voip vs traditional phones

VoIP Phone Solutions vs Traditional Services

If you are currently looking for phone service options for your business, you can install a VoIP solution or a traditional phone solution. Both options meet certain needs, but many businesses are finding that VoIP technology has improved beyond the capabilities of a traditional phone system. To help you select the best system for your business, review the side-by-side comparison of VoIP and traditional phone services below.

What is VoIP?

VoIP, or Voice Over Internet Protocol, describes the use of internet lines to provide phone services. Many businesses are moving to VoIP because it provides increased functionality and improved quality over traditional phone services. Since VoIP services are provided via internet lines, the quality of the internet connection should be a major consideration when evaluating the switch to a VoIP system.

Equipment Requirements

Since additional equipment typically comes with additional cost, business owners should understand the equipment they will be required to purchase with any phone service. Additionally, registering for any phone solution without the proper equipment can cause considerable frustration and could result in lost business due to communication down time until the proper equipment can be obtained.

  • For VoIP Phone Solutions

    Making and receiving phone calls over internet lines requires a special line adapter. Fortunately, this adapter is relatively inexpensive (<$100), and installing the adapter is a simple process that does not require installation by an experienced technician. A VoIP system will also require access to a high-speed internet line, which may require additional equipment.

  • For Traditional Services

    Basic phone service can be provided with little upfront equipment cost, but businesses with specialized needs may need to purchase additional equipment. Since traditional phone setups cannot natively offer services such as intercom systems or call routing, businesses who need these features must purchase specialized devices that can cost thousands of dollars.


In addition to costs for equipment, each phone solution will have costs associated with the monthly services provided. Since ongoing monthly costs have a significant impact on a company’s bottom line, business owners should evaluate which long term costs will be more economical based on the services needed.

  • For VoIP Phone Solutions

    There are many variables that can affect monthly costs for any service, but VoIP systems typically cost approximately $20-25/month per line. This estimated cost includes a variety of features, installation, and monthly maintenance fees, but any additional costs of a required internet connection are not included.

  • For Traditional Services

    As with VoIP services, monthly costs for traditional phone services can vary considerably by the provider and geographic location. The average costs for business lines are typically between $60-90/month per line. Traditional business phone systems also typically incur a large up-front installation charge, which can be over $100.


Businesses with a customer service focus often have unique needs in a phone system for handling large call volumes. Even for companies without a large customer service focus, phone system features can streamline business operations and improve efficiency.

  • For VoIP Phone Solutions

    Since VoIP systems function over an internet connection, providers can typically offer a wide range of features that support business operations. Many features are included in the monthly cost and do not incur additional charges. VoIP phone systems offer the standard features provided by traditional phone services, but they can also offer:

    • Mobile portingVirtual automated attendants
    • Online portal for managing features and lines
    • Scalability to add more lines without incurring additional installation charges
    • Anonymous call rejection
    • Call monitoring and routing
    • Voice to text transcription
    • Call recording
  • For Traditional Services
    • Most traditional phone service providers offer a standard suite of features that appeal to many users, such as call waiting, call forwarding, call blocking, and voicemail. Features that are specific to businesses, such as call analytics and business integrations, are typically not offered or are extremely costly.


No matter how inexpensive a phone solution may be, it is ultimately worthless if it isn’t reliable. Uptime, or the percentage of time that a solution is working, is an important metric for business owners to consider.

  • For VoIP Phone Solutions

    For reliable VoIP providers, system uptime typically measures 99.999%. This translates to less than 6 minutes of downtime in an entire year. Most VoIP providers have redundancy built in to their system to minimize downtime and keep services running for all clients, even when issues occur within one area of the system. If users are experiencing issues with VoIP service, it is more likely related to the quality of their internet connection and not the service itself.

  • For Traditional Services

    While traditional POTS (Plain Old Telephone Service) lines are reliable, the uptime metrics can vary greatly based on geographic location. Construction, weather, and other variables can affect telephone uptime, especially when the local provider becomes overwhelmed with many users experiencing issues at the same time. Furthermore, the rise in internet-based services and cell phones has caused a significant decline in the number of traditional phone users. Because of this trend, telecommunications companies are choosing to invest in cellular and internet-based infrastructure instead of improving POTS systems.

How to Switch from Traditional Services to VoIP

If your business would benefit from the cost savings and flexibility of a VoIP system, switching from a traditional provider can be a simple and straightforward process. Outline the details of your business needs so you can easily communicate the number of lines and features needed to properly support your employees. Find a reputable VoIP provider who offers a good support system and will help you through the transition process.

Cloud Solutions for Contact Centers

As the technology that supports cloud computing becomes more robust, companies are looking for innovative ways to conduct business through cloud-based platforms. Customer service teams can now utilize integrated cloud-based solutions to run a fully operational call center without the need for expensive equipment. Cloud-based solutions offer contact centers a myriad of other benefits that make exploring this option worthwhile.

What is a contact center?

A contact center is a central hub that handles all communication with customers or clients. Contact centers go beyond a traditional call center by handling communications via chat, email, social media, and even video feeds. Since contact centers employ multiple agents handling many customers through various communication channels, they need a solid, reliable communications infrastructure with applications that support their operational goals.

Cloud Solutions for Contact Centers

Cloud solutions improve contact center efficiency by providing tools, features, and applications that integrate multiple communication channels. By utilizing a cloud-based solution, companies can access many different features without having to purchase multiple separate programs. Cloud solutions can also facilitate agents operating in multiple office locations, or even remote workers. A cloud solution will typically offer the following features to streamline contact center efficiency:

  • Time management tools to track service and wait times
  • Call routing and management tools to send customers to the correct department as quickly as possible and allow supervisors the opportunity to monitor calls as needed
  • Channel integrations to allow customers to communicate with agents via a variety of platforms
  • Detailed dashboards and analytics to provide accurate and timely metrics for decision making
  • Customer service and support to manage tech support issues quickly without the need for an in-house IT team
  • Integrated software applications to streamline business operations and share data between different business teams