What Is a VoIP Telephone System and How Does It Work?

Learn what a VoIP telephone system is, how it works, and why UK businesses are switching before the ISDN switch-off.

Why Businesses Are Moving to VoIP

The way companies handle calls is changing quickly. Traditional landlines are being phased out across the UK, with BT set to switch off ISDN lines by the end of 2027. More businesses are transitioning to VoIP telephone systems because they’re flexible, reliable, and designed for modern work environments.

In this guide, we’ll cover everything you need to know about VoIP. What it is, how it works, the benefits, and how UK businesses can prepare for the future.

What Is a VoIP Telephone System?

A VoIP telephone system (Voice over Internet Protocol) is a business phone service that runs over the Internet instead of physical phone lines. With VoIP, voice signals are turned into digital data, sent through the Internet, and delivered to the recipient — whether that’s another VoIP phone, a mobile, or a traditional landline.

Unlike old systems that tie you to a physical desk phone, VoIP allows you to use your number across multiple devices, including:

  • Desk phones
  • Laptops and desktops (softphones)
  • Mobile phones (via apps or native SIM integration)

This flexibility makes VoIP the natural upgrade as businesses modernise communications.

How Does a VoIP Telephone System Work?

Here’s a simple step-by-step breakdown:

  1. Your Voice Becomes Data – When you speak, your voice is converted into digital packets of information.
  2. Packets Travel Over the Internet – These packets move quickly and securely across the Internet.
  3. Call Delivered Anywhere – The packets reassemble into voice on the other side, so the person you’re calling hears you clearly.

Unlike landlines, which require fixed infrastructure, VoIP only needs an internet connection.

Why UK Businesses Are Switching to VoIP

  • ISDN Switch-Off – BT is retiring legacy phone lines by 2027. VoIP is the direct replacement.
  • Remote and Hybrid Work – Employees need access to business numbers from anywhere.
  • Cost Control – Businesses save on call charges and hardware.
  • Scalability – Add or remove users instantly, no engineer required.

Features of a Modern VoIP Telephone System

  • Business Numbers on Any Device – Keep one number across desktop phones, laptops, and mobile devices.
  • Voicemail to Email – Never miss a message.
  • Call Forwarding and Routing – Smart handling of calls during busy times.
  • Business Text Messaging – Send and receive SMS from your main business number.
  • Analytics and Reporting – Track call volumes and response times.

Benefits for Different Business Sizes

Small Businesses

  • Affordable entry point without heavy upfront costs
  • Professional image with business-grade features

Medium-Sized Businesses

  • Easy to scale as teams grow
  • Supports remote staff without extra phone lines

Large Enterprises

  • Centralised control across offices and departments
  • Integration with existing platforms like Teams, CRMs, and call centers

Security and Reliability

Some worry about internet-based calling. In reality, modern VoIP telephone systems are secure and reliable when provided by the right partner. Providers utilize encryption, call redundancy, and UK-based data centers to safeguard their communications.

Common Questions About VoIP Telephone Systems

Do I need special equipment?

No — VoIP works with desk phones, computers, or mobiles.

What happens if my Internet goes down?

Calls can be automatically rerouted to mobiles or backup numbers.

Is VoIP call quality as good as landlines?

Yes — with a strong internet connection, VoIP often delivers clearer audio than traditional lines.

How much does it cost?

Pricing depends on the provider and features, but VoIP typically reduces call and maintenance costs.

Preparing for the UK ISDN Switch-Off

The UK’s phone system is changing. By 2027, ISDN and PSTN services will be discontinued, meaning businesses must act now. Switching to VoIP ensures you stay connected without disruption.

Why Choose Mobex for Your VoIP Telephone System?

Mobex has been helping businesses communicate since 2012. We provide VoIP telephone systems that:

  • Work across desk phones, laptops, and mobiles
  • Support business text messaging in both the UK and the US
  • Scale easily as your business grows

Explore Mobex VoIP Services

A VoIP telephone system isn’t just a replacement for landlines; it’s a more innovative way to run business communications. From cost savings to flexibility, VoIP helps UK companies stay connected, wherever their teams work.

If you’re ready to future-proof your business, now is the time to make the switch.

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