Best VoIP Phone Service in 2024

Our Approach:

To determine the best VoIP service providers for small businesses, we have used the following criteria:

• Price: How much value does each service offer for its price?
• Reliability: Customer support, ensuring VoIP system uptime, etc. 
• Scalability: Number of packages, affordability, etc.
• Security: Which VoIP service providers are HIPAA compliant? Are any additional measures taken to increase user safety?
• Number of features: What features do you receive on each provider’s package? Are these necessary for small businesses?

Our best VoIP providers for 2024:

1. RingCentral: High Customization
2. Ooma: Ideal for small businesses
3. Talkroute: The Most Scalable Service
4. Phone.com: Best for Businesses that Need a Toll-Free or Vanity Number
5. Nextiva: Best for Large Businesses
6. Grasshopper: Best for Nonprofits

1. RingCentral: Best for High Customization

Even though RingCentral is by no means the “best” VoIP service option due to its relatively high pricing, its prolific features make it a great option for small businesses looking for a highly customizable option. 

For example, RingCentral offers a very large number of both general and industry-specific third-party integrations, like Microsoft 365, Google Workspace, and Slack.

2. Ooma: Ideal for Small Businesses

Ooma serves as an “everything you need” option when it comes to finding a VoIP phone service for small business. 

Even though it does not have as high a number of features and add-ons as other business VoIP phone service providers on this list, it does provide all of the “necessities” that you will need at an extremely affordable price. 

Price, convenience, and reliability tend to be the most important choice-making factors for businesses when it comes to VoIP providers, and these are all areas where Ooma shines. 

3. Talkroute: The Most Scalable Service

Talkroute classifies itself as a “virtual business phone system,” rather than a VoIP. 

Having said that, it operates in a similar way to other VoIP providers on this list, and provides similar features and benefits. This does mean, however, that users who choose Talkroute will be able to access their account via the phone even if their internet dies out. 

4. Phone.com: Best for Vanity and Toll-Free Numbers

Phone.com can be a great option for users who are looking for a bit more diversity and customization than Ooma but who still want to stay at an affordable price range. 

Phone.com offers one of the largest vanity and toll-free number databases. Phone.com is our top choice for small businesses that need a vanity or toll-free number.

4. Nextiva: Best for Large Businesses

Nextiva offers four packages. Discounts can be offered based on the total number of users, as well as the length of the contract in question (e.g., monthly, annually, etc.). The price of each package lowers per person the more users added.

6. Grasshopper: Best for Nonprofits

Grasshopper is a business-grade VoIP service that provides entrepreneurs with an affordable and easy way to set up a professional phone system. With Grasshopper, you can get a local or toll-free number, forward calls to your cell phone or another number, and access powerful calling features like voicemail-to-email and call screening.

Grasshopper offers three packages.

Did you know? You can pay additional fees to add extra features to your Grasshopper account (e.g., professional voicemail, additional phone numbers, etc.). 

Traditional Landline: Circuit Switching

A traditional landline works through a method known as "circuit switching." Circuit switching is very reliable and has actually been used for almost 100 years, but it is no longer the most efficient option. 

When you make a call through a traditional landline, the connection is maintained for the entire duration of the call — regardless of whether you are talking or taking breaks. 

Originally, each call was connected through a dedicated wire that stretched from one end of the call to the other for the entire duration of a phone call. 

In practice, this meant that when you would make a cross-state call with a traditional landline, you would be exclusively using wiring to send electrical signals from one state to the next.

Consequently, even a 10-minute call could result in you having to pay exorbitant fees because you essentially “owned” a 4,000-mile-long copper wire for 10 minutes. This type of connection is called a “circuit” and is the basis for the Public Switched Telephone Network (PSTN). 

Nowadays, telephone conversations have evolved (e.g., using single fiber optic cables, etc.) and have become significantly more affordable. 

Nevertheless, they remain inefficient in comparison to VoIP services because the “continuous” line of communication that is created in circuit switching is inherently wasteful (e.g., users taking breaks, not needing to be able to speak at the same time, etc.).

VoIP Service: Packet Switching

A packet-switched network is an “updated” alternative to the traditional circuit switching network. 

Unlike circuit switching, a packet-switched network does not create a “continuous” line of communication. This means that when one user talks, the other is listening, and vice versa — cutting the amount of data needed in half. 

This makes sense because users will rarely speak at the same time over the phone. Similarly, moments of pause or no communication (e.g., team breaks, pauses, etc.) do not need a constant line of communication. 

In a VoIP setting, a circuit-switching method would also make your internet speed significantly slower. 

This is because it would mean that you would need to maintain a constant connection to each web page you were viewing at any point during the day — rather than simply sending and receiving data when you need it (e.g., during a phone call, etc.). 

VoIP works by converting analog audio signals into digital signals. Digital signs are sent to your business phone service provider, who then routes your message to the receiver’s phone. 

Even though this may sound complicated or even slow, it happens virtually instantly. This is why (depending on your internet speed) a VoIP phone call can sometimes sound even better than a traditional landline phone call. 

VoIP services also commonly provide features that normal phone companies charge extra for, including:

• Caller ID
• Hold music
• Repeat dial 
• Call forwarding

There are also advanced caller ID-related features that can allow you to make decisions about how calls from a particular number are to be handled (e.g., direct a person to voicemail service, forward to a specific team member, etc.). 

You can use a VoIP in four different ways: 

Analog Telephone Adaptors (ATA)

This is one of the most common ways for small businesses to use VoIP technology. ATA allows users to connect “conventional” phones to desktops, laptops, or internet networks so calls can be made. 

VoIP Phones

These usually look virtually identical to traditional office phones, with the only real difference being that they plug directly into your internet router through an ethernet port rather than into a traditional phone connector. 

Mobile Phones

You will need to download your service provider’s mobile app and have an active internet connection in order to do this. You can use both WiFi and 4G, presuming that you can maintain a strong internet connection with both. 

Desktops and Laptops

This works by downloading an app on your desktop or laptop through which you will be able to make calls. This is also known as a “softphone” and requires a stable internet connection. 

If you are unsure about the quality of VoIP calls, you can check it by examining software that you likely use on a daily basis as a business (e.g., Microsoft teams, Google Voice, etc.).

Pros

Low Cost

This is arguably the most significant advantage of VoIP — especially in comparison to the more expensive toll-free numbers. 

VoIP tends to be more affordable when it comes to both:

• The initial investment and office equipment needed
• The monthly and/or annual charges incurred

VoIP tends to also provide better “value for money”, since a lot of the “premium” features in a traditional phone system are offered on basic packages (e.g., hold music, forwarding calls, directory menus, etc.). 

High Mobility

Unlike a traditional phone line, a VoIP system can be incorporated into multiple devices (e.g., mobile apps, softphones, etc.). 

You can also add features such as simultaneous ringing to ensure that you or your employees never miss a call — even if one of you temporarily loses access to the internet. 

High Scalability

Most VoIP services offer anywhere between two and five packages — all coming with different benefits and features.

This can be very convenient if you want to maintain the same provider as your business grows and expands in the future. By picking the right business VoIP service, you will be able to ensure that your service’s features always match your requirements. 

Increased Flexibility

Most VoIP service providers allow businesses to add or remove phone numbers whenever they want — albeit at a price. This is the case even if your required number of phone numbers exceeds your package’s limit. 

The best VoIP business providers additionally offer no-contract options, allowing business owners to simply opt in and out at any time. This can be a great option for those who are “unsure” about whether VoIP works for them. Similarly, many VoIP services come with free trials. 

Improved Customer Experience

The best VoIP providers can offer features that improve your customers' experiences, including:

Cons

Increased Risk of Cyber Attacks

Like any technology that is dependent on the internet, VoIP is more prone to cyberattacks. 

These can include:

• Denial of Service (DOS) attack: This is where hackers attempt to make your business’s desktops or other devices unavailable by disrupting their normal functioning. This is usually done by over-saturating the capacity of the targeted machines and is very problematic because it can be carried out at a very low cost.
• Vishing: This is the voice equivalent to phishing, the much more common practice of sending fraudulent emails from reputable companies in order to convince the receiving parties to reveal their personal information. 
• Malware and viruses: These can destroy sensitive information, steal protected data, or even take over an entire desktop's and/or laptop's operating system. Most of these can easily be avoided by installing anti-virus software. 
• Eavesdropping: Some hackers have been able to gain access to VoIP calls and “eavesdrop.” Even though this is extremely rare, it can be detrimental in a business setting. This is particularly the case if you have access to your employees’ or customers’ sensitive information. 

Having said that, business owners can “counter” these risks by purchasing cyber crime business insurance.

Dependent on Internet Speed

Since phone calls are carried entirely over the internet, your internet speed will play a key role in how good or poor your voice quality is. 

Since your internet connection will also be affected by other factors (e.g., the number of employees in your office, your location, etc.), you will need to take into account whether you will need to upgrade your internet connection speed in order to use a VoIP phone service effectively. 

If you do, you should take the extra cost of this into account before deciding whether moving to a VoIP business phone system is a time-worthy decision for your small business or not. 

No Alternative Phone Line

With a traditional phone system, you will still be able to make and receive calls if your internet connection happens to go down temporarily. 

With VoIP phone service, no internet connection means no phone, and — in practice — this can mean having downtime where your consumers are entirely unable to contact you. Depending on the type of business that you own and the reliability of your internet provider, this can be a significant disadvantage or almost entirely irrelevant. 

Dependent on Your Device

The quality of your VoIP connection will also depend on the power and specifications of the device that you are using. The slower and less updated your business desktop and/or laptop, the larger the effect this will have on your inbound calls. 

If your computer is very outdated, it may be unable to run calls sufficiently, or even crash during a business call, although this is very unlikely as the specs needed to operate essential VoIP features are satisfied in even the most basic computers.

Adding a Business Line to Your Cell Phone

Adding a business line to your personal cell phone allows you to gain access to two separate numbers on the same phone. This can provide you with the following benefits:

Improved Brand Image

This is because your customers and prospective partners will receive calls from a designated business line rather than from a personal phone number. This ensures you look like a more legitimate business.

Increased Mobility

Having the ability to use your personal cell phone as a business phone number means that you will remain fully accessible even if you are not in the office. Of course, this can also be a disadvantage as it can “blend” your personal and professional life. 

Lower Price

This is especially the case in comparison to purchasing a second cell phone and a plan or setting up a traditional landline. 

Increased Privacy

Adding a business line to your cell phone ultimately means that your personal number will never have to be disclosed to your employees, partners, and customers. 

You can add a separate VoIP business line to your personal cell phone by following these steps:

• Download a cell phone app: You will need to find one that is compatible with your specific business (e.g., number of features, price, etc.). 
• Choose a business phone number: Most VoIP providers will offer business phone numbers in all area codes within the US and Canada, with the best ones allowing business owners to pick between different types of phone numbers (e.g., toll-free numbers, vanity numbers, etc.). 
• Choose your desired subscription package: This will depend on the types of features you want and/or require, as well as on your budget. 

Using a VoIP Business Service

You can also use a VoIP service. These usually work through mobile apps, desktop apps (i.e., softphones, etc.), or traditional “telephones” that are linked to ATA devices.

Finding the best VoIP business service ultimately comes down to the following factors:

Using Google Voice for Business

Google Voice is a VoIP secondary phone number service.

It can be created by simply creating a Google Voice account for business. You will need a Google or Gmail account, as well as the following information:

• Your area code
• How you will complete your set up process (i.e., via Android, iOS, or over the web)
• Whether you want a personal or business profile

This option is generally not recommended for small businesses, however, as it comes with quite a few disadvantages:

Limited Privacy

All of your information will be stored on Google’s services. Even though there are strict laws governing how this information can be used, it is still a factor that you should consider if you are planning to use Google Voice to disclose confidential business information.

No Toll-Free Numbers

Toll-free numbers can be very important for small businesses that operate all over the US.

This is because they ensure that customers will always be able to reach out without having to worry about paying exorbitant fees.

Phone Number Limitations

Google Voice does not allow business owners to have more than one business phone number. This can be very limiting for businesses that operate in multiple states and who consequently want to obtain more than one local number. 

Tip: Check out our How to Get a Business Phone Number guide for more information on finding the ideal type of VoIP business phone number for your company.