Internet phone service

Business communications technology has evolved apace in recent years. An internet phone service is now a necessity for companies that don’t want to fall behind. RingCentral RingEX is a unified platform that gives you all the advanced call capabilities you need—plus plenty more besides.

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Written by Roman Tobe
Director, Product Marketing
Reviewed by Esther Yoon
VP, Product & Industry Marketing
Updated: 01 October 2024
There are few things more important in business than effective communication. If your teams can’t collaborate efficiently, they can’t keep the company running smoothly or offer the standard of products and services your customers demand. That’s what makes an online phone service a must for modern business.
In the past, a landline-based phone system may have been enough. Today, though, you need to manage multiple communication channels, hybrid and remote workers, and more. Clunky, immobile on-premises systems, won’t cut it. 
Internet phone services—or, better still, a unified communications platform like RingCentral RingEX with online phone services built in—are the only way to effectively meet consumer demand and keep up with your competitors.
Play Video: A team messaging dashboard of the RingCentral app

What is an internet phone service?

An internet phone service, as the name implies, is a phone system rooted in the internet. Rather than using the physical network of copper wires and other infrastructure known as the Public Switched Telephone Network (PSTN) to transfer calls, it does so digitally over the internet.
That allows users to make and receive calls from anywhere using their laptop or mobile device. It provides small businesses and enterprises with the security, mobility, flexibility, and advanced call features that aren’t possible with on-premises phone systems.

How does an online phone call work?

An internet phone call is made possible by VoIP (Voice over Internet Protocol) technology. In the simplest possible terms, here’s how internet calling works:
  1. The voice signals you generate are converted into data packets.
  2. These packets travel over the network and out through the internet until they reach their destination.
  3. VoIP converts the packets back into voice signals for the person on the other end to understand the message.
From an end user’s point of view, online phone calls seem just like traditional ones. There are multiple ways to make internet calls, including:
  • Through a landline phone with an analog telephone adapter (ATA) - A phone adapter connects a landline phone to a VoIP system to enable internet calls. Just plug your phone cable into the device, and you’re good to go.
  • From PC to PC - Download a VoIP-enabled program, set up an online account, and start making internet calls. Call quality depends heavily on your infrastructure and bandwidth, so it doesn’t always make for an ideal business phone system, especially for small- and medium-sized businesses. Examples of this type of VoIP programs are Google Voice and Facebook Messaging.
  • From PC to phone - Partner with a third-party software provider to connect your computer to a landline phone and make PC-to-phone calls. You’ll be able to leverage their VoIP services for a price which is still considerably lower than what a traditional phone company would charge.
  • Using softphones and apps - Connect to VoIP using any handheld device. This setup is ideal for businesses with a number of field or remote workers.
The RingCentral dialpad on top of the Google browser window

Internet phone vs. conventional phone: The benefits of internet phones for business

The technology an internet-based telephone service uses to transmit calls is the principal difference between it and a conventional phone system. On a practical level, however, there are also a range of other differences a business will notice if they switch to a web-based phone service:

Conventional phone lines

Requires expensive on-premises hardware
Pricey and complex installations
Requires customers to sign long-term contracts
Upgrades and updates require additional costs
Premium technical support is reserved for premium customers
Specialized IT team needed for maintenance
Phone service change requests require lengthy processes

Internet phone lines

Doesn’t need any hardware, ever
Quick and free implementation
No commitments or long-term contracts
Upgrades and updates are always free
Free premium technical support for all customers
Self-manage the phone service from your mobile device
Easily add or repurpose digital lines
An internet business phone service, then, offers myriad benefits to companies. At the outset, installation is far easier, quicker, and less expensive. An online phone system isn’t reliant on copper wire phone lines or voluminous hardware. Getting them set up and implemented is often the case of simply downloading software and customizing settings.
Another related benefit of an internet phone system for small business particularly is that ongoing costs are also typically more affordable and predictable. With a traditional, on-premises system costs are impacted by maintenance, call volumes in a given month, and more. With internet phone services for business, meanwhile, you often simply pay a set monthly subscription charge.
What’s more, the best business internet phone service gives you much more in terms of features and functionality than any traditional system.

RingCentral RingEX: An advanced internet phone service and a whole lot more

RingCentral RingEX is an all-in-one communications solution for business. It delivers all of the following features and capabilities on one intuitive and easy-to-use platform:
The User List of the RingCentral Admin Portal

Voice calls

Enjoy nationwide, international, and toll-free calls for your business without worrying about over-the-top bills. What’s more, you can add new phone numbers, devices, offices, and remote teams to scale your business effectively.

Call flip

Transfer calls from one device to another. With call flip, you can switch an ongoing call between a softphone, desk phone, or mobile device in one tap if you’re not in the office. This way, the call continues even if you have to leave abruptly. You can also switch calls to video meetings with one click.
A call being transferred from the RingCentral app
The user profile preview in the RingCentral app

Cloud-hosted PBX

Cloud-hosted PBX helps businesses manage incoming calls through several features: auto-attendant, inbound and outbound caller ID, advanced call routing and forwarding rules as well as call screening, blocking, recording, and waiting. Businesses can even set up different answering rules for different times of the day. For example, all calls during business hours are answered and routed, while calls after hours can be sent straight to voicemail.

Audio and video conference

Conferencing is especially useful for companies with mobile employees or multiple locations. It lets you and your team host and join audio or video meetings from anywhere through their laptops, cell phones, or any mobile devices as long as they have a stable and high-speed internet connection. It can be used to conduct interactive webinars as well.
An ongoing video conference in the RingCentral app
The task function of the team messaging feature of the RingCentral app

Team messaging

Team messaging capabilities can also act as a powerful collaboration tool. Aside from its messaging functions, it also serves as a repository of tasks and allows users to create groups and teams for certain projects. But even with its useful functions, it is not a boring tool at all: use it to send emojis and even create your own company memes.

Business app integrations

RingCentral also integrates with the different business apps you use every day. This allows companies to add communication capabilities to their favorite tools like Salesforce, Google for Work, and Office 365, among others. You can even integrate it into your own in-house software using RingCentral APIs.
App integrations of the RingCentral app such as Google, Salesforce, Chrome, MailChimp, Now, Outlook, Office, and Zendesk
A selected user account in the RingCentral app directory

Virtual extensions

Connect departments and office locations with virtual phone extensions. These extensions are based in the cloud, so you can enjoy flexible features that can be customized according to your specific small business needs.

Why trust RingCentral to be your internet phone service provider?

RingCentral’s communications solutions are already trusted by over 400,000 businesses around the world. Here’s just a few of the reasons why they rely on us for their internet calling and more:

Improved business communications

Level up communications and collaborations with unlimited VoIP, conferencing, and team messaging. The call routing and call forwarding functions ensure that you do not miss anything, even international calls.

Mobile and flexible internet phone service

Access your phone service from anywhere and on any device. Call, text, and fax using your business phone number from your smartphone instead of using your personal number.

Quick phone service setup and implementation

Get your online phone service up and running in less than a day. Configure and customize system settings from your online account.

Secure business internet phone system

RingCentral secures all your communications during the whole IP transmission journey. All communications go through highly encrypted networks and layers of authentication.

24/7 customer support

RingCentral is there for you from day one, helping you implement your cloud business phone system. You can contact our award-winning support team 24/7 for technical support, consultations, and best practice recommendations.

Best value plans and pricing

RingCentral gives your business an all-inclusive cloud communications system for one affordable price—no hidden or additional costs for advanced phone features. You get a single, itemized bill each month.

Invest in a unified collaboration solution with internet phone service built right in

The right vendor should be able to assess your business needs and provide solutions accordingly. You don’t want to go to a company whose specialty is residential VoIP and whose list of compatible phones is mostly home phones meant solely for voice communication and with no capacity to handle business phone system must-haves.
With RingCentral, your VoIP phones are so much more than mere communication tools. All the features above are included in one internet phone service, priced under one bill, with no hidden costs, and with package details clearly communicated. That is why RingCentral is trusted by more than 400,000 companies around the world.
Here’s what sets RingCentral apart from the competition:
 
  • A unified communications solution – RingCentral has evolved its service from simple business VoIP calling, fax, and cloud PBX to a unified communications solution that meets most, if not all, business communications needs. Aside from a call management system with advanced features like auto-attendant and answering rules, its VoIP services also provide audio and video conferencing capabilities, which are useful for companies with mobile employees and multiple sites. Users also get a full-featured team collaboration tool that lets you create groups, set tasks, and track progress.
  • A highly secure and reliable service – RingCentral has Tier 1 geographically dispersed data centers to ensure redundancy. This is to make sure that there are no service disruptions. In addition to this, data transmissions are also heavily encrypted between endpoints of the network to ensure that internet calls or other data passing through the service are safe in transit or while at rest.
  • A highly mobile solution – This virtual phone system can be accessed through intuitively designed apps so users can always stay connected to the office wherever they are. Download the right app by choosing from the RingCentral desktop app for PC or Mac or the RingCentral mobile app for either Android or iOS.
  • Open APIs and integrations – RingCentral also plays well with other productivity apps. The service easily integrates to popular business apps like Salesforce, Office 365, and Google for Work. Additionally, RingCentral has open APIs that will allow your own developers to integrate digital voice, team messaging, SMS and MMS, and fax into your home-grown key apps and workflows.
Get started with an internet phone service—and a whole lot more—in a matter of moments

Full name*

Enter a valid full name

Work email*

Enter a valid email address

Business phone number*

Enter a valid phone number

Company name*

Enter a valid company name

Number of employees*

Enter a valid number of employees

Number of employees*

Enter a valid number of employees

Required fields*
By clicking the button above, you consent to receiving calls and emails from RingCentral. Calls may be connected using automated technology.
Privacy Notice
Thank you for your interest in RingCentral
A sales advisor will contact you within 24 hours. If you'd like to speak to someone now, please call (800) 574 5290

Internet phone service FAQs

Unlike PSTN, VoIP doesn’t require a dedicated circuit to maintain a call between two people. This is a major reason why long-distance calls, especially international ones, are so expensive with PSTN. You can just imagine how call costs drain certain businesses dry, like those that house a contact center.

On the other hand, VoIP uses packet-switching technology, wherein data packets (voice signals) take different routes to reach their destination. That only means the cost isn’t based on time or distance. There are no expenses to cover circuit and phone infrastructure.

So, if your company makes a ton of long-distance calls, you are bound to generate huge savings with VoIP. That’s money that can be used for other important aspects of the business.

 

With all the benefits that can be had from a VoIP phone system, one might wonder if the days of traditional phone systems are numbered. Is it only a matter of time before every business will have fully embraced VoIP technology?

Full adoption may take a while, but the future of business communications and connectivity indeed points to packet-switched networks. VoIP continues to change the way businesses communicate and collaborate, and it’s up to you to capitalize on this technology and stay ahead of the competition.

There may be “hurdles” along the way, but you can rest assured that experts are stopping at nothing to refine this technology. For as long as companies like RingCentral are on top of the game, internet calling can only get even more sophisticated and accessible to organizations of any size—startups, small businesses, and enterprises alike.

 

Monthly fees can go as high as $100 per phone line, depending on the phone carrier. Since landline phones rely on dedicated copper wires, adding more lines requires additional hardware, which in turn means additional costs. That’s $500 in your monthly bill if you have five lines.

On the other hand, the price of internet phone systems goes at a much lower rate. Additionally, because VoIP phone systems rely on the internet instead of public-switched telephone networks or mobile networks, they can support multiple lines, depending on the strength of your internet connection.

There are many other ways internet phone services let you save money. Here are a few more of them:

 

  • Hosted VoIP providers typically don’t require setup fees.
  • You don’t need to pay extra for maintenance, repairs, and upgrades.
  • VoIP uses the internet, so international and long-distance calls are much cheaper.
  • Bringing your own device to work? VoIP supports BYOB initiatives, which means you can use your Samsung or Apple devices to access company platforms.

Talk to a potential vendor about their phone plans and discover lower-priced options that fit your business needs. For instance, if your business requires constant communication with your offices in the USA and Canada, note that there are companies like RingCentral that offer an international calling plan with unlimited calls within the said countries, even Puerto Rico.

 

There are a handful of free internet calling apps on the market, which allow you to make VoIP calls for no charge. These solutions, however, are designed for consumers, to allow friends and families to connect over the internet. They’re not built with business needs in mind.

The chances are that a free online phone service will be very limited in terms of features and functionalities. You would, therefore, be selling your business short by settling for one to handle your professional conversations.

 

Being internet-based, the question of cybersecurity is obviously an important one when it comes to online phone services. Malware, vishing, and other malicious acts can impact an internet phone service. However, that’s true of any software or solution accessed over the net.

Being aware of these potential threats at the outset already puts you in a prime spot to prevent or combat them. From establishing strict standards in password setting to implementing monitoring systems, there are numerous techniques you can implement to secure your network.

What’s more, when you sign up for an internet phone service or get a number from a VoIP provider, you can also rely on their stringent security measures and practices.

RingCentral, for instance, takes pride in providing optimum security with Tier 1 network centers and round-the-clock monitoring to avert any form of attack or disruption. This is a major reason why the company continues to lead the way in business communications solutions globally.