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Choosing between VoIP vs landline for business can be a challenging decision. Which option is the most cost-effective, reliable, and feature-rich?
VoIP uses your Internet connection to provide communication services and typically goes beyond voice services, unlocking integrations, rich messages, and video conferencing. On the other hand, landlines use a dedicated network with physical phones to provide voice services.
There isn’t a one-size-fits-all answer to which technologies are right for your business. So, we’ll be breaking down each technology’s features, differences, and how to decide on the right option so you can make a confident decision.
Landlines provide voice services over dedicated networks of copper wires. Voice over Internet Protocol (VoIP) provides voice services over an Internet connection via data packets.
Due to its Internet-based nature, VoIP enables advanced features like video calling, rich messaging, and seamless integration. Conversely, landlines can only provide voice services.
Let’s further break down the differences between these two options for voice services.
| VoIP | Landline | |
| Call Quality | High-quality and comparable | High-quality and comparable |
| Cost | $20-$70 /user/month, long distance included | $20-$70 /user/month, additional cost for long distance |
| Scalability | Highly scalable | Pricing plans can make growth phases more expensive |
| Reliability | Reliability based primarily on Internet service | Reliability is based on service provider infrastructure, not the Internet |
| Video Calls | Yes | No |
| Rich Messaging | Yes | No |
VoIP technology works by sending data packets over the Internet, similar to any other web traffic, and does not require a dedicated connection.
The widespread prevalence of high-speed internet, advanced networking hardware, and software development have made VoIP a valuable landline alternative.
Businesses and individuals can use VoIP as a reliable replacement for landlines. Advanced features like video conferencing and software integrations are also enabled with VoIP, adding more value than landlines.
So, let’s dive into the pros and cons of VoIP to help you decide if it’s the right choice for you.
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VoIP services build on voice communications by offering the features you expect alongside advanced features and entirely new capabilities compared to landlines. Some of the most common VoIP features for businesses include the following:
Ultimately, the exact features you receive depend on your VoIP service provider. The above core features are available on most plans, but some may require more than the base-level plan.
What makes a VoIP platform worth using? There are plenty of positives that have already won over other business owners, including:
VoIP isn’t perfect; like any technology, it has downsides and drawbacks to be aware of before you sign up. Some possible downsides include:
Is VoIP cheaper than a landline? Generally speaking, VoIP costs less than landlines, offers better scalability, and minimizes required software and hardware for getting up and running.
VoIP solutions usually have a per-user per-month pricing structure, ranging from $10 to $30. Users will have unlimited internal and domestic calls, while international calls may have a specific number of minutes or be unlimited to select jurisdictions.
Annual plans can create significant savings, too, ranging from 10-30% off. You may want to start on a monthly plan and then migrate to annual billing once you are satisfied with the service.
However, your specific costs will vary based on your chosen VoIP provider. If you choose a plan that offers more capabilities than you need and use, you may spend more.
Getting started with VoIP is often a low-cost, streamlined process compared to landlines. The following steps will help you get up and running:
Landlines are the original method of voice communication and depend on dedicated networks of simple copper wires to carry voices. While landlines have certainly changed over the years, the foundational way they work remains the same.
Now, businesses often still use landlines exclusively or in tandem with VoIP services. However, organizations that need modern capabilities, like video conferencing and rich messaging, often end up relying on Internet-based options on top of their landline service.
Landlines established what we expect from voice calls. Now, the following time-tested features should be available from any provider.
Some providers also offer purpose-built capabilities for businesses, such as IVRs and hold music. Investigate any potential provider thoroughly to make sure these capabilities are offered before you sign up, as they aren’t standard.
While your organization will likely still need another provider for other capabilities, like messaging and video calls, landlines can handle your voice communications.
What makes landlines a viable option in the modern business world? The following pros make landlines well worth considering:
Landlines aren’t a perfect option and have noteworthy downsides to consider as you make your decision, including:
While landline plans for residential use can be affordable, business lines can cost between $20 to $70 per user per month. This rate will include the features we discussed above and unlimited local calls.
A big difference between VoIP and landlines is when it comes to long-distance calls. VoIP plans will usually only charge for international calls, with calls to the closest state being treated as domestic.
Long-distance calls can cost $0.6 to $0.12 per minute, dramatically increasing usage costs for most businesses other than those that only operate locally. Other features businesses may need will likely incur additional charges, such as IVRs and call queues.
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Since the early days, VoIP has been considered to be of worse quality and less reliable than landlines. Fortunately, both of these concerns have been resolved as technology and underlying infrastructure have improved.
Now, when it comes to VoIP vs landline sound quality, both options offer equivalent quality. However, there are still a few factors that can affect VoIP call quality and reliability to be aware of, which are:
VoIP and landlines vary by cost, plans, and added costs. The primary similarity is that both options also share a per-user per-month structure, but landline phones typically start at higher rates.
Landlines will only provide voice services with basic calling features. Any advanced features that you may need, such as IVRs and call queues, will incur additional costs.
Additionally, landlines will usually have a per-minute charge for long-distance calls to other area codes in addition to international calls. VoIP has no added charge for long-distance calls, while international calls may have an allocated quote or even unlimited usage.
Operating expenses with VoIP services will grow in a predictable way as the focus is on paying the same rate for additional users. Conversely, landlines’ usage-based billing for long-distance and international calls increases costs unpredictably as you grow.
Generally, VoIP is the most cost-effective option, but it’s still worth comparing options in your area so you can base your decision on real amounts.
We’ve explored the pros and cons of VoIP vs. landline, but every business will weigh them differently. One drawback that may steer you away from landlines might not be a dealbreaker for another business.
So how do you choose? Let’s break down the key strategies for navigating these two major categories to meet your telecom needs.
Focus on your current needs with an eye to the near future when making your decision. Ideally, your chosen service provider will be capable of growing alongside your business.
Landlines have been a reliable voice communications service for decades. However, VoIP technology has rapidly improved in the past decade, making it a viable alternative to landlines.
The primary concern with VoIP is your Internet connection. You may need to upgrade your Internet plan with the ISP as you grow, but as long as you have reliable Internet service, VoIP will be ready to handle your communications.
Begin by understanding your specific needs and how they may change in the near future. From there, you’ll be able to choose between these technologies and individual service providers. Take the time to thoroughly evaluate all available options before signing up with a new provider.
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