December 19, 2023

VoIP vs Cellular: What’s the Difference?

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Key takeaways

  • VoIP relies on the internet, making it best for businesses with stable internet connections and a focus on cost-effective long-distance communication.
  • Company cellular services are designed for mobility, making them ideal for businesses with on-the-go communication needs.
  • The choice between the two technologies depends on factors such as mobility needs, internet availability, cost considerations, and the desired features for communication.

Voice over Internet Protocol (VoIP) and company cellular services represent two distinct communication technologies that organizations often leverage for communication. VoIP, a technology that enables voice calls over the internet, has gained prominence for its cost-effectiveness and flexibility. In contrast, company cellular services rely on traditional mobile networks, offering mobility and widespread coverage.

What is voice over Internet Protocol (VoIP) and how does it work? 

VoIP is a technology that allows voice communication and multimedia sessions to be transmitted over the internet instead of traditional telephone lines. It converts analog audio signals into digital data packets, which are then transmitted over the internet and reconverted into audio at the receiving end. VoIP relies on the Internet Protocol (IP) for data transmission, making it a cost-effective and flexible alternative to traditional landline phones.

What is company cellular and how does it work? 

Company cellular typically refers to a cellular service provided by a mobile carrier for business purposes. It involves the use of mobile phones, smartphones, and other cellular devices within an organization to facilitate communication, connectivity, and collaboration. This service is often tailored to meet the specific needs of businesses, offering features such as group plans, mobile device management, and business-centric applications.

What’s the difference between VoIP and company cellular? 

VoIP and cellular communication are two distinct technologies for voice communication, and they differ in several key aspects. 

VoIP offers several advantages, including cost savings, flexibility, and the ability to integrate with other digital services. It has become a popular choice for businesses and individuals seeking efficient and feature-rich communication solutions. Common applications of VoIP include voice calls, video conferencing, and multimedia messaging over the internet.

On the other hand, company cellular services provide businesses with a mobile communication solution that supports the connectivity needs of a modern workforce. These services play a crucial role in ensuring that employees can stay connected, collaborate efficiently, and access essential business applications while on the go.

EXPERT TIP: While both VoIP and cellular communication serve the purpose of voice communication, they operate on different infrastructures, have distinct cost structures, and are suitable for different use cases based on factors like mobility and network dependencies.

What are the pros and cons associated with VoIP and company cellular services?

The choice between VoIP and company cellular services depends on the specific needs, priorities, and circumstances of the organization or individual users. Considering the benefits and drawbacks associated with both technologies should allow businesses and individuals to make an informed decision as to what technology will work best based on various factors, including cost, coverage, and ease of use. 



  • Cost savings: Offers lower costs for long-distance and international calls compared to traditional phone services.
  • Flexibility: Allows users to make calls from anywhere with an internet connection, providing flexibility and mobility.
  • Scalability: It’s easy to scale VoIP systems up or down based on the needs of the organization. Adding or removing users is typically straightforward.
  • Integration: VoIP can integrate with other digital services and business applications, enhancing overall communication and workflow efficiency.


  • Dependence on internet: VoIP quality is highly dependent on the stability and bandwidth of the internet connection. Poor internet conditions can result in call quality issues.
  • Power dependency: During power outages or internet disruptions, VoIP services may become unavailable unless backup power sources or contingency plans are in place.
  • Security concerns: VoIP systems can be susceptible to security threats such as hacking and eavesdropping. Implementing robust security measures is crucial.
  • Learning curve: Transitioning from traditional phone systems to VoIP may require some training for users, especially if they are not familiar with digital communication tools.

Company cellular


  • Mobility: Provides the flexibility for users to make calls and access data services while on the move within the coverage area.
  • Reliability: Generally reliable, offering consistent service within their coverage areas.
  • Wide coverage: Provides extensive coverage, allowing users to stay connected in various locations.
  • Ease of use: User-friendly and most individuals are already familiar with mobile phones and their features.


  • Cost: Can be more expensive, especially for international calls and data usage. Roaming charges can also add to the overall cost.
  • Limited features: Basic voice and data services, though it may lack some of the advanced features available in VoIP systems.
  • Limited scalability: Adding or removing users may involve more administrative work and coordination compared to the scalability of VoIP.
  • Security concerns: Can be vulnerable to security threats, so implementing encryption and other security measures is important.

What are some recommended software options for VoIP technology?

There are numerous VoIP software options available, catering to various needs and preferences. Here are some recommended choices, considering factors such as features, user-friendliness, and popularity:

Zoom: Known for its video conferencing capabilities, Zoom also offers VoIP for audio-only calls. It’s widely used for virtual meetings and collaboration, with features like screen sharing and chat.

Microsoft Teams: Beyond Skype integration, Microsoft Teams is a full collaboration platform that includes VoIP calling, video conferencing, file sharing, and integration with other Microsoft 365 applications.

Cisco Webex: This solution offers VoIP along with video conferencing, team collaboration, and webinar capabilities. It’s suitable for businesses of all sizes.

Viber: A popular app for personal and business communication, Viber offers free voice and video calls, messaging, and file sharing. It’s available on various platforms.

Google Voice: Integrated with Google Workspace, Google Voice provides VoIP calling, video conferencing, and collaboration features. It’s suitable for businesses using Google’s suite of productivity tools.

Is VoIP or company cellular best for your business?

Choosing between VoIP and company cellular services for your business depends on various factors, so it’s essential to carefully evaluate your specific needs and circumstances. The decision depends on your business’s unique needs, priorities, and the particular use cases of your communication requirements. In some cases, a hybrid approach that combines both VoIP and cellular services may also be a viable solution.

It’s important to stay updated with the latest developments in telecommunications and technology to fully understand the trajectory of VoIP and company cellular services. Industry trends are often influenced by technological advancements, regulatory changes, and the evolving needs of businesses and consumers.

Looking for the latest in VOIP solutions? Check out our VOIP Software Buyer’s Guide.

Featured Partners: VoIP

1 RingCentral Office

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RingCentral is a business VoIP provider that offers cloud-based communications including message, video, phone, and collaboration features. It offers a number of different tools that you can buy as standalone products or as part of a unified communications platform. Some features include call screening, internet fax, call forwarding, visual voicemail, multi-level Interactive Voice Response (IVR), video conferencing, and team collaboration.

Learn more about RingCentral Office

2 VirtualPBX

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VirtualPBX lowers your business communication costs by 40%-80% with our award-winning voice and text messaging services. Our phone plans boast 99.999% reliability, backed by 24/7 support 365 days a year. Experience seamless connectivity and the industry's best customer service. VirtualPBX is your go-to for cutting-edge small business VoIP solutions.

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VoIP and company cellular services provide voice communication through different infrastructures, with VoIP relying on the internet and cellular services operating on traditional mobile networks.

The choice between them depends on factors such as mobility needs, internet availability, cost considerations, and the desired features for communication. Some businesses may even adopt a combination of both to meet diverse communication requirements.

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