More and more companies are throwing out their tired old telephone system and replacing them with state-of-the-art Hosted VoIP or Hosted PBX services.  In addition to lower telephone bills and getting away from 1960s phone line technology, the benefits are wide and far ranging.  They include virtual local numbers, telecommuting, connecting multiple locations together through voice, Personal Telephone Numbers, Mobile PBX, Private Faxes, Unified Communications and many more.

Regardless of their reasons for choosing a Hosted PBX or Hosted VoIP provider and the goals that accompanied the decision, not all deployments of Hosted PBX services are successful.  Here is a list of the top mistakes made when choosing a Hosted VoIP service and how to avoid them:

1.  Selecting a provider that is new to the industry.  Providers that are new to the industry may not know how to successfully deploy their service.  In addition, they will be learning and solving new problems while using their customers as Guinea Pigs.  Worse, they could go out of business with little or no notice which could have devastating effects on their customers.

Choose a provider that has been delivering Hosted PBX services for a minimum of 5 years.  The length of time that a provider has been in business is an indicator of quality service, satisfied customers and financial health.

2.  Deploying a Hosted VoIP service with an Internet connection that is not ready for VoIP.  Approximately 60% of all headaches related to VoIP are usually the customer’s Internet connection.  An unstable or insufficient Internet connection can cause choppy and garbled voice, dropped calls and a frustrated staff.

Make sure that your Internet connection is large enough, stable and clean of problems before Hosted VoIP service is installed.  The Hosted VoIP provider should have tools in place to help determine stability and diagnose issues.  Ask them to explain how they are going to do it.  If their explanation is not understandable, then they probably do not understand it either.  Remember, the Internet pipe has to be stable and large enough to handle the number of anticipated simultaneous calls.

3.  Not understanding the calling plans and hidden charges before selecting a service provider.  The cheap pricing advertised on websites can be very appealing.  In some cases, all is not what it seems.  Unlimited calling plans frequently only include the provider’s network which are usually very small.  Off network usage can be as high as $.065/minute!  The average desk phone is used approximately 750 minutes/month adding anywhere from $20-$50/month per user.  Not cheap!

Find a hosted VoIP provider who offers an unlimited plan for placing local and domestic long distance calls.  The variable plans are too unpredictable in price and rarely a good deal for their customers.  If you do select a variable plan, make sure you know the per minute charges.  Estimate your monthly usage and do the math.  If you are not sure, use 750 minutes per month per phone.

4.  Selecting a provider that does not deliver crucial features.  Hosted PBX providers offer many exciting new features and capabilities.  However, some of your most common phone system functions such as paging or Busy Lamp Field (who is on the phone) may not be offered at all.

Do not take the basic features of your telephone system for granted.  Spend some time watching how the system is used and which features are instrumental to the smooth operation of the company.  Verifying that the Hosted VoIP provider furnishes these features will save some nasty surprises later.

5.  Electing a provider that does not assist in prioritizing voice traffic as it goes out on your Internet connection.  Internet connections from cable companies and DSL circuits have lower upload speeds to the Internet.  Unprioritized voice and data traffic compete for this limited resource.  Sending a large e-mail while conducting a phone call can create choppy voice and even dropped calls.

Find a VoIP provider who will assist in prioritizing traffic.  Ask the potential provider how your data vendor can prioritize their voice traffic.  If they cannot give you an answer or they claim it does not need to be done, find someone else.

6.  Making a change of providers without learning service termination and other charges that may apply.

Vendors offer attractive pricing and reduced installation charges in exchange for long term commitments.  Review your contract and know any remaining term, cancellation procedures and termination charges.  Do not get surprised by these charges after you have already committed to another provider.

Hosted VoIP services deliver the ability to reduce phone bills, lower overhead and transform the manner in which a business operates.  Avoiding common mistakes in selecting a provider increases the likelihood of a successful installation allowing the business to take full advantage of the powerful capabilities that these services supply.