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Traditional phones vs VoIP services – Which is the best

The Internet has changed various aspects of how a business is run, ever since the advent of this technology. Technology and the Internet have enabled advancing business operations with a new wave of convenience and efficiency. The communication system is one of the most important aspects that has witnessed a change, mainly in the number of options available.

Traditional phones vs VoIP services – Which is the best
For communication over calls, businesses can now choose between traditional phones and VoIP services, based on their needs and budget. Here’s a guide to understanding these systems, their differences, and a brief comparison that’ll help your business.

What is VoIP?
VoIP stands for Voice over Internet Protocol and is the technology that lets one make calls over the Internet. The phone service can be delivered through high-speed Internet and ample bandwidth. The voice calls are transmitted by converting analog phone signals to digital ones to be able to convey it over the Internet. VoIP services let you make calls to other VoIP numbers and traditional phones depending on the features one has opted for with their service provider.

In a VoIP call, the voice signals are converted into data packets, which are then transmitted over the Internet to the VoIP provider. The service provider routes the call to the VoIP phone or traditional number using a cloud-based private branch exchange (PBX). Once the data is relayed to the destination, the same is converted back to voice signals for completing the communication process.

What is a landline?
Landlines are the traditional phone systems that have been used for decades by businesses to communicate. This system uses a solid core and twisted copper wire and needs to be plugged into a two or four-pin wall jack. The communication happens with the help of analog technology. This involves the exchange of signals through physical switch boxes. Traditional phone systems use physical wire connections to make communication happen. A connection from one phone to another happens through the switching of it at regional, national, and international levels, depending on the location of the person making and receiving the call.

Landlines convert voice signals to electrical signals which are transmitted via cable to the terminal. This electrical signal is then sent from a tandem office to a central office, which is further routed to the appropriate terminal. The terminal transmits the electrical signal to the phone number to which the call is being made and is converted back to voice signal.

Comparing traditional phones and VoIP services
Let us look at the various differences in the working and usage of these two systems. This comparison can help you make an informed decision for your business.

  • Features
    When the features offered by traditional and VoIP services are compared, the latter seems to shine with more features. Landline service providers offer a limited range of features that are basic and may not contribute to adding to productivity. The sole purpose of such systems is communications, and the features may revolve around just that.

When it comes to VoIP services, users can get a lot more in this communication system. Businesses can get virtual assistant services, call forwarding, call ID, voice to text transcriptions, three-digit dialing, automatic call-forwarding, superior conferencing abilities, and much more. VoIP systems also make more sense for businesses that are expanding to multiple locations and a growing number of people working remotely as these services are not limited to a single location and can be used with the cloud.

  • Technology
    Although there is a difference in technology in how both these systems work, it is important to note that both may not be upgraded with the same vigor. While the copper wire and exchange infrastructure are not yet dying, it may be useful to know that most traditional phone service providers may not be keen on updating the technology behind the legacy systems, owing to the growing popularity of digital systems. There has been a decline in the users of traditional phones over the years, which may lead to the legacy systems becoming out-dated sooner or later.

With VoIP services, one does not have to worry about this aspect. VoIP service providers are continually upgrading themselves to evolve as digital communication systems do. Telecom companies are investing heavily in VoIP systems and technologies.

  • Reliability
    When it comes to the reliability factor, landline services found an edge over the VoIP services initially. Landline users do not have to worry about their communications getting affected due to broadband connectivity or power issues. Power outages were not an issue with the legacy systems (unless the devices were cordless and needed electricity to run). VoIP services could go dead the moment there was a power outage and can be affected even if there is a drop in broadband speed or bandwidth. However, broadband companies and VoIP service providers have been continually advancing in their offerings to tackle these problems. For example, several service providers can forward VoIP calls to non-VoIP connections, if the Internet is down. However, if the VoIP system you are using or can afford to use does not have such features, you may be better off with a traditional phone system.
  • Costing
    There is a huge difference in the workings of traditional and VoIP services when it comes to the costs incurred. Overall, the difference in these costs is anywhere between 40% and 80%, with VoIP services being cheaper than traditional systems. For businesses using multiple lines, VoIP is a cheaper option. Even when it comes to the hardware and software requirements, VoIP services prove to be easier on the pocket. While VoIP requires a single set up that are mostly plug-n-play and does not require anything additional for multiple devices, a landline service may warrant you to install expensive hardware for the same. A PBX is required for offices with multiple landlines. This piece of equipment that is required on-premises may alone cost thousands of dollars. The difference in installation and maintenance costs for landline and VoIP services is also significant. Landline requires elaborate wiring work for setting up, and the maintenance of PBX is extensive. VoIP services also require a PBX, but the PBX for VoIP is cloud-based.
  • Versatility
    Another huge difference between the landline and VoIP services is in the versatility of the devices that can be used to access such facilities. The number or kind of devices that one can use for landlines is limited to one category of devices, whereas VoIP services do not have such limitations. With VoIP, calls can be taken or made from a variety of devices as it offers excellent soft-touch phone capabilities.
  • Scalability
    This is an important area that should not be ignored while comparing traditional and VoIP services. Adding or eliminating lines from legacy systems can be cumbersome as, in some cases, it may require additional set up whereas, in the case of opting for VoIP services, these processes can be done easily using the existing VoIP infrastructure.
  • Security
    If we are to compare how secure each of these services is then you may find landline services to be more secure. VoIP services run on the Internet and may not be all that secure as compared to traditional landline systems. If the service provider does not have adequate features like end-to-end encryption, then, businesses using such services are always at the risk of a security lapse.
  • Content of communication
    VoIP services also show versatility in the type of content that can be exchanged. With landlines, one can only make calls but with VoIP services, businesses can share other kinds of digital media using the connection.

How to get a VoIP connection?
If you are a business using landline systems, you may want to switch to VoIP services to enjoy better reliability and save costs. There are certain prerequisites for getting a VoIP system, irrespective of whether you are setting up a new office or making a switch from legacy systems.

  • Choose an Internet provider
    The first one is a reliable Internet service provider offering high-speed broadband connection. Choose an Internet service provider that offers upload and download speeds that match industry standards. 100 Kbps per device is an ideal speed. Calculate the speed you need keeping in mind the number of devices you would be using. Choose an Internet plan that works without any hiccups even when the broadband and VoIP services are used at maximum capacity.
  • SIP devices
    The second piece of equipment that is a prerequisite for making VoIP services run is a Session Initiated Protocol (SIP) enabled device. SIP-enabled phones can help your employees leverage all the benefits that VoIP has to offer. You may either choose to buy new devices or convert existing phones in the office to SIP-enabled devices with the help of an ATA adapter. Another option is to opt for a softphone that helps any smart device to morph itself into a phone to make and receive VoIP calls.

Tips for choosing the right VoIP provider
Here are some tips you can keep in mind while choosing a VoIP provider:

  • If VoIP is going to be the main communication system used by your business, you’ll have to ensure that your VoIP provider has an excellent customer service team. You may need help during the initial set up processes and sudden breakdowns in the future. Reliable customer service can help you ensure seamless communication in such scenarios.
  • Find out whether the VoIP service provider you are choosing offers all the required security features. Some specific features you may want to look for include end-to-end encryption, multi-factor authentication, and secure data access capabilities.
  • When browsing through various VoIP services, look for providers that will let you customize a plan. Obtain a quote for a package exclusive for your specific needs rather than comparing prices for plans that are already predefined. This is ideal if the budget is not a constraint. If you are not sure if a particular plan is worth the price, request for a free trial period to ascertain the same. Most VoIP service providers should be able to provide you with this feature.
  • Understand all the terms of the plan before signing on any documents. Make sure you thoroughly understand the difference in pricing for fixed-term and flexible rolling contracts. If you plan to upgrade with the same service providers or add additional services later, make sure you know how these changes can impact your service contract terms.
  • It is also useful to find out if the service provider you intend to work with offers any training for employees of your business. This may be an important factor for businesses that have employees who are not tech-savvy or have been using legacy systems for a long time.

Switching to VoIP from legacy systems is like shifting to newer technologies in other aspects of professional lives, like transitioning from a typewriter to a computer or a laptop. With legacy systems holding a chance of becoming obsolete, it is always good to switch to VoIP services sooner, also allowing employees to work with a rapidly evolving communication technology. If you are worried about the transition owing to the absence of a dedicated IT team in your firm, you can always choose to hire independent consultants to help you in the process of migrating from legacy systems to VoIP. With broadband being an integral utility provided by offices, switching to VoIP would not be an elaborate set up for most businesses.

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