According to the Internet Telephony Service Providers Association (ITSPA), Voice over Internet Protocol (VoIP) technology is gaining popularity with UK SMEs.

As business expenses continue to rise, VoIP is increasingly being used by SMEs for cost-effective telemarketing campaigns. However, Eli Katx, chairman of ITSPA said that the UK uptake of this technology is low compared with the rest of Europe. He commented: “Here in the UK it’s still certainly in the single digits – probably the lower end of single digits – but growing strongly.” The overall business use in Europe is reported to be around 30%. For UK domestic use, subscription users of VoIP-centric services is expected to rise by more than 200,000 by the end of the year.

VoIP allows telephone calls to be made through broadband internet connections. It converts the voice signal into a digital signal and is then reconverted into a voice signal at the destination point.

More SMEs are transferring to a VoIP provider to reduce monthly communication expenses. Savings can be significant, and marketing opportunities can become more affordable, allowing SMEs to regain a competitive edge. However, it is still the case that the majority of businesses still use a fixed-line phone service. As a result they are paying more than they need to.

According to analysts, the traditional phone-line service is in decline, with VoIP offering greater flexibility because once the systems of data and voice are consolidated into one infrastructure, computer applications and communications technologies become streamlined throughout the business. The integration of numerous applications means the system is more efficient and subject to fewer interruptions. Particularly because of this feature, ‘virtual’ teams of staff benefit from greater bandwidth capabilities.

Previously, business VoIP customers had been doubtful about the quality offered by the consolidated service. However, as competition in the supply field has increased, and the technology still improving, more businesses are now convinced by the advantages of installing the system.

Businesses can also benefit from an effective knowledge management strategy that allows better access to departmental/specialist information. This can improve the rate of productivity and business development. And of equal importance, VoIP is said to improve customer and business contact because all the communications systems eg fax, telephone, email, web calls etc. are integrated, making feedback a more efficient process.

Analysts predict that with the growing popularity of VoIP amongst SMEs, will bring a significant market growth in suppliers. This will should the technology more accessible to a greater number of businesses.

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