Switching your business phone system to Voice over Internet Protocol (VoIP) can change how you pay for international calls. Unlike traditional phone lines that often charge high per-minute rates for overseas calls, VoIP uses your internet connection to make calls, which usually results in lower costs or even flat-rate plans for international calling. However, the exact impact on your call costs depends on your VoIP provider's pricing structure and the quality of your internet service.
Why this matters for Australian SMBs
For small and mid-sized businesses in Australia, managing call costs is important, especially if you regularly communicate with overseas clients, suppliers, or remote teams. Unexpectedly high international call charges can increase your operating expenses. Additionally, poor call quality or downtime from an unreliable VoIP setup can disrupt communication, affecting staff productivity and customer trust.
Switching to VoIP also introduces cybersecurity considerations. Since calls travel over the internet, vulnerabilities like hacking or eavesdropping could expose sensitive business conversations if not properly secured. Ensuring your VoIP system is protected helps maintain privacy and compliance with data protection expectations.
Scenario: A 50-person Australian business
Consider a 50-employee company based in Melbourne that frequently calls suppliers in Asia and clients in Europe. They switched from a traditional phone system to a VoIP provider advertising low international rates. Initially, their call costs dropped by 30%, improving their budget. However, after a few months, they noticed call quality issues and occasional dropped calls during peak hours. Their IT provider identified that their internet bandwidth was insufficient during busy periods, affecting call quality.
The IT partner worked with them to upgrade their internet plan and implemented Quality of Service (QoS) settings to prioritise voice traffic. They also reviewed the VoIP plan's international call rates and adjusted call routing to optimise costs further. As a result, the business maintained lower international call expenses without sacrificing call reliability.
Checklist: What to do when considering VoIP for international calls
- Ask your provider: What are the international call rates for the countries you call most? Are there flat-rate or bundled plans available?
- Check internet quality: Does your current internet connection have enough bandwidth and low latency to support VoIP calls, especially during peak hours?
- Review call quality guarantees: Does the provider offer Service Level Agreements (SLAs) covering call uptime and clarity?
- Security measures: What encryption and authentication methods are used to protect your calls?
- Trial period: Can you test the service before fully committing to assess call quality and costs?
- Cost comparison: Compare your current international call expenses with the VoIP provider's pricing to estimate potential savings.
- Integration: Will the VoIP system integrate smoothly with your existing business tools and workflows?
Switching to VoIP can offer significant cost benefits for international calls, but it requires careful planning around internet capacity, security, and provider terms. Discuss your specific business needs and call patterns with a trusted managed IT service provider or IT advisor. They can help you select a VoIP solution that balances cost savings with reliable, secure communication to support your business growth.