With the rise of remote working and businesses increasingly moving online, the need for landlines has reduced dramatically. Phones have been a driving force in business communication for decades, and it's a no-brainer that businesses require phones. The business world has embraced the flexibility and features that VoIP provides. While traditional landline phones have served businesses well, VoIP can simply provide far more flexibility - not to mention far more useful calling features at significantly lower cost. With the 2025 PSTN switch-off approaching and business concerns growing, business owners are beginning to wonder: VoIP vs Landline: Which phone system is better for my business?
The primary distinction between VoIP and landline is that VoIP uses the internet to transmit voice data, whereas landlines use traditional phone lines. VoIP allows for greater location flexibility and often has lower costs, whereas landlines have higher reliability and call quality. The disadvantage of landlines is that they can be quite costly. Landline phone systems necessitate both phone service and line rental. The initial setup is also quite costly. Landline phones are also limited in terms of mobility and flexibility, as users can only make and receive calls in a fixed location where the phone line is installed.
What is VoIP and How Does it Work?
VoIP, or Voice over IP, is a phone system that allows users to make phone calls over the internet. It works by converting your voice into a digital signal, allowing users to make calls using a VoIP phone or any internet-connected device. Making all calls over the Internet makes it extremely cost-effective, while still maintaining the quality of your communication systems.
How VoIP Works:
- Your phone is connected to your router or switch.
- You make or receive a call from your VoIP phone system.
- Your VoIP app converts your voice into a digital signal, which is sent over the internet.
- The call reaches the VoIP service provider which exchanges data packets from your IP phone.
A VoIP phone system works similarly to many phone calling apps such as Teams, Facetime and WhatsApp, that allow you to make phone calls over the Internet.
The History of VoIP:
1995: VoIP phones were developed around 1995 by a company called VocalTec. It was originally developed as a way to reduce costs on international calls.
1996: In 1996, Internet voicemail applications came to life. Users could send voicemails over the Internet to the destination phone.
1997-1999: VoIP integration with PBX systems to allow businesses and private organisations to manage internal and external phone calls.
Early 2000s: In the early 2000s, major tech companies such as Cisco, Microsoft, and IBM began to invest in VoIP technology, leading to its widespread adoption in the business world.
2017: Microsoft released Teams to Office 365 users on March 14, 2017.
2023: VoIP is now the most used phone system worldwide.
What are Landline Phones and How Does it Work?
Before the emergence of mobile phones and internet-based communication, landline phones were the main way to communicate. These phones use physical cables that are connected to a telephone network. Though considered outdated today, many households and businesses still use landline phones for their reliability and clear call quality.
A key component of a landline phone is the handset. The handset connects to the phone's base, which includes the keypad. When you make a call, the phone sends electrical signals through the telephone network and converts them back into sound waves at the receiving end. This process is called analog communication, unlike the digital communication of mobile and internet-based calling.
Landline phones are also reliable during power outages or emergencies. Unlike VoIP phones that rely on an internet connection, landlines connect directly to the telephone network through cables. Therefore, even during power outages, landline phones can still make emergency calls. This reliability is why many people keep a landline phone alongside their mobile phone.
How Landline Works:
A landline transmits voice signals over copper wire or fibre optic cables that connect to a telephone network. When a person speaks into a landline phone, the sound waves are converted into electrical signals that travel over the wires to a local exchange, which then routes the call to the intended destination. The local exchange also provides power to the phone via the telephone line. Some landline networks now use digital technology known as Integrated Services Digital Network (ISDN), which allows for faster data transmission and multiple phone lines on a single connection.
Pros and Cons of VoIP and Landline Phones
Benefits of VoIP:
1. Cost Savings: VoIP is a low-cost way to improve your IT infrastructure while optimising your internet connection. It allows you to save money by establishing end-to-end communications using your existing internet connection, as opposed to traditional business phones, which require dedicated desk phones and copper wiring.
2. Work from anywhere: Businesses can use VoIP to extend their communication system to allow for remote working. Employees can now work from the comfort of their own homes while still remaining productive. Our plug-and-play phone systems make setting up your workspace easier than ever. Because of the flexibility provided by VoIP, users can work from anywhere with an internet connection.
3. Easy installation and setup: All you need is an internet connection, the phone system, and the VoIP software to get started. Most VoIP phones are also plug-and-play, allowing you to set them up in seconds. The softphone app can also help you make phone calls while you're on the go.
4. Scalable Solutions: Because of the flexibility of having unlimited extensions, VoIP expands your business. This means that no matter how big your company grows, you won't have to switch to a different solution.
5. Improved communication: Communication is crucial in determining your team's productivity and how well they collaborate. The simplicity of VoIP systems can help you better manage your employees' communications with coworkers and valued customers.
6. Feature-rich: Call waiting, call recording, call forwarding, voicemail, and caller ID are all common features of VoIP services. It also provides you with a comprehensive view of all calls across your entire organisation. These features can help you build stronger relationships with your customers while also gathering data to help your business grow.
7. Seamless Integration: VoIP can easily integrate with other digital tools such as popular CRMs and Microsoft Office 365 giving you the ability to call contacts from your CRM, and receive all customer records when an inbound call occurs.
8. Improved Sound Quality: With advancements in technology, VoIP systems can now offer high-quality voice calls with minimal latency, noise or interruptions.
Downsides to VoIP:
While there are numerous advantages to using Voice over Internet Protocol, there are some drawbacks to consider. VoIP relies heavily on a stable internet connection. If the internet connection is poor or interrupted, you may experience reduced call quality or dropped calls.
VoIP phones are also vulnerable to power cuts. Unlike traditional landline phones, which can function even when the power goes out, VoIP requires power to function. In the event of a power cut, you will be unable to make phone calls, which can be inconvenient for your business.
Benefits of Landline Phones:
1. Call Quality: One major benefit of landline phones is the excellent call quality. Landline phones use a dedicated high-quality audio signal that avoids the interference common with VoIP phone systems. This makes them ideal for business calls where clear communication is crucial.
2. Security: Landline phones are also more secure. They are less prone to hacking and wiretapping than VoIP phones, which can be targeted by cyber attacks. Additionally, landline calls are easier to trace in emergencies, adding security for personal and business use.
3. Reliability: Landline phones are highly reliable. Unlike VoIP, which depends on an internet connection, landline phones connect directly through physical wires. This makes them prone to issues such as network congestion or weather.
Drawbacks of Landline:
1. Limited mobility: One of the biggest drawbacks of landline phones is their lack of mobility. Landline phones are stationary and cannot be easily carried around. This is a major downside to employees who are constantly on the go and need to stay connected.
2. Dependence on physical infrastructure: Landline phones also rely heavily on physical hardware such as telephone lines and cables. This makes them susceptible to disruptions such as damage to the lines. In cases where there is a widespread infrastructure failure, landline phones may become completely unusable.
3. Monthly service fees: ALandline phones come with monthly service fees. In addition to the cost of the phone, individuals must pay for phone service, which can add up over time.
VoIP vs Landline: The Key Differences
Cost:
One of the key differences between VoIP and landline is the cost. VoIP phone systems are typically cheaper for both local and international calls. This makes it more cost-effective for both individuals and businesses. Landline, on the other hand, can be more expensive, especially for long-distance calls.
Flexibility:
VoIP offers much more flexibility than landline. With VoIP, you can make and receive calls from anywhere as long as you have an internet connection. This allows for greater mobility and convenience. Landline, on the other hand, is limited to a specific location and requires physical wiring.
Features:
When it comes to features, you can do more with your VoIP phones in comparison to landlines. Some features you may find include forwarding, voicemail-to-email transcription, and video conferencing. These features can be very useful for businesses looking to increase efficiency and productivity. Landline, while reliable, lacks many of these modern features.
Reliability:
Landline is known for its reliability. However, VoIP is not trailing too far behind and has come a long way in recent years. With advancements in technology and internet connectivity, VoIP services are now considered as reliable as traditional landline services. However, it is important to have a stable internet connection to ensure quality VoIP calls.
Switching from Landline Phones to VoIP
PSTN Switch off:
Openreach intends to phase out all PSTN and ISDN services by 2025, marking the most significant change in the telecoms industry in over 30 years. This is because ISDN phone lines are outdated and expensive. They intend to phase out ISDN and PSTN services in 2023 and complete the transition by 2025. Businesses must begin looking for a more advanced VoIP solution before the switch is actually turned off.
Process of Transitioning to VoIP:
Making the switch from a traditional landline phone system to VoIP can be a daunting process for many businesses. Here are a few steps you can take to make the transition as smooth as possible.
The first step is to assess your current communication infrastructure and determine the compatibility of your network with VoIP technology. This may involve upgrading your internet connection and network hardware.
Next, you will need to choose a VoIP service provider that meets your business needs. Consider factors such as customer support and their track record when choosing a provider. It's also important to train your employees on how to use the new business phone system effectively. This will help maximise the benefits of the transition.
Finally, once the new VoIP system is in place, monitor its performance and gather feedback from employees to make any necessary adjustments.
Why choose us?
At Edmondson’s IT Services, we combine our in-depth industry knowledge with a passion for technology to bring you the best possible solutions. With over 10 years of experience, and helping customers nationwide, there isn't much we haven't seen or done. We’ve helped hundreds of small to medium-sized businesses, nationwide, to evolve their IT infrastructure. Our team is dedicated to growing your business through the power of IT. We listen to your needs and requirements to offer you a solution that works for you.
For business owners, VoIP can oftentimes be confusing and the process of switching or migrating from an old system or previous IT provider can be daunting. This is why we’ve completely simplified the process to ensure you can focus on the things that matter. Our phones are plug-and-play, so you can connect with customers from anywhere. This enhances your relationship with them. Our VoIP solution is future-proof, ensuring long-term scalability. You can continue using the same software as your business grows.
3CX for your business:
3cx is a feature-rich and fully managed VoIP phone system that offers an incredibly powerful and customisable software-based PBX for any size business. These cutting-edge VoIP phones are jam-packed with advanced features that will benefit your business whether you are working on-site or away from the office. Especially with the 2025 PSTN switch-off coming closer, 3CX phones are an excellent replacement for outdated traditional telephone systems.
