Small Business Office Phone System: VoIP or Traditional Landline

More than anything, as a small business, you need to be able to rely on your communications mediums, whatever they may be. In today’s market, it may not be as simple as getting a phone number and using a basic, traditional landline. Today, we will explore the difference between the phone systems for small business using VoIP versus the traditional landline.


Small Business Office Phone System VoIP Traditional Landline

Voice over IP (VoIP) is a relatively new type of small business phone system that works on your internet connection instead of using traditional phone lines. The use of VoIP both for personal and business use has made significant leaps and bounds in the past few years – the market is even seeing a significant shift in those choosing to no longer access traditional landlines in lieu of new technology. The market share of landline phones is expected to be 16 percent by 2015 as the combination of VoIP and cell phones push traditional small business phone systems out of homes and offices.

What is it about VoIP that is so attractive to small business owners? Let us explore some of the benefits of using VoIP.


A cost analysis of using VoIP phone systems immediately shows a significant benefit. There is an initial fee associated with purchasing the handset, which usually costs around $50 on the low end to several hundred, depending on the features one wants. There are no installation or maintenance costs associated with this type of system, unlike that associated with traditional landlines. Additionally, there is an ongoing cost that is based on a subscription; it is, based on the number of lines used – the cost is generally as little as $20 to $30 per line per month. In addition to this being significantly lower than most landlines, additional features are often part of this cost, features such as free local and long distance calling, the ability to transfer and queue calls, or to have calls ring multiple lines simultaneously.

On the other hand, a traditional business phone system offering features and functions such as call transfer, intercom, group ringing, etc., may average around $35 to $45 per month per line, with similar costs for initial purchasing of the handsets. If you have greater needs and more lines to coordinate, then you will need Multi Line PBX systems, which has additional features, requires installation and ongoing maintenance of that system.


One of the initial concerns with VoIP based phone systems was the clarity of phone calls – one can normally depend on a traditional line to be clear without interruptions or unnecessary pauses. While this could not always be said about the VoIP system, increases in internet speeds and technology innovation among VoIP service providers has taken this concern away.

Furthermore, business VoIP systems offer features that are simply not available to the traditional phone systems. One of the most obvious is that of mobility. VoIP provides options to use smartphones as an extension of the office phone system for sales people and traveling professionals. Mobility and portability go hand in hand here – personal phones, laptops and other portable devices become an extension of the office phone system as well. This allows for businesses that may not have a traditional in-office approach to business be connected always and available, while remaining flexible enough to work from anywhere.

If you are looking for a company that can provide your small business with a complete business phone system loaded with features at an affordable rate, call us at Call Ring Talk today.