VOIP SERVICES

What is a VoIP phone & how does it work?

Interested in getting a VoIP phone? Schedule a demo with our team, and discover features that can improve your business communications.

Unlimited calls within the US/Canada
  • One phone number for calling, team messaging, and video meetings
App integrations with Microsoft Teams, Salesforce, Hubspot, Google Drive, and more
Talk to sales
A female agent in an ongoing call via the RingCentral app
Written by Eric Kenney
Director, Product Marketing
Reviewed by Esther Yoon
VP, Product & Industry Marketing
Updated: 09 September 2024

The world is rapidly embracing new advancements in technology, and large and small businesses alike need to keep up to stay in the game. With a Voice over IP phone system from RingCentral, you can do exactly that and more.

As a leader in cloud communications, RingCentral offers an all-in-one Voice over Internet Protocol (VoIP) phone system. It allows smooth phone calls over the internet and includes other essential enterprise-level functionality like business SMS, online meetings, app integrations, and more.

Whether you want to upgrade your current phone lines, implement a completely new IP telephony system, or scale your business, RingCentral has the perfect solution for you.

The RingCentral app open on a mobile phone behind a desk phone

What is a VoIP phone?

When someone asks “what is a VoIP phone?”, they’re probably imagining a specific piece of hardware. That’s a more limited interpretation of VoIP phone meaning, however.

VoIP phone definition

A VoIP phone—sometimes also known as an IP phone or internet-based phone—is any device that uses IP technology to transmit calls.

VoIP phones, therefore, can come either in the form of specialized digital hardware (like a desk phone) or a software program (running on a computer or mobile device) that performs the same functions. The latter is known as a softphone.

Whatever its ultimate nature and appearance, a VoIP telephone takes the sound you generate and converts it into packets of data. It then sends that data over the network and out through the internet. The phone on the other end decompresses the data and plays it back for the other person to hear.

What are the different types of VoIP phones?

There are two main types of VoIP phones: hard phones and softphones. Each one has a specific purpose you should consider if you plan to have a full VoIP deployment for your company:

Hard phones

What does a VoIP phone look like if it’s a hard phone? Well, just like your everyday desk phones. The only difference is they dial over an IP network instead of traditional phone lines.

Softphones

Softphones are basically software apps installed onto your computer or mobile device so they can be used like a hard phone. In essence, they’re virtual phones that are not restricted to any physical location.

You can connect a USB phone to your computer to leverage the softphone’s functionality and features and communicate as you would using a regular phone.

Softphones running on a computer and coupled with a headset often deliver better call quality than VoIP apps on smartphones. But generally, aside from the computer or mobile device, there is no need for other devices or physical phones that require a power adapter or an AC adapter.

Who uses VoIP phones?

Anyone can use a VoIP phone. In fact, it would be perfectly possible to use one without realizing you were. A desktop phone using VoIP technology generally looks and works exactly like a traditional phone.

Where VoIP systems really shine, though, is in how they meet modern business needs. Being cost-efficient, flexible, scalable, and more, VoIP phones are increasingly adopted by forward-thinking businesses that understand the importance of good communication.

Why use a VoIP phone?

You might choose to use a VoIP phone for any number of reasons.

Perhaps you wish to make outbound calls from a number that represents an area where you don’t have a physical presence. Maybe you want a mobile app that gives your team the chance to work remotely. Or, alternatively, you might want a setup that can easily grow with your business.

Those are just some of the benefits of VoIP phone systems.
RingCentral boasts over 13k+ 5-star ratings across various review platforms, reflecting its commitment to user satisfaction and delivering a positive customer experience.
RIngCentral 5-star reviews
Read reviews to see why RingCentral is the trusted choice for businesses of every size when it comes to their communication needs
Read our reviews
Play Video: The RingCentral Desktop app open in a monitor screen

Benefits of VoIP phone systems

There are many benefits to using VoIP telephony for businesses—especially if you choose the right VoIP service providers. Some of the most notable are that these setups are:

  • Flexible - Being software-based and hosted in the cloud, you can turn almost any device into a VoIP telephone. As long as you have an internet connection, you can access your phone system.
  • Scalable - Adding new users, extensions, lines, and features to a VoIP phone system is quick and easy. It often only takes a few clicks and you can scale back down just as simply, if required.
  • Cost-effective - A VoIP-based system is typically provided on a subscription basis. That simplifies your billing, and entry-level plans are often very affordable. What’s more, there’s far less outlay on hardware and maintenance.
  • Easy to integrate - The best VoIP phone systems integrate natively with your other business tools to help you build seamless workflows. RingCentral RingEX, for instance, integrates with over 300 other solutions, including popular CRMs, productivity tools, and more.  
A laptop and a mobile phone integrated with RingCentral app

How do VoIP phones work?

From a user’s point of view, IP phones work no differently to traditional landlines or cell phones. The only difference is in the technology that drives them.

Voice over IP technology involves a set of different protocols working together to replicate telephony functions. Each protocol has a different function, but all work simultaneously in real time.

The general purpose of SIP is to set up real-time multimedia sessions between two or more participants over the internet. In VoIP, this protocol is the signaling component of the technology.
This technology:
  • Initiates the call (when you dial a phone number)
  • Establishes a connection (when the person being called answers the phone)
  • Terminates the connection (when either of the participants drops the call).
While more complex processes are going on to establish these connections, that is basically what SIP does for VoIP.
On the other hand, RTP is responsible for carrying multimedia, which in the case of VoIP is voice audio. 

It carries the digital voice audio data packet back and forth during VoIP phone calls. After which, codecs then convert the compressed digital audio data packet to uncompressed audio so that it can be played or heard by the call participants.
There are many different types of codecs, which can affect call quality and clarity. RingCentral supports G.722 audio codec and OPUS audio codec for HD voice.
 
A VoIP call on a mobile phone using TCP/UDP cloud technology

What are the different transport protocols for VoIP?

The next two protocols on our list are Transmission Control Protocol (TCP) and User Datagram Protocol (UDP). They’re the two primary types of transport protocols used for data transmission across the internet, and it’s worth taking a moment to think a little more deeply about what they do in relation to VoIP calls. 

Data travels over the internet in packets, which are transmitted using the IP network. Imagine sending a letter: You need an envelope to make sure it is delivered to its destination untouched and without delay. 

TCP and UDP are two kinds of envelopes you can use, and they both carry digital signals in the form of data packets. How does one differ from the other? Let’s find out.

TCP is a connection-based protocol module that offers good integrity and error-checking capabilities.That’s why it’s commonly used in most web-based traffic. TCP is the more reliable of the two protocols (compared to UDP) because it’s designed to cope with network failures and can adapt to available resources in the network.

When a packet is sent from one end to the other, the destination acknowledges the receipt by sending a packet back to the source. The packet will be resent if the source doesn’t receive that acknowledgment packet or if the packet states that there was a problem during transmission.
TCP is so prevalent across the internet that it’s usually combined with Internet Protocol (IP) and written as TCP/IP (TCP over IP).
 
While TCP is optimized for accuracy, UDP is focused on speed. It’s connectionless, meaning data packets can be sent without any “negotiation.” In a sense, it’s almost like a “send and forget” protocol, as it provides just enough control information to understand what app is running and to check whether the packets got distorted in transit.
The process ensures swift transmission. But since there’s little error checking involved, it’s likely that the packets get distorted along the way. For VoIP calls, this could mean a slight slip in words, choppy voice, or distorted audio.
While there are many Voice over Internet phone service providers that employ only one type of protocol, truly good VoIP companies like RingCentral use both to ensure the best call quality and efficiency possible.
 

Benefits of RingCentral’s VoIP phone system

Lower costs

Unlike legacy PBX, a VoIP phone service only requires a strong internet connection. This means significant savings on infrastructure and hardware. VoIP also allows long-distance and international calls via the internet at no added cost.

Easy and simple setup

When you opt for an IP phone system, there’s no need to wait for tedious installations. We understand the value of time in business here at RingCentral. You can count on us to have your virtual phone service up and running in no time.

Additional features

VoIP is not just about making calls. It also presents a chance to utilize a unified communications solution that includes an array of extra features, such as call forwarding, call routing, call recording, SMS messaging, voicemail, video chats, and more.

Mobility and flexibility

VoIP phones don’t tie you to a physical workstation, instead giving your business the means to meet the rising demand for remote work. Employees can work from anywhere, anytime, and from any device.

Unparalleled security

RingCentral VoIP services are encrypted with secure voice between endpoints on the network. This translates to VoIP phone calls that are protected from interruption and threats like power outages, inclement weather, malicious attacks, etc.

Scalability

Traditional business phones are static, but VoIP evolves with you. Whether you have plans to expand to multiple locations or add international people to your team, you can scale easily with a VoIP business phone system like RingCentral.

AI and communications in one trusted app

RingCentral is recognized as a complete, easy-to-use cloud communications solution
G2.com Easiest Admin Enterprise Winter 2024
G2.com Best Support Enterprise Winter 2024
G2.com Easiest Setup Enterprise Winter 2024
G2.com Leader Enterprise Winter 2024
G2.com Leader Mid-Market Winter 2024
G2.com Leader Small Business Winter 2024
Trust Radius Top Rated 2024 badge
Trust Radius Best Feature Set 2023 badge
Trust Radius Best Relationship 2023 badge
Trust Radius Best Value for Price 2023 badge

VoIP vs. traditional phone systems

The technology which underpins the system is the main difference between VoIP and traditional phone systems. VoIP phone systems use the internet for calling, whereas traditional systems rely on the public switched telephone network (PSTN) of copper wire landlines and related infrastructure.

A VoIP “phone”, therefore, can actually be any device that connects to the internet and has a microphone. It doesn’t have to be a physical handset, although it can still be. There are IP desk phones that look just like traditional handsets, but connect to the internet instead of a landline—and benefit from other functionality, such as being able to utilize Power over Ethernet (PoE). More on those in a little while.

Benefits to using VoIP phones over landline

While the principal difference between traditional and VoIP phone systems is a technological one, the benefits of making the switch are diverse and wide-ranging.

Business VoIP phone systems boast advantages in all the following areas:
  • Ease of installation and use - A traditional, landline-based, phone system requires physical installation at your premises. You need someone to come and connect actual landlines and then to install the hardware infrastructure to support them. Setting up a VoIP system can be as simple as downloading some software and customizing it as you see fit.
  • Lower upfront and ongoing costs - As installation is so much simpler, upfront costs associated with VoIP phones are also often much lower. You don’t have to pay for as much hardware and will typically have less downtime that can also be costly. What’s more, you won’t have hardware maintenance to worry about, and the associated costs which that can bring.
  • Mobility, flexibility, and customizability - A traditional phone system works at a particular premises. That’s where your landlines, infrastructure, and desk phones are. VoIP phones can be whatever device you want to use at the given moment. They’re far more flexible to meet the needs of modern, fast-paced, increasingly mobile workforces.
  • Future-proofing - Traditional phone systems also increasingly have a definitive expiration date. Many nations around the world are starting to phase out their PSTN infrastructure. If your phone system relies upon that network, it may soon become obsolete.  

Can you switch a landline to a VoIP phone?

In short, yes, you can easily switch from a landline-based setup to VoIP phones. One of the great things about VoIP phone systems is that they can be really quick and easy to implement. Once you’ve signed up with a provider and accessed your solution, getting started can take only hours or even minutes.

If you’ve got a landline number you don’t want to leave behind, you’re covered there, too. Top providers like RingCentral endeavor to make porting your existing number into VoIP systems as simple and seamless as possible. If you want new VoIP numbers, though, that’s straightforward too.

How do I get a VoIP number?

When you sign up with a VoIP phone provider, you’ll often get a virtual or VoIP number as part of your package. These numbers are attached to your account, rather than being limited to one specific geographic location.

RingCentral RingEX subscribers, for instance, get one VoIP number per user on any pricing plan. When you set up your account, you simply choose from the available local or toll-free numbers. You can also easily add additional numbers as required, for an affordable monthly fee.

What are common VoIP phone features for business?

Yet another advantage of switching to VoIP phones is that the solutions are typically much more than just a phone system. Instead, they’re feature-rich business communications tools that will often include things like:

  • Call management features - Get things like auto-attendants or virtual receptionists, IVR, customizable call routing, and more.
  • Voicemail - The best VoIP phone systems will give you voicemail, visual voicemail, and even voicemail-to-email functionality.
  • Call recording - Automatic or on-demand call recording can help businesses make the most of their meetings or compliantly record customer calls.
What’s more, choose a unified communications solution like RingEX, and your other communication channels are catered for in the same place, too:
  • Text messaging - Communicate by text from where you make and take your calls.
  • Video meetings - Would your call benefit from some face-time? Seamlessly switch over to a video call.
  • Online fax - Work in an industry where fax is still an important option? Handle all your faxing online without the need for old-fashioned hardware. 

Finding the best VoIP phone for you

We’ve talked about the different types of VoIP phones. If you do want VoIP hard phones, precisely which ones are best? The following are some top picks that can give you everything you need and just so happen to work perfectly with RingCentral:

IP desk phones

Want traditional-looking desk phones but with all the extra benefits of VoIP technology? Then, these may be the VoIP phones for you:
Poly CCX 700 VoIP Phone

Poly CCX 700

The Poly CCX 700 is a modern desk phone that combines superior audio quality with video calling capability. Award-winning Poly audio technology ensures every call is clear and crisp, while an integrated four megapixel camera and seven inch LCD display has video meetings covered. 
$636 or $26.50 per month rental

with a RingEX multi-year contract
Learn more
Mitel 6940w VoIP Phone

Mitel 6940w

Designed to meet demanding communications needs, the Mitel 6940w is an IP phone with connectivity at its heart. You can link it up to your network via wired Ethernet or WiFI and even connect it to a PC through the PCLink feature. That can turn the desk phone into a high quality audio device for PC-based video collaboration.
$402 or $17 per month rental

with a RingEX multi-year contract
Learn more
Unify CP700 VoIP Phone

Unify CP700

The Unify CP700 is a great VoIP phone option for those businesses with budgets that don’t have much wiggle room. A simple, easy-to-use option, this desk phone still boasts great audio quality and a good range of features and functions.
$636 or $15.50 per month rental

with a RingEX multi-year contract
Learn more

VoIP conference phones

Tired of trying to run meetings with a cell on speakerphone? If you’re looking for a VoIP phone for your conference room or to accommodate larger calls and meetings, the following may be the alternatives for you:
Poly Trio C60 VoIP Phone

Poly Trio C60

The Poly Trio C60 is a smart VoIP conference phone to suit any meeting space. Poly signature audio, easy to reach controls, and a 5” color touch display make it easy to use for even the biggest conference calls. 
$1242 or $52 per month rental

with a RingEX multi-year contract
Learn more
Yealink CP965 VoIP Phone

Yealink CP965

Best for medium to large sized conference rooms, the Yealink CP965 has 13 in-built microphones to ensure everyone can hear and be heard. A flagship HD conference phone, the star shaped device also boasts built-in WiFi and Bluetooth connectivity.
$834 or $35.50 per month rental

with a RingEX multi-year contract
Learn more
Mitel 6970 VoIP Phone

Mitel 6970

The Mitel 6970 VoIP conference phone is designed to ensure your meetings go smoothly. It has a large 7” color touch screen that makes the device’s intuitive interface easily visible and 360 degree beam-forming microphones. 
$808 or $34 per month rental

with a RingEX multi-year contract
Learn more

Picking the best VoIP provider

Sold on the advantages of VoIP technology and thinking your business needs to switch to VoIP phones? Then, you’re probably wondering how to pick the right VoIP provider. Here are a few considerations to keep in mind:

  • Features and functionality - Does the provider offer a plan with all the features and functionality your business needs? On the other hand, will you be paying for features you’ll never need? Weighing a solution’s capabilities against what you’ll use day-to-day is a good place to start when choosing a provider.
  • Track record, reputation and user reviews - How do those businesses that have already used a provider’s offering rate it? Does the provider have a solid track record of success with companies in your industry?
  • Reliability and security - What uptime can a provider guarantee for its software? Do they adhere to industry standards of cybersecurity and do everything they can to protect your data and information?
  • Customer support - If things go wrong, is it quick and easy to get hold of customer support? Will you be able to find answers in a knowledge base, reach out by email, and pick up the phone if you need to?
  • Usability and customization - Is a provider’s solution easy to use? Can you access all features on desktop, Android and iOS mobile devices, and more? Is it easy to tailor the solution to your unique requirements.
Find the right answers to the questions in all those areas, and you’ve found the right VoIP provider for you.

VoIP hardware to maximize your internet telephone usage

As businesses all over the world continue to embrace cloud communications, you should find ways to enhance your internet phone experience. Here are some more hardware alternatives that you can utilize to make the most out of VoIP technology:
Desk IP phones look just like traditional desk phones but are connected to computers or routers via Ethernet cables for connection and power.
Most units have a graphical LCD screen that shows different features like caller ID and call transfer, programmable buttons with speed dialing options, and dedicated speakers and microphones. Some even have touch screens and expansion modules for easier manual routing of incoming calls.
Examples include the Polycom VVX series, Yealink SIP-T46S, Yealink W60P, and the latest Cisco 8845 and Cisco 8865 with video phone capabilities. These desk phones work well as regular phones, receptionist phones, or call center phones.
 
VoIP conference phones are best for multi-party phone calls. They’re sometimes called starfish phones because of their shape, which enables omnidirectional microphone configuration. This means that the lines on the conference phones are electronically balanced so that you can hear and speak with each caller clearly from all sides.
Because there’s no shortage of conference calling in the modern office, it pays to invest in a good IP conference phone. You’ll be surprised how productive your business conversations can get when you have the right tools to help.
One of the more popular examples is the Polycom soundstation IP conference phone.
 
A router is responsible for forwarding data packets between devices in a network or from the devices to the internet. It designates a local IP address for every device to ensure the data packets don’t get lost within the network.
If your company spends a lot of time communicating with customers and suppliers, you are vulnerable to information leakage and cyber attacks. A router is your network’s first line of defense.  
Businesses typically have designated IT professionals to ensure their network security is good. But if you sign up for a hosted VoIP service, everything is handled by the provider.
While consumer-level routers can support about a dozen devices, they’re not enough for large and small businesses. It is a must to invest in an enterprise-class router. After all, growth should be in every business owner’s mind.
 
Originally, “handset” was the term used to describe the device you pick up to listen and talk with the person on the other line. In this traditional sense, the handset is connected by wire to the unit in a regular landline phone. A VoIP handset typically has the same basic features and capabilities as a traditional phone.  
Handset has also been used to refer to mobile phones and to the part of the telephone (wired or wireless) that delivers the same function.  
VoIP technology is utilized in many innovative ways today (instant messaging, video conferencing, and virtual faxing, among others). Still, if you’re someone who enjoys lifting a handset during calls, this accessory is for you.
 
By installing an app, you can use your computer as a VoIP phone or turn your mobile device into a VoIP cell phone.  
You get the full functionality of a “regular phone” without having to purchase one. This is common practice among businesses, as it offers mobility and usability unseen in traditional phone systems. It also gives your employees flexibility because they don’t have to be tied to their office desks all the time.
 
Analog telephone adapters allow you to place calls over the internet even if you’re using a traditional landline device—and you can use the same number, too! 
An ATA acts as an interface between your analog phone and your VoIP system, converting analog signals into digital traffic. 
This seems like a huge money-saving practice at first glance, especially if you want to keep your existing PSTN phones and don’t have enough budget to purchase new VoIP phones. However, an ATA does not give you access to all the advanced features built into modern VoIP handsets. 
As such, some businesses use ATA only as a transitional device until they are ready to purchase their own IP phones.
 

FAQs about VoIP phones

A VoIP phone system is a software-based solution that lets businesses make and take calls via the internet, rather than using traditional landlines. The system is hosted in the cloud by a third-party VoIP provider and you can access it from virtually any device with an internet connection.
Yes, to use a VoIP phone service you will need to sign up with a VoIP provider like RingCentral. There are consumer apps that let you make internet calls without a subscription, but they’re not suitable for business use.
If you pick the right VoIP phone provider, you can also manage your business text messages from the same platform. RingCentral RingEX, for example, is a unified communications solution that combines VoIP calling, text messaging, video meetings, and more.
VoIP phones are typically used by businesses to improve and streamline their communications. Being more flexible, cost-effective, and mobile than traditional phone systems, VoIP services offer a great many business benefits.
A VoIP phone line is a virtual telephone line associated with a VoIP phone system. Rather than being actually associated with a physical landline—and therefore the geographical location where that line is—a VoIP phone line is associated with your phone system account. That means you can use the line to make and take calls wherever you go.
Traditional phones are usually connected via direct copper wires to an on-premises private branch exchange (PBX)—the bulky equipment that allows the system to connect all internal extensions. 

The PBX is essentially the brains of the system since it manages all routing and ensures calls reach their destination through the public switched telephone network (PSTN).

PSTN simply refers to old-school telephony, in which phones are hooked up to specific networks—primarily used for landlines. You may have also heard of plain old telephone service (POTS). The two acronyms refer to the same thing, with the latter being a colloquial term for the former.

VoIP, on the other hand, is the technology that allows users to make calls over the internet. Instead of PSTN, all you need is a stable broadband or mobile data connection.
The viability of VoIP for businesses relies on its ability to replace traditional phone lines. If VoIP-based solutions are only able to establish calls with other VoIP-based telephones—meaning, all your contacts have to have a “VoIP line”--then they will not work for most organizations.

Fortunately, VoIP can connect to regular landlines through gateways. VoIP gateways allow digital voice calls from VoIP phones to be converted to analog or multiplexed voice data that can be consumed through regular landlines and cell phones. 

In turn, it is also able to convert analog multiplexed voice data into a digital format so that it can be broken into IP packets, which can then be transmitted through VoIP.
 
In network terms, a port is a communication endpoint used by the transport protocol to facilitate the stream of information. Every single piece of data has a destination port associated with it, and this port is associated with a number to enable the server to sort traffic and deliver the data to the correct recipient.

Port numbers range from 0 to 65535. For VoIP traffic, the standard port is 5060, which is used for both TCP and UDP connections. Consider it the gateway for VoIP functions such as media streaming and video conferencing. Often, port 5004 UDP is preferred when transmitting packets of data within a computer network.

VoIP phone and communications providers use a variety of ports based on their specific product designs and requirements. They may also have a supplementary list of UDP ports for when they need to upgrade their products.

Apart from network ports, you may also need hardware ports in order to use complementary VoIP accessories. These can include headsets for devices not designed to be used like regular telephones and USB ports for USB phones.
A VoIP phone is a digital transport vehicle for phone calls and is an integral part of your organization’s network infrastructure. Imagine still using a traditional phone system when almost everyone, including your competitors, has switched to VoIP. You don’t want to get left behind.

There are a wealth of VoIP services out there, and VoIP phone price will vary greatly from one to the next. As will the range of features and functionalities available to you.

To save yourself precious time and energy, we say go for RingCentral. Our VoIP solutions don’t end with simply helping you make calls over the internet. We provide a seamless cloud communications platform where you and your team can text, live chat, fax, and collaborate.

Learn more about our plans and pricing.

Resources

A VoIP-powered desk phone

VoIP Phone (Hardware)

Learn more
A woman on a phone call using a desk phone

How VoIP Phones Work

Learn more

Unlock the benefits of VoIP for your business

Talk to our sales team to schedule a personalized demo. Fill out the form, and a RingCentral sales advisor will contact you within 24 hours.

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
A woman making a call using different VoIP ports such as 5004 UDP, 5061 TCP/ UDP, and 5060 TCP

What are VoIP ports?

In network terms, a port is a communication endpoint used by the transport protocol to facilitate the stream of information. Every single piece of data has a destination port associated with it, and this port is associated with a number to enable the server to sort traffic and deliver the data to the correct recipient.

Port numbers range from 0 to 65535. For VoIP traffic, the standard port is 5060, which is used for both TCP and UDP connections. Consider it the gateway for VoIP functions such as media streaming and video conferencing. Often, port 5004 UDP is preferred when transmitting packets of data within a computer network.

VoIP phone and communications providers use a variety of ports based on their specific product designs and requirements. They may also have a supplementary list of UDP ports for when they need to upgrade their products.

Apart from network ports, you may also need hardware ports in order to use complementary VoIP accessories. These can include headsets for devices not designed to be used like regular telephones and USB ports for USB phones.