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Landline vs VoIP: Which One is Better for My Business? 

There are two options to choose from when you’re looking for a phone system for your business – landline or Voice over Internet Protocol (VoIP). The system you select can either make or break your business. As you decide between a landline and a VoIP system, you need to consider several things, including cost, reliability, and functionality. 

What is a landline?

A landline is how the traditional phone system works. They come with copper wires from a local or national telecommunications company to the office environment. Landlines have been tried and tested, but they are old with very little advancement in recent years.

Since it depends on hardware, it considerably costs more than a VoIP setup. This is because you are required to install a private branch exchange (PBX) to serve an office that has various phone lines. You also need more money for upkeep and maintenance of the physical components of the landline system.

What is VoIP?

VoIP is a process of making telephone calls through the internet, rather than through a landline. There are various benefits of this, including the removal of reliance on physical lines, which means that it’ll be easier and cheaper to increase the number of phones for your growing workforce.

By working with a VoIP provider, you’ll get the option of buying the hardware for your business to use in hosting the online system locally using an IP-PBX, or you can decide to host the entire set up in the cloud. Each option has its benefits and price.

How VoIP works?

It works by breaking up your voice into digital packets, such as electronic envelopes, and transmitting those packets as data over the internet to a recipient. Various systems have VoIP, making it accessible to all users that have a good internet connection. 

How to make VoIP calls?

  • A phone and VoIP adapter: With an adapter, you can use a traditional landline phone to make calls through the internet. The adapters can be connected to a phone outlet in the wall or directly into your router.
  • A computer: There are several programs or applications that you can use to make voice calls over the internet, including FaceTime, Zoom, Skype, and Google Voice.
  • A smartphone: You use your smartphone to download apps such as Google Voice or Skype, which you can use to make calls over the internet.
  • A VoIP mobile device: They resemble traditional analog mobile phones but directly connect to a computer network rather than a phone line.

Landline vs. VoIP

  1. Features

Landlines are connected to copper wires that run underground and connect to every other landline phone across the world through networks, also called PSTN or POTS. People have used this system of communication since the 1800s and are considered reliable. One of the most important features of using a landline phone is that it is a tried and tested technology that has proven to be stable over the years.

VoIP has more features than landlines. If you prefer to have more control over your calling experience, it’ll be best to get VoIP. With VoIP, you can use your computer, smartphone, or desk phone to make calls; you only need a stable internet connection to use this device.

  1. Cost

Landlines have more expensive phone bills. This is why most people prefer VoIP setups. As a business owner, you’d love to save on costs; unfortunately, landlines don’t help you do that.

The expenses are from setup fee (which can cost up to $100), a monthly fee (going as high as $100 for every line), and additional expenses quickly adding up. If you need 10 lines for your business, for example, you could be spending as much as $1,000 monthly.

VoIP is considerably cheaper than landlines, mainly due to lower setup fees, little cost of maintenance and lower call charges (you can slash almost every segment of your traditional landline bill with a VoIP). 

Potentially, VoIP has 60 percent lower phone bills, allowing you to save on costs. In addition to these, as your business grows, it’s easier and more affordable to add more VoIP lines for new employees than it ever would be for landline systems.

  1. Reliability

Landlines were reliable in the past because customers could get a different line for each connection, leading to consistent performance. However, landlines are now less reliable because they are becoming obsolete. Most people no more use them. 

In our mobile-driven world today, about 40 percent of households don’t have a landline. Due to this, telecom companies are losing about 700,000 landline customers monthly.

VoIP is reliable because it can perform consistently well into the future. Their constant performance is since they are evolving as opposed to the landline that didn’t change with recent technology. 

As long as VoIP continues to evolve, it’ll remain relevant and reliable. It is estimated that the VoIP industry will reach $140 billion by 2021. This indicates that phone companies and businesses are already investing in VoIP.

  1. Sound quality 

When it comes to sound quality, traditional landlines hold the ice. Although they may not provide the large suite of features available with VoIP, the technology has been modified over the years to ensure that voice calls are as clear as possible, rarely experiencing interference, dropped calls, or poor quality.

Unlike landlines, VoIP wasn’t designed with vocal communication in mind. It was rather made to carry data, and due to this, the road to getting voice calls to be a viable means of connecting hasn’t always been smooth, because anyone who used VoIP in the early days will be able to attest to it. 

However, in recent years, VoIP technology has made some modifications. The goal is that the caller shouldn’t be aware that the call is taking place over VoIP, because they’ll experience better sound quality. 

VoIP sound quality has been highly polished over the years, and it’ll be difficult to tell how different it is from a landline if you opt for a good VoIP provider. Remember that the quality and speed of your internet connection will have a large impact on the quality of your VoIP call.

VoIP vs. Landline – Which one should you use?

If you want advanced functionality for your business at a reasonable price, then it is best to use a VoIP telephone system. VoIP can give the flexibility and mobility that landlines cannot provide. Switching to VoIP will save your business money and provide you with more features than you would have had on a traditional landline system.


Although several factors might dictate which service you use, there are advantages and disadvantages to both landline and VoIP phones. While you can enjoy several features with VoIP, a landline will also give you dependable phone service in case of a power or internet failure.

Overall, VoIP technology is a much better service for business owners. They provide features that a landline can’t provide, your monthly bill will not always be a surprise, and you can directly configure your settings from your mobile or desktop app. VoIP is better than landlines in terms of cost, features, reliability, and technology.