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What is Virtual Phone System?
A virtual phone system (VPS) is a cloud-based phone service that allows you to make and receive calls using an internet connection instead of a traditional phone line. VPSs are often used by businesses because they offer a number of advantages over traditional phone systems.
How Does Virtual Phone System Works?
A virtual phone system (VPS) works by using Voice over Internet Protocol (VoIP) technology to transmit voice calls over the internet instead of traditional phone lines. When you make a call using a VPS, your voice is converted into digital data packets and sent over the internet to the recipient's phone. The recipient's phone then converts the data packets back into voice so that you can hear each other.
Here is a more detailed explanation of how a VPS works:
- You make a call using your VPS-enabled device.
This could be a computer, smartphone, or traditional desk phone.
- Your device converts your voice into digital signals. This is done using a codec, which is a software program that compresses and decompresses audio data. analog-to-digital conversion (ADC)
- The digital signals are sent to the VPS provider's servers. This is done over the internet using a secure connection.
- The VPS provider's servers route the call to the recipient's device.
This is done using a process called call routing.
- The recipient's device converts the digital signals back into sound. This is done using the same codec that was used to convert your voice into digital signals. digital-to-analog conversion (DAC)
- You and the recipient can now talk to each other. The call quality will depend on a number of factors, including your internet connection speed and the recipient's device.
What are the features of a virtual phone system?

Empower your small business with the best virtual phone system (PBX) features and revolutionise your office communication.
- Virtual Receptionist Phone System
Greet callers with a professional virtual receptionist who automatically directs them to the appropriate department, ensuring prompt and efficient customer service.
2. HD Voice Quality Experience
Experience crystal-clear audio with advanced HD voice technology, ensuring smooth and seamless communication with clients and colleagues.
3. Virtual Phone System Software
Manage your phone system from anywhere with intuitive virtual phone system software, accessible from any device with an internet connection.
4. Auto Attendant
Automate call routing with an intelligent auto attendant that handles inquiries, directs callers to the right extension, and even takes messages during off-hours.
5. Call Forwarding
Never miss a call with flexible call forwarding options that direct incoming calls to your mobile phone, home phone, or another designated number.
6. Call Recording
Capture important conversations for training, reference, or dispute resolution with secure virtual phone system call recording functionality.
7. Call Transcription
Convert recorded calls into searchable text transcripts for easy access to key information and improved customer service.
8. Call Analytics
Gain valuable insights into call patterns, customer interactions, and team performance with comprehensive virtual phone system call analytics dashboards.
9. Video Conferencing
Host productive virtual phone system video conferences with colleagues, clients, and partners from anywhere in the world, fostering collaboration and boosting productivity.
Advanced Features for Enhanced Collaboration
10. Collaboration Tool
Streamline teamwork with integrated collaboration tools that enable seamless messaging, file sharing, and task management.
11. Automated Power Dialers
Increase sales productivity with automated power dialers that efficiently manage outbound calls, connect with potential customers, and generate leads.
12. Automatic Callbacks and Call Queueing
Eliminate customer frustration with automatic callbacks and call queueing that manage high call volumes efficiently, reducing wait times and improving customer satisfaction.
13. Virtual Call Center
Establish a virtual call centre to handle customer inquiries, support requests, and sales calls effectively, even with a remote workforce.
14. Multilingual IVR
Cater to a global audience with a multilingual IVR that provides language-specific options, ensuring effortless communication with customers worldwide.
15. Voicemail Drop
Streamline communication and improve response times with voicemail drop, allowing callers to leave messages directly to specific team members' inboxes.
Virtual phone systems offer a plethora of features that empower businesses of all sizes to enhance communication, improve customer service, and boost productivity. With these versatile tools, organisations can adapt to the evolving demands of the modern business landscape and achieve their communication goals effectively.
Top Virtual Phone System Providers for Small Businesses
The best virtual phone system provider for small businesses in the UK depends on your specific needs and budget. However, some popular and highly-rated options include:
1. The VoIP Shop
The VoIP Shop is a cloud-based virtual phone system that is designed for small businesses in the UK. It is easy to use and affordable, and it offers a wide range of features, including:
- Virtual receptionist
- Multiple virtual assistants
- HIPAA compliant
The VoIP Shop is a great option for businesses that need a reliable and affordable
Office virtual phone system.
The VoIP Shop - Virtual Phone Service Price & Plan
Choosing Virtual Phone Service Pricing & plan is one of The VoIP Shop's easiest methods. The only clear plan is the £12.95 per person per month, which includes 5% off when you pay annually.
Standard
Complete cloud phone system for businesses
£13.95
£12.95
- 2000 Mobile and Landline mins
- Free Desk phones ( Yealink T41 or Polycom VVX300 )
- Dedicated direct line
- Mobile and Desktop App
- Click to Dial
- Three Way Conference
- 40+ Phone System Features
- FREE Support and Maintenance
MOST POPULAR
Premium
Best flexible teams and departments
£15.95
£14.95
- Unlimited Mobile and Landline Calls
- Free Desk phones ( Yealink T41 or Polycom VVX300 )
- Dedicated direct line
- Mobile and Desktop App
- CRM Integrations and Click to Dial
- Conference Calling System
- 40+ Phone System Features
- FREE Support and Maintenance
Ultimate
Ultimate solution flexible teams and departments
£24.95
£19.95
- Unlimited Mobile and Landline Calls
- Free Desk phones ( Yealink T41 or Polycom VVX300 )
- Dedicated direct line
- Mobile and Desktop App
- CRM Integrations and Click to Dial
- Conference Calling System
- 40+ Phone System Features
- FREE Support and Maintenance
- Popular CRM integrations with Salesforce, Zendesk, and more
- Call Recording System
What Makes The VoIP Shop a Highly Rated Virtual Phone System Provider?
The VoIP Shop is a great choice for businesses of all sizes looking to improve their communication and customer service. With a comprehensive virtual phone system solution, The VoIP Shop offers a wide range of features, including local, toll-free, virtual phone numbers, advanced calling features, and integration capabilities with popular CRM and productivity tools.
Additionally, The VoIP Shop's virtual phone system is scalable, secure, reliable, and cost-effective, providing businesses with complete administrative control and the flexibility to use a variety of devices. For those seeking a separate phone number for business or personal use, The VoIP Shop also caters to individual needs.
The VoIP Shop stands out as a reliable and affordable virtual phone system provider, offering 24/7 customer support, free training and support, and a satisfaction guarantee with 5 star rating and 100+ positive reviews.
Businesses can easily manage their users, lines, and features through an intuitive web-based portal. The VoIP Shop's virtual phone system is the ideal solution for enhancing communication, customer service, and overall business efficiency.

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2. Nextiva
Nextiva is a popular virtual phone system that is known for its scalability and reliability. It is a good option for businesses that need a virtual phone system that can grow with them. Nextiva offers a wide range of features, including:
- Unlimited calling and texting
- Video conferencing
- CRM integration
Nextiva is a good option for businesses that need a comprehensive virtual phone system.
3. RingCentral
RingCentral is another popular virtual phone system that is known for its features and integrations. It is a good option for businesses that need a virtual phone system that can integrate with their existing software. RingCentral offers a wide range of features, including:
- Team collaboration tools
- Customer relationship management (CRM) integration
- Mobile app
RingCentral is a good option for businesses that need a versatile virtual phone system.
4. Grasshopper
Grasshopper is a popular virtual phone system that is known for its ease of use. It is a good option for businesses that need a virtual phone system that is simple to set up and use. Grasshopper offers a wide range of features, including:
- Customizable greetings
- Call forwarding
- Virtual voicemail
Grasshopper is a good option for businesses that need a basic virtual phone system.
5. Google Voice
Google Voice is a free virtual phone system that is offered by Google. It is a good option for businesses that need a basic virtual phone system that is easy to use. Google Voice offers a wide range of features, including:
- Unlimited calling and texting to the US and Canada
- Voicemail transcription
- Call screening
Google Voice is a good option for businesses that need a free virtual phone system.
In addition to the providers listed above, there are many other great virtual phone system providers on the market. When choosing a virtual phone system provider, it is important to consider your business's needs and budget.
How to choose the best virtual phone system for your small business?
Important factors for choosing the right virtual phone system for your small business:
When choosing a virtual phone system, startups should consider features, scalability, reliability, and pricing to find the system best suited to their unique needs. The ideal system will have the capabilities to support your communication needs now and scale as your business grows. Prioritize uptime and reliability to ensure seamless interactions. Research pricing models like per user plans to control costs. Selecting the right phone system is essential for robust communications without overspending.
- Assess your business needs: Consider the size of your team, the volume of calls you typically handle, and the features that are essential for your operations.
- Evaluate pricing and packages: Compare the pricing structures of different providers, taking into account the number of users, call minutes, and included features.
- Consider scalability and growth: Choose a system that can accommodate your expanding team and increasing call volume without requiring a complete overhaul or significant upfront investment.
- Prioritise reliability and uptime: Ensure the virtual phone system provider you choose has a proven track record of reliability and uptime.
- Evaluate customer support: Choose a provider that offers responsive and knowledgeable customer support, available through multiple channels, such as phone, email, and live chat.
- Explore integrations and compatibility: Ensure the system you choose integrates with the tools your team relies on daily.
FAQs
Answers to some of our most commonly asked Virtual Phone System questions…