October 23, 2023

VoIP vs Landline: The Pros & Cons for Business

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Key takeaways

  • A VoIP phone solution is ideal for customer service-oriented organizations that want to respond to a customer issue immediately.
  • VoIP phones rely on building or residential electrical power to operate, so have an alternate plan if a power outage occurs. A VoIP service provider can help you formulate an alternate plan.

Are you considering using a Voice over Internet Protocol (VoIP) phone in a business office and replacing all landline phones? If you are undecided, this article will address the pros and cons of using VoIP phones over landlines to help you make the right decision for your business.

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

What is VoIP?

Voice over Internet Protocol (VoIP) is a technology that allows users to make and receive phone calls over the Internet. VoIP works by converting your voice into a digital signal that travels over the Internet. The analog voice calls are converted into data packets that travel over the public Internet, similar to email and other data types.

What are the pros of using VoIP?

VoIP users can select different features or functionality with a VoIP phone system. Here are some of the pros when using a VoIP phone system:


VoIP phones use your existing Internet connection to make phone calls. When using VoIP phones, the main costs are the Internet Service Provider (ISP) and the licensing fees with your VoIP phone provider. The VoIP phone provider maintains all software and hardware.

VoIP features

VoIP phones allow voicemails to be forwarded to emails or text messages. VoIP phone provides an option to use mobile applications and softphone software to transfer calls and check voicemails.


Mobile applications and PC softphones emulate the desk phones in your office and provide the ability to transfer calls, put calls on hold, and make outbound calls using your office number. A softphone is software that relies on your device’s speakers and microphone system to communicate over the Internet to a recipient.


The benefit of a VoIP system, if an Internet outage occurs, is that the VoIP provider will automatically reroute your calls to a backup phone number. Another reliability feature of VoIP phones is the built-in redundancy. VoIP systems are backed up by multiple data centers that replicate your phone system instances. Your phone system instances are stored at various data center locations in case the primary instance of your VOIP system fails.


VoIP phone systems can instantly scale up to meet your business needs without delays or additional investments. VoIP systems allow you to add or remove phone lines as needed. VoIP systems enable you to add devices like desk phones, and the VoIP phones can be programmed remotely and shipped to customers as plug-and-play devices.

Easy to manage

 VoIP phones are user-friendly devices that are easy to use. VoIP phones were designed to emulate the specific functions of a traditional phone. The call park feature is designed for a user receiving concurrent calls that can be transferred to another VoIP phone for another person to answer.

Lower International Calling Cost

The long-distance or international calling costs are considerably cheaper when using a VoIP phone. OpenPhone is a VoIP application used on iOS, Android, and web browsers. It allows users to make unlimited worldwide calls and communicate with customers using SMS and MMS text messaging.

What are the cons of using VoIP?

VoIP phones offer several benefits that make them a viable option, but here are some limitations you must be aware of before making your final decision.

Bandwidth dependent

A good Internet connection is a requirement for using a VoIP phone. Still, even if you have an Internet connection, you may not have sufficient bandwidth for a quality connection for voice communications. A call may drop or remain spotty during a VoIP call if the bandwidth connection is degraded. A Business can check network speeds during high usage periods if you plan on using a VoIP phone system.

Emergency calls

The 911 system was built for landline use, and because landline phones are in a fixed location, the system will notify first responders of your location. Calling 911 from a VoIP phone will only transmit the address you provided when the phone was set up for 911 service, which is not good if you can’t speak and emergency services personnel are going to an incorrect address.

VoIP phones need continuous power

VoIP phones need a continuous power source to remain operational. If a building loses power, the VoIP phones will not work, and you’ll have to rely on mobile devices to communicate.

Voice and call quality

Voice quality is a common problem that shows up as a delay during a call or reduced voice quality, making it hard to communicate. Bandwidth issues can degrade a VoIP call, but the VoIP systems can detect a bandwidth issue and reduce the quality of the call so the conversation can be completed. The call may drop if bandwidth gets low or the voices sound scrambled, making the call ineffective.

What are the challenges of using a VoIP phone?

VoIP Phones use an ISP, and though the ISP service may be functioning, there may be times when the bandwidth is insufficient to make a successful call. Having enough bandwidth to make a VoIP call is a recurring challenge for businesses that use a VoIP system. Other challenges when using a VoIP system are:

Echoes occur during VoIP calls

Echoing noise in a call can be the device, the headset lag, or network speed issues. To isolate the issue, you need to check all three items independently. Ensure the VoIP phone has the latest update, and the headset is properly plugged in. Lastly, check the network bandwidth to ensure it is adequate to place a call.

Call links with no sound

When the call is connected, there is no sound. To resolve this issue, check your firewall to ensure the correct ports are open.

VoIP security

VoIP systems are susceptible to cyberattacks like any digital device. You can secure a VoIP phone with a strong password, close port 80, enable Network Address Translation (NAT), and turn off the phone web interface are some actions you can take to minimize a cyberattack.

What hardware and software are needed to use VoIP?

Switching to a VoIP phone system requires VoIP phones that range in price from $50 to $170, depending on the features and extensions you want. The other piece of hardware you will need is VoIP headsets, which cost between $25 and $50. You will also need to subscribe to a VoIP phone service, and depending on the features you want will dictate the price. The computers, the Ethernet network, and the ISP provider are the services already present and used daily.

What is a landline?

A landline is a traditional phone that must be physically connected to a phone jack in a residence or business environment. Landline phones are also called Public Switched Telephone Network (PTSN), Plain Old Telephone Service (POTS), or analog phones. Landlines connect to an interconnected public telephone network that uses physical infrastructure to connect phone calls.

What are the pros of using a landline?

Landlines are still used today despite the popularity of cell phones. Similar to cell phones, landlines have their pros and cons too.

Emergency uses

A significant advantage of using a landline is a power outage does not impact them. Landlines run on a different power source than what utilities use for power in a building or residence. Landlines have an advantage when an emergency call is made because the landline is associated with a specific address that emergency personnel can locate. Mobile devices may have an address associated with them. Still, emergency services can go to the wrong location if the user is at a different location than what’s on the mobile device.

Cell quality

A location with insufficient or unreliable cell signal is a reason for keeping a landline. Before removing a landline from a location, the cell signal strength must be tested for a robust connection.

Easy to find and use

Cell phones can be easily misplaced when they are most needed. If the cell phone is on vibrate or the battery has died, a landline is always in the same location, ready for use. A landline can be used to call the misplaced cell phone.

Good for office settings

Landlines are helpful when a professional business meeting requires reliable communication. The sound quality will be consistent using a landline, and that is not guaranteed when using a VoIP phone.

What are the cons of using a landline?

If there are pros about a landline, cons exist about landlines as well. The cons about a landline are the following:


Maintaining a landline and a functioning cell phone can be considered excessive. Bundling a landline and cell phone can decrease the price, but if over time the landline is never used, removing it is a cost-saving. VoIP services like Skype or video chatting on Facebook or Google are options besides a cell phone.

Limited availability

Landlines are in fixed locations and are available for use at that location only.

No additional features

Landline provides no extra features and can only receive and make calls. Cell phones can do web browsing and send reminders or alerts. Cell phones also offer biometric security features such as facial or voice recognition.

Compare using a VoIP versus a landline for business

Your voice is converted into a digital signal when using a VoIP phone. The signal is sent over the Internet to the person you are calling. On the other end, the VoIP phone receiving the call will convert the digital signal back into an analog signal and play it on the VoIP phone’s speakers. 

A landline phone converts sound into an electrical signal that travels to a telephone company’s central office through copper wires. The central office converts the electrical signal into sound and sends it to the person you call. The noted difference is that VoIP uses the Internet to make calls, and landlines use copper wires to make calls.

VoIP phone systems are becoming more popular because of the ability to communicate with a VoIP phone, a computer, or a mobile device. The advantage of being able to communicate remotely outside an office setting is a decided advantage over landlines.

Expert Tip

Landline phones do not allow users the flexibility to answer a call from anywhere, and landline phone systems are expensive to set up. VoIP phones also let you make international calls at a fraction of landline international calls.

VoIP phone systems are more scalable than a landline phone system, so VoIP phone systems can grow as your business grows. In addition, VoIP phone systems are easy to use and can be set up and operational within minutes. Traditional analog phones can be challenging to use if you have multiple extensions or you are required to make international calls.

VoIP phone systems also offer a variety of features, such as voice-to-text transcription, online recording, and video conferencing. Look at Figure 1 to see how VoIP and Analog systems are set up differently.

Compare VoIP versus landline cost

VoIP phone systems are considerably cheaper than traditional phone systems. Traditional landlines use dedicated telephone lines and are charged for calls and telephone line rental, while VoIP phones use the existing ISP connection. A VoIP user will spend between $10 and $30 per user per month on a VoIP system. The average cost for a landline is about $42 a month but can range from $25 to $65 a month.

What business environments will benefit from using VoIP phones?

VoIP phones can benefit any business that makes a lot of international or national calls. Companies that are continually growing and need additional communication devices must consider a VoIP phone system if they use landlines. Converting to a VoIP phone system can drastically lower the cost of adding landlines, including reducing the bill for national and international calls. Any cost-conscious or customer service-oriented organization that wants the ability to communicate with its customers at any time needs to consider a VoIP phone solution.

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

Featured Partners: VoIP Software

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 Grasshopper

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Grasshopper is a cloud-based virtual phone system that helps small businesses be more professional, responsive, and efficient. The platform provides all the communication tools to sound big and grow bigger. It equips growing businesses with a phone number plus all of the features of a robust phone system without the expense of additional devices.

Learn more about Grasshopper

3 Ooma

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Ooma is a business communication product that features voice over IP services, messaging via chat and SMS functions, and video conferencing. This VoIP product works over a multitude of devices for seamless access while working on-premises, remotely or on-the-go. Find out more about the features of Ooma to help you choose the right VoIP solution for your business.

Learn more about Ooma

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