VOIP vs. Landline Phone Service | Beginner’s Guide

Are you looking for new phone service for your business or local office? You’ve only two options to choose; VOIP (Voice Over Internet Protocol) and Landline Phone Service.  Before anyone thinks about just using their cell number, see my last post on 4 Reasons Your Cell Phone Should Not Be Your Business Line. 

You must be confused about which way to go, whether you should go for VOIP or Landline. There are a lot of people that are going to refer you VOIP and many who still believe in landline phone service. But what’s right for your business? 

VOIP could be possibly the best option that businesses and local offices have right now. Why? According to Forbes, 71% of the leads are wasted due to extended/delayed response time. 

A Google Study also revealed that 70% of mobile users click the call feature from their smartphones when they search for business around them. 

With these stats, it’s clear that you should have a business-class phone system, and it must be among your top priorities if you value communication. 

Everything you need to know about VOIP vs Landline Phone Service

Here’s what you’re going to learn about VOIP vs Landline Phone Service:

• What is VOIP?

• What is Landline?

• Pros and Cons

• Price Comparison

• Final Thoughts

What is VOIP? 

VOIP stands for Voice Over Internet Protocol, and it is also known as Internet calling, IP telephony, voiceover network, and internet telephony. You can give it the name of your choice as well; VOIP uses an internet connection to make a call. 

There are a lot of benefits that VOIP is providing businesses such as removal of reliance on outdated physical lines, easy setup, less-costly, amazing mobility, and a lot more.

IP technology isn’t new; the first transmission related to IP technology was sent back in 1971. As everything changed and evolved swiftly, VOIP has become the top trend and globally available. The Wall Street Journal reported that 25% of the House Holds are using VOIP rather than traditional landlines. Today, businesses all over the world are using VOIP, and the trends show VOIP continuing to increase at an aggressive pace.

A question that must be hitting your mind that “How VOIP is different from a landline,” here’s a list of the entire significant differences that VOIP and Landline Phone services have. 

CONSIDERATIONS	VOIP	LANDLINE
Setup Cost	Low	High
Running Cost	Low	High
Multimedia	Transmit Voice, Video or whatever you do by using the internet.	No support of multimedia, only voice.
Scalability	Easy and inexpensive to scale up when your business grows.	Additional Phone Sets and Wiring needs to be installed in order to scale up.
Add-Ons	A lot of features are available at no additional cost. Such as, call waiting, forwarding, call parking etc.	Limited Basic Add-on Features
Outages	The Internet needs to be strong during the call. But calls can be forwarded to another device during a power outage.	Usable during a power outage.
International Calling	You can call free VOIP to International phone number with some providers.	No Free Calls. You’ve to pay for every call.

What is Landline? 

A landline phone is a traditional service that has been used to make calls for ages. It utilizes copper wires from tried and tested companies but uses an aged infrastructure that has changed little in years. 

Landlines depend on you having phone system hardware installed at your location (sometimes referred to as a PBX). Landline service is more expensive than VOIP because you pay for every long-distance or international call you make with landline service. Landline service providers must install copper wire lines in your business or home that connect your location to the telephone service provider’s equipment located throughout town. 

In the 21st century, if we talk about VOIP vs. Landline Phone Service, then you’ll have a clear choice in going for VOIP because of the features, cost, reliability, easy installation, and a lot more. You’ve to move forward with the technology because if you don’t, it will hurt your bottom line. 

Features of VOIP

When we talk about the features, you just can’t compare the landlines with VOIP. If your business prefers more control over your call experience, then VOIP is the clear leader. 

With VOIP service, you can make a call through your mobile phone, computer, and desk phone to handle your clients. All you need to have is a stable internet connection. 

Here are some of the top-notch features that VOIP is offering to you when you install it:

• Portability and Mobility. You don’t have to be in your office all the time to receive the calls and can genuinely have an office on the go

• Use of auto-attendants to direct calls both inside and outside the office

• You can show your office number for any business call

• Recording of the call

• Voicemail to email messaging

• Voicemail to text messages

• Call Analytics

• Anonymous call rejection system 

• SoftPhone Capabilities. Turn any device into your VOIP phones such as mobile, tablet, PC, or anything.

• Scalability: Adding lines doesn’t require copper wires or any other expensive physical changes. 

Features of Landline

Landline is a phone service that is connected to copper wires. These wires run underground and connect to every phone around the world through a network, and this network is known as PSTN or POTS. 

This communication method has been around since the 1800s and considered the oldest way of connecting your voice with others. The most prominent and outstanding feature of landline phone service is its stability. It works well as long as your phone system hardware is updated, and you are physically at your desk.

Once you’re in the office, you will never face a problem regarding the phone calls. You can sit back, relax, and answer the calls without any problem. A power outage doesn’t affect the landline, but if your PBX loses power, you have no service.  Did you invest in the proper battery backup unit, purchase the cheapest one, or have nothing at all? 

Let’s talk about the key features that Landline has to offer to those who have it installed: 

• It’s secure and stable

• It has 100% uptime as long as you have power

• Minimal Maintenance. Once the landline service is installed, you don’t have to repair it or do anything else for years

• Call forwarding, voicemail, call conferencing and a lot of other features are available for additional expenses

So, what do you think about VOIP vs. Landline Phone Service? Honestly, when it comes to features and technology, there’s no comparison between VOIP and Landline. VOIP is a clear winner, and comparing VOIP with a landline is like you’re comparing gold with steel. 

Pros and Cons of VOIP

Let’s take a look at the pros and cons of VOIP before you make a deal with the company that is offering the VOIP services. It’s the backbone of your business and you can’t compromise on it. Here’s what more you need to know about VOIP. 

PROS	CONS
Inexpensive	Requires stable Internet connection
Flexible for growth	Down during power outage without battery backup
Feature-rich	Requires assisted setup (vs paying a phone tech)
Can be used on Internet devices like cell, laptop, tablet
Integrates with CRM and software systems easily
Voicemail to email or text

Pros and Cons of Landline

Most people must be aware of the Pros and Cons of Landline, but we should discuss everything in detail so you can make an informed decision. So, here’s everything you need to know about landline. 

PROS	CONS
Tried and tested technology	Expensive to install
Not affected by a power outage	Expensive to upgrade
Phone company has a local technician	Technology is outdated
Good audio quality	Low security as lines can be tapped
	Phone companies add bunches of junk fees

Who’s the clear winner here? VOIP is the winner because it is using the latest technology, and you hardly see any power outage and unstable connection in today’s world. So why are you wasting your money on a landline when you have VOIP as an option? 

Where should we use VOIP and Landline Phone Service

When comparing VOIP vs. Landline Phone Service, you have to keep the following things in your mind: 

	VOIP	LANDLINE
SOHO business (at home - single line)	YES
SOHO business (mobile)	YES
Start-up looking to grow	YES
Retail location	YES
Insurance agents	YES
Car dealerships	YES
Fax reliant businesses		YES
Hotels	YES
Call Centers	YES
Large businesses (100+)	YES	YES

So, what do you think? Would you go for the landline phone service or VOIP? 

Price Comparison

One of the common factors that we look for when installing any phone service in our home/office is Price Comparison. VOIP is usually 40-80% less expensive than the landlines with an immense number of features. 

If you’ve multiple landlines in your office, then please have a look at your telephone bill, it’s not cheap, right? It’s probably hurting you with hundreds of dollars in services charges, infrastructure fees, made up line items, and taxes. But that’s not the case with VOIP, because it’s an inexpensive proposition- especially for startups, smaller and medium sizes of the businesses. 

For instance, have a look at the price comparison of VOIP vs. Landline Phone Service.

• System for 12 users would cost you around $300 per month when using VOIP

• System for 12 users would cost you about $700 per month when using Landline phone service (you also have the upfront expense of the phone system)

What is your budget?

Final Thoughts

VOIP is inexpensive to get set up and a very flexible way of growing your business while ensure that you’re responding to every single customer coming your way. You will enjoy tons of features using VOIP, as thousands of companies have already switched from Landline to VOIP. How quick is Voice Over IP growing?

ARE YOU READY TO EMBRACE VOIP? Fill in the form below to get a FREE phone consultation with one of our experts.