Outdated landlines no longer meet the needs of modern businesses. Today’s teams need flexibility, mobility, and lower phone bills — and that’s exactly why so many are switching to VoIP phones. They enable businesses to cut costs, stay connected from anywhere, and unlock features that traditional landlines simply can’t match.
But what exactly are they?
On this page, join 1300 INTECH as we explain 'what is a VoIP phone', how they work, and their pros and cons for growing Melbourne businesses.
What is a VOIP phone?
VoIP (Voice over Internet Protocol) phones are modern business phone systems that enable you to make and receive calls over the internet instead of relying on traditional landlines. Any voice call conducted online qualifies as a VoIP call.
Often referred to as IP phones by manufacturers, they offer greater flexibility and advanced features tailored to growing businesses in Melbourne.
How do VoIP phones work?
VoIP’s acronym perfectly explains what it does—your voice over the internet. In simpler terms, when you make a phone call, your voice is converted into data packets and sent to the receiving end online. On paper, the process of making and receiving calls is nearly identical to that of a traditional landline.
However, VoIP offers businesses a modern advantage: the ability to make calls anywhere in Australia without relying on outdated copper phone lines. To enable VoIP, your setup might require a PBX system (if you're using on-site equipment) or a VoIP phone service provider if you want a cloud-based PBX handled off-site.
Types of VoIP phones
Now that we've clearly defined what is a VoIP phone, it's time to learn about the two main variations. VoIP phones come in two types: hard(ware) phones and soft(ware) phones.
Hardware Phones
These are physical devices that connect to the internet via an Ethernet cable. Hardware phones resemble traditional business phones, featuring LCD screens (example pictured above), but they operate over the internet, offering enhanced functionality and portability.
Common features of these hard phones are high-definition (HD) audio, busy lamp field (BLF) keys for speed dials, headset support, and even video on premium-end models.
Common features of these hard phones are high-definition (HD) audio, busy lamp field (BLF) keys for speed dials, headset support, and even video on premium-end models.
Soft Phones
Soft phones, or software phones, are apps installed on your laptop, tablet, or smartphone. They enable you to make and receive calls on your device, letting you use your business number without relying on hardware.
They're perfect for remote staff, tradies, or small businesses with tight-knit teams. For example, 1300 INTECH regularly utilises 3CX, FreePBX, and Teams Calling across our clients using our Magic Phones® service.
They're perfect for remote staff, tradies, or small businesses with tight-knit teams. For example, 1300 INTECH regularly utilises 3CX, FreePBX, and Teams Calling across our clients using our Magic Phones® service.
Why choose VoIP phones over landlines?
The top reasons businesses switch to VoIP include significantly lower costs, remote accessibility, and scalable features that make communication easier as your team grows. Traditional phone systems require a PBX (Private Branch Exchange) box to reroute calls to your business phone. These PBX boxes are not only expensive but also require a static location to function.
In simpler terms, this means you’re tied to your desk when you have to make or receive calls. Furthermore, PBX systems demand regular maintenance and significant service hours, adding to your expenses.
In contrast, VoIP phones eliminate these limitations. Business owners only need a VoIP gateway/adapter and either a corded or cordless phone to set up a fully functional VoIP system. Plus, the upfront cost is far lower, and maintenance is minimal.
What’s even better is that as long as your gateway is connected to the internet, you can take your phone system anywhere. You can dismantle it, move to the other side of Australia, set it up again, and it will work seamlessly.
VoIP phone systems vs traditional phone systems
Although VoIP phones may look and feel similar to traditional landlines, they differ significantly in cost-effectiveness, scalability, and features. Here's a table outlining the key advantages of VoIP phone systems compared to traditional phone systems:
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VoIP phone disadvantages
Just like traditional landlines, VoIP phones rely on power to work. The key difference is that they also require a reliable internet connection. Should either encounter issues, such as power outages or internet disruptions, users may experience lag, poor call quality, dropped calls, or even lose the ability to make or receive calls altogether.
Second, like any internet-connected system, VoIP phones can be vulnerable to cybercriminals — especially fraudsters targeting unprotected VoIP systems. As more businesses make the switch to VoIP, these threats have grown more sophisticated.
The good news
Thankfully, modern VoIP phone systems now have built-in firewall protection and encryption features. These help block malicious traffic and keep your calls and phone systems secure. You'll need a professional initial setup and access to expert ongoing support, so your cyber-risks can be significantly reduced.Fortunately, these challenges will be mitigated with the right planning and support. Built-in security features like firewalls and encryption are a strong start, but they work best when paired with proactive IT oversight.
At 1300 INTECH, we help protect your VoIP system with expert configuration, ongoing monitoring, and practical cybersecurity training. We’ll show your team how to spot suspicious activity, avoid common scams, and stay safe — whether they’re answering calls or working online.
Make the switch with 1300 INTECH
VoIP phones offer a cost-effective, flexible, and professional way to manage business communication—whether you're in the office, remote, or on the move.
To accurately determine whether this technology is for you, you need to understand what is a VoIP phone is from a business standpoint. If your goals include reducing communication costs, improving reliability, and preparing your business for the future, now’s the time to make the switch.
Let 1300 INTECH take care of the entire process. With our Magic Phones® service, we handle everything—from planning and procurement to installation and ongoing support—so you can focus on running your business.
With over 22 years of experience serving small businesses in the Melbourne Metro Area, we have the staff and expertise needed to fully support your growing business. Book a 15-minute discovery call today or call us at 1300 468 324 to get started.
To accurately determine whether this technology is for you, you need to understand what is a VoIP phone is from a business standpoint. If your goals include reducing communication costs, improving reliability, and preparing your business for the future, now’s the time to make the switch.
Let 1300 INTECH take care of the entire process. With our Magic Phones® service, we handle everything—from planning and procurement to installation and ongoing support—so you can focus on running your business.
With over 22 years of experience serving small businesses in the Melbourne Metro Area, we have the staff and expertise needed to fully support your growing business. Book a 15-minute discovery call today or call us at 1300 468 324 to get started.
VoIP Phones Frequently Asked Questions (FAQs)
Are VoIP phones future-proof?
Yes! VoIP is the future of business telephony in Australia. With the NBN rollout reshaping connectivity and PSTNs being phased out, businesses in Melbourne are increasingly adopting VoIP for its flexibility, cost-efficiency, and advanced features.
If your business is still relying on copper infrastructure, it's only a matter of time before your old landline becomes unsupported. Transitioning to VoIP ensures you're ready for the future.
What VoIP features do I need for my business?
It depends on your business needs. A modern VoIP phone typically includes, but is not limited to:
- Call control (hold, record, transfer, mute)
- Instant messaging
- Voicemail with transcription
- HD audio quality
- Detailed call logs
- BLF keys (speed dials) for quick access
- Headset support
- Navigation menu
- Multi-line handling for managing multiple calls simultaneously
Ultimately, we won’t know until we can take a good look at your current setup. Contact 1300 INTECH today to get a free audit on your phone system.
