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virtual phone system

How Does A Virtual Phone System Work

Did you know that you could save between 50-75% when switching to VoIP virtual phone system?

Virtual phone systems provide an efficient and reliable means of communication. Not only can you make and receive phone calls as if you were using a traditional landline, but these systems also come with various added features and benefits that you wouldn’t get from a traditional phone.

Let’s explore how virtual phone systems work and why you should consider switching for your business.

What Is A Virtual Phone System? 

A virtual phone system, also called a cloud phone system or VoIP (Voice over Internet Protocol), is a type of phone that works over the Internet. Instead of using traditional phone lines, calls are placed and held via an online connection.

Using a virtual phone system adds flexibility and features that businesses wouldn’t be able to access when using traditional phone lines.

How Does A Virtual Phone System Work? 

There are various types of virtual phone systems on the market, with different systems offering their own features. However, here is a basic overview of how a typical virtual phone system works and the components you need in order to implement it in your company.

Internet Connection 

First things first, you need to have a stable internet connection if you’re going to use a virtual phone system. Make sure that the connection is fast and reliable enough to handle your calls – especially if you’ll be running multiple calls over the same network.

virtual phone system

VoIP Service Provider 

The VoIP service provider is the company that offers virtual phone systems services. This provider hosts all of the infrastructure you need to route and manage your calls over the Internet.

Getting set up here is pretty easy, as you don’t actually need any special hardware to run VoIP phone calls. You could use your mobile phone or desktop computer, as long as you have the right software connected to the VoIP service provider.

You could invest in hardware to use for the virtual phone system, but many people just opt for an app.

Phone Number 

As is the case with a traditional phone system, your virtual phone system will use one or more phone numbers. These will be assigned to you via your service provider and could be local or international – depending on your business needs and what the provider offers.

Virtual Phone System Features 

One of the great things about using a virtual phone system is that you can access a wide range of extra features. This could include elements like call forwarding, call routing, voicemail, call recording, automated attendants, conference calling, and more.

You could also integrate the virtual phone system with other communication channels your business uses.

When setting up your phone system, understand what features are available and establish which ones you need. Most providers will let you customize your features based on your specific requirements.

Call Routing 

Virtual phone systems work through a process called call routing. This is when the number that calls your phone is transmitted over the internet to your phone systems servers.

virtual phone system

Call routing can only work with call routing rules that you set up in the system that direct calls to the right destination.

For example, your business could have different destinations to route calls – like extensions for different employees or departments. You’ll need to set these up when getting started with a virtual phone system.

Call Handling 

Call handling is a tool you can use to direct/forward incoming calls to different places – like your office phone, mobile phone, or an app on your desktop. This means you could still use your mobile phone with a virtual phone system.

Voicemail And Call Logs 

Just like with traditional landlines, a virtual phone system records voicemails when you don’t answer a call. These voicemails, along with call logs, are stored in your account.

Some phone systems offer unique features here, such as transcriptions of voicemail messages.

Benefits Of Using A Virtual Phone System 

Now that we understand how a virtual phone system works, let’s explore some of the main reasons why you should consider an upgrade.


With a virtual phone system, you can make and receive calls from anywhere. All you need is a strong internet connection.

This makes it a lot easier to set up and install these systems. They’re also an ideal solution for remote teams, as virtual phones can be used wherever team members are based. This means consistent, reliable communication for your business.

virtual phone system


Because you don’t have to worry about setting up telephone network cables, you can easily add new users and phone systems as your business grows.

Just add new extensions and incorporate new phone systems as more employees join your team. Or, easily disable any phone systems you’re not using.

Cost Efficiency 

Virtual phone systems are a lot more affordable than traditional landlines. Because they operate over the Internet, you don’t have to pay for long calls. You can also seamlessly make international calls without being charged extra.

There are also no phone lines to worry about, which makes maintenance and upkeep an easy process. You basically just pay for the software and for your internet connection.

Advanced Features 

Virtual phone systems offer a wide range of features. Because they run online, you can access various functions to boost your customer interactions, sales processes, and overall communication efficiency. This can make your life a lot easier while also boosting productivity in your business.


Setting up a virtual phone system is a total game changer for the communications of your business. It offers an extensive range of benefits that can help your business by saving money, communicating with remote teams and so much more.

Get in touch with us at Stellar Communications if you’re interested in finding the best virtual phone system for your business’s needs.

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