Every year, a steady stream of individuals are bypassing the use of landlines in favour of online or mobile connections. The business telecoms world is seeing a similar trend, as organisations switch to internet-connected communication. In fact, Session Initiation Protocol (SIP) and Voice over Internet Protocol (VoIP) technologies showed double-digit growth in 2017.
What is VoIP?
Put simply, VoIP is a type of telephony that uses an internet connection instead of a traditional landline. A landline uses coded pulses of electricity to transmit soundwaves over fibre optic cables or copper wire; whereas VoIP transmits calls through the same cables as an internet connection. Soundwaves are converted into digital data that then travel to the receiver.
- 15%: growth in the SMB VoIP market from 2019 to 2025
- 115 million: global VoIP users
- $120 billion: market size by 2024 for corporate users.
- 28.47%: growth at a CAGR of during the period 2016-2020
The next question business owners are asking is: Which is better for business telecoms, VoIP or landline?
To help you compare business telecoms solutions, we’ve unpacked a few of the pros and cons of VoIP.
The business benefits of VoIP
- Easy to set up: a VoIP system only needs a calling device, internet connection, and the VoIP software to work. The setup of this system is straightforward, with little to zero downtime on the company network.
- Mobility: VoIP services are not fixed to a specific location, allowing you to use your mobile phone as an extension of your office phone. This is a major benefit for companies with employees who work remotely.
- Advanced functionality: VoIP offers more than just voice, with a wide selection of additional features, such as video conferencing.
- Cheaper: VoIP calls are significantly cheaper than landline services and offer free international calls. The installation and maintenance of the hardware and software also come at a lower cost than that of traditional systems. Substantial savings can be enjoyed by SME business owners – with at least 40% cost reductions on local calls, and up to 90% cost reductions on international calls.
- Scalability: VoIP systems only rely on an internet connection, allowing for an unlimited number of lines.
- Streamlined solution: a fixed monthly cost makes financial management easier, and having one supplier for both data and voice provides greater efficiency and linking of technologies.
VoIP’s potential pitfalls
- Security: the security of the line is reliant on the level of security of the internet connection. For this reason, VoIP connections are easier to remotely hack than landlines, especially if the network security is not set up to be resilient as it can be.
- Internet-dependent: VoIP calling relies on the level of quality and stability of your internet connection. Businesses with high call and internet traffic volumes may experience network issues if their Internet connection is not fast enough or if the power is out.
- Software issues: if an unstable operating system or VoIP is used to host calls, the quality and reliability can be compromised.
- Low-speed connections: businesses without a high-speed connection or those in more remote areas may not have a suitable connection speed for high-quality VoIP.
So, which is better – VoIP or landline?
Although every business has different needs, we believe that VoIP is the superior solution in most cases, enabling digital transformation and helping businesses keep up with the times. VoIP comes with features and benefits that landline technology simply cannot match.
Leave it to the business telecoms experts
At Smarter Business, we can provide clarity on your business telecoms questions. Once we fully grasp your infrastructure and operational requirements, we can then go to market and help secure the best available deals for you. Get in touch for a free quote.