Yes, a Voice over Internet Protocol (VoIP) business phone is often cheaper than an analog phone system. In fact, studies have shown that small businesses save up to 45% on their phone bill each month when they switch to VoIP. Therefore, it’s no surprise that 31% of businesses currently use VoIP, and that number is growing all the time.

However, business VoIP pricing depends on several factors, so costs will vary based on the services selected and the number of users. Lt us have a look at the different factors that go into determining VoIP vs. landline cost to give you the fuller picture of what to expect.

Are VoIP Phones a Cheaper Alternative to Traditional Phones?

In general, VoIP phones are less expensive than a traditional wired telephone service. In fact, studies have found that when a business changes from a traditional phone service to VoIP they:

  • Save an average of 50% to 75% on overall phone cost
  • Lower their local call costs by 40%
  • Reduce cell phone and long-distance fees by an average of R1,727/month

Why Is VoIP Cheaper than Using a traditional Telephone?

The biggest reason VoIP is less expensive than a traditional telephone service is because it uses internet connections and devices you already have, instead of needing a totally separate system and extra hardware. VoIP operates over the internet, which most businesses already have. This means VoIP services won’t require additional wires to be installed for each line.

There are other ways VoIP vs. analog represents increased value to a business without a bigger price tag. These include:

  1. Increased flexibility of staff, since they can answer calls from anywhere, so they aren’t chained to their desks.
  2. Added team communication and collaboration, when everyone can stay connected
  3. Reduced expense by using a single provider, since now a company doesn’t need separate office phones, cell phones, and data plans.
  4. Fewer IT pieces to break, meaning less time spent troubleshooting problems.
  5. Improved feature availability, so a business can add things like call forwarding, auto attendants, and paperless fax in the same system, often without any additional cost.

What Is the Difference Between a VoIP Phone Line and a Normal Landline?

A VoIP phone line involves the transmission of packets of data over the internet, while a landline sends analog signals over dedicated copper wires through the public switched telephone network (PSTN).

There are some definite advantages to VoIP due to these differences. If asked to give three advantages of using VoIP, we would say:

More features — The internet connection inherent in VoIP systems means there’s a huge range of additional features possible compared to an analog system. These include things