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VoIP vs Traditional Phone Systems

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8 September 2024
Hollie Agombar
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In the past, business communication was all about landlines, otherwise known as traditional phone systems. With the introduction of Voice over Internet Protocol (VoIP), people can now use the internet as their sole method of communication.

In this article, we will look at  VoIP vs Traditional Phone Systems, dive into the main differences, pros, and cons, and discover which is the best option for you and your business. 

What is VoIP? 

VoIP is a technology that enables voice calls using a broadband internet connection instead of a traditional phone line.

It converts your voice into a digital signal that travels over the internet. This innovation has transformed business communication by offering features beyond what traditional phone systems can provide. 

Key Features of VoIP: 

  • Cost-Effective: This can significantly reduce the cost of your phone line using VoIP compared to traditional phone solutions.  
  • Scalability: Easily add or remove phone lines as needed. They provide flexibility to adapt to changing business requirements. 
  • Flexibility: Employees can make and receive calls from anywhere with an internet connection, providing flexibility and enabling remote work. 
  • Advanced Features: Functionalities such as video calls, SMS, voicemail-to-email transcription, call forwarding, and more enhance communication capabilities. 

How does VoIP Telephony Work? 

VoIP technology converts phone conversations into digital data packets, which are then transmitted over the internet to the recipient. 

Codecs compress and divide the voice data packets, making sending them across a local or wide-area IP network easier.

Once these packets reach their destination, the system reassembles them into the original spoken words and phrases. 

Adopting this type of business phone system allows users to enjoy various calling methods. These include using VoIP softphones and phones and connecting traditional analogue phones to the VoIP system through an analogue telephone adapter. 

VoIP Vs traditional telephony lines

What is a Traditional Phone System? 

Traditional phone systems, also referred to as landlines or PSTN (Public Switched Telephone Networks), use copper wires to transmit voice communication.

These systems have been around for over a century and are known for their reliability and consistent call quality.

However, they come with certain limitations in today's digital world. Because of this By 2025, the traditional copper-based PSTN and ISDN network will be completely deactivated, marking a significant milestone in the world's shift towards fully digital networks. 

The switch off is imminent. 

Key Features of Traditional Phone Systems: 

  • Reliability: Highly dependable with consistent call quality. 
  • Security: Less vulnerable to hacking and cyber threats compared to internet-based systems. 
  • Familiarity: Many businesses are accustomed to the operation of these systems. 
  • Limited Flexibility: Restricted by physical lines, making remote work more challenging. 

Comparing VoIP vs Traditional Phone Systems 

 

1. Cost Considerations

VoIP: These systems often have lower upfront costs because they don't require extensive hardware or installation. Ongoing costs are also reduced, as they typically include unlimited calling within certain regions and lower rates for international calls. Business average savings are between 30 and 50 percent.

Traditional Phone Systems: Can involve higher initial costs due to the need for hardware installation and ongoing maintenance. Long-distance and international calls can be significantly more expensive with these systems.

2. Scalability and Flexibility

Internet-Based Systems: Ideal for growing businesses, as they can be scaled up or down easily without needing additional physical infrastructure. This is beneficial for companies with remote workers or multiple locations.

Landlines: Less flexible and often require physical changes and significant costs to add or remove lines. Expanding features usually involves additional hardware, leading to increased expenses.

3. Call Quality and Reliability

VoIP: Call quality can vary depending on the internet connection. A stable, high-speed connection usually results in clear, high-quality calls, but poor connectivity can cause dropped calls and lower call quality.

Traditional Phone Systems: Known for their consistent call quality and reliability, they rarely experience service drops or clarity issues. This makes them suitable for businesses that need uninterrupted communication.

4. Security

Internet-Based Systems: While generally secure, they are more susceptible to cyber threats and hacking. Businesses must implement strong security measures like encryption and firewalls.

Traditional Phone Systems: They are generally more secure and less prone to hacking and cyber threats. The physical nature of these systems makes unauthorised access more challenging.

5. Advanced Features

Internet-Based Systems: Packed with advanced features that boost productivity and collaboration. Common functionalities include call forwarding, voicemail-to-email, auto-attendant, and video conferencing. 

Traditional Phone Systems: Offer basic features like voicemail, call forwarding, and caller ID. Advanced features are limited and often require extra hardware or software, which increases costs. 

How Silver Lining Can Help Implement VoIP 

Silver Lining offers comprehensive VoIP solutions tailored to meet the specific needs of your business. Our team of experts can assist with every transition step, from assessing your current infrastructure to seamlessly integrating VoIP into your existing systems. 

With Silver Lining, you gain access to robust support and advanced features, ensuring a smooth implementation process and reliable communication for your business. 

Whether you need help with setup, configuration, or ongoing maintenance, we can provide the expertise and resources necessary to maximise the benefits of your VoIP system. 

Frequently Asked Questions About VoIP and Traditional Phone Systems 

 

Q1: Are internet-based phone systems better for remote work?

Yes, they are ideal for remote work as they allow employees to make and receive calls from anywhere with an internet connection. 

Q2: What if the internet goes down?

Easily redirect your primary telephone number to a mobile number of your choosing with instant forwarding capabilities. When making outbound calls, our mobile application allows you to seamlessly dial out as if using your physical handset, displaying your DDI or main number for a professional touch. 

Q3: Are VoIP phone systems secure?

While these systems can be secure, they are more vulnerable to cyber threats than traditional systems. Strong security measures are necessary to protect your communications. 

Q4: How do costs compare between internet-based and traditional systems?

Internet-based systems are usually more cost-effective regarding both setup and ongoing costs, particularly for businesses that frequently make international calls. 

Q5: Can I keep my existing phone number with an internet-based system?

Yes, most providers offer number porting, allowing you to retain your existing phone number when switching from a traditional system. 

 

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