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VoIP vs Landline: Which is the Best Option for Your Small Business?

by | Jan 23, 2023 | Business, Humans & IT, Software


VoIP (Voice over Internet Protocol) and landline phones are two options for small businesses to consider when choosing a phone system. VoIP uses the internet to make and receive calls, while landline phones use traditional phone lines to transmit calls. It is important for small businesses to consider their options when choosing a phone system because the right choice can impact the overall efficiency and productivity of the business.

A VoIP phone service is often more affordable and flexible than landline phones. This is because it eliminates the need for physical phone lines and hardware. It also offers a wide range of features that can improve communication and collaboration within a business.

On the other hand, landline phones are more reliable and offer better call quality, but they may be more expensive and less flexible than VoIP. They also require the installation of physical phone lines and hardware, which can be a drawback for businesses looking for a more portable solution.

It is important for small businesses to carefully evaluate their needs and consider the pros and cons of both VoIP and landline phones before making a decision.

Main Differences

VoIP (Voice over Internet Protocol) and landline phones are both methods of communication, but they differ in how they transmit and receive calls.

One of the main differences between these two technologies is the way they work. Landline phones use physical lines to transmit calls, while VoIP uses the internet to transmit calls. VoIP users can make and receive calls from any device with an internet connection.

VoIP technology allows you to use a laptop, smartphone, or tablet — essentially any mobile device with a connection to the internet. On the other hand, landline phones require a physical phone to be connected to a phone line to make and receive calls.

Another difference between VoIP and landline phones is the features they offer. VoIP often offers a broader range of features, such as forwarding, holding conference calls, and using voicemail. These features can be helpful for small businesses and can help increase efficiency and productivity.

On the other hand, Landline phones may not offer as many advanced features, but they offer consistent and high-quality call service.

In terms of cost, VoIP is often more affordable than landline phones. This is because VoIP uses the internet rather than expensive phone lines, so there are no additional charges for long-distance or international calls.

On the other hand, landline phones can be more expensive, particularly for long-distance or international calls. Pricing is an important aspect for a small business owner.

VoIP and landline phones are both options for making phone calls. However, they differ in how they transmit the calls and the features they offer. VoIP may be a more affordable and feature-rich option, but it may not be as reliable as a landline.

Landlines are consistent and offer higher sound quality of sound. However, this comes at a higher price and usually offers fewer features. Ultimately, the best option for your small business will depend on your specific needs and budget.

Pros and Cons

VoIP and landline phones have their own unique set of pros and cons. Money is one of the main talking points when choosing between the two. VoIP has an edge on landlines in this area, which is a massive check in the pro column.

As mentioned before, VoIP uses the internet, so there are no additional charges for long-distance or international calls. There is also the lack of physical hardware needed. For any small business, cutting expenses is a massive benefit.

However, there are also some drawbacks or cons to using VoIP. One of these is that the quality of a VoIP call can be affected by the internet connection quality. If the internet connection is slow or unstable, it can lead to poor call quality and even dropped calls.

You could also have an internet outage during the workday with no immediate timetable for the service to resume. This is where the constant connectivity of landlines has the advantage.

Landline phones offer a more reliable and consistent level of service. They are not reliant on the internet, so they are not affected by internet outages or slowdowns. In addition, the quality of landline calls is generally considered higher than that of VoIP calls.

Another significant pro for VoIP and con for landlines is the scalability. With VoIP, you can easily add users and devices to the service. No need for additional phone hardware or lines and equipment. This is significant for the pricing aspect but also from a quickness and efficiency aspect.

Landline
Pros: Consistent, reliable, and great sound quality
Landline Cons: Expensive, extra hardware needed.

VoIP
Pros: Useable anywhere with an internet connection. More cost-efficient, with no additional cost. Less hardware is needed. Scalable.
VoIP Cons: Sound quality is not as good. Potential for dropped calls or even prolonged outages depending on internet availability.

Best Option for Small Businesses

For small businesses, VoIP is generally the better option. It is more cost-effective and flexible than landline phones and offers a wide range of features that can improve communication and collaboration within the company. It is also more portable, as VoIP can be used on any device with an internet connection. This is especially useful for businesses with a mobile workforce.

However, it is important to consider the reliability of your internet connection and the IT support available to your business when choosing a VoIP service. VoIP relies on a stable internet connection to make and receive calls, so your phone system will also be affected if your internet goes down.

This can disrupt your business and result in missed calls and lost productivity. It is, therefore, important to ensure that you have a reliable internet connection with sufficient bandwidth to support your VoIP needs.

In addition to the reliability of your internet connection, it is also important to consider the IT support available to your business when choosing a VoIP service. VoIP systems can be complex and may require technical support to troubleshoot issues that may arise. Therefore, choosing a VoIP provider that offers robust IT support is important.

The IT support team will be able to resolve any issues quickly and efficiently. This will ensure that your phone system remains up and running, helping to keep your business running smoothly.

Another way small businesses can save money is through remote work. This can be facilitated by having a VoIP system. For more information on how VoIP can help save a business money, check out EVERNET’s blog on The Business Cost Savings of Switching to Remote Work.

Frequently Asked Questions

Which is cheaper: VoIP or landline? VoIP is generally cheaper than landline phones, as it uses the internet to transmit calls rather than dedicated phone lines. VoIP providers also often offer unlimited calling plans at competitive rates.

Which has better call quality: VoIP or landline? VoIP and landline phones can offer good call quality, although it can vary depending on the provider and the quality of your internet connection. VoIP may be prone to latency and jitter issues, affecting call quality, but these can usually be mitigated with a good internet connection and proper IT support.

Which is more reliable: VoIP or landline? Landline phones are generally more reliable than VoIP, as they do not require an internet connection. However, VoIP can be reliable with a good internet connection and proper IT support.

Choosing the Right Phone System

Small businesses should carefully evaluate their needs and consider the pros and cons of VoIP and landline phones before deciding. VoIP may be a more cost-effective and feature-rich option, but it is important to ensure that the internet connection is stable and reliable to ensure good call quality.

Landline phones may offer consistent and high-quality call service, but they are far more expensive and less flexible than VoIP. Ultimately, the right choice will depend on the specific needs and budget of the small business.

For most businesses, switching to VoIP makes a lot of sense. Small businesses using traditional landline phones should consider making the change. The financial gain is significant for the business, as is the flexibility. Technology is continuing to grow, which is another reason making the switch makes sense.

The ability to gain extra technological features opens the door for phone access anywhere with an internet connection. You can have remote employees with a dedicated work phone line through the VoIP service. This is not possible with a traditional landline.

In summary, small businesses should consider switching to VoIP if they are looking for an affordable and flexible phone system that offers a range of features to improve communication and collaboration. It is important for small businesses to carefully evaluate their needs and consider various factors before making a decision.


At EVERNET Consulting, we are dedicated to helping organizations navigate the challenges of VoIP. We look to find the solutions that best fit your company’s needs. Whether you’re looking for IT support, software recommendations, or guidance on how to make the most out of VoIP, we are here to help. Let’s schedule a discovery call and see how we can help you work smarter, not harder.