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The Global Rise of Telephony and What it Means for 2020

What is Telephony?

Traditionally, telephony is technology that allows us to participate in long-distance voice communication carried over the Public Switched Telephone Network (PSTN). But with the advent of new communication technologies, the definition of telephony has broadened to include a variety of technologies that exchange voice, fax, and other forms of information over the internet protocol (IP) network, as well. This expanded definition includes what is referred to as IP telephony—a specific term that describes communications that travel in the form of packets over a Local Area Network (LAN), or the Internet, free from PSTN tolls.

IP Telephony vs VoIP

As discussed above, IP telephony is a blanket term used to describe the exchange of voice, fax, and other forms of information over the Internet Protocol’s packet-switched connections. Voice over Internet Protocol (VoIP) and IP telephony are often used interchangeably. However, VoIP is a subset of IP telephony and there is a difference between the services that you should be aware of.

VoIP is a term specifically used to describe voice messages delivered using Internet Protocol, whereas IP telephony includes any “telephone” service delivered via an IP network. The most significant advantage of using internet protocol, whether it’s a VoIP or IP telephony service, instead of the traditional PSTN to send communications, is that it avoids tolls.

The Future for Telephony and VoIP

Improving communication channels and developing a unified business communication system can increase a company’s productivity, enhance user engagement and facilitate collaboration. This goal can be best achieved by utilizing VoIP services, which has quickly become the standard form of communication that businesses use across the globe. And due to its flexibility and low cost, VoIP technologies look like they are here to stay. In fact, the VoIP industry is expected to grow at a rate of about 12 percent each year until 2025.

The following features of VoIP are likely to fuel that growth:

Industry-Specific Bots

Advancements in VoIP have led to the creation of industry-specific bots, which can be used to create schedules, manage time, set up meetings, and perform other general or specific tasks. This is huge for increasing productivity as businesses can spend time on more important activities.


Big data has made it possible for businesses to use VoIP technology to collect information and look at those analytics to determine their buyer persona, improve customer service, and more.


Thanks to cloud services, which do not demand large investments, small- and medium-sized businesses are now able to make the switch over to a VoIP telephony service, providing them with better scalability.

Why VoIP is Important for Business

In order to be effective at communicating and successful in future endeavors, businesses will need to stop relying on traditional phone systems and make the switch to VoIP. A few of the many benefits include:

Saving Money

The bottom line is key to the success of every business, so finding ways to save money is always important. Landline calls placed over the PSTN are limited to the number of physical telephone lines available, making them expensive. However, using the Internet to transfer call data avoids this problem, making VoIP a cheaper option. In fact, businesses who switch from a landline phone system to VoIP may lower their phone bills by more than half; and are often able to make domestic calls for free.

Added Functionality

VoIP gives businesses the ability to multi-task and increase productivity. For example, a user can make calls while reading voicemail-to-text transcripts that were sent to their email inbox; or they could easily forward messages to voicemail, and even forward voicemails to other people with a few clicks.

The aforementioned features, and many others, are provided with VoIP systems. Additionally, features you find useful or unnecessary can be added or subtracted to your plan, allowing VoIP to grow with your company.

Increased Efficiency

In our increasingly global economy, business travel is more and more common. With a VoIP service, employees are able to conduct important business while they are on the go. For example, instead of waiting to get back to the office or wasting time tracking down a fax machine, they can e-fax documents whenever and wherever it is needed. Also, with VoIP, users can control where calls are sent and how they ring. Therefore, urgent calls are less likely to be missed.

Additionally, the COVID-19 pandemic shined a light on the need for businesses to provide the tools necessary for their employees to work remotely. With VoIP, employees are not tied to a desk, allowing for adaptability in the face of global emergencies.

The future of telephony and communication is VoIP and utilizing this service will help all small- to medium-sized businesses, including insurtech SMBs, operate efficiently, and get ahead and stay ahead of their competition, as we move toward an ever-changing future.

Learn more about switching to VoIP with Alexant now.


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