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  • Writer's pictureFlagler Technologies

Hosted VoIP Services: What Is It & How Does It Work?

Updated: Oct 27, 2021

hosted VoIP services

Voice over Internet Protocol or VoIP may not be as old as traditional telephone communication. Still, it’s no longer the revolutionary, new technology that it was at the turn of the 21st century. VoIP is efficient, reliable, and cost-effective, and it has been for over a decade. Suppose you’re considering upgrading your telephone communications with VoIP phone lines. In that case, the IT professionals at Flagler Technologies can introduce you to a vast range of options — one of which is sure to work for your business. Call today.

How VoIP Works

VOIP uses the internet to make telephone connections. Just as you’re able to stream music and videos over the internet, y700.

You can use the world wide web to communicate telephonically. VoIP utilizes packet switching technology. With packet switching, a computer breaks down a message into smaller parts (packets) and transmits them to a receiving system where they are reassembled. This is different from traditional telephony, which we will examine in the next section. By breaking messages into packets, VoIP avoids needing a continuous open circuit. The channels are only being used while the packets are transmitted, and when they’re not, those channels are free for other usages. That means that dozens of unrelated streams of information can be using the same route at any given time.

How Is It Different from Traditional Telephony?

Traditional telephony uses circuit-switched networks. To establish a connection, an electronic signal must pass through several circuits before establishing a connection. While that connection is in use, no other traffic can utilize it. Circuit-switched networks work well and have excellent quality, but they are inefficient from network traffic. This is a costly problem for telephone providers.

What Is Hosted VoIP?

Most businesses don’t have the internet capacity to have multiple VoIP phone exchanges. Creating an effective system requires high-bandwidth routers, servers, and VoIP phone equipment. With hosted VoIP, instead of purchasing servers, the business can pay for a service to maintain and manage their phone lines.

A VoIP hosting service uses its own servers to manage and maintain its clients’ phone networks. The client pays a subscription fee that may include phone line hosting, equipment, and maintenance. It’s a cost-efficient alternative to purchasing VoIP equipment, additional servers, etc.

Advantages of VoIP

There are multiple advantages of hosted VoIP services. If you have questions about VoIP and your business, contact our team of IT professionals at Flagler Technologies for a free consultation.

Reduced Costs

Big advantage to VoIP is the reduced costs! If your business relies on long-distance calls and multiple phone lines, VoIP’s packet technology is more efficient. and cost-effective, such as a 50% to 60% savings when switching to hosted VoIP.


VoIP allows a tremendous amount of accessibility and flexibility between workers. Calls can easily be redirected among employees. The call can be routed to other lines rather than having a client or customer being greeted by voicemail. VoIP is also not reliant on physical lines, so calls can be forwarded to cell phones. VoIP also works well with auto attendants, routing and managing your calls to specific employees or departments.


VoIP makes it easier to expand your phone operations or contract them during predictable slowdowns if you have a fast-growing or seasonal business. If you’ve been using traditional phone lines, you know that eliminating lines on a temporary basis just doesn’t happen. Because hosted VoIP PBX’s do not rely on physical lines, ordering and removing phone lines can be done remotely.

Enhanced Voice Quality

Long gone are the days when VoIP voice quality was subpar. The tech has come a long way since the early 2000s. Today, VoIP quality is second to none.

Improved Security

VoIP facilitates enhanced security measures by using modern encryption techniques and identity management. Physical landlines don’t have these functionalities.

Questions and Answers About VoIP

The following are some of the questions that the VoIP experts at Flagler Technologies have heard from our clients and prospective clients. If you are considering voice-over-internet protocol for your business, contact us today to discuss your company’s needs. We’re confident that we can save you money.

What Are the Advantages of Using a Hosted VoIP Provider?

You have two options for VoIP phone services. You can upgrade your services by purchasing the VoIP equipment and hiring or training an IT person to run the system, or you can contract a hosted VoIP provider, like Flagler Technologies.

Establishing your VoIP network is no small undertaking, and it requires a substantial capital outlay. The VoIP network should pay for itself in the long run, but it may take years to pay for the additional servers and other equipment.

On the other hand, if you hire a VoIP company, they will provide the equipment and host your calls on their servers. If something breaks, they’re responsible for fixing it. It’s the best of both worlds, which is why so many businesses opt for hosted VoIP.

What Is a Hosted VoIP PBX?

PBX means “private branch exchange.” It is a bank of phone lines, usually for a business or other organization. A hosted VoIP PBX is a series of phone lines hosted by a VoIP company on behalf of a business.

How Much Savings Can I Realize with Hosted VOIP?

The cost of a landline depends on the number of lines you have for your business, the features you require, etc. With all other things being equal, you can save 40% to 60% by switching to a hosted VoIP PBX. If you have any doubt about the cost advantages of VoIP, contact Flagler Technologies and schedule an appointment for an estimate.

What Features Can I Get with Hosted VoIP?

Its technology does not restrict voIP phone features. Any feature that you can opt for on a landline will be available on an internet phone line. Here are a few popular features of hosted VoIP:

  • Call Routing – You can route calls from any phone extension to any other phone extension.

  • Auto-Attendant – Also referred to as a routing system or “phone tree,” this feature will help your customers connect with the correct party within your organization.

  • Text Messaging – This provides your customers with the texting option.

  • Call-Forwarding – Never miss a call by having your call forwarded to another employee or your home or cellphone.

  • Call Analytics – You can use your VoIP system to analyze incoming, outgoing, or internal phone trends.

  • Call Recording – Record your calls on your VoIP lines.

There are many more features available with hosted VoIP services. Few companies take full advantage of all of the features, but once they discover the ones they use, they don’t know how they got along without them. You can also effortlessly expand your VoIP lines as your business requires them.

Do I Need VoIP Handsets?

While many people prefer to make the VoIP experience similar to using a traditional phone, you can utilize VoIP with a computer, smartphone, or tablet.

Hosted VoIP for a Fraction of the Cost of Traditional Phone Lines

Suppose you’re the owner or manager of a business and you’re looking to reduce phone costs, improve efficiency, and introduce new functionalities for your employees and clients. In that case, you need to consider hosted VoIP. With hosted VoIP, Flagler Technologies will carry your phone calls on our servers. We will handle the changeover so you can realize the immediate savings. Call today to schedule an initial consultation.



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