What is a virtual number? How it works, types, uses and cost

What is a virtual number?

A virtual number is a real telephone number that is not tied to a SIM card, a handset or a physical phone line. People call or text it like any other number, but the calls and messages are delivered over the internet to wherever you decide: a business phone system, a mobile app, a contact-centre agent or a different phone altogether. In telecom terms it is usually a direct inward dial (DID) number.

That separation is what makes it useful. A company in Jaipur can have a London number for UK customers, a Dubai number for Gulf customers and a toll-free line for support, without opening an office or buying a single SIM. One team answers them all. Our virtual numbers work this way, and you can attach them to a SIP trunk or to the voice API.

How a virtual number works

1. The caller dials the number. The call enters the public phone network and is routed to the carrier that holds the number.
2. The carrier looks up your routing rule. You decide where the number points: a SIP address, an app, a mobile number, a queue or a call flow.
3. The call travels over IP. The carrier sends call signalling and audio over the internet, using SIP, to your destination. Our guide to SIP trunking explains this part.
4. Your system answers. Your phone system or app rings agents, plays a menu, records the call or forwards it.
5. Texts follow a similar path. For SMS-enabled numbers, inbound messages are posted to your webhook, and outbound messages leave through the same number.

Types of virtual number

Countries use different prefixes, but the structure of any number follows the E.164 international standard, which caps a number at 15 digits including the country code. Use the number lookup tool to check the country and line type of any number.

What businesses use virtual numbers for

• Customer support lines. A toll-free or local number that rings an agent group, a queue or an IVR.
• Local presence in new markets. Customers answer a local number more readily than an international one.
• Call tracking. A different number per campaign or channel shows which one produced the call.
• Two-way SMS. Appointment confirmations where customers reply Yes or No, and customer service by text.
• Masked calling. Delivery, ride and marketplace apps connect two people through a temporary number so neither sees the other's real number.
• Remote and hybrid teams. Staff answer the company number from a laptop app or personal phone without exposing their own.

For web and app flows, a click-to-call button can dial a virtual number so customers do not have to type it. Support teams often combine the number with SMS and WhatsApp on the same account.

What an inbound call or text looks like to your system

When an SMS-enabled number receives a message, your system gets a webhook. This is an illustrative payload; the exact fields are in the webhook reference.

{
  "event": "message.received",
  "to": "+442071234567",
  "from": "+447700900123",
  "channel": "sms",
  "text": "Yes, confirm my appointment",
  "received_at": "2026-10-29T10:42:11Z"
}

Verification, KYC and regulation

This is where virtual numbers most often get delayed. Many regulators require the number owner to prove who they are, and sometimes to show a local address, before the number is activated. Examples include a trade licence, a utility bill or a government ID. Requirements differ by country and number type, and can change. Ask your provider for a list before you order, because document review is usually the longest step, measured in days rather than minutes.

Virtual number vs SIM number vs call forwarding

The limits are worth stating plainly. A virtual number depends on an internet connection at your end, so a power cut or a failed link stops the calls unless you set a failover destination. Emergency calling is handled differently from a normal phone, and in some countries a virtual number cannot be used for it. And not every number type can send or receive SMS, so check before you build a text-based flow on it.

How much does a virtual number cost?

See current rates on the pricing page and model your mix in the cost calculator.

How to choose and set up a virtual number

1. Decide who calls and from where. Mostly local customers in one city points to a local number. A national customer base points to a national or toll-free number.
2. Check number availability and rules. Confirm the documents needed, and whether SMS or voice is supported for that type.
3. Order and verify. Submit documents early; do not wait for the number to arrive before preparing them.
4. Route the number. Point it to a SIP trunk, app, queue or IVR. See our guide on IVR if you want a menu.
5. Test from several networks. Call from mobile, landline and an overseas number, and send a test text.
6. Monitor. Watch answer rates, missed calls and call length in the analytics.

Setting up caller ID properly matters for outbound calls. Present a number you own, in international format, and read the caller ID guide so your calls are not flagged as spam.

Moving from another provider

If you use virtual numbers elsewhere today, ask whether they can be ported rather than reissued. Porting keeps the number your customers already know. Our migration guides for Exotel and Plivo describe what to collect and how to run both providers in parallel until the port completes.

Customers dial a number. They do not care where the phone is. Virtual numbers make that true for the business too.