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VoIP vs Phone Lines
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VoIP vs Phone Lines: The Future of Business Calls
When choosing the right phone system for your business, you have two options: Voice over Internet Protocol (VoIP) and traditional business phone lines.
While both serve the same fundamental purpose, allowing people to communicate, they work differently. VoIP phone systems operate over business broadband, offering modern features and flexibility, while business phone lines rely on physical infrastructure.
Our experts break down the key differences between these systems and help you determine which is the best fit for your business.
We cover:
Key differences between VoIP and business phone lines
Understanding the differences between VoIP and traditional business phone lines is essential when deciding which system aligns best with your business needs. Below, we’ve outlined the core differences to help you compare these two technologies.
| Difference | VoIP | Business Phone Lines |
|---|---|---|
| Category | VoIP | Business Phone Lines |
| Technology | Internet-based calls travel over data networks. | Copper/physical lines; traditional telephony. |
| Cost | Low setup costs, affordable monthly fees, minimal maintenance. | Higher setup costs and maintenance fees. |
| Flexibility | Highly scalable; supports remote work easily. | Limited to physical locations; harder to scale. |
| Call Quality | Depends on internet speed and stability. | Stable and consistent quality, regardless of internet. |
| Features | Advanced: video calls, CRM integrations, call routing, analytics. | Basic: voice calls and limited add-ons. |
| Reliability | Dependent on a reliable business broadband connection. | Infrastructure-dependent; usually reliable. |
| Maintenance | Software-based; automatic updates. | Hardware maintenance and on-site. |
Advantages and disadvantages of VoIP
When choosing a communication system for your business, weighing each option’s benefits and disadvantages is important.
Below, we start with the pros and cons of VoIP for Business.
VoIP Pros
Cost-effective: Affordable setup and maintenance costs are ideal for startups and small businesses.
Feature-rich: Includes VoIP features like video conferencing, CRM integrations, and call analytics.
Scalable: Easily adapts to business growth or changing needs.
Remote work ready: Enables seamless connectivity for teams in multiple locations.
Easy maintenance: Software updates handle most issues, minimising downtime.
VoIP Cons
Internet dependent: Service quality relies on business broadband speed and reliability.
Security concerns: Vulnerable to cyber threats if not properly secured.
Power dependency: Requires power backup to function during outages.
Advantages and disadvantages of business phone lines
Now, let’s take a look at the pros and cons of business phone lines.
Business Phone Lines Pros
Reliable: Operates independently of the internet, ensuring consistent service.
Consistent call quality: Provides clear and uninterrupted calls, even during internet outages.
More secure: Less vulnerable to cyber threats due to its physical infrastructure.
Business Phone Lines Cons
High costs: Installation and ongoing maintenance are expensive.
Limited features: Lacks modern tools like video conferencing and integrations.
Lack of flexibility: Tied to physical locations, scaling for remote work is challenging.
Maintenance needs: Requires regular hardware servicing and upgrades.
Cost comparison between VoIP and business phone lines
Cost is often a key factor when choosing between VoIP and traditional business phone lines.
Understanding the breakdown of both options can help you determine the best solution for your business.
Below, we compare the costs of VoIP services and business phone lines.
| Cost Comparison | VoIP (Voice over IP) | Business phone lines |
|---|---|---|
| Monthly Cost | £10–£30 per user per month | £15–£30 per line per month |
| Installation Costs | Typically Free | £100–£200 for installation (multiple lines) |
| Call Costs (Domestic) | Included in the plan | Charged per minute |
| International Calls | Typically included in plan | Higher rates per minute |
| Additional Costs | Hardware (phones, adapters) £20–£200 | Ongoing maintenance, additional lines |
| Setup Time | Quick (1–3 days for setup) | Longer (1–2 weeks for installation) |
💡Prices are based on average costs from several providers and may vary based on the number of users, lines, location, and service provider. Please contact providers directly for a tailored quote for accurate and up-to-date pricing.
Considerations for your business
Several key factors must be considered when deciding between VoIP and traditional business phone line services for your business.
These can directly impact your communication system’s cost-effectiveness, reliability, and scalability. Here are the main factors to evaluate:
Company size and growth projections
Small businesses or startups may find VoIP more appealing due to its scalability and lower initial costs. As your business grows, VoIP allows for easily adding new lines without complex hardware changes. Phone lines often require more infrastructure investment and may be less flexible for expansion.
Budget constraints
VoIP generally offers lower monthly fees and reduced setup costs, making it a cost-effective choice for businesses with tighter budgets. Traditional phone lines, while reliable, often come with higher upfront and maintenance costs, including line rental fees and installation charges.
Remote work needs
VoIP is likely the better choice if your business requires employees to work remotely from various locations. It is designed for mobility, allowing employees to make and receive calls from anywhere with an internet connection. Business phone lines are fixed to physical locations, making them less suitable for businesses with remote or hybrid workforces.
Internet reliability at the business location
VoIP relies on a stable internet connection for call quality. If your business operates in an area with unreliable internet service, a business phone line may be a more dependable option, as it does not depend on internet connectivity.
Compare business broadband deals today to explore faster and reliable internet connection.
Required features and integrations
VoIP offers advanced features such as video conferencing, CRM integrations, call forwarding, and voicemail-to-email capabilities, making it a versatile solution for modern businesses. VoIP is the clear choice if your business needs these features to improve efficiency and communication. On the other hand, traditional phone lines offer fewer features and are more limited in functionality.
Future proofing your business with VoIP
As businesses look towards the future, one key consideration is ensuring their communication systems are ready for the next wave of technological advancements.
VoIP is a forward-thinking solution that offers numerous benefits, including long-term cost savings, adaptability, and integration with emerging technologies.
Here’s how VoIP can help future-proof your business:
The PSTN switch off
The UK is phasing out the Public Switched Telephone Network (PSTN switch off), which has been the backbone of traditional landline services.
By 2027, BT will stop supporting PSTN, making VoIP the essential solution for businesses that rely on phone services. VoIP is already based on the internet and does not depend on outdated PSTN infrastructure, ensuring continued communication without disruption.
Emerging VoIP technologies
VoIP is constantly evolving, with new technologies improving functionality and integration. For example, businesses can now use AI-driven features, such as intelligent call routing, transcription services, and advanced analytics, which are only possible with cloud-based VoIP systems.
VoIP is increasingly integrating with other tools like Customer Relationship Management (CRM) systems, enabling businesses to streamline customer interactions and improve service.
Long term cost benefits
One of VoIP’s key advantages is its potential for long-term savings on business VoIP costs. Traditional landlines often come with high setup fees, line rentals, and maintenance costs, while VoIP typically offers lower monthly fees and minimal hardware costs.
As your business grows, VoIP allows you to scale up easily, avoiding the need for significant additional infrastructure investment.
VoIP vs Landlines: Why VoIP is the clear winner for businesses
VoIP is the better choice for most modern businesses. Its cost-effectiveness, advanced features, scalability, and support for remote work make it ideal for growing and adapting businesses.
While landlines offer reliability, VoIP’s flexibility and integration with emerging technologies ensure your communication system remains future-proof.