Switching your small business phone system to Voice over Internet Protocol (VoIP) means using the internet to make and receive calls instead of traditional landlines. This can simplify your setup by combining voice and data on one network and often reduces costs. However, it's important to understand how this change impacts your business's daily operations, security, and compliance obligations.
Why VoIP matters for UK SMEs
For many small businesses, reliable communication is essential. Downtime or poor call quality can disrupt customer service, delay orders, or hinder internal collaboration. Unlike traditional phone lines, VoIP depends on your internet connection and IT infrastructure, so any network issues can directly affect call reliability. Additionally, because VoIP systems handle voice data digitally, they introduce cybersecurity considerations such as protecting against interception, fraud, or denial-of-service attacks.
From a compliance perspective, if your business handles personal data over calls—such as customer details or payment information—you need to ensure your VoIP setup supports UK GDPR and Data Protection Act 2018 requirements. This includes secure call recording, access controls, and audit trails. Using a VoIP provider that meets standards like Cyber Essentials or ISO 27001 can help demonstrate due diligence.
A typical scenario
Consider a UK SME with around 50 staff spread across two offices and some remote workers. They switched to a VoIP system to reduce phone bills and enable flexible working. Initially, they experienced occasional call drops and poor audio quality during peak internet use. Their IT partner reviewed their network and found the existing broadband wasn't sufficient to handle both data and voice traffic simultaneously. Upgrading to a business-grade internet connection and prioritising VoIP traffic (Quality of Service settings) improved call stability.
Additionally, the IT partner implemented multi-factor authentication (MFA) for the VoIP admin portal and set up regular backups of call logs and configurations. This helped the business maintain compliance with ICO guidance on data security and ensured quick recovery if settings were accidentally changed or compromised.
Checklist: What to consider when moving to VoIP
- Ask your IT provider: How will the VoIP system integrate with your current internet and network setup? What guarantees are there for uptime and call quality?
- Compare proposals: Look for SLAs specifying response times, security measures, and support availability. Check if the provider holds relevant certifications like Cyber Essentials Plus or ISO 27001.
- Internal checks: Review your broadband speed and reliability. Ensure your network equipment supports Quality of Service (QoS) to prioritise voice traffic.
- Security measures: Confirm that strong access controls and MFA are in place for managing the phone system. Ask about encryption for calls and data storage.
- Compliance readiness: Verify how call recordings and logs are stored and protected. Ensure you can produce audit trails if required by the ICO or for PCI DSS if you take payments over the phone.
- Disaster recovery: Check if the provider offers failover options or backup lines in case of internet outages.
Next steps
VoIP can offer significant benefits for small UK businesses, but it requires careful planning to avoid disruptions and security risks. Discuss your specific needs and current IT environment with a trusted managed IT provider or IT advisor. They can help assess whether VoIP is suitable for your business and guide you through selecting and implementing a solution that balances cost, reliability, and compliance.