What is a Virtual Phone Number & How to Get One?

Getting a virtual phone number is a simple and cost-effective way for your business to establish a local presence, save on long-distance calling, and benefit from the flexibility of a VoIP phone system.

Because virtual numbers make and receive calls via the Internet, they offer HD call quality, mobility, advanced features, and additional conveniences that traditional phones don’t have.

In this guide, we’ll take a look at what a virtual number is, how it works, its types, and how you can get one.

• Overview
• How it Works
• Virtual vs Regular Numbers
• Types of Virtual Numbers
• How to Get
• Who Should Get Them
• Features
• Benefits
• Downsides
• Top Providers
• FAQs

What is a Virtual Phone Number?

A virtual phone number is a cloud-based telephone number that enables voice calling over the Internet via VoIP. While traditional phone numbers are linked to a specific address via landline cable, virtual numbers are assigned to users remotely and are not bound to any physical location.

Users, departments, branches, and teams of agents can access their virtual numbers from anywhere in the world, on any device with Internet access, via softphone interface. While traditional business numbers typically have to make calls from a physical phone, virtual phone numbers can make calls through their VoIP (voice over Internet protocol) app on computers, cell phones, tablets, or IP desk phones.

Sometimes called VoIP numbers, virtual phone numbers are also much more scalable than traditional analog phones. Businesses can purchase unlimited virtual numbers and extensions from their provider–including local, toll-free, and vanity numbers. Purchasing and assigning virtual numbers takes just a few minutes through the VoIP app.

How Does a Virtual Phone Number Work?

A virtual phone number works by breaking up outbound voice audio into data packets that travel to their call destination via the Internet. When the data leaves the caller’s local WiFi network, the VoIP provider sends it from one data center to the next, until it reaches the recipient’s network. Once these data packets arrive at the recipient’s device, they reassemble into crystal-clear voice audio.

All you need to use a virtual number is a router, an Ethernet cord, and a VoIP device like a cell phone, computer, or tablet. Additional VoIP equipment, like VoIP-enabled desk phones, headsets, speakers, and microphones are all optional. Virtual phone numbers come ready with HD audio functionality and include features like noise cancellation, background noise suppression, and adjustable audio levels.

Virtual Numbers vs Traditional Numbers

The main difference between a virtual phone number and a regular phone number is that a virtual phone number is not tied to a landline phone system but instead to an internet-based VoIP account.

The table below outlines the differences between virtual and regular phone numbers:

Different Types of Virtual Phone Numbers

There are four main types of business virtual phone numbers:

• Local Numbers: Local phone numbers are normal virtual phone numbers, based in your chosen area code anywhere in the country or the world
• Toll-Free Numbers: Toll-free numbers are US-based phone numbers that charge calling costs to businesses, not consumers. These numbers begin with a unique three-digit prefix beginning with 8, such as 800, 833, or 888.
• Vanity Numbers: Vanity numbers are toll-free numbers that spell out words or phrases that are easy to remember. For example, 1-800-DOG-FOOD or 1-887-GET-KALE.
• International Numbers: International numbers are local numbers based outside of your domestic country. International numbers typically cost more than regular numbers and are charged at the international country’s rates.
• Ported numbers: If you already have a business phone number you’d like to continue using, your VoIP service provider uses number porting to transfer your current landline number to your new account with them

How to Get a Virtual Phone Number

Get a virtual number by signing up with a VoIP provider, selecting a phone number or porting in your pre-existing numbers, and assigning these numbers to agents. After this, users can begin making and receiving phone calls from their virtual numbers, in addition to texting and all the other features listed above.

Here are the steps to get a virtual phone number:

1. Sign up with a VoIP provider: A VoIP provider will offer you the phone system, application, and network to use your virtual phone number. Providers like RingCentral and Nextiva offer several pricing plans, which can get users signed up in minutes.
2. Select or port numbers: Once you sign up, you can purchase virtual numbers from your VoIP provider or port in the numbers you already use. Administrators can purchase virtual numbers within the VoIP app, choosing from a variety of area codes, cities, and countries that the provider has available. To port pre-existing numbers to your VoIP phone system, your provider will give you a form to send to your previous phone service provider. The process usually takes a few weeks.
3. Assign numbers to agents: From the administrator portal, navigate to Users, where you can manage and add users from within the company. Here, you can also assign your account’s virtual numbers to agents. You can also assign virtual numbers to IVR call flows.
4. Begin making and receiving calls: Once your account’s users have their numbers, all they need to do is log in to the VoIP app from your provider. Agents can begin taking and making calls from mobile or desktop devices.
5. Set up routing and queueing: Once users are set up with their phone numbers, you can begin setting up a more intricate business phone system. The administrator can use drag-and-drop design tools to set up IVR, build call queues, and create ring groups.

Who Should Use a Virtual Phone Number?

Virtual phone numbers are a mainstream solution for professionals and businesses looking to communicate smarter. 82% of customers say they’ll cut off a company if they don’t feel it communicates with them in the ways they prefer.[*] Let's explore who's taking advantage of this modern communication tool.

Small Businesses

Imagine projecting a big-business image without the big business budget. That's exactly what virtual numbers offer small businesses and startups. Get professional call handling features that make customers think they're dealing with an established company, all while keeping costs low. Features like custom greetings and after-hours routing mean you never miss important opportunities.

Teams Working Remotely

Whether your team is spread across town or across time zones, virtual numbers keep everyone connected seamlessly. The beauty lies in their flexibility: your sales rep in Chicago, support specialist in Austin, and project manager in Miami can all operate under one unified business number while working from anywhere.

Freelancers

Freelancers and consultants are using virtual numbers to create clear boundaries between personal and professional lives. No more giving out your cell number to every client. Instead, you get a dedicated business line that follows you wherever you work, with the added benefit of professional voicemail and call screening.

International Companies with Global Reach

Breaking into new markets just got easier. Virtual numbers allow businesses to establish local presence internationally without physical offices. Customers in London, Sydney, or Tokyo and more can call a local number to reach you, building trust while saving you expensive international call fees. Companies using local numbers see as much as 3 times as much engagement in foreign countries.[*]

Call Center Operations

Modern call centers are leveraging virtual numbers to create more efficient workflows. The technology enables smart call distribution, detailed analytics, and seamless CRM integration, all without being tied to a specific location. The result? Happier customers and more productive teams.

Virtual Phone Number Features

Virtual phone numbers offer dozens of features that just do not come with the traditional phone experience. Below we’ve outlined the core gamut of features both essential and advanced to give you a taste of what getting a virtual phone number could unlock for your business:

Essential Features

These core features of virtual phone numbers assist your business in the quest to manage calls efficiently while maintaining a professional presence:

• Call Forwarding: Redirect incoming calls to any phone number or device, ensuring you never miss an important call
• Voicemail Management: Includes a custom greeting, voicemail inbox, and call logs searchable by date or contact, most providers also offer voicemail transcription
• Caller ID: Display your business number instead of personal numbers for a more professional presence
• Text Messaging: Most virtual phone systems allow text messaging across the United States, Canada, and globally (with additional fees)
• Virtual Dashboard: A centralized interface which frames all communication features including call controls, contacts, team messaging, and analytics for your agents in one place
• Desktop & Mobile Apps: Access your virtual phone number through apps available on Android, iOS, and desktop browsers for instant accessibility
• Ring Groups: Link multiple agent phone numbers so that all ring simultaneously or in a specific order until someone answers

Advanced Features

Some businesses need extra firepower and feature sets when it comes to tackling customer inquiries. We’ve outlined these advanced features which will arm your agents with extra tools to ensure maximum productivity and customer satisfaction:

• Interactive Voice Response (IVR): Create a self-service phone menu that directs callers to the right department, agent, or queue
• Automatic Call Distribution (ACD): Smart routing software that assigns calls based on agent availability, skill level, or business hours
• Call Queues: Organize inbound callers into hold queues when all agents are busy, with live wait-time monitoring
• Call Monitoring: Supervisors can listen to live calls, whisper guidance to agents, or join calls for support
• Call Recording: Record calls for training, quality assurance, or compliance purposes
• Voicemail-to-Email: Automatically forward voicemails as audio files or transcriptions to email for easy access
• Call Analytics: Track real-time and historical data on call volume, agent activity, and key performance indicators
• Third-Party Integrations: Connect with CRM platforms and business tools to streamline workflows and improve customer interactions
• Contact Management: Store detailed contact information, including call history, preferences, and notes, to enhance customer relationship management
• Call Controls: Manage calls with features like call transfer, call hold, mute, and conference calling for improved handling

Benefits of a Virtual Phone Number

Here are the top benefits of using a virtual business phone number, instead of a traditional phone number:

• Ease of use: Virtual phone numbers are easy to purchase, assign, and use. Administrators can purchase toll-free, vanity, and local VoIP numbers in minutes and assign them instantly to agents. From the mobile or desktop dashboard, agents have easy access to dozens of capabilities while using their virtual number. According to studies, the global VoIP market is projected to grow at a CAGR of 15% from 2023 to 2030, driven by ease of deployment.[*]
• 24/7 service around the globe: With a virtual phone number, several business locations around the globe can use a single, centralized number or area code to answer inbound calls. Call routing strategies can be location-based or time-based, meaning customers will instantly be connected to an available agent regardless of when they call. Recently, 60% of remote-capable employees work hybrid or fully remote, increasing demand for flexible call solutions.[*]
• Support remote teams: Virtual phone numbers deliver more flexibility for remote and blended team members–and even in-office employees who need to make business calls on the go–because they’re accessible from any desktop or mobile phone.
• Establish an international presence: Purchase international numbers from some providers, making it easy for your foreign customers to reach you at local area codes around the world. Customers in these locations get the impression that you’re a local company, and they don’t have to pay long-distance charges. 70% of customers are more likely to contact a business with a local number.[*]
• Scalable: Administrators can add and remove virtual phone numbers in minutes, simply by paying the provider’s monthly add-on rate and selecting a number. Once the admin assigns the virtual number to a user, they can make and receive calls. Studies show that 90% of enterprises currently rely on cloud-based communications.[*]
• Sharing between users: Most cloud-based phone systems enable users to share multiple phone numbers. With extensions and shared number access, some providers even allow multiple agents to use phone numbers at once. Agents can also manage multiple phone numbers from one interface.

Downsides to Using a Virtual Phone Number

Here are the drawbacks and limitations that may come with using a virtual phone number:

• Confusion with personal number
• New features can feel overwhelming
• Difficult for emergency services to locate
• Requires sufficient bandwidth

Confusion with Personal Number

When using a virtual phone number on mobile, some users may struggle to differentiate between their personal and business calls. Mobile VoIP apps ring when a user receives inbound calls on their business number, and some users may mistakenly believe they’re receiving a call on their personal cell number. Further, some users may want to restrict business calls to the office and feel bothered by receiving them on a personal device.

To avoid this issue, users can navigate to their VoIP settings and customize business hours, which send calls directly to voicemail during non-working hours. Users can also opt not to install a VoIP app on mobile, using desktop only instead.

New Features Can Feel Overwhelming

VoIP applications and virtual numbers may provide some unfamiliar features and call controls–such as call parking, queues, transfer, or AI-supported tools like live transcription and response suggestions. At first, agents may feel overwhelmed by these tools and struggle to use them. Some VoIP solutions have a steep learning curve, but team members usually get the hang of a new platform within a few weeks.

Difficult for Emergency Services to Locate

Emergency services like 911 use service-provider account information to identify a caller’s address and quickly dispatch help. However, the users on a business VoIP account can be located anywhere across the country–not rooted in a singular location, like with a landline phone system. When VoIP users call emergency services from a virtual number, it can take longer than usual for the dispatch team to identify the caller’s location. According to the FCC, only 40% of VoIP calls transmit accurate location data to 911, versus 80% for landlines.[*]

Requires Sufficient Bandwidth

Virtual phone numbers require a stable internet connection and sufficient bandwidth to support calls. Insufficient bandwidth or an unstable Internet connection results in poor audio quality, jitter, latency, or dropped calls. Most household routers provide plenty of bandwidth to support several concurrent VoIP calls. However, if too many people within an office or household simultaneously engage in data-demanding activity, like video conferencing or gaming, VoIP call quality may begin to suffer.

Ensure high-quality virtual calls by limiting the number of users simultaneously engaging in data-heavy activities on a local network. Further, prioritize VoIP traffic on your router’s Quality of Service (QoS) settings to ensure VoIP calls have enough bandwidth when the network gets congested. Experts say that VoIP calls require at least 100 Kbps per line to maintain quality.[*]

Top Virtual Phone Number Providers

The table below provides an overview of five top VoIP providers that offer toll-free, local, and vanity virtual phone numbers in their plans.

FAQs