scalable way to equip you small to midsize business (SMB) or home office with an array of cutting-edge communication capabilities and connectivity, one of these VoIP services may offer the right combination of features and price to suit your needs.

Featured in This Roundup

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    RingCentral Office (for Business)

    the-best-voip-providers-and-phone-services-for-2017 photo 5
    $19.99 MSRP
    %displayPrice% at %seller% RingCentral Office (for Business) is a solid, business-class, Voice-over-IP solution for a company of just about any size. If you need a phone solution with robust features and service-level agreements, then RingCentral Office (for Business) hits the high notes. Read the full review
  • the-best-voip-providers-and-phone-services-for-2017 photo 6

    Vonage Business


    $24.99 MSRP
    %displayPrice% at %seller% Vonage Business offers the right VoIP features for small-to-medium-size businesses, and its call quality is excellent. But it's less simple to set up than some competitors, and some of the features cost extra. Read the full review
  • the-best-voip-providers-and-phone-services-for-2017 photo 7

    Broadvoice Cloud PBX


    $22.95 MSRP
    %displayPrice% at %seller% Broadvoice offers a solid SMB cloud VoIP service with lots of handholding, but it lacks enterprise features and slick interfaces found in some competitors. Read the full review
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    8x8 Virtual Office Pro

    the-best-voip-providers-and-phone-services-for-2017 photo 9
    $24.99 MSRP
    %displayPrice% at %seller% 8x8 Virtual Office Pro is a great choice for SMBs looking for flexible VoIP telephony services with advanced features, mobile capabilities, and a decent selection of integrations with popular third-party apps. Read the full review
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    Microsoft Skype for Business


    $2.00 MSRP
    %displayPrice% at %seller% If you find yourself cobbling together web conferencing tools, chat clients, and Skype to handle all your communication needs, then consider Microsoft Skype for Business to simplify your setup. Just don't expect a full-fledged VoIP service. Read the full review
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    Fonality Hosted PBX

    the-best-voip-providers-and-phone-services-for-2017 photo 12
    $24.99 MSRP
    %displayPrice% at %seller% Fonality is a feature-rich, business-class voice over IP (VoIP) solution with extensive call routing, IVR, and call center features, with a very capable unified communications (UC) application. Its one-on-one assisted setup and included desk phones are major bonuses as well. Read the full review
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    Jive Hosted VoIP


    $29.95 MSRP
    %displayPrice% at %seller% Jive Hosted VoIP gives small businesses a flexible, cloud-based telephony system with a good mix of basic and advanced calling abilities.  Read the full review
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    Microsoft Skype (for Windows)

    the-best-voip-providers-and-phone-services-for-2017 photo 15
    $0.00 MSRP
    %displayPrice% at %seller% Skype is a powerful communication service, offering not only free group video calling, but also calling to standard phones, rich text chatting, live translation, and now bots. Read the full review
  • the-best-voip-providers-and-phone-services-for-2017 photo 16

    Vonage


    $25.99 MSRP
    %displayPrice% at %seller% Vonage delivers clear call quality and simple setup. It's inexpensive compared with standard carriers, but costs more than some other VoIP providers and lacks some capabilities other competitors include. Read the full review

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