You could have been surprised by the severe weather in the morning and called a taxi to get to work on time. Long way till work? You would pull out your mobile phone and call your away family to say good morning or your dentist to schedule an appointment. Also, when you feel hungry at work, you would prefer to call food delivery services or call the restaurant to book a table for your launch meeting. Thus, a phone call is crucial for everyone and, most importantly, for business owners. However, it’s no secret that we are living in a rapidly evolving world, and the next way of communicating will replace the one before. For example, mobile phone communication comes to replace the landline, and online communications come to replace the mobile phone. After all, this doesn’t indicate that phone calls, in general, are dying. But they are integrated with the new technology to be the cheap VoIP phone service. Therefore, what is VoIP? Is VoIP cheaper? follow up to know which phone system is worth the investment: VoIP vs Landline ?
What is A a Landline?
When people say “landline,” they usually mean a phone that connects to a two- or four-pin wall jack and uses solid core, twisted-pair copper wire. Landline phones use analog technology, which transfers signals through a series of exchanges (physical switchboxes) that connect two phones when they call.
What Is VoIP?
The voice over internet protocol is a technology that provides phone service over the internet connection instead of your local phone company. You can dedicate a call from your mobile, handset or mobile app. How can you make a VoIP call on your mobile? Do you need extra software or special phones for that?
VoIP vs landline: What’s The Main Difference?
Many have adopted VoIP as a good fit for their ordinary and business life:
- Nearly 60% of U.S. adults in 2019 lived without a landline in their home.
- 1 billion mobile VoIP users in 2017 and 3 billion projected by 2021.
- 74% of employees use a mobile app for VoIP business calls.
- About 31% of all businesses use VoIP systems
VoIP vs landline. Here are some differences:
- Technology: the core difference that distinguishes VoIP is that it relies on an internet connection to place calls using packet switch technology. Whereas the traditional phone systems use PSTN (Public Switched Telephone Network) which depends on circuit switching to transmit voice data.
- Call quality and reliability: communication over VoIP competes with landline phones quite well. It is rare that you hear any clicks or whirrs in your VoIP communication because it doesn’t use any circuits.
- A number of features: Unlike traditional phones, VoIP packs a punch of features such as auto-attendants, call forwarding, call recording, voicemail, call screening, phone training and call queues.
- Cost difference: VoIP is not only better but also cheaper.
Why Is VoIP Cheaper?
Well, in the study of the difference: voip vs landline, money is a primary concern for all. Consequently, it is an important factor to consider for business owners who need to keep phone connections with their customers and providers, yet they need to avoid the expensive costs of physical hardware and installation of phone lines. Therefore, VoIP is a wide impact and cheap industry.
VoIP Cost and Savings Statistics
- The average VoIP savings of a company are between 30% and 50%.
- With VoIP, businesses can reduce phone costs by up to 50%.
- VoIP can help save 32 call minutes per day.
- There are 90% savings on international calls, 75% on operational costs, 40% on local call bills and 30% on phone bills.
|Virtual Phone Numbers||Landline|
|Ease of setup||★★★★★||★★★
|Initial Setup Cost||Low – No dedicated desk phones or hardware are required.||High – Phones and other equipment must be purchased.|
|Audio Quality||Variable – Dependent on internet access.||High – Not dependent on internet access.|
|Scalability||Update to a better plan or add more users.||This necessarily involves the installation of extra phone lines and hardware.|
|Customization||Easy – Subscriptions may be customized to include unique services or features.||Limited functionality – Adding more features means adding more hardware.|
|Security||Dependent –dependent on the provider's security practices. Encryption is now commonplace.||High – The PSTN is highly safe because data is not sent over the internet, where it is more vulnerable to hacking.|
|International Calling||Cost-effective – Some providers offer unlimited international calling plans, while others charge by the minute.||Expensive – Charged per minute, with different rates for different countries.|
|Integrations (CRM, text messaging, surveys)||Yes||No|
|Contracts||Pay-as-you-go plans are available from some service providers, and most do not require contracts.||Longer-term contracts are more likely to result in lower prices.|
The Expense of a Telephone System
Let’s see together how some of the expenses on your phone bill will astound you:
- Installation (wiring)
- PBX equipment
- Labor costs to configure
- Advanced features
- System updates
- Training and support
- Commercial real estate
- International calls
Another shot, in an era of distance learning and remote working and widespread broadband internet access, landlines are antiquated. Instead, the cheap VoIP phone services and virtual phone systems are way cheaper. Know more about [How to Get a Virtual Phone Number?]
How Switching to VoIP Can Save Your Money?
No Equipment or Hardware or Installation
With a traditional phone system, you will be required to take care of all phone infrastructure, while the VoIP phone system doesn’t need server equipment because it’s cloud-hosted. All that you need is an internet connection and mobile phones or laptops that your team already uses.
Lower Maintenance Fees
The more equipment you have, the more you get yourself into repair and maintenance costs. For landline-based PBX (private branch exchange) phone system is popular for plenty of complex and costly devices that a technician has to help with. Why would you bother to call an expert every time you would like to move your office or open a new branch? Why trouble yourself with costly maintenance of, for example, repairing parts of the legacy systems that are no longer manufactured.
In the near future, businesses that make the move now towards VoIP won’t have to make an expensive decision. When moving your traditional landline, it will burden your money, time and resource to move them. Whereas physical relocation won’t be costly with VoIP because your provider will handle it all for you along with providing regular support and updates. For your side, a one-time setup and a reasonable monthly subscription are all that you have to do.
Time is money, and you can save time with the VoIP system due to the simple setup, management and monitoring. For example, employees will spend less time dealing with a paper looking for faxes to arrive. VoIP can help send inbound fax communication directly to the email with everything clear and with different options, as well.
Regular phone systems require periodic updates and fall into your responsibility to follow. However, the upgrades with VoIP are covered by the provider with no cost on your side.
Fewer Lines Required
You are probably getting done with building new lines for every employee in the company and still having busy signals when simultaneous calls occur. Therefore, instead of having an astronomical bill at the end of the month, get fewer lines with VoIP service without having to lose any call or direct to the dreaded busy signals. Take advantage of the affordable customization the VoIP service provides, such as toll-free numbers.
Seize the features that come standard with VoIP but are expensive in PBX systems. Examples of these features are call forwarding, voicemail to email, call recording, video conferencing, and more. These are often available for no extra charge (or a very small fee) when you make the switch to VoIP.
Cheaper Long-Distance or Local Calls
It is more than possible that you make international calls nowadays whether for individuals or companies who are trying to open up new international sales channels. ON one hand, doing that with a traditional landline phone plan can drive to pay a premium. On the other hand, VoIP is internet-based, and it is bound to be less expensive because VoIP calls are transformed into data packets, which are easier than conventional voice calls to send over long distances. Users can place international calls at local rates because VoIP technology initiates the call within that county when you dial an international call so that the call is made “locally” and you pay their local rate.
One Single Network for All
A company using VoIP does no longer need to work with different service providers for its office, mobile or data services. This will dramatically reduce the phone bill costs, for you can have all of the services right from one network that you choose fit.
Made Your Decision Already?
After all, a company’s phone system is responsible for keeping staff connected and serving consumers. However, VoIP’s flexibility, functionality, and convenience of use are unparalleled to landline phone service. It gives businesses the most scalable and secure communication options. For example, Numero eSIM App can adequately meet your connectivity needs and provide you with VoIP solutions that will cut down your communication expense.
Are you ready to explore this cost-saving strategy along with many other benefits of Numero communications? We will help you make the leap forward. Contact us today to get started!
Save Your Pocket Today and Change to VoIP!