VoIP vs POTS: How VoIP Phone Systems Work Differently from POTS?

Ever wondered what phone systems exist? Whether it is VoIP (Voice over Internet Protocol) or POTS (Plain Old Telephone Service), what matters most is knowing the difference between them and choosing the one that works best for you and your employees.

Both of these phone systems can be beneficial to your organization. But what exactly is the difference, and how do you decide which one is right for your organization?

In this article, we break down how VoIP and POTS work, what's their differences and how they compare in terms of pros and cons. 

Let’s dive right in! 

What is VoIP?

VoIP stands for Voice over Internet Protocol. This type of voice communication occurs over the Internet rather than traditional telephone networks. The system uses an internet connection for flexible operations in any space. Data voice traffic is optimized to ensure HD call quality.

VoIP has become increasingly popular with worldwide subscribers. It’s predicted that VoIP services are expected to grow to $102.5 billion by 2026. To transmit voice data, there is software that hosts VolP services. Hosted VoIP services are relatively easy to deploy as a technology partner sets everything up for you.

Let’s take a look at the pros and cons of having this VoIP system.

Advantages of VoIP

There are different advantages that having a technology partner can give you. VolP services help set up everything for your business. You might be wondering why it might be an option to consider.

 VoIP has several key advantages. Here’s what you get with voice-over-the-internet system: 

• Integrates with apps like Outlook and Salesforce
• Provides advanced call analytics
• Has data recording features
• Shares different features depending on the department
• Reduces costs (businesses can reduce costs of international calling by almost 90%)
• Automates manual processes
• Is Optimized for mobile devices
• Has Strategic call flow design capabilities
• Is fully redundant

If you are thinking about the VolP system, then SecureNet Voice could be a great option. The unified communication system makes calls, messages, faxes, all from one app. This system also integrates with your business applications, such as Microsoft 365 and Salesforce. 

Disadvantages of VoIP*

While VolP is extremely high-tech and advanced, you’ll need to think about the cons of this voice system. There is still a lot of dependence on power and the internet. Take a look at the disadvantages and what you’ll need to consider when choosing this particular voice system:

• Has dependence on the Internet 
• Has power dependence 
• Can cause potential security concerns 
• Might have compatibility issues

These are some disadvantages to think about when looking at VolP. Nevertheless, an option to consider is SecureNet Voice’s system. It provides secure, flexible technology that will work for your business’s voice, SMS text, email, and fax transmission needs.  

What is POTS?

POTS (Plain Old Telephone Service) is traditional telephony, it’s a casual term used to refer to PSTN (Public Switched Telephone Network) technology. Telephones are linked to special networks that cover all phone systems worldwide. Traditional landline telephony relies on copper wires and basic voice calls. 

If you’re a fan of using phones in an old-fashioned manner, then POTS, also known as PSTN, is just for you.  

How POTS works

With POTS, calls pass through switches and exchanges as they move from circuit to circuit.

Telephone numbers are the unique identifiers to connect the call. POTS must have open circuits to work properly, and those circuits must remain open so the analog signal can be sent directly to the device.

For businesses, a PBX (private branch exchange) is necessary for the phone system. A PBX is simply a switch, which removes the need for a direct line for every phone in the office. The PBX routes calls internally and often offers features like voicemail.

Advantages of POTS*

There is a lot of good that comes with having old-fashioned telephones in your business. While they might be issues with wiring. POTS has some great pros, here’s what you get with them: 

• Reliability 
• Emergency services 
• High voice quality 
• Security
• Compatibility with older devices 

To see the full picture, it’s also important for you to think about the cons of this voice system. 

VoIP vs POTS: How VoIP is Different from POTS?

You can think of POTS as analog, and VoIP as the digital equivalent. VoIP eliminates the need for a PBX, routing calls across the data network via a router instead. VoIP uses standard internet packet switching technology.

While VolP is more affordable and flexible, POTS has better voice quality and reliability. Many companies have chosen to switch from POTS to VoIP as VoIP has a more simplistic structure. 

A huge advantage of VoIP is that voice communication can be integrated with other platforms. This integration with apps such as email or other CRM platforms can help your employees. For example, if you have an incoming call from a client, you can digitally bundle their profile so that whoever answers the phone has the account details in front of them ready to serve your client.

However, calls made over landlines don’t have this capability. They are separated from any other type of communication. It has its own infrastructure, whereas VoIP doesn’t need its own infrastructure. 

VoIP vs POTS Comparison Chart

VoIP vs POTS Which One Is Right for Your Business?*

VoIP is a better phone system platform for businesses as it shares the same networks as other digital services. Further, businesses can often save when switching to VoIP versus traditional POTS. This depends on several factors, but overall most companies can expect to save.

Interested in exploring VolP solutions for your business?*

Our experts at ThinkSecureNet are here to help. We've been in the industry for over 15 years, with 98% retention rate. We’ve been ranked as one of the top 10 VolP solution providers. Inc. 5000 has named us one of the fastest-growing private companies in the US. 

Are you interested in learning more about VoIP? Contact us today with questions or if you’d like a demo of what our VoIP solutions can do for you.