More and more business technologies are becoming cloud-based, including business telephone systems. Learn how voice over internet protocol (VoIP) technology compares to traditional landline telephones when it comes to cost and convenience.
Understanding VoIP Business Phone Equipment
Traditionally, businesses used landline services to communicate with clients. With an analog phone system, a representative from the landline provider installs a phone line and provides desk phones that connect to the line. Phone calls are made by transmitting your voice through copper wires. In a business setting, you can use a private branch exchange to connect employee phones and allow calls to transfer to other lines within the company.
Landline phone systems are quickly falling out of favor because they’re inconvenient to install, expensive to maintain, and require clunky hardware. In contrast, VoIP systems, otherwise known as IP phones, don’t require installation, are cost-effective, and can be used on an employee computer from any location. VoIP business phone systems transmit phone calls over an internet connection, and they include video conferencing and chat capabilities that landline systems don’t have.
You can use a traditional desk phone with VoIP systems and a cloud-based private branch exchange system to handle call-transfer and voicemail capabilities. Employees can also use their laptops or smartphones with your VoIP system and skip hardware altogether. Either way, as long as you have a good internet connection, your VoIP system will function just as well as a landline and with fewer restrictions.
CTMS provides hosted VoIP services for businesses who want convenient internet-based phone systems without the extra bulky hardware that landline systems require.
VoIP vs Landline Cost
If you’re considering switching from a landline to a VoIP system for your business, you’re probably asking yourself: what does VoIP cost? Before getting into a cost comparison, you should first consider a few factors that will impact whether a VoIP system will be right for your business, including:
- Business location: If your business is in a rural area, you may not have access to a reliable internet connection. Because VoIP systems require an internet connection, a landline phone system may be the better option in remote locations.
- Frequency of power outages: VoIP systems rely on an internet connection. If your power goes out, you won’t be able to make a call. If you experience frequent power outages, landlines are a more dependable business phone option.
- Connection reliability: Weak internet connections affect VoIP call quality. If you have an unreliable internet connection, your call may cut out, lag, or disconnect with a VoIP phone system, whereas a landline has consistent call quality.
You can fix many of the common issues with VoIP quality by investing in a better internet connection, which can be cheaper than installing a landline phone.
IP Phone Cost
Businesses can purchase different VoIP services to fit their needs. VoIP cost depends on the number of users, the hardware you need, and any advanced capabilities your business requires, such as virtual receptionists, voicemail to email transcription, and call recording capabilities. Additionally, you may choose to use a VoIP adapter with your existing analog hardware or to purchase all new VoIP hardware. Some businesses decide to forgo hardware altogether.
All in all, VoIP systems typically cost as low as $20 a month per user, and you won’t rack up extra charges for long-distance or international calls. Even though VoIP hardware is more expensive than analog hardware, you’ll get the added benefit of paperless faxes, video calls, and the ability to use your VoIP phone from any location.
Landline Phone Cost
Landline hardware is relatively inexpensive compared to VoIP hardware, but monthly costs are much higher. Additionally, with a landline phone, you must have dedicated hardware, whereas VoIP can be used on computers and mobile devices. Distance matters with landline phone calls because your voice travels through copper phone lines, so long distance and international calls will cost extra. Unlike VoIP, you can’t video conference, paperless fax, or send chats with landline phone systems.
Landline phones can cost anywhere from $30 to $60 per month per user, and you’re restricted to the landline providers in your area. In our current work environment, landline phones are inconvenient because you can only make calls from inside the office—employees working from home can’t use their business phones.
Switch to VoIP for a Convenient and Affordable Business Phone Solution
Unless you’re in a remote area with poor internet connection, VoIP saves you money and is more convenient than traditional landline phone systems. If your employees work remotely and need access to their business phone number, VoIP allows them to take calls from anywhere, as long as they have an internet connection. Plus, VoIP is significantly cheaper than analog phones.
CTMS provides cloud-based business phone services for small and medium companies. We understand that it can be difficult as a small business to get access to cutting-edge technology, and we strive to make VoIP systems accessible for everyone. Contact us today to learn more about our affordable hosted VoIP services.
Computer Technology Management Services (CTMS) supports organizations nationwide with high-quality, customizable business IT tools and cybersecurity strategies for dealerships and more.
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