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With the growing popularity of VoIP, many small businesses are considering switching to a landline phone system. The question is which option is better for your business?
Which choice should you choose for your small company phone system: a traditional landline or a voice-over-internet-protocol (VoIP) service? The VoIP versus landline argument seems to have a clear winner since VoIP provides more sophisticated call management capabilities. However, in certain situations, a corporate landline system may be preferable. Based on price, functionality, and your particular use case, choose which choice is ideal for your company.
- Landline: For businesses with on-site workers in remote areas with poor internet connections or frequent power outages, landlines are preferable.
- VoIP: Better option for companies with mobile teams that need sophisticated capabilities to communicate with workers and customers.
Differences Between VoIP and Landlines in a Nutshell
VoIP is the cheapest option.
The cost of using an Internet-based phone system is nearly always cheaper than the cost of using a traditional landline. VoIP companies provide a variety of plan choices that may be customized for small or big organizations. RingCentral, for example, charges a monthly per-user cost that ranges from $19.99 to $49.99. Each user is a phone line with a unique phone number.
Grasshopper, on the other hand, offers multi-extension options beginning at $29 per month. You receive five phone numbers for one monthly cost, which you may use to connect an infinite number of workers.
Most carriers provide unlimited domestic calling to Canada, Mexico, and Puerto Rico, and you may choose services with free worldwide calling plans. Furthermore, there are no VoIP setup costs, and setting up a VoIP system is simple.
Users of a landline phone system pay a monthly charge per phone line, which is usually between $50 and $75 for basic services. Incoming callers will hear a busy signal or be automatically sent to voicemail until you buy two or more lines, in which case they will hear a busy signal or be automatically transferred to voicemail.
If you want a four-line service using a private branch exchange (PBX) system, it may be costly. Toll-free numbers are more expensive, and calling outside of your local region may incur per-minute charges. Furthermore, landline companies may demand installation costs for cabling inside your business, and setting up a landline phone system may be difficult.
Winner:
VoIP systems are not only less expensive in general, but you may be able to save money by utilizing them for project collaboration, video meetings, and conferences.
VoIP has the best call-handling features.
The call-handling characteristics of VoIP make it stand out. Small business VoIP services, unlike traditional landlines, provide excellent call handling and voicemail capabilities. The majority of calling plans include an automated attendant. It allows you to guide callers to the correct person or department, as well as build up a call-by-name directory.
Skills-based or time-based routing are two advanced VoIP alternatives. You may enhance callers’ experiences by using on-hold music or recorded announcements once they’re on the line. Call queues or ring groups may be included in VoIP packages.
Landlines, on the other hand, have restricted call handling capabilities. You may use functions comparable to an auto-attendant if you choose a more expensive PBX system. Voicemail, call holding, call forwarding, call waiting, and call transfer are the typical analog services. For a charge, some carriers also provide on-hold music.
Winner:
VoIP is the obvious winner when it comes to call handling features, since even the most basic subscriptions include an auto-attendant for smooth call handling and routing.
Landline is Suitable for Call Quality
Despite the fact that VoIP services have gone a long way and are very dependable, they still rely on your internet connection. Landlines, on the other hand, utilize subterranean copper cables that do not need internet access or power to function. A landline may offer better call quality for businesses without access to high-speed internet or in areas where power outages are common.
Small company VoIP systems need internet access and will not function in the event of a power outage. It transforms audio data into a digital signal that may be sent over the internet. You may, however, divert calls to mobile phones or other places if your power goes out. Taking an online speed test is the best method to see whether a VoIP system will function with your internet connection.
Landline systems outperform VoIP in terms of call quality since they don’t need a high-speed internet connection.
VoIP is the best option for mobility
VoIP is just unbeatable for a virtual workforce. Your workers may use whatever device they choose, from softphones to smartphones, and call flip allows them to switch devices in the middle of a conversation. Your employees can work from anywhere, even (in certain instances) across the world. Admins utilize a single dashboard to establish call forwarding policies and deliver calls to any workers who have an internet-connected device.
It is smooth when calls are moved to an employee. Customers will not be aware if your employees are absent from the workplace. Callers may also text their customers, read their voicemails through email, or video chat with them.
Landlines, unlike VoIP phones, can only be used with analog desk phones. Call forwarding to mobile phones is available from certain carriers, but you won’t have the advantage of a virtual receptionist to help with the transition. Call forwarding may be difficult to set up without a central control panel, and you can’t forward calls to non-cellular devices.
Winner:
VoIP allows you to route calls to any device with an internet connection. Furthermore, some VoIP companies provide call forwarding to international destinations.
VoIP is better for advanced features.
Advanced features in VoIP systems serve business requirements and guarantee that customers and workers have a positive experience. Many plans offer one-to-one video calling as well as video meetings for groups of up to a hundred or more individuals. You may also record calls and meetings. Other possibilities include adding subtitles and transcriptions to your meetings or allowing your staff to communicate throughout them.
Although landline systems do not provide video calling, some solutions include phone bridges that allow you to conduct bigger audio-only meetings. However, for the most part, additional capabilities will need you to utilize different platforms, while VoIP provides everything in one place.
Winner:
VoIP plans provide a slew of sophisticated capabilities that aren’t available with landline services.
VoIP is the best option for collaboration.
A unified communications platform allows the finest corporate phone systems to also serve as a team project management tool. During a conversation, users may share screens and use whiteboard capabilities to guide clients through a project. Users of cloud storage may store data and documents in a centralized place.
Internal and external teams or customers may collaborate in real-time using VoIP services. Additionally, some services, such as RingCentral, provide task management and a searchable archive.
Calls are handled using standard corporate phone networks. Documents and screens cannot be shared. During calls, other users share phone lines or dial extensions to communicate with other team members. Its primary function, however, is inbound and outbound dialing.
Winner:
VoIP is your best choice if you wish to utilize your phone system to share documents or displays, communicate during meetings, or interact with customers.
Alternatives to Landlines and VoIP
Although most businesses benefit from a VoIP system, those that do not have access to high-speed internet may choose to use a landline. Small companies, solopreneurs, and freelancers, on the other hand, may choose other options to meet their specific requirements. There are two options:
- Virtual phone systems: A virtual phone number gives a company a phone number while routing calls to an existing mobile phone. It’s a better choice for businesses seeking a cost-effective method to segregate personal and business conversations. To help you narrow down your options, have a look at our list of the best virtual phone number providers.
- Business mobile phones: A business cell phone may assist sales teams or workers with poor internet connections to remain connected from home or on the road.
Most Commonly Asked Questions (FAQs)
Is VoIP a better option than a traditional phone line?
VoIP is a superior choice for most companies. It’s cost-effective and has features that keep your customers and workers in contact. You may also use any internet-connected device to make and receive calls using a VoIP system.
What distinguishes VoIP from a traditional phone line?
Voice-over-internet-protocol (VoIP) is a voice-over-internet protocol that transmits voice data via cable, fiber, or digital subscriber lines (DSL). It necessitates the use of the internet as well as the use of electricity. Copper wires, on the other hand, are used in analog telephone systems.
Is it possible to utilize a VoIP phone like a normal phone?
Yes, VoIP phones may be used to make both analog and internet-based calls. You may use your existing phones for both service types as long as they can be connected to your phone port.
Conclusion
The use of VoIP technology has become commonplace. Many well-known analog providers, such as Verizon and AT&T, are actively investing in VoIP solutions, and there are hundreds of smaller internet-based phone companies. Despite the fact that some businesses prefer a landline owing to their geographical location or weather conditions, the majority of businesses benefit from a VoIP phone system.
Business owners enjoy the freedom VoIP solutions provide with feature-rich subscriptions and limitless calling. Furthermore, unified communication systems enable businesses to do much more than just make and receive phone calls.
