Is VoIP or traditional landline service the better phone system for your business? See how they compare by weighing out the pros and cons.
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As many business owners are finding out, VoIP can transform business phone systems into advanced communications platforms. But switching from a traditional landline system to VoIP is a big step that requires research, starting out with weighing the pros and cons of each system.
In this article, we’re going to highlight the pros and cons of VoIP phone systems and traditional landline systems. These benefits and drawbacks can help you determine if you want to stay with your old system or upgrade to the latest technology.
Pros & Cons Of VoIP Business Phone Systems
Businesses are turning to VoIP for their business phone systems because of the many benefits this technology has to offer. However, there are a few downsides to keep in mind before choosing this type of system.
Here are the pros and cons of VoIP phone systems for business.
Benefits Of VoIP
- Lower costs than traditional phone systems
- Scalable
- Lots of features available
- Supports unified communications
- Excellent call quality
- Doesn’t require expensive equipment
Here’s a breakdown of each benefit of VoIP.
- Lower Costs: VoIP calling plans are surprisingly affordable, with options available for any budget.
- Scalability: VoIP allows you to easily add new lines, extensions, upgrade your service, and scale your system to meet the needs of your business without requiring an on-site technician.
- Features: VoIP phone systems are loaded with advanced features you won’t find with many traditional systems, including video conferencing and customizable analytics and reporting.
- Unified Communications: VoIP allows you to create a unified communications platform to help you better connect with employees and customers. Instant messaging, broadcasts and alerts, video conferencing, and SMS/MMS campaigns are just a few of the features you can access with a VoIP phone system.
- Call Quality: As long as you have a stable and reliable internet connection, you’ll have excellent call quality free of static, echoes, and dropped calls.
- No Expensive Equipment Required: Unlike traditional phone systems, you don’t have to purchase expensive equipment to use VoIP. A modem, router, and a device like your computer or smartphone are all you need to set up, configure, and use your phone system.
Drawbacks Of VoIP
While the benefits far outweigh the drawbacks, here are a few challenges of VoIP to keep in mind before upgrading your system.
- Does not work on its own during power outages
- Requires reliable internet
VoIP has transformed business phone systems, but it isn’t without its drawbacks.
- No Service In Power Outages: One of the biggest downsides of VoIP is that power is required to keep your system operating. Fortunately, there are ways to avoid mishaps when the power is out. You can invest in an uninterruptable power supply (UPS), which is essentially a backup battery. You can also route your calls to another device, such as your cell phone.
- Reliable Internet Required: VoIP relies on the internet to make and receive calls. If you’re unable to get high-speed internet at your business or your service is spotty, your call quality will decrease, you’ll experience dropped calls, and your system won’t work as it should.
Pros & Cons Of Landline Business Phone Systems
Traditional landline phone systems are slowly making their way out of businesses and being replaced by modern VoIP systems. If you’re wondering if you should still hang onto your legacy system, weigh out these pros and cons.
Benefits Of Traditional Phone Systems
While VoIP does have the edge in most areas, traditional phone systems do have a few benefits to keep in mind.
- Works during power outages
- Easy to use
Although it lacks many of the things you’ll find with VoIP, VoIP does offer:
- Service During Power Outages: One of the best things about traditional landline systems is that you don’t have to worry about service during a power outage. Landline phones will continue to work even when everything else in your business goes dark.
- Ease Of Use: Even though landline phone systems don’t have as many features as VoIP, this could be an advantage for businesses that need a basic phone system. Most traditional phone systems are pretty straightforward to use without a lot of complicated features to worry about.
Drawbacks Of Traditional Phone Systems
- More expensive than VoIP
- Requires equipment
- Call quality issues
- Fewer call features
There’s a reason (or four) that traditional phone systems are being replaced with VoIP.
- Higher Costs: Traditional phone systems are frequently more expensive than VoIP. Higher monthly plans, installation fees, and repair and maintenance costs can easily add up to thousands of dollars each year.
- Expensive Equipment: In addition to the other costs associated with traditional phone systems, you’ll also have to purchase equipment. This includes PBX units, KSU units, and desk phones — none of which are required to use VoIP.
- Poor Call Quality: Dropped calls, long delays, interference, and other audio issues are common issues that affect traditional phone systems.
- Fewer Features: While traditional phone systems offer basic calling features, these dated systems lack the advanced options you’ll find with VoIP.
The Bottom Line: Weighing Out The Pros & Cons Of Traditional Phone Systems VS VoIP
As you can see, VoIP has a lot of advantages over traditional landline phone systems. Lower costs, reliable service, and an abundance of features make it easy to see why VoIP is becoming the go-to systems for businesses of all sizes.
However, you may want to stick with your legacy system for many reasons — it’s easy to use, you have great service, or making the switch seems overwhelming.
One thing to keep in mind is that the Public Switched Telephone Network (or PSTN) that landlines rely on will be switched off in 2025 (although it is possible that this deadline may be extended). What this means is that business owners using landline business phone systems will have to make the switch to digital VoIP.
Instead of waiting until the last minute, why not continue researching VoIP and making plans to upgrade to a modern phone system? Start with the best VoIP phone system providers, sign up for a free trial or two, and experience the power of VoIP for yourself before making a decision.