VoIP vs Landline: 5 Scenarios Worth Debating

For a long time, landlines were the best option available to most businesses. They were simple to set up and use, required no special equipment or technical knowledge, and even long-distance costs seemed reasonable.

But in recent years, VoIP technology has evolved, offering the same or better reliability as landlines, often at lower costs, while packing in features like video conferencing and messaging. On top of that, phone carriers are no longer required to maintain traditional PSTN landlines – they are replacing old copper with fiber.

When to consider VoIP vs landline

VoIP will likely be the default choice moving forward, but can landlines serve a purpose while they’re still around? There are a few specific situations where you might want to use landlines alone or with a hybrid VoIP setup.

Scenario 1: You have lots of analog equipment

If you’ve invested a lot of time and money into building a PBX infrastructure, the costs of switching over all telephones, switchboards, wiring and calling plans may give you second thoughts about upgrading.

Imagine you run a hotel with a complex switchboard, hundreds of phones and wiring running to every room. A straight move to VoIP would be expensive and potentially disturb guests to the point that it could affect bookings.

At the same time, your analog equipment will eventually need replacement. The good news is you can transition to VoIP without a sudden overhaul.

Hardware like analog telephone adapters and SIP trunking technology can bridge your old phones to VoIP without replacing equipment. It’s even possible to use both of these technologies as a hybrid solution.

Scenario 2: You have no access to broadband in your area

If you run a small business in a very remote area, it’s not uncommon for “high-speed internet” to crawl like a turtle. In some rural areas, your only option for connecting to the internet is still a dial-up landline modem.

As of mid-2023, some 42 million Americans had no broadband internet access. They still rely on old landlines, mobile data or, in best cases, satellite internet. However, each of these connection types has downsides that make it not an ideal choice for VoIP.

VoIP doesn’t need high bandwidth, but it does require a broadband connection with a minimum speed of 25 Mbps or higher to work. VoIP thrives on quick, reliable internet; the requirements only increase with more lines.

If your region lacks broadband access, here are a few options that could make VoIP possible:

• Starlink: Starlink offers faster internet than most other satellite providers, with plans ranging from 40 to 220+ Mbps with minimal latency. You can access Starlink services from almost anywhere.
• Fixed Wireless Access: Some internet providers are expanding their reach using 4G and 5G towers or other fixed points to transmit data wirelessly. Plans and pricing vary, but most carriers claim speeds in the range of 100–300 Mbps, depending on your proximity to an access spot.
• Community wireless networks: In some rural communities, residents collaborate to build and operate their own wireless networks. This can be a cost-effective option but requires community buy-in and technical expertise to set up and maintain.

Scenario 3: You have a large or geographically dispersed team

For businesses with teams spread across countries or continents, keeping costs low is key. Most landline providers help cap costs by offering lower international calling rates or fixed monthly rates for calls to specific countries.

However, many of today’s VoIP providers include international calling along with other features. VoIP might help streamline operations and cut costs if your business has several geographic locations.

Cloud-based VoIP can serve the whole team, regardless of location, with little physical infrastructure. Remote workers can communicate as efficiently as in-office employees. Some providers even offer dedicated international numbers, allowing local calls in different regions.

You can equally consider a hybrid approach where you retain landlines for specific, high-volume international calls where they offer a cost advantage while utilizing VoIP for general communication and collaboration within and between teams.

Scenario 4: You have unique security concerns

It’s a common fear that internet-based communications aren’t safe enough for data storage, which drives some businesses to stick with landlines and only store files on local servers.

The problem is that work can’t happen in a vacuum. These businesses end up using a patchy communication system — phones for this, email for that and another chat program for support. Ironically, this cobbled approach can put systems at higher risk, as each program opens new doors to security threats.

Enterprises with robust tech infrastructure may be able to manage network security effectively, but smaller businesses can benefit from the outsourced security provided by cloud-based VoIP platforms.

Most providers offer security features like encryption protocols (AES-256), access controls and compliance certifications to ensure your data is protected from hackers, eavesdroppers and other threats. Furthermore, providers regularly audit their systems to ensure ongoing protection and employ intrusion detection systems to identify potential threats before they wreak havoc.

In other words, they take care of the highly technical stuff and have dedicated teams to help them. In turn, businesses can create an even safer environment with standard security practices like using strong passwords, securing firmware on VoIP phones and implementing firewalls.

Scenario 5: You have data privacy and regulatory compliance concerns

If your organization is worried about maintaining strict data privacy standards and following compliance regulations while using VoIP, it can be done with the correct setup and by following a few guidelines.

Some leading VoIP providers, like Nextiva, offer HIPAA-compliant plans. However, it’s important to note that a few features, like texting and voicemail transcription, are not compliant. As another example, most businesses must follow GDPR guidelines, including data access rights and deletion procedures.

Providers like Nextiva are aware of regulations and can help you learn how to stay compliant within constraints.

Security and compliance are essential to any business, but we’ve reached a point where it’s difficult to do business without the convenience VoIP has to offer.

VoIP vs landline communication

While there are some scenarios where you might consider keeping your landline or incorporating VoIP into your existing system, there are technical differences in how these systems function.

How landlines work

Landlines send analog voice signals through copper wires. These signals require no internet connection and offer consistent quality, but they travel at slower speeds and the cables are susceptible to physical damage.

Because the infrastructure is relatively simple, the investment is minimal — you may just need phones and a modem if you’re still using dial-up internet. But you’ll need a more complex setup if you have a phone system with multiple lines or use your landline for calling alongside a dedicated internet connection.

How VoIP works

VoIP does things differently because it functions digitally. An Analog-to-Digital Converter converts voice into digital data packets. This data is compressed using audio codecs like G.711 or G.722, routed through servers, and sent over the internet using protocols like IP (Internet Protocol) and UDP (User Datagram Protocol) to speed up transmission.

At the receiving end, packets are reassembled and converted back into analog signals, allowing you to hear the original voice. VoIP communication is much faster, smoother and clearer — provided you have high-speed, reliable internet.