Did you know that 63% of startups use VoIP phones to communicate? Another 24% plan to switch from traditional telephone service to VoIP soon. This is quite an impressive level of popularity for any kind of technological solution. This only proves its effectiveness and relevance.
Many of you may be wondering what VoIP phone systems are in the first place. If that is the case, worry not, because in this article we're going to dive deep into the topic and understand its nuances and possible benefits for your business. We'll look at the characteristics of both VoIP and traditional phone systems and will go over their main differences.
By the end of this article, you will better understand how VoIP systems work and whether you need them for your business.
What is a VoIP Phone System?
Now, let's get back to our initial question: what are VoIP systems? Well, VoIP (Voice over Internet Protocol) works by converting a traditional, analog voice call into digital information. This information is then delivered to you via a reliable internet connection. In other words, VoIP calls rely on breaking up voice into digital packets and transmitting them over the internet.
When it comes to the comparison - VoIP vs landline telephone systems, things get somewhat more complicated.
A regular phone system uses circuit-switched technology, creating a singular channel between two points to allow a call to take place. Copper wire is utilized for this channel.
In contrast, VoIP systems use packet-switched telephony. With this technology, countless individual packets are compressed and sent over the internet.
The technology and processes used by VoIP phone systems help to increase data transfer efficiency. The benefits don't stop here, but before getting to them, let's also understand how landline phones work.
What is Traditional Phone Services or Landlines
Landline phones, operate through a closed network of physical phone lines to transmit voice calls between locations. This technology, which has been around for decades, remains largely unchanged, offering the same features and facing the same challenges since its inception.
When you make a call on a landline phone, your voice is converted into analog signals. These signals travel through underground copper wires to a Private Branch Exchange (PBX). The PBX then routes the analog signals to the recipient’s landline phone, where the earpiece converts them back into your voice. This process has been the backbone of traditional phone communication for many years.
Differences Between Landline and VoIP Phone Systems
Now, let's also take a look at the differences between landline phones and VoIP phone systems. They differ significantly because VoIP relies on IP networks rather than physical wiring to the PSTN or cellular networks.
Compared to landline systems of similar scale, VoIP phone systems are much more cost-effective and offer additional features beyond just voice calling. However, since VoIP devices depend on IP networks like the Internet, their performance can be affected by poor connections.
VoIP systems are also much cheaper than mobile phone systems on a similar scale. While modern mobile phones offer many features found in VoIP systems, they generally lack enterprise-focused capabilities such as analytics, CRM, and software integration.
Overall, VoIP phone systems provide a cost-effective and feature-rich alternative to traditional phone systems, especially for businesses looking for advanced communication solutions.
3 Benefits of Switching from Landline Systems to VoIP Services
There are many benefits to switching from traditional landline systems to VOIP services. We will go over the three most salient ones below:
Service Mobility
If your business is always on the move, VoIP services can be of tremendous benefit because they follow you wherever you go.
In a traditional phone system, each line running to a home or business has its own phone number. Moving locations can become a hassle, requiring you to remember the right codes or keys to dial. A lot of time can be wasted contacting phone companies to transfer services and phone numbers to new locations.
VoIP phone systems eliminate these issues. With no physical limitations, you can move as your business demands without any added stress. VoIP provides the flexibility and convenience to stay connected no matter where you are.
Integration
VoIP phones offer effective integration with various business applications, enhancing overall productivity and efficiency.
For example, organizations can seamlessly connect their CRM(Customer relationship management) software with VoIP systems. This integration allows employees to view detailed call records and analytics for different customers and sales leads directly within the CRM interface.
Additionally, it enables the convenience of making phone calls straight from the CRM application, streamlining the communication process. Such integrations provide valuable insights and improve workflow, making it easier to track interactions, manage customer relationships, and drive sales efforts effectively.
Flexibility
A VoIP phone system offers significantly more flexibility than a traditional phone system. This system provides enhanced features such as voicemail-to-email, call forwarding, and video conferencing, all of which can boost communication and collaboration.
These options give you greater flexibility in using phones for business purposes. You can make and receive calls from anywhere with an internet connection, allowing remote employees to stay connected from multiple locations.
Cost for VoIP vs. Landline Phone Systems
Of course, we have already mentioned some of the benefits of switching from a landline phone system to VoIP. Yet, the biggest difference between traditional phone technology and VoIP phone systems is the cost.
Not only is VoIP much more affordable, but most packages offered by VoIP telephone service providers include unlimited local calls.
Today, landline phone service companies offer a myriad of cheaper calling services, but in reality, they aren’t ever going to be able to match the VoIP rates, let alone beat them.
Believe it or not, these high costs don’t have much to do with the actual phone company, but rather the technology used.
It costs more to connect calls with traditional landline phones. Also, there aren’t any network maintenance costs when it comes to VoIP.
Long-distance calls are also more affordable, with some companies offering free international calls to certain countries. VoIP services offer significant cost savings, especially for long-distance and international calls.
Convenience of VoIP vs. Traditional Telephone Systems
By nature, VoIP phones are easier to use than landline phones. This is due to the fact that there is only one supplier for voice and data calls. As a result, you can link up all technologies, along with your in-office computer applications.
This provides a more streamlined and efficient working environment. In fact, it can even lead to a higher level of company productivity.
Choosing a reliable VoIP provider is crucial for ensuring seamless integration and high-quality service. If a company has offices in several countries or regions, VoIP is the ideal solution as it can handle internal calls without any charge.
VoIP vs Traditional Phone Services: Which is Best for Your Business?
Choosing between landline and VoIP systems depends on your business's communication needs and growth aspirations.
Landlines suit companies with a stable staff count seeking basic calling features, while VoIP platforms are ideal for expanding businesses with reliable internet access and a demand for advanced collaboration tools. Assessing these factors will help align your choice with your business goals and communication requirements.
As the sections above detailed, VoIP phone systems are commonly regarded as easy-to-use, and simple communication tools designed to meet the needs of businesses. So they would be ideal for any business with a desire to grow and have a secure and reliable communication system.
Is a VoIP Phone System Right for You?
Now that you know the answers to the questions, “What is a VoIP phone system?” and “How do VoIP and landline phone systems differ?” you can make an informed decision regarding which option is right for you.
Be sure to consider the factor that a VoIP system offers many more features than traditional phone systems, making it an appealing choice for businesses.
VoIP is something all businesses can benefit from, starting from the healthcare field to manufacturing and more.
Get Affordable VoIP Service for Your Organization
If you want to switch your business to a VoIP system and are wondering what company to refer to, don't worry, we've got you covered. Contact our team at ThinkSecureNet to get familiarized with our all-in-one communication solutions and VoIP service offers.
For any additional questions and clarification, feel free to contact our team of professionals who are ready to help your business in a professional and smooth manner.
FAQ: VoIP vs Traditional Phone Services
Now that we have gone over the essential information on VoIP phone systems and their unique features, let's look at some of the most frequently asked questions on the topic and address them.
Why is VoIP better than traditional phone services?
VoIP is an easier and simpler method of communication for businesses because it offers greater flexibility, scalability, and cost-effectiveness compared to landline phone systems. Plus, it provides additional security and the possibility of being a more mobile business without suffering additional costs.
What is the difference between VoIP and traditional phones?
The main difference between VoIP and traditional phones is that VoIP systems use the internet to make calls, while traditional landlines rely on copper wires to make calls possible. So, VoIP systems can be used from anywhere as long as a solid internet connection is available whereas traditional phones are bound to a specific geography.
Why is a VoIP phone system cheaper than a landline?
VoIP phone system is cheaper than a landline because it uses WiFi and does not require the installation of any additional wires. It uses what most businesses already have without adding expenses and additional installation requirements.
Why use VoIP instead of cell phone?
Using VoIP instead of a cell phone is ideal in areas where cell phone services are not available or are unreliable. As long as you have WiFi, you can stay connected and make VoIP calls without any interruptions.
