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VoIP vs. Landline: What’s Best for Your Business?

When you’re setting up a business phone, you need to decide whether to use a landline—a classic phone connected to underground copper wires—or a more modern technology called VoIP (Voice Over Internet Protocol). Here’s a crash course in the cost, reliability, and features of each.

Cost

If bottom-line costs are your top priority, VoIP is your friend. Both setup costs and running costs are higher for landlines.

Setting up a new landline costs around $100 per phone number. Monthly fees for landlines are also set per number. So, if your company needs 12 unique lines, you could easily end up spending more than $1,000 every month on telephony.

On top of that, adding functionalities to a landline (e.g. call conferencing, voicemail, and call transfer) requires a specialized on-premise hardware system called a Private Branch Exchange (PBX). Installing an on-premise PBX can cost between $500 and $2,000 per user right off the bat. Then, after the hardware is installed, repairs and routine maintenance both need to be done by trained experts. If that sounds pricey, that’s because it is.

With a VoIP-based Cloud PBX system, you don’t need any of that expensive hardware to get the same benefits (and more). That’s why VoIP is the uncontested winner when it comes to cost. Medium-sized and large companies with multiple landlines have been able to shave 60% off of their phone bills by switching to VoIP!

Reliability

Landlines have one reliability benefit that VoIP can’t currently match: They work during power outages as well as Internet outages. So, if your business phone must remain active during power outages, you probably need at least one landline. In many cases, however, you can still save money with VoIP by setting up emergency call forwarding from your VoIP number(s) to a landline.

If you are located in a remote area where Internet service isn’t reliable, VoIP might not be a good primary phone solution for you. That said, for the vast majority of businesses, reliability concerns around VoIP are mythological.

Features

With a landline, you can get call conferencing, queuing, transfer, voicemail, and business extension lines, as long as you are willing to pay the premium cost. Landlines do not offer any on-the-go capabilities or app integrations.

The GlobalMeet offering comes pre-loaded with the following features:

  • A mobile app that facilitates group chat, texting and calls
  • Call recording and transcription
  • A custom greeting that supports business and holiday hours, and a dial-by-name directory)
  • Voicemail, voicemail transcription, and web-based voicemail management
  • Custom on-hold music
  • SSO integration

Is it time to switch to VoIP?

For many businesses, the right VoIP plan can save money and make communication workflows more efficient. That’s why more businesses are making the switch from landline to VoIP every year. Learn more here!

About Kelly Strain

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