VoIP vs Landline: Which Is Best for Your Business?

difference between VoIP and landline phone

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When it comes to equipping your business with the perfect communication system, two options arise modern VoIP and traditional landline.

Voice over Internet Protocol (VoIP) is a digital telephone system that uses the Internet to make calls instead of the traditional analog system. It is a flexible and scalable communication system with effective features and affordable costs. On the other hand, landlines are physical telecommunication mediums that transmit voice signals using wired systems, such as copper wire and fibre optic cables.

However, which one is most suitable for your business?

The decision between VoIP and landline isn’t a one-size-fits-all scenario. So, without taking any time, let us clear up all the doubts about VoIP vs. landline to help improve your business communication system.

Differences between VoIP and Landline

Factor VoIP Landline
Technology Utilises the Internet for digital voice transmission. Relies on traditional copper or fibre optic cables for analog voice transmission.
Cost-effectiveness More affordable compared to landline services. Tend to be more expensive.
Features available Offers feature such as digital interface, IVR menue, call queuing, virtual phone numbers, call forwarding, and more. Include features like voicemail, call waiting, and caller ID
Reliability Highly reliable, often with uptime and redundancy options in place. Not very reliable due to potential outages and maintenance requirements.
Sound quality Voice quality varies based on internet connection quality. Provide consistent and high-quality voice transmission.
Scalability Highly scalable, allowing for easy expansion or reduction of services as needed. Limited scalable, often requiring additional physical lines and equipment for expansion.
Hardware requirements Operate with an internet-connected laptop/computer or optional desk phones. Require traditional desk phones connected to the physical phone line.
Mobility options Allows access from anywhere in the world with an internet connection. Allow access from the location of the physical phone line, limiting mobility.
Integration capabilities Integrated with CRM, email, and other business software. Limited integration options, although standalone service Bluetooth may be available.

What is VoIP?

VoIP is a technology that enables the transmission of voice and multimedia content over Internet protocol networks. The system consists of a specialised set of hardware and software that facilitates us in making VoIP calls for real-time communication.

VoIP calls are made using different equipment, such as VoIP adaptors, computers, and smartphones. The best part of VoIP technology is that traditional phones can also be used for VoIP calls if they have internet capabilities and are compatible with the technology used in VoIP systems.

Businesses can use a VoIP system to establish a long channel of communication across different geographical locations without relying on local landlines.

How does VoIP work?

When someone makes a call using VoIP, the call is passed from the device to a router. The router then passes the voice signal to the VoIP phone server. The voice is converted into a digital signal and sent to the recipient through the Internet. The other end of the phone converts the digital signal into audio with the help of software.

VoIP Features

VoIP is taking over the traditional phone due to the variety of its features. These features are proven to be best for the business. Some of their features are:

Voicemail to Email

The voicemail messages received in the VoIP system are automatically transcribed and sent to the user’s mail as text or audio. The VoIP system’s natural language processing technology converts voicemail into text.

This feature not only provides convenience but also allows for quick review and response to messages, even when you’re away from the office.

Advanced Call Management

Unlike the traditional landline phone, VoIP provides tools to manage incoming and outgoing calls. The advanced call management consists of call forwarding, routing, queuing, and interactive voice response.

These features allow businesses to prioritise and route incoming calls based on the purpose of the call, customer type, and other factors. They solve customer’s queries and improve customer service.

IVR-Auto Attendant

Interactive voice response with auto attendant is an automated phone system feature that automatically plays pre-recorded greetings and call menus, such as for Billing Press 1 and for Sales Press 2, that direct inbound callers to the right agent, department, or submenu.

It enables businesses to handle common customer inquiries, route calls to the appropriate department, collect information from callers, and perform tasks such as bill payment or appointment scheduling without the need for human intervention.

Conference Calls

VoIP simplifies the setup and management of conference calls, allowing multiple participants to join a single call from different locations. Businesses can conduct virtual meetings with clients, colleagues, or remote teams easily, fostering collaboration and productivity.

Online Call Statistics

VoIP systems provide detailed call analytics and statistics, allowing businesses to track call volumes, durations, and other metrics in real-time. These insights enable businesses to monitor performance, identify trends, and make data-driven decisions to optimise their communication strategies and improve customer service.

Virtual Phone Number

A virtual phone number is a telephone number, just like a landline number, that uses the Internet to make phone calls. It is assigned to the VoIP account by the VoIP provider and is available for local, international, and fancy toll-free numbers.

Small to large businesses can obtain local or toll-free numbers from different area codes, allowing them to establish a presence in various regions without the need for physical offices.

Interested in obtaining a virtual phone number to enhance your business communication? NSWIT Support has been offering dependable VoIP services for over a decade, assisting in establishing a professional image for any business. Contact us for tailored solutions!

Business Text Messaging

Many VoIP platforms include business text messaging capabilities, allowing users to send and receive text messages from their business phone numbers. This feature enables businesses to communicate with customers and clients via text message, offering a convenient and efficient channel for inquiries, reminders, and notifications.

What equipment is used for the VoIP phone system?

The most important requirement for using VoIP is a strong and reliable internet connection. NBN is the best option for Australians as it offers the fastest and most dependable service.

For businesses of all sizes, having the necessary hardware is crucial to enable communication from the VoIP system. What is this hardware? Let’s find out.

VoIP Phone:

  • Hard phones: Specialised digital devices similar to traditional landline phones for making and receiving VoIP calls.
  • Softphones: Software applications installed on computers, laptops, or mobile devices that transform them into VoIP-enabled devices


Headsets are devices that are used for listening to audio along with a microphone for speaking.  It helps to improve the call quality by cancelling the outdoor noise and improving audio clarity.

Computers or Laptops

Computers and laptops are necessary to operate softphones. They serve as the platform for running the VoIP software application. It allows users to access the VoIP system and make/receive calls through web-based applications.

VoIP Server:

The VoIP server is the central station that connects the hardware with the VoIP system and helps activate its features. The VoIP provider provides these servers.

When you are looking for a VoIP provider, consider the quality of service they provide, the features they offer, and the price range.

Want to get the benefit from different VoIP features? NSWIT Support is a quality VoIP service provider in Sydney that provides multiple VoIP features at reasonable pricing. 

Also ReadHow to set up VoIP phone system for small business? 

What is a landline?

A landline is a traditional telecommunications system that uses physical wires or cables to transmit voice signals between callers. It typically involves a wired connection between a telephone handset and a local telephone network infrastructure, which may include copper wires or fibre optic cables.

There are two types of landline phones available: Corded and Cordless. Corded landlines have a cable connecting the phone base and the receiver, while cordless landlines have a wireless connection between the base and the handset.

How does the landline work?

The landline phone converts sound into electronic signals and passes them through cables. The signal is routed through the public switched telephone network (PSTN) to reach the recipient’s phone line. On the receiving end of your phone call, your voice is converted back into sound waves for the other person to hear.

Features of the landline

The traditional landlines have come a long way. In recent years, we have seen many technological advancements in phone service. Some of them are:

Direct Distance Dialling

Direct Distance Dialing allows users to place long-distance calls directly without the need for operator assistance. This feature is beneficial for growing businesses and achieving better customer satisfaction.

Call Forwarding

Call forwarding is a feature that allows customers to redirect incoming calls to another number. It helps businesses temporarily route calls to a mobile phone or another designated number, ensuring that they remain accessible even when they are not physically present at their landline phone.

3-Party Conference

3rd party conference allows businesses to add a third person to an ongoing call. Businesses can hold group discussions or meetings without the need for additional equipment or services. It saves time and improves internal communication among the team.

What equipment is required for a landline?

The landline phone system has been in operation for over a century now. While it requires only three items, the installation process requires a professional technician.

Some of the pieces of equipment required for the business phone system are given below:

Desk phones

These are the physical phones used by individuals to make and receive calls. They come in both corded and cordless varieties.

Base Station (PSTN)

PSTN is the base station, a traditional circuit-switched telephone network that consists of a network of cables, switches, and infrastructure maintained by telecommunication companies.

Phone Cables and Jack

Phone cables are used to connect the desk phone to the base station or wall jack. These cables transmit voice signals between the phone and the telecommunications network. Additionally, a phone jack is required to connect the phone to the main telephone line in the building.

Physical wires, such as copper wire or fibre optic cable, are used as phone cables to connect to the telephone network.

What are the advantages and disadvantages of VoIP and landlines?

Both VoIP and landlines have advantages and disadvantages. Let’s take a quick look at their pros and cons.

Pros and Cons of VoIP

Pros  Cons
  • Cost-effective
  • Flexible as you can easily add or remove users and features as needed
  • Global Access and Mobility
  • Easy Integration with Other Systems
  • Advanced Features
  • Reliant on Internet Connection
  • Low voice quality during periods of high internet traffic
  • Vulnerable to hacking, malware, and other cybersecurity threats
  • Power Dependency
  • Compatibility Issues

Pros and Cons of Landline

Pros Cons
  • Reliable
  • Less vulnerable to hacking
  • No Dependence on Internet Connection
  • Consistent and high-quality audio
  • Limited Mobility
  • Lack of Advanced Features
  • Limited Scalability
  • Dependency on Infrastructure

Which business may find a landline suitable?

Small businesses situated within well-established traditional phone network areas, with no immediate plans for expansion, and not reliant on advanced VoIP features find landline phones effective for their communication needs.

Which businesses find VoIP suitable?

Companies with remote workers, global expansion, scaling startups that can utilise the VoIP features and small and large enterprises looking for professional communication systems can find it suitable.

With the rise of technology, every business is updating and embracing modern technology. It is time for you to update your business communication system.

How does a business benefit from transitioning from landline to VoIP?

The use of traditional landline phones is declining daily. A survey conducted in Sydney showcased that more than 60% of small and large businesses use VoIP systems. VoIP’s advanced technology and effective features make it the number-one choice for business.

Here are some of the benefits that a business can get when they switch to VoIP.

Cost Saving

VoIP calls utilise the internet for transmission, eliminating the need for separate phone lines and reducing long-distance and international calling charges. Similarly, the VoIP system is set up using the business’s existing internet infrastructure. It does not require a separate network for voice and data and reduces the cost of infrastructure and maintenance.

Increased Flexibility

VoIP provides increased flexibility in communication, allowing users to make and receive calls from any internet-connected device, including computers, smartphones, and tablets. It gives businesses unparalleled flexibility for remote workforces or employees on the go. This flexibility improves accessibility and productivity for the entire organisation.


VoIP systems are highly scalable, allowing businesses to easily add or remove phone lines and extensions as their needs evolve. Unlike traditional landline systems that require physical infrastructure changes to accommodate growth, VoIP systems can be quickly adjusted through software configurations, making them ideal for businesses of all sizes.

These systems are highly scalable. It allows businesses to easily add or remove features as needed without the hassle of physical infrastructure changes.

Improved Collaboration

Business VoIP helps team members collaborate through features like video conferencing, screen sharing, and instant messaging. These collaborations promote virtual meeting setups that allow real-time communication despite geographical location. It improves the productivity and communication system within the team.


Landlines have been used for over a decade, and many businesses still use them. However, the Internet has become the universal platform for any mode of communication. Remote work and global expansion are some of the primary components of a business. Businesses are now changing their mode of communication towards VoIP, leaving the landline service behind.

Are you still unsure which communication solution to choose? Or are you ready to switch to VoIP? Our team is dedicated to helping you navigate the transition to VoIP seamlessly, ensuring that your business stays connected and competitive in today’s dynamic business landscape. Contact us today to make the transition to VoIP with confidence and elevate your communication capabilities.

VoIP is an emerging technology and is the best choice for growing small and large businesses. Take your time and choose the mode of communication according to your requirements.



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