More and more households are turning to cheap VOIP Services to replace their Landlines.
Statistics show that over 40% of US households still use landlines, but the percentage is decreasing every year. Most households only use cell phones or other communication systems like VoIP.
The percentage of mobile or VoIP communication system for businesses is on an exponential ascending trend year after year.
Business owners need fast, reliable, and flexible communication systems that can integrate other features and multimedia communication.
Voice only is not enough in a world where teams and the business environment is highly mobile.
Can I have a VoIP Service Package for Home ?
What is the Best VoIP service for my home ?
Can I use my normal phone for VoIP Calls ?
What are VoIP and landlines communication systems?
VoIP, Voice over Internet Protocol, is a phone service over the internet. It uses a network connection to place calls regardless of the distance.
The steps are similar to the traditional landline telephony and include signaling, channel setup, digitization of the analog voice signals, and encoding.
Instead of being transmitted through physical circuits, the data is packed and sent over an internet network.
The data is encoded using audio and video codecs and then decoded at the other end using complex algorithms.
Landline communication systems are phone services that use metal wire and optical fiber for transmission.
The data is packed and coded, but the transmission is physical through cables that connect underground with other landline phones across the world.
A large number of users still uses the system, regardless of the expansion of mobile and VoIP systems due to its high reliability.
They also require minimal maintenance and are century proven secure and stable.
Landlines vs. VoIP – Pros and Cons
If you are thinking of replacing the landline with a VoIP system, here are some comparative criteria to consider before making a decision.
In terms of features, landlines have a clear disadvantage since they can only send out voice data.
They may be stable and secure, but they lack in multimedia transmission features.
Moreover, some landline providers offer the possibility to include call forwarding, voicemail, or conferencing, but the cost per month per user significantly increases.
VoIP is mobile and have 100% portability.
You don’t have to be in the office to make or receive phone calls, which makes it perfect for remote teams.
VoIP technology includes useful features like auto attendants, call management, call analytics, voicemail, voice to text, voice to email or video calling.
Also, the system can be used to make your business more efficient by integrating several third-party tools like sales software, CRM, or email marketing software.
Don’t worry if your business needs are growing. You can add as many lines as necessary without any copper wiring.
The cost is a deciding factor in a landline vs. VoIP debate.
Landlines require to set up costs and then a monthly charge per each line installed.
Additional needs like call transfer, queuing, or other call management features require Private Branch Exchange (PBX).
PBX is a private in-house telephone network.
Installation and maintenance of a PBX come with additional costs.
VoIP technology can guarantee an up to 70% cost reduction compared to landlines.
Most providers offer low rate packages starting at up to $20 for a cloud PBX.
This allows your teams to be connected to the central phone system while working remotely.
No extra charges are imposed, other than your agreed monthly plan.
Add on features like call management come included in the base plan without any extra charges.
The reliability is one of the most indisputable advantages of the landlines since they’ve been here since the 1800s. Each connection gets a separate line making it consistently performant.
However, as people become mobile, their communication needs increase and landlines become obsolete.
Landline performs consistently well, but their performance is highly limited and doesn’t meet the needs of today consumers.
VoIP is continually evolving and improving.
The companies heavily invest in VoIP; the industry is expected to reach $140 billion by 2021. Currently, the VoIP systems have a 99% uptime (operating time).
A significant disadvantage of VoIP is the fact that they are reliable as long as your internet is stable.
Weak connection or insufficient bandwidth lead to bad or lost signal.
VoIP stability is dependent on the internet, but providers invest heavily in improving Broadband, 4G, and now 5G networks.
The landline technology converts voice into an electrical system that is transmitted through cables.
The call is moved through several switches at local, regional, national, and international levels.
The digits in the phone number represent the code used for routing.
They rely on a complex network of cables, making it outdated in today mobile world.
VoIP uses the internet for all communications.
The voice signals are compressed into packets of data that are sent through your network to the destination.
The VoIP provider uses a cloud PBX to route the call.
From the PBX, the call data can be sent to any landline or VoIP where it is decompressed and converted back to voice signals.
It is the modern and improved way businesses are communicating with customers around the world.
VoIP technology is continually improving but still has its disadvantages.
The main issues with many internet-based technologies are latency and jitter.
The data packets are compressed and reassembled to create the original message. Sometimes the process can experience delay or errors in reassembling the data.
The reasons for theses issues vary from a poor internet connection, inadequate router, or insufficient ethernet cables.
VoIP providers invest heavily to limit and improve this technology and eliminate these issues.
Can VoIP replace your landlines?
More and more individuals and business owners are switching from landlines to VoIP technology nowadays.
The cost reduction, the flexibility, scalability and multimedia, and other business efficiency software integration are clear, indisputable advantages for switching to VoIP.
Landlines incline the balance with better and constant voice signal, reliability, and stability.
However, companies do not invest in landlines anymore, and they become an obsolete technology since they do not answer the consumers’ today needs.
The VoIP service market is expected to expand 10% every year while landlines are left behind.
To V.O.I.P. or Not to V.O.I.P.
The verdict between landlines and VoIP depends on your business-specific needs.
Therefore, if your business needs are growing, and you require extra features or mobility, then VoIP can be a viable solution.
However, if your teams work in remote areas with a weak internet signal, then a landline is still a reliable and stable communication method.
The final decision needs to be made after a thorough internal analysis.