Today’s fast-paced development in technology brought a lot of changes in the telecommunication systems of businesses. Since the introduction of the internet, online transactions and online communication dominated the industry.
The conventional method of communication was replaced with online telephony as it is more flexible and efficient than the traditional telephone system. To date, most businesses are shifting their telecommunication systems into an online platform.
VoIP, known as Voice over Internet Protocol, is the latest trend in the telecommunication industry today. Let’s take a closer look at why companies are shifting their communication systems in using business VoIP.
What is VoIP?
VoIP system is a software that uses the Internet to make calls without having to go through traditional phone lines. VoIP lets you call anywhere as long as you have an internet connection available. You can use VoIP by downloading the application or by connecting it to your existing phone line.
Who invented it?
The Voice over Internet Protocol was discovered around 1995 when the company VocalTec developed the first-ever internet phone. It was created to save money on long-distance and international calls but transitioned into a more reliable tool for telecommunication.
Through this Internet Phone, calls can be made through connected speakers and a microphone as long as both the caller and the receiver are using the same software.
VocalTec compressed the voice signals and translated them into digital packets to be distributed over the internet for communications use. The sound quality was still underdeveloped at that time but it started the discovery of the first-ever Internet Protocol phone.
Vocaltec continuously worked with other software companies to add other advanced features such as voicemail applications, computer-to-telephone, and phone-to-phone calls. It was during the 21st century when other VoIP features were integrated into applications and equipment to make it a more efficient tool for telecommunication.
Which countries use it?
Since its discovery, countries all over the world have started to adopt the use of VoIP. The top three countries with the most number of VoIP subscribers are the following:
- The United States of America with over 34 million subscribers
- Japan with 31 million subscribers
- France with 22 million subscribers
The number of countries and companies adopting the use of a VoIP phone system increased in number because of the significant advantages that it provides in businesses.
The Difference Between VoIP Phones and Landline
The advances of telecommunication technology paved the way for the innovation of better systems for companies to apply in their business and improve how their employees can get the work done faster.
One positive aspect that the Internet has transformed is telephone service. When you analyse VoIP vs landline pros and cons, it is important to know their differences in a lot of aspects.
Landlines are the telephones that you have at home or that you see in phone booths. It has a solid core, twisted pair of copper wire, and is plugged into two or four-pin wall jacks for it to work. Since it needs to be installed by your telephone provider, landline phones are assigned to a specific location or address before you can use it.
VoIP phones, on the other hand, do not use traditional twisted pairs of copper wire to function. It is connected with the same broadband internet connection that you plug in a computer or router.
You can easily access VoIP phones through any internet-based equipment such as laptop, tablet, smartphone, and VoIP cordless phone. As long as you are connected to the internet, you can make calls in any location.
The traditional landline phones still use an old-fashioned analogue system that is transmitted through your local or regional provider’s copper wiring. But before you can start using a landline service, you will need a private branch exchange hardware on-site. It is a telephone system that allows you to create multiple phone extensions and transfer calls from one caller to another.
On the other hand, VoIP phones use a cloud-based solution to transfer voice messages from the caller to the receiver. VoIP does not need any hardware setup and will usually come with a variety of tools that are designed to help you communicate better.
#3 Installation costs
Landline phones cost more when it comes to the installation cost. There are a lot of wirings that need to be installed compared to VoIP phones that do not need any hardware to function.
However, you still need to pay for installation service for both but there is a significant disparity in the fees. The cost of landline installation is more expensive than VoIP phones.
VoIP has a less on-premise set-up of server equipment and its data is saved on a cloud, which makes it easier to maintain compared to landline phones. Your provider can do off-shore service maintenance such as software updates as long as you are connected to the Internet.
It is a different case when it comes to landline maintenance. Since the wirings of landline phones are needed to be checked for faulty cable splices or loose and exposed wires, in-house personnel is needed for maintenance. Regular visits from your provider must be scheduled accordingly to make sure that your equipment is running as usual.
The comparison between VoIP vs landline is a matter of new and old technology. As the generation becomes more advanced, we are also moving into a more efficient way of using telecommunication with more developed resources.
Features of Business VoIP Phones vs Landline
The reason why most businesses shifted from the traditional landline phones to VoIP is their difference in features. Let’s take a look at how they differ in some aspects.
|How calls are made||3-way calling||Conference calls||Messaging||Call recording|
|VoIP Phones||Through the internet on any internet-enabled devices||Yes, by adding another person to the call and by just pressing a few buttons||Add as many people as you want to join the conference call||Messages come in the form of text messaging||Record a call by pressing a few buttons on your devices|
|Landline Phones||Uses wired landline devices||Yes, but the process is complicated. The original caller cannot add more people to the call.||A Limited number of people who can join the conference call and the process takes a long time.||A text message is converted to a voice message.||You need to purchase hardware equipment to record a call.|
Call Rates of VoIP Phones vs Landline
The development of VoIP phones opens a lot of opportunities for businesses to expand their reach internationally. Since VoIP features are accessible through the Internet, VoIP to VoIP calls is charged free on a local range while national, international, and mobile calls are charged at a nominal rate. VoIP providers like Wave also offer packages at a monthly subscription with free unlimited calls included.
However, the rate is different for landline phones. All calls are charged even on a citywide range. National, international, and mobile calls are charged at a higher rate, sometimes twice as much as VoIP phones.
Another difference to take note of between VoIP phones and landlines is the ability of VoIP phones to make calls from non-phone devices. Landline phones cannot make calls through a browser since the transmission of calls is through the provider’s copper wiring. But for VoIP phones, it is possible to call from a browser or a non-phone device.
The cost and expenses are usually the deciding factors when comparing VoIP vs landline for business. Company owners would prefer to save on costs as much as they can; this is the reason why businesses choose the most affordable system for their business.
For landline phones, the subscription rate is normally not under £16 for a monthly fee and can go as high as £57 depending on your provider. The catch is, aside from your monthly subscription fee, you can also be charged separately as per the number of hours which exceeds the plan coverage included in your monthly subscription.
Let’s say you have 15 phone lines for your business. Each line is considered and installed separately which means you have to pay for each of the lines that can cost you a minimum of £240 per month. From a business perspective, this is not a practical way to save on overhead costs.
VoIP, on the other hand, has a cheaper subscription rate where you can save up to 60% on your phone bills. Below is a monthly subscription rate for Wave’s business phone lines. Take note that the rates come with benefits and features that you won’t get from landline phone services.
|Wave 100||100 landline or mobile minutes||From £9.99 per month per user|
|Wave 1000||1000 landline or mobile minutes||From £9.99 per month per user|
|Wave 3000||3000 landline or mobile minutes||From £9.99 per month per user|
Note that the rates above include the following features:
The inclusion of advanced features in VoIP systems is definitely worth the cost of your monthly subscription. When it comes to customer service, the two service methods also differ to some extent.
Landline phones need to be physically checked for problems because of its wiring. If you have any concerns with your landline phone, you need to call your provider and schedule a visit to fix the problem. Whereas for VoIP, system problems can be solved in real-time because your provider can easily monitor your system offshore.
The support availability of VoIP is 24/7, while landline providers usually operate only during business hours. So if you are experiencing any connection problems in the middle of the night, you have to wait until tomorrow for it to be fixed.
VoIP vs landline sound quality is one of the most important aspects that companies should know before shifting their telecommunication system into a new one.
Landlines have proven to be more reliable when it comes to calling quality because they are not dependent on internet signals. No matter where you would make the call, you can hear the conversation clearly and this has been proven and tested for a long time already.
Landline phones can operate and be used even during outages without any worries. While they are unerring, the calls coming through landline phones are stable most of the time.
For VoIP, its key weakness is also its main strength which is the internet. Every feature and service of VoIP is dependent on a strong internet connection. Without a strong bandwidth, VoIP will not function properly and your access to its use will be limited.
You will experience choppy calls and unclear conversations while using VoIP if your internet connection is not stable. However, if you have a dependable internet provider, the audio and call quality is way better than the landline. Before you decide on purchasing a VoIP service, ask your provider if your internet is stable enough to avoid any disruptions.
Add on Equipment
Most VoIP providers include amazing features to their monthly subscription packages when you purchase. But they still offer an optional upgrade for other services and equipment that you might need such as the following:
The charge for these add-ons is only minimal as service fees are normally free of charge when it comes to the installation of additional equipment. However, landline phones charge differently.
If you need any additional service or hardware for your landline phone, you will have to pay a significant amount of fees. Equipment such as intercom, call transfer, call messaging and call queuing need a Private Branch Exchange (PBX). It is a private telephone network that you can control in-house to use the add-on services for your landline.
The installation of PBX will cost you around £460 to £900, excluding the fee of the technician who will install the equipment for you. Since landline phones do not have too many advancements, hardware equipment is usually charged separately since you have to buy them one-by-one.
Landline upgrades will cost you much, that’s why businesses shift to VoIP systems because it is relatively cost-efficient.
Security and Downtime
Two of the most essential factors to consider when setting up a communication system are security and downtime. These two greatly affect how your business runs when not set up properly.
Customer data and Wiretapping
Whether your company uses VoIP systems or traditional landline phones, security is an important matter that needs to be addressed. Without an established security measure, it will be difficult to handle a data breach and privacy issues that might happen in the future.
Here are the ways on how providers protect customer data and privacy:
These processes and guidelines are very important for the safety of clients’ data. However, when it comes to other unforeseen privacy issues such as wiretapping, providers follow a strict and rigid encryption method to make sure that the calls will not be tapped easily.
Calls made through VoIP are encrypted which makes it difficult for wiretappers to listen to your calls and conversations. One of the advantages of using VoIP is that your IP address is not fixed on a physical location which makes it hard to trace and tap.
If your business is using a VoIP system, you can attest to how frustrating it is to have an unstable connection problem. Since VoIP is internet-based, a strong internet connection and signal is a must. However, this may not happen as you’ve expected.
The reason why most providers include the feature ‘call forwarding’ is when you are experiencing connection problems, calls can still be directed to their service feature.
When call forwarding is enabled in your system, a call will be automatically forwarded into a preset number if you lose your internet connection. The tech support of your internet service provider will help you fix your connection by asking you to power cycle your modem or router. But if this does not work, the call forwarding feature is your saving option.
Things To Consider Before Choosing a Provider
Now that you are aware of the benefits of VoIP vs analogue, it is time to consider choosing the best provider for the telecommunication system for your business.
Add here why do you need to choose the right provider?
VoIPTech Solutions offers the best features designed to help your business grow. Here are the key benefits of their VoIP system:
- Ultimate flexibility– Choose a provider that gives you the flexibility to access their service on any of your devices in any location and allows you to choose your number whether international, local, or non-geographic.
- Huge cost saving– Save on expensive on-premise PBX systems, with a low-cost monthly rental and with all features included.
- Super-quick setup– Learning technology is difficult so it is best to have a provider that does not have a complicated system set-up so you can just easily use it anytime.
- Safe and secure– As mentioned earlier, security is very important that is why you should choose a VoIP provider that uses a cloud system to backup all your settings, business data, and configuration.
- Simple to manage– Skip the hassle and choose a provider that allows you to manage all your accounts anywhere through a control panel feature.
All these features are very important to remember when choosing a VoIP provider. On top of that, VoIPTech offers more advanced and amazing features with the inclusion of our affordable plans. To know more about VoIPTech’s services, you may give them a call or visit their website.
VoIP technology has advanced to the point where it is no longer just an option for businesses to adapt— it is a must-have. You can get a lot of benefits from it with additional features that allow you to operate globally while being cost-efficient.
A right selection of a VoIP provider is crucial to your decision to shift to new technology. VoIPTech has been in the industry for over 20 years, helping UK businesses with their communications, cloud services, and telephony.
To continuously provide the latest trends in business needs, VoIPTech offers Wave— a new VoIP phone system to help grow your business. It is designed with key benefits and features that are essential for your business.
VoIPTech takes pride in its expertise in the VoIP system.
Call 0203 745 0201 or visit our page for a smooth and hassle-free transition with exceptional customer support.