What Is a Softphone? How It Works, Top Features and Why You Should Use One

A digital transformation is coming for the UK and a VoIP-enabled softphone might be your ticket to stay ahead of the competition.

The ‘Big Switch Off’ of traditional UK landlines is looming large, with 2027 marking the end of the analogue telephone network. That means it’s now imperative for UK businesses to familiarise themselves with Internet-ready alternatives, such as softphones.

We detail all the essentials you need to know about softphones below, explaining exactly how your business might benefit from adopting softphone technology and highlighting all the features that make them particularly useful.

What Is a Softphone?

In short, a softphone is a phone run via software. Typically, these are applications that allow you to make telephone calls over the internet using a connected device, such as a smartphone or computer.

They usually emulate traditional business telephones, with a keypad to type your calling numbers and buttons to put callers on hold or transfer a call, as seen below.

However, in 2024, softphones also have many buttons and features that traditional business phones do not have.

For instance, unlike standard phones, softphones usually allow you to video call or quick message colleagues and customers alike, integrate calling data with calendar or workspace applications and have other advanced calling features to train staff, such as functions like call barge (allowing managers to jump in on a call) and call whisper (allowing managers to listen in on a call and speak to an agent without the customer hearing).

And all of this is within one application, rather than unlinked chains of your business operations, making for an easy all-in-one communications solution.

How Does a Softphone Work?

While traditional landlines function via interconnected wires and circuits, softphones work through VoIP (Voice over Internet Protocol) technology.

VoIP converts voice signals into digital data packets, which are then transmitted over the Internet. So when you use the microphone on your computer or smartphone, the softphone application captures the analogue voice signals and converts them into a digital form.

This data is then compressed and divided into packets to enable faster transmission (as this requires less bandwidth).

Sitting on top of the VoIP technology are several protocols (in other words, systems of rules) which facilitate the signalling and transfer of this data in real time to ensure the flow of communication you expect from traditional landlines.

Consequently, a stable internet connection is crucial to this being achieved without any speed or reliability issues.

The Difference Between a Softphone, Hardphone and Mobile Phone

While softphones are software-based and need a device with an internet connection, hardphones are physical devices connected to the telecommunication network. Typically, we call these landlines and they communicate via a telephone exchange; in the UK, this wired circuit switching system is called the Public Switched Telephone Network (PSTN).

Mobile phones are hardware that can run softphone applications. As we’ll come to shortly, that includes running softphone applications, making them versatile for mobile telephony beyond your usual data, messaging and calling allowances.

Types of Softphone

Softphones come in three different formats and generally, a subscription to one Softphone provider will allow you to access all of them. Those three formats are:

• Desktop-based Softphones: Computer applications, running on operating systems like Windows, macOS, and Linux, tend to be the most feature-equipped option.
• Mobile Softphones: Designed for smartphones and tablets, mobile applications offer the benefit of increased mobility. However, they may have a streamlined interface with direct access to fewer features.
• Web-based Softphones: Operating within a web browser, they eliminate the need for software installation and can be accessed on most internet-enabled devices.

Is a Softphone the Same as a VoIP?

Essentially, a softphone is any application that uses VoIP (Voice over Internet Protocol) technology to make calls over the Internet.

However, VoIP is a broader technology than just softphone applications, including hardware-based VoIP phones and other communications needs such as an IVR system to manage and route a large volume of calls.

Why Do You Need a Softphone?

The looming ‘Big Switch Off’ of the UK analogue telephone network in January 2027 is the core reason why UK businesses and individuals need to adopt softphone technology sooner rather than later.

This event marks the transition from traditional PSTN (Public Switched Telephone Network) and ISDN (Integrated Services Digital Network) services to fully digital communications systems such as VoIP (Voice over Internet Protocol).

Softphones, operating using VoIP technology as explained above, offer seamless integration into both existing landlines and emerging internet infrastructures. But there are plenty of other reasons why softphones are an excellent choice irrespective of the ‘Big Switch Off’.

What are the benefits of a softphone?

✔ Cost-effective Communication: Especially true for long-distance and international calls, calling via a softphone is far cheaper than regular landline or cellular calling. Plus, by leveraging internet protocols rather than traditional hardware technology, softphones eliminate the need for expensive installations and any ongoing maintenance associated with landlines.

✔ Enhanced Mobility: Without being tethered by wires, softphones can be accessed from any internet-connected device. This varies by provider but usually consists of a computer app, web app or smartphone app, as outlined above, and can be particularly valuable to remote workers or organisations operating in multiple locations.

✔ Advanced Features: For businesses that rely on daily communication between employees and customers alike, useful features not possible on traditional landlines, such as video calling, voicemail to email, and call recording, are often integrated into softphones. There are frequently useful training features for new employees too, such as call monitoring and barging.

✔ Third-Party Integration: Should your business already use other software, such as CRM tools, storage and workspaces by Google and Microsoft or other applications for things like calendars and video conferencing, you’ll often be able to integrate those tools with your softphone. This allows seamless transitioning from one app to another, as well as letting you link all business data in one place. However, it’s worth noting not all softphones can offer this.

✔ Robust Security: Most softphones are designed with strong security measures, including end-to-end encryption, helping ensure that communications and your valuable business data remain secure from cyber threats.

✔ Scalability: Since adding users, phone lines or extensions can be done with a few clicks, businesses can evolve their communication needs as they grow fairly easily. You can usually up or downgrade your package to include more or fewer features depending on your business needs.

What are the disadvantages of a softphone?

✘ Dependence on Internet Connectivity: Perhaps the most obvious potential drawback of using a softphone is its requirement to have a stable internet connection. For those living in areas of the UK with unstable internet access or with poor bandwidth allowance, particularly rural or remote regions, dropped calls, delays and degraded quality could be a problem.

✘ Security Varies By Provider: While VoIP technology used by softphones has made significant advancements in security, some providers are more vulnerable to cyber threats than others. Inherently, any data transmitted over the internet can be intercepted by hackers if not properly encrypted, so choosing a VoIP with strong security features is an important measure to protect you and your business.

✘ Complexity and Training: While softphones are fairly intuitive according to our user research, the sheer number of features may require organisations to invest in training their staff who find the software more challenging.

✘ Hardware Requirements: To achieve high-quality calls, users might need additional hardware such as headsets, microphones, or external cameras. Similarly, if your business wants to enable staff to use physical desk phones to control their softphones, certain providers have limits on what hardware is compatible. So, it’s important to assure there are no compatibility issues with your existing hardware.

Are softphones reliable?

In general, yes, softphones are reliable. Advancements in internet technology, VoIP services, and cellular technologies like 5G have improved the reliability and quality of softphone applications immensely since VoIP’s creation in 1995. However, as mentioned above, this does rely on your internet connection being fairly strong.

What Are the Best Softphone Providers in the UK?

There are plenty of softphone providers offering VoIP-equipped solutions in the UK. Here’s a quick run-down on our two top-scoring options to give you an idea of what experience you’ll get with a softphone.

RingCentral: Best Softphone for Most Businesses in the UK

RingCentral scored the best in our user testing of the best softphones on the market. Here are some brief details about it, alongside what we liked and where we think it could do better.

8×8: Best Softphone for Unlimited Minutes

Coming just behind RingCentral in the standings is 8×8. In fact, it offers very similar call management and training features overall. And we think it’s a better choice for business after unlimited calling minutes per user, too. Here are some other reasons why (or why not) it could be the best pick for your business needs.