Traditional landline phone systems are becoming increasingly difficult to justify for Australian businesses. They are expensive to maintain, inflexible to change, and tied to a physical location in a way that no longer reflects how most businesses operate. VoIP, which stands for Voice over Internet Protocol, offers a modern alternative that works over your existing internet connection and typically costs significantly less.

This guide explains what VoIP is, what to consider when choosing a system, and how to set one up for your business.

What Is VoIP?

VoIP converts voice calls into digital data and transmits them over the internet, rather than through traditional phone lines. From the caller’s perspective, it works like any other phone call. From the business perspective, it removes the need for dedicated phone lines, allows calls to be made and received from anywhere, and integrates with the other digital tools your team already uses.

Many businesses in Australia have already moved to VoIP, particularly since the NBN rollout made reliable broadband widely available. The technology has matured significantly, and call quality issues that were common in early VoIP deployments are largely a thing of the past on a reliable connection.

Benefits of VoIP for Australian Businesses

Cost savings are typically the most immediate benefit. VoIP calls, including long-distance and international calls, are generally cheaper than traditional telephone calls. The infrastructure cost is also lower, since you are using your existing internet connection rather than maintaining a separate phone network.

Flexibility is the second major advantage. With VoIP, your business phone number is not tied to a physical location. Staff can make and receive calls from their desk phone, laptop, or mobile using the same number, whether they are in the office or working remotely. This is particularly valuable for businesses with distributed teams or staff who travel regularly.

Integration with other business tools is a growing advantage. Modern VoIP systems integrate with Microsoft Teams, CRM platforms, and other business applications, allowing calls to be logged automatically, customer records to appear when calls come in, and meetings to be initiated directly from your communication tools.

What to Look for in a VoIP Provider

Call quality and reliability should be your primary consideration. Look for providers with Australian data centres or points of presence, low latency routing, and a clear Service Level Agreement that specifies uptime commitments and what support you can expect when issues arise.

Scalability matters for growing businesses. Choose a system where adding new users, numbers, or features does not require significant infrastructure changes. Cloud-based VoIP systems are generally more flexible in this regard than on-premises deployments.

Feature requirements vary by business. At a minimum, most businesses need call forwarding, voicemail to email, hold music, and a basic auto-attendant. More advanced needs might include call queuing, call recording, conference bridges, and integration with CRM or helpdesk systems.

Support is important, particularly during the initial setup and transition period. Ensure your provider offers Australian-based support during business hours and has a clear process for handling outages.

Preparing Your Network for VoIP

VoIP calls are sensitive to network quality in a way that general internet browsing is not. Packet loss, jitter, and latency all affect call quality. Before deploying VoIP, it is worth assessing your internet connection and internal network to ensure they can support the additional load.

Quality of Service, or QoS, settings on your router can prioritise voice traffic over other network activity, which helps maintain call quality even when the network is under load. If your business relies heavily on video conferencing or cloud applications alongside VoIP, this configuration is particularly important.

The Transition from Traditional Lines

Moving from a traditional phone system to VoIP does not have to be disruptive. The process typically involves porting your existing numbers to the new provider, configuring the system with your call flows and settings, and either procuring VoIP-compatible desk phones or setting up softphone applications on existing computers and mobile devices.

Planning the cutover carefully, including a period of parallel running where possible, minimises disruption to business operations during the transition.

Explore our business phone systems page to see how Otto IT approaches VoIP for Australian businesses, or visit our managed internet services page to ensure your network is ready to support a VoIP deployment. If your business needs help getting the most out of Microsoft 365 or keeping your IT running smoothly, talk to the Otto IT team.

Frequently Asked Questions

How much internet bandwidth does VoIP require?

A single VoIP call typically uses between 80 and 100 kbps of bandwidth, depending on the codec used. For a business with 10 concurrent calls, that is approximately 1 Mbps of dedicated bandwidth. In practice, most NBN business connections have more than enough capacity for VoIP alongside regular internet use, but the quality of your internet connection matters more than raw speed — packet loss, jitter, and latency all affect call quality significantly more than bandwidth alone.

Can I keep my existing phone number when switching to VoIP?

Yes, in almost all cases. Porting your existing number to a VoIP provider is a standard process in Australia, governed by the Telecommunications Numbering Plan. The porting process typically takes one to five business days once the request is submitted and verified. During the porting window, calls to your existing number will continue to be received normally. Confirm with your chosen VoIP provider that they support number porting before committing to the service.

What happens to VoIP calls during a power or internet outage?

VoIP depends on both power and internet connectivity. If either fails, your VoIP phones will not function without additional provisions. The common solutions are uninterruptible power supplies (UPS) for the network equipment, mobile failover for internet connectivity, and call diversion settings that automatically redirect calls to a mobile number when the VoIP system is unreachable. For businesses where phone availability is critical, discuss your failover requirements with your provider before selecting a system.

What is the difference between VoIP and a hosted PBX?

VoIP refers to the underlying technology of transmitting voice calls over an internet connection. A hosted PBX (Private Branch Exchange) is a phone system that uses VoIP technology but adds the call management features you would associate with a traditional phone system: extensions, call queues, hold music, hunt groups, and voicemail. Most modern business phone solutions are hosted PBX systems that use VoIP as their transport technology. When businesses say they are switching to VoIP, they usually mean they are adopting a hosted PBX solution.