Which Is Right and Better for Your Business?

The rise in the use of Voice over Internet Protocol (VoIP) technology has marked a new trend in business communications.

While traditional landline phone systems have served businesses faithfully for decades, VoIP phone systems are gaining traction as a more versatile and cost-effective alternative.

This article looks at the key differences between VoIP and landlines and helps you understand which technology best suits your needs.

What Is a Landline Phone System?

Traditional landlines are a type of analog phone system installed by the local phone company. It’s also known as Plain Old Telephone Service (POTS).

Analog phones function in the same way they did more than a century ago. Sound is transmitted using electrical pulses on a wire. These wires connect to the phone service provider.

A company would configure an on-premises Private Branch Exchange (PBX) with one or more telephone lines. A PBX creates an internal phone network, placing employees onto a shared telephone system.

Dubbed “copper wire,” voice service can only travel wherever you trenched and laid wires. Traditional phone service is subject to bad weather, installation, and expensive long-distance charges.

What Is VoIP?

A Voice over Internet Protocol (VoI)P phone system is also known as a digital phone service or hosted phone service. It works by converting sound into data packets and transmits them to a VoIP provider. 

VoIP service providers then direct calls between the Public Switched Telephone Network (PSTN).

This happens in milliseconds thanks to blazing-fast cable or fiber broadband internet connections. VoIP lets small businesses get all the best telecommunication features for a fraction of the cost.

In terms of features, landlines are no match against VoIP. VoIP telephones are your best bet if you prefer having more control over your calling experience.

With VoIP, companies can place and receive calls without any extra hardware. All they need is a computer, laptop, or cell phone to use their business phone system.

Voice over Internet Protocol uses your existing internet connection for phone calls. It also includes many advanced calling features built into the service.

Keep in mind that employees are most comfortable with a desk phone. IP phones turn sound into digital signals and maintain connectivity with a VoIP provider.

VoIP vs. Landline: Key Differences

Costs

The biggest advantage of VoIP services is the lower costs compared to traditional landlines. VoIP hardware itself is quite affordable — often all that is required is a VoIP phone device and a router.

Monthly subscription fees for VoIP are typically lower and long-distance and international calls are often included or significantly cheaper. In addition, VoIP providers sometimes offer free softphone apps that can be used on smartphones, so no additional hardware is required.

On the other hand, landlines often come with high installation fees, long-distance charges, and potentially higher monthly bills.

Landline phone systems can easily cost several hundred dollars per user every year. They aren’t wise in the era of remote work and abundant broadband internet access.

A virtual phone service like Nextiva absorbs these costs into a straightforward monthly rate per user, starting at $18.95.

Features

VoIP services offer a range of convenient calling features comparable to landline services. The call quality is crystal clear, provided you have a fast and stable internet connection.

• Auto attendants direct callers to the right person or department with an intuitive phone menu.
• Call queuing lets multiple customers wait on hold until your team takes their call.
• Call recording stores phone calls in the cloud so you can listen to them.
• Call forwarding routes calls to another number, team, or answering service when you’re unavailable.

These advanced calling features let you handle more customers and enhance your team’s productivity.

Mobility is also a big advantage, as VoIP devices can be used anywhere there is internet access, not just on a wall socket.

Scalability

VoIP systems are highly scalable, allowing businesses to add users and features as their requirements evolve easily.

Landlines, on the other hand, offer limited features and require costly upgrades for expansion. But they remain more reliable during internet outages and bad weather when the power goes out.

Implementation

Getting started with VoIP only requires purchasing a VoIP device and downloading an app, or purchasing a VoIP desktop phone. Installation is quick and does not require wiring or a technician.

Number porting time also tends to be faster than landline providers — usually only taking 1-2 business days.

However, landlines will generally work anywhere there is existing phone infrastructure, whereas VoIP requires a strong Wi-Fi network to function optimally.

Security & privacy

VoIP data is transmitted across the internet, making it vulnerable to potential interception. However, reputable VoIP providers employ encryption methods to safeguard user information.

Landlines, on the other hand, benefit from a closed network, inherently offering a higher level of security.

For additional protection, VoIP calls can be encrypted like other internet traffic. It’s also important to note that VoIP services will not work without power, while landlines may continue to work during power outages. Both offer reliable E911 access.

But VoIP technology continues to improve, so the differences are becoming smaller and smaller. Considering your specific business needs and usage allows you to choose the best phone service.

Advantages of Using Landline

Analog phone systems aren’t always the wrong choice. In some cases, they can be the best option for business communications.

1) Availability

Landline telephones have time on their side. Millions of miles of copper wires have been installed over the last 140 years.

Telephone companies built the telecommunications infrastructure for reach, not necessarily speed. For strictly voice calls, it works.

2) No bandwidth requirements

The 5% who don’t have access to broadband impacts more people than you might realize: 16 million people. For a small office, digital phone service requires 100 Kbps per line, which could be more bandwidth than available.

3) Analog equipment

Some offices have devices that need landlines, such as alarms. These depend on a wired phone line to transmit information. An Analog Telephone Adapter (ATA) solves this in many circumstances.

Some equipment exchanges data on the line (akin to days of dial-up), and VoIP codecs can interfere.

If you don’t have broadband or must keep specific legacy equipment, analog-based landline service is better for you.

If you have a high-speed internet connection, a virtual phone system is best.

Advantages of Using VoIP

1) Superior reliability

Voice over Internet Protocol relies on trusted and proven internet technologies with proven reliability.

Data packets reach their destinations reliably. Nextiva’s business communications network uses several redundant data centers across North America for enterprise-grade reliability.

VoIP lets you handle calls without busy signals or static on the line. You can adjust your call flows instantly.

Even if you experience an internet or power outage, you can direct calls to your cell phones. You got this.

2) Greater flexibility

VoIP technology lets you work from home without clients or coworkers noticing a difference. You might even boost productivity without the commute or interruptions.

Your work number is secure and private and goes wherever you go — even on your mobile phone.

If you have a computer or mobile device, you can stay connected to the office.

Need to take a vacation?

You can direct calls to your team or direct them right to your voicemail and screen them via your email. VoIP provides your team with all the top calling features without any extra hardware. It just works.

3) Better sound quality

Tired of dealing with low-quality phone calls? Customers are. They’re tired of repeating themselves. If there’s static on the line, you can’t do much to improve it other than replace wiring.

HD voice increases the audio quality of your phone calls. Cloud phone systems leverage wideband audio codecs to improve the sound quality in every VoIP call.

Compared to landlines, you’ll sound much better and hear every word with higher fidelity.

4) Fast installation

Unlike analog phone systems, set up and deploy a VoIP phone system in less than an hour. In a matter of minutes, most people can begin using their new VoIP service by downloading an app.

Most businesses can migrate their phone service from landline to digital in less than three weeks.

It always helps to have a plan.

Which Business Phone System Is Best?

A business counts on its phone system to keep employees connected and to serve customers. Most workplaces now have an operational need to enable staff to work from home.

Landline phone service can’t match business VoIP’s flexibility, features, and ease of use. If your existing phone system works and you have no plans to change how you use it, it might be acceptable to keep it.

VoIP phone service is a top choice among enterprises and small businesses. It provides organizations with the most scalable and secure ways to communicate. With today’s reliable internet service providers, uptime is never an issue. Plus, it can cut costs by more than half. 

As an industry, Unified Communications market growth surged by 25% CAGR in 2022, while landlines declined by 10%.

Reviewers at U.S. News & World Report named Nextiva the best business phone system out of 20 providers. No other solution could top its value, advanced features, and friendly customer support.

See what your phone system is missing. Speak to a Nextiva expert.