The 5 Differences Between VoIP and Traditional Phone Systems

In today’s fast-paced, technology-driven world, communication remains a cornerstone of personal and business interactions. That’s why choosing the right phone system is crucial for efficient and effective communication. Two primary options are Voice over Internet Protocol (VoIP) and traditional phone systems, also known as plain old telephone service (POTS) or landlines.

Although traditional phone systems have served us for decades, VoIP has emerged as a new option, offering five distinct differences that align with modern communication needs. Let’s explore these distinctions so you can make an informed decision on which phone system to choose for your business.

Read: Understanding Voice over Internet Protocol (VoIP) Technology

1. Technology and Infrastructure

POTS: POTS uses copper wires to transmit analog voice signals. This technology has been the backbone of telecommunication for over a century, relying on physical infrastructure that connects calls through a series of switchboards. Each call also requires dedicated lines. However, this means that calls are restricted to certain geographical areas.

VoIP: VoIP, on the other hand, is a technology that converts voice signals into data packets and transmits them over the Internet or a private network. This modern technology only requires an internet connection and can be hosted on-premises or through a cloud service, making it easy to set up and use. Setting up a VoIP system typically involves installing the necessary software or hardware, configuring the system to your company’s needs and connecting it to your internet network. VoIP systems often integrate seamlessly with other internet-based services and applications.

2. Cost

POTS: Traditional phone services can be expensive, particularly for long-distance and international calls, which usually incur high call charges since landlines charge by the minute. The setup also involves significant initial costs for installing phone lines, wiring and hardware, as well as ongoing maintenance fees. Monthly service fees can also add up, especially when you include additional features.

VoIP: VoIP is a budget-friendly option, especially for long-distance and international calls, which are typically included in the service plan. Initial setup costs are lower since VoIP only requires an internet connection, eliminating hardware and maintenance costs. VoIP systems also often come with a range of features at no extra cost.

3. Flexibility and Scalability

POTS: Expanding a traditional phone system can be cumbersome and costly, often necessitating new physical lines and hardware. This limits flexibility, as the system is typically tied to a specific physical location and relies on dedicated phone hardware for each extension.

VoIP: VoIP systems are designed with your organization’s growth in mind; they are highly flexible and scalable. Adding or reducing lines is straightforward and usually requires minimal changes. VoIP also supports mobile integration, allowing users to make and receive calls on various internet-connected devices, including smartphones, tablets and computers.

4. Features and Functionality

POTS: Although landlines offer essential features like call waiting, caller ID and voicemail, they lack the advanced functionalities of VoIP. Adding features often involves additional costs and may even require new equipment.

VoIP: VoIP services come packed with features like call recording and forwarding, video conferencing, voicemail-to-text, call queues, auto attendants, ring groups and more. These features enhance productivity and are often included in the basic service plan. VoIP systems also integrate easily with other business tools.

5. Reliability and Quality

POTS: Traditional phone systems are renowned for their reliability. They are not dependent on an internet connection, making them less susceptible to outages caused by network issues. This makes them a dependable choice, especially in areas with unreliable internet service. However, landlines are notorious for muffled or fuzzy sound quality.

VoIP: VoIP reliability depends mainly on the quality and stability of the internet connection. A high-speed, stable internet connection can provide excellent call quality and reliability. However, in areas with poor internet infrastructure or frequent network issues, outages can disrupt service. When it comes to audio quality, though, VoIP reigns supreme; VoIP can provide superior voice clarity and reduced call drop rates.

Choosing a VoIP with Thriveon

As you can see, VoIP is an excellent choice for tech-savvy businesses looking to integrate communications with their digital infrastructure. However, if you need help choosing a VoIP and setting it up, consider working with Thriveon.

We provide modern office services so you can stay ahead of the competition. Schedule a meeting now for more information on how we can help.