Understanding VoIP: What Makes It Better Than Landlines

Understanding VoIP: What Makes It Better Than Landlines

Communication is vital in every business. Whether it’s communicating within your team or to your clients, effectively getting the message across is essential. According to a study by Unified Communications, 61 percent of businesses today with traditional phone systems have eventually switched to VoIP at the end of their contract. This article will discuss what facts about VoIP convinced most companies to make the switch.

VoIP stands for Voice Over Internet Protocol, and this over-the-internet phone service has more additional features than a landline can give. It’s both a cost-effective and convenient communication option for users. To understand the concept and advantages of VoIP better, here is how it compares to the traditional phone system:

The Landline vs VoIP

Here’s how the traditional phone works. Your landline connects your number to other phone numbers through a local PSTN (public switched telephone network) or POTS (plain old telephone service) network. It works through copper and fiber-optic wiring that transfers the analog voice data to and from the numbers using it.

On Features

This regular phone offers basic features such as voice messaging, caller ID, conference calling, and call waiting, but it comes with an additional price. Although it has these advantages, it is still limited compared to what the virtual phone system can offer. It doesn’t come with features such as video conferencing, incoming call routing, and voicemail to email, and it does not always give a reliable connection. 

On Cost

Some would say that having phones on your desktop would cost less than VoIP. However, you have to consider the total expenses arising from local and long-distance call charges, the cost for additional lines and feature upgrades, and the price of the physical equipment. You’ll often find phones to be being more expensive than previously anticipated.

The Dying Trend

Apart from the fact that landlines are bulky and can take up much space on your work table, it’s a device that is slowly becoming obsolete. In 2020, less than 40 percent of American households have landlines. Compare it with 90 percent of households that had landlines in 2004, and you’ll see that landlines are gradually becoming unnecessary because of the switch to mobile phones and other means of communication. This trend eventually faded, and people are not expecting any progress from them soon.

Understanding VoIP Better

The Convenience

VoIP acts like your traditional telephone, but instead of using wires to make the call possible, everything happens over the internet. It uses the same connection that your WiFi or router utilizes. You don’t need to acquire another device to make or receive calls because you can simply use your desktop, laptop, tablet, or smartphone.

Features and Expense

The features of VoIP are more advanced than landline phones. You can get a plan that would give you unlimited local calling and a definite number of free long-distance minutes per month. These features won’t incur an additional charge atop the amount you’ll be paying. Unlike landlines, you can design or choose the features you want without acquiring other lines and paying additional charges. 

These are the services VoIP can provide its users:

  • Video conferencing
  • SMS texting
  • Virtual voicemail
  • Call routing
  • Call queuing 
  • Advanced call management
  • Three-way calling
  • Speed dial
  • Online fax
  • Priority alerts and more

According to one case study, companies that switched to VoIP saved around $5,000 a year. The same study showed that an enterprise keeps about $480 per employee due to the productivity they gained using VoIP. 

VoIP also uses a cloud-based Private Branch Exchange (PBX) service, which allows users to run their phone system over an existing online connection, helping save up on expense. 

Conclusion

Landline phones have helped businesses, whether small or large enterprises, deal with the everyday demand of work. It has helped improve the productivity and efficiency of employees for several years. Technology, however, has paved the way for more advanced communications to arrive. VoIP is a prime example that improved the way traditional telephone performs. 

If you’re one of the businesses that want to switch to VoIP solutions, we can help. As the top-rated business VoIP provider in New York, we offer an all-in-one solution that is easy to use and manage. Contact us today to learn more about our product. 

Understanding VoIP: What Makes It Better Than Landlines