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VoIP vs. Traditional Phones: Which is Better for Your Business?

Most business phone systems used to rely on landlines, but with a new digital age, businesses have been rapidly transitioning over to VoIP phone systems. As more and more workplaces transition to more remote operations, VoIP phone systems have especially been increasing in the workforce. 

What is the difference between a landline and a VoIP phone system?

A landline is a traditional telephone system that uses analog signals transmitted through copper wire telephone lines to connect calls via the Public Switched Telephone Network (PSTN). It operates by creating a physical circuit between the caller and the recipient for the duration of the call.

Voice Over Internet Protocol (VoIP) is a communication system that converts analog audio signals from phone calls into digital data packets, which are transmitted over the internet and converted back into audio at the recipient’s end. This allows phone calls to be made from any internet-connected device, such as computers, smartphones, or specialized VoIP phones.

What should you consider when deciding which phone system is right for your business?

Cost

VoIP phone systems are generally cheaper and many providers offer unlimited plans at a flat rate whereas landline phones can be costly when it comes to installation and maintenance of physical lines and there are often recurring fees and additional charges for features like voicemail and caller ID. 

Features

Landline phones generally have more basic features such as call waiting, caller ID, voicemail and three-way-calling whereas VoIP phones have more advanced features like call forwarding, voicemail to email, video conferencing, auto-attendant, call recording and integration with other applications like CRM systems. Even a cell phone app that allows for sending text messages for easy and fast communication. 

Reliability & Quality

Landline phones provide consistent, stable and high quality voice transmission and are usually able to continue to work during power outages since they are powered by the telephone line themselves. As for VoIP phone systems, the call quality and reliability depend on the internet and since VoIP systems require electricity and internet, they are vulnerable during power outages unless supported by backup power solutions. 

Mobility & Flexibility

VoIP phones can be used anywhere with an internet connection which is perfect for remote and mobile employees. These systems can also be used on mobile devices including computers, smartphones and VoIP desk phones. Landline phones on the other hand are tied to s specific location and cannot be used remotely. 

Installation & Setup

Landlines require physical wiring and installation by a technician which can be time-consuming and labor-intensive whereas VoIP phones involve an easy software installation which can be done quickly and remotely. 

VoIP phones can be an affordable and more flexible solution for more modern businesses looking to boost communication and increase productivity.

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