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Brian Harris
11 April 2025

What is a Virtual Number and How Does It Work?

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A virtual number can be understood as a unique set of digits. It is not physically attached to phone lines. This number works through the Voice over Internet Protocol technology, also known as VoIP.  This technology is useful for making voice calls, mainly through an internet connection. Hence, such phone numbers exist in the cloud. As they are devoid of being connected to either SIM cards or phone lines, it is more convenient to utilize them for business communication. Through virtual phone numbers, companies can easily engage in communication management to facilitate sales in business. They can conveniently receive and make calls. Besides, advanced-level management through call routing and forwarding is possible.

Content Summary  

  • What is a Virtual Number?

  • Which Functions Do Virtual Numbers Serve?

  • How Does a Virtual Number Work?

  • Do Virtual Phone Numbers Work Flexibly?

  • How Does a Virtual Number Manage Business Communication?

What is a Virtual Number?

Virtual numbers are sequences of digits that are not physically connected to any phone lines. Besides, they are not tied to SIM cards either. These numbers exist virtually, i.e. in the cloud. Thus, via an internet connection, one can make as well as receive calls. 

  • In other words, a virtual phone number is software-based. 

  • Its concept differs from a traditional phone number.

  • This is a solution that extends communication flexibility to businesses.

  • Also, the features it offers are beyond those available with the traditionally used phone lines.

As a Crucial Component of Cloud Telephony

It is important to know that a virtual number is vital for cloud telephony, a phone system functioning via an internet connection. Such a number makes use of the cloud to originate. It gets attached to a telephone number that preexists and is owned by a business. 

Which Functions Do Virtual Numbers Serve?

Primarily, a virtual phone number serves the function of acting as a proxy in order to forward business calls to a private line. By doing so, it ensures a layer of flexibility as well as privacy for the management of communication.

Operating as an Automated Attendant

It is vital to note that a virtual number operates as an auto attendant. As a caller makes a call, the solution offers a menu comprising several options. The caller can select specific options. Thus, he or she can decide which destination to head to. Afterward, a suitable agent attends to the caller to resolve his or her query or concern.

Working as Dedicated Phone Lines

Serving as a dedicated phone line is a core function of a virtual phone number. Thus, it works as a usual contact number, however, makes use of VoIP in place of the traditionally available phone lines. As a result, it ensures the flexibility to route as well as forward calls.

How Does a Virtual Number Work?

A virtual phone number works through VoIP or Voice over Internet Protocol. It is a useful communication technology for making calls via a broadband connection in place of a landline. Thus, this number also operates through the internet, whether cellular (5G or LTE) or Wi-Fi.

  • Virtual numbers work when calls are placed through them. 

  • They are routed via the server of a Voice over Internet Protocol service provider. 

  • It is then directed to a predetermined destination, as set by a company or business. 

  • Bear in mind that this destination is a mobile system/device, physical phone, computer-based softphone, or any other such device.

Do Virtual Phone Numbers Work Flexibly?

Virtual phone numbers function flexibly, especially since they involve routing calls. The process tends to be customizable, depending on the call routing software a business prefers. It enables simplifying call flows on the basis of criteria, including the ID of callers, the volume of calls, the time of the day, etc.

  • Depending on its business hours, a company can direct phone calls to its office phone system.

  • After its working hours, the company can transfer calls to voicemail or a mobile device.

  • Irrespective of the location, the transfer of calls can take place.

How Does a Virtual Number Manage Business Communication?

To facilitate and manage business communication, a virtual phone number helps receive, make, route, record, and forward calls. Besides, it works to direct calls to voicemails. All in all, it is useful in thoroughly handling processes to ensure callers or leads and companies effectively communicate. 

Receive and Make Calls

Using virtual numbers, organizations can easily receive and make calls. This functionality is similar to that of traditional numbers. However, calls are made or attended without requiring any physical device or telephone line. 

Route Queries from Callers

A business can count on virtual phone numbers for the purpose of routing calls. It can decide the criteria on the basis of which queries can be transferred to agents or departments that can provide appropriate assistance. 

Forward Business Calls 

As a virtual number operates, it offers the option to forward a call. It enables redirecting the call to a different number. Note that this can be another virtual phone number or mobile-based. With this functionality, a company can prevent missing any calls and turn every communication into an opportunity for conversion. 

Record Phone Conversations

When utilizing a virtual phone number, a brand or business can record on-call conversations. Each conversation can help derive insights into vital aspects regarding leads. Using these, brands can bring improvement to processes like training and quality assurance. 

In Brief

Virtual numbers are phone numbers existing in the cloud. Note that they are not attached to SIM cards or even traditionally used phone lines. Therefore, they are more feature-rich than other commonly used phone numbers. It is for this reason that they facilitate convenient call management and help improve processes relevant to business sales. 

About Author

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Brian Harris
Sr. Content Editor

Brian Harris is a leading expert in artificial intelligence and machine learning, with a focus on natural language processing and sentiment analysis. With a background in computer science, she has dedicated her career to exploring innovative ways to improve human-computer interaction. As a thought leader in the field, Brian shares her expertise through engaging blog posts and industry insights, providing valuable guidance to readers to use Teldrip’s innovative solutions effectively.

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