Virtual Phone Numbers: Pros & Cons, Types, and How They Work

A virtual phone number is a telephone number that isn’t tied to a physical phone line, SIM card, or specific device. Unlike traditional numbers connected through the Public Switched Telephone Network (PSTN), it operates via a cloud-based system using an internet connection and enables you to make and receive calls from anywhere through VoIP technology.

Virtual phone numbers, also known as internet or online phone numbers, are widely used by small businesses, remote teams, sales, and support teams. They make it easier to manage business calls separately from personal ones and offer useful features like IVR, voicemail, and call queues to handle customer communication more efficiently.

So, how does a virtual number work? Well, the mechanism behind it is easy to understand. When an individual calls a virtual number, VoIP technology converts their voice signals into data packets and transfers them through the online network to the receiver’s device. There, the data packets are decoded back to the voice signal so the recipient can hear the voice.

You can get a virtual phone number easily from a VoIP service provider. Firstly, understand your needs, then select a dependable provider and purchase your number.

Virtual phone numbers are more cost-effective than traditional numbers. Moreover, they’re easily accessible from multiple devices like computers, laptops, tabs, or mobile.Here are some key perks of virtual phone numbers:

Since a virtual number isn’t tied to a specific location, you can access it from anywhere using a compatible device. However, it does require a decent internet connection. This is specifically beneficial for the business use. An employee can be active and productive regardless of their location. Even if they are working remotely, they can get engaged in day-to-day operations easily.

Moreover, you can also travel anywhere you want with it. You can retain your number even if you change your business location.

Virtual phone number often comes with advanced business communication features like call forwarding, routing, call queuing, transcribing, and recording, among others. However, the level of features depends on your selected Virtual phone number providers. That’s why, it’s ideal to research on different providers before selecting one.

Virtual phone numbers are typically scalable. It allows you to add additional features and lines, depending on the business’s demands.

For example, you run a hotel, and the inflow of calls has increased during the holiday season as people want to know more about prices and rooms. In this case, you can effortlessly have additional numbers or lines in your system.

Nobody knows what they must convey over a phone call. While there is a chance of getting eavesdropped over old telephone lines, virtual numbers are much more secure. Most VoIP providers implement voice encryption in their systems to keep your data safe.

While there are multiple perks to having a virtual phone number, it also has its limitations.

As stated above, a virtual phone number depends on the Internet. Though the world has excelled in technology, there are still places where there is no internet accessibility. The service is not available in such a location.

Moreover, a stable internet connection is a must for using virtual numbers. If there’s fluctuation, then one can experience latency and jittering.

VoIP providers have a limited supply of virtual numbers. For example, you want a number of Antelope Valley in Los Angeles to expand your business there. However, your desired number may not be available with your service as someone may already have taken it. That is why, it’s recommended to contact your VoIP provider as soon as possible when you need a virtual number.

In times of a disaster, emergency services link calls to physical locations based on landline phones. Unfortunately, this is not always feasible with virtual numbers since they are cloud-based. For instance, you might not get an emergency text about a calamity in Los Angeles, US, if you have a virtual number from London, UK.

Virtual phone numbers are categorized into four groups: mobile numbers, landline numbers, toll-free numbers, and vanity numbers.

Mobile numbers can be both local and international. It allows firms to communicate with their users in a more personal manner.

Landline numbers are regular phone numbers affiliated with a specific region of a country. It helps businesses create a local presence.

As the name gives itself away, toll-free numbers are free for the caller. When a user phones a toll-free number, the calling cost is added to the recipient. These kinds of numbers are suitable for customer care and support.

Alongside numerical digits, vanity numbers consist of words or phrases. They are catchy and easy to remember while helping boost brand recognition. On top of that, they are toll-free numbers. E.g., 1-800-PIZZAS.

A virtual phone number isn’t just used for calling and receiving phone calls and has multiple functions. Prior to getting one, understand your needs, whether you want it for personal or business purposes.

There are multiple services that provide a virtual phone number. While some offer it for free, others charge a certain subscription fee. Select a trustworthy source that’s worth your time and money.

A virtual phone number works by routing calls through the internet using VoIP (Voice over Internet Protocol) technology instead of relying on traditional phone lines or SIM cards. When someone dials a virtual number, the call is first received by the VoIP provider’s cloud-based server. That server processes the call and converts the voice into data packets that travel over the internet. Depending on how the user has set up the system, the call is then directed to a specific destination, such as a mobile phone, desktop app, VoIP desk phone, or multiple devices at once.

The receiving device then decodes the data and converts it back into a regular voice call in real time. Since the entire process happens online, virtual numbers work from anywhere with an internet connection and allow for advanced routing rules like time-based forwarding, simultaneous ring, or location-specific handling. This makes them highly flexible, especially for remote teams or businesses managing calls across different devices and locations.

All the service providers have their own applications. Download the app from your selected provider and login to configure a number on your device.

After setting up your number, run some tests to make sure the features you have selected are working accurately.

If you're looking for a virtual phone number for business or personal use, several trusted providers offer reliable and feature-rich solutions. Google Voice, Calilio, Grasshopper, Talkroute, and MightyCall are among the top virtual phone number providers. These platforms help businesses manage calls, scale communication, and maintain a professional presence, whether operating locally or globally.

Google Voice is your best choice if you want a free virtual phone number. Furthermore, if you already use tools like Google Contacts and Google Calendar, the Voice application integrates with them flawlessly.
Though Google Voice is free, with limited features, you can get access to all of its components after upgrading to its enterprise plan.

Calilio is a VoIP service provider that provides virtual numbers from over 100 countries, including the US, the UK, Australia, and Canada. Its up-to-date business phone system helps build workplace communication.

One of its top features is a unified callbox. It provides a single platform for calls, video conferencing, and texts. Moreover, in its user-friendly interface, you can easily access all your call logs, records, audio, and text messages with voice mail.

Since Grasshopper doesn’t provide any international virtual number, it is suited for businesses with a national audience. It allows the consumer to add as many users as they want and can have additional numbers for just $10 per month.
It collaborates with Ruby Receptionists, an institution providing 24/7 live virtual receptionists, to individualize a caller’s experience.

Talkroute is appropriate for local companies with a massive inflow of calls. It offers services like call stacking, simultaneous ringing, and interactive voice response, alongside assigning an auto attendant.

Companies in the healthcare industry benefit from Talkroute because of its Business Associates Agreement (BAA). With a BAA, if you are a firm working with Protected Health Information (PHI), all your voice calls comply with HIPPA (Health Insurance Portability and Accountability Act).

Similar to Grasshopper, it also doesn’t provide an international virtual number.

Unlike others, MightyCall has integration with Salesforce and Zoho CRM, two well-known customer relationship management systems. It allows users to save call information and directly transfer it to the CRM for an improved workflow.
MightyCall also monitors call quality and makes required arrangements to maintain the top standard of your connection with its built-in AI.

Yes, virtual numbers are typically safe and legal. However, its security also depends on where you get your virtual number from.

Some common threats that linger around virtual numbers are:

• Spam over Internet Telephone (SPIT): Different scammers try to deceive a consumer by sending a prerecorded voicemail in SPIT.
• Voiceover Misconfigured Internet Telephones (VOMIT): VOMIT is a tool used to hack VoIP and can acquire delicate data by listening to conversations.
• Vishing: In vishing, a scammer calls to defraud people and extract sensitive details. 

Thankfully, most VoIP providers have a secured system with firewalls and end-to-end encryption that prevents consumers from facing such problems.
 

A virtual phone number is the updated version of your regular phone number. In the market, you will find tons of VoIP service providers offering a virtual number. However, not all VoIP providers offer the same services or features.

Consider Calilio to get a virtual phone number of your own with added business communication features. Its advanced VoIP elements, like a unified callbox, sentiment analysis, live call monitoring, new lead alerts and many more takes your business communication to the next level. Contact us today.