Skip to Main Content

What Is VoIP? How Does It Compare to Traditional Phone Systems?

What Is VoIP? How Does It Compare to Traditional Phone Systems? - Business VoIP Phone Systems & Managed IT Services in North & South Carolina - hostedvoip


If you are in the market for a new phone service, it can be difficult to evaluate the many types of solutions and providers available on the market. Voice over Internet Protocol (VoIP) has emerged as the leading phone service for organizations, but it’s important to understand how VoIP compares to a traditional phone system. To help you determine if VoIP is a good fit for your organization, it is important to understand the features and benefits of each solution. TotalBC, a leading provider of the Carolinas, has delivered thousands of phone systems to customers and understands how vital a good phone system is to an organization. That's why we want you to know the differences between VoIP and traditional telephony. By the end of this article, you will have a clear understanding of what VoIP telephony is, what traditional telephony is, and the differences between the two.

What Is VoIP?

VoIP (also referred to as Hosted VoIP or a cloud-based phone system) is a type of telephony that uses IP protocol to enable you to make and receive calls over the internet. With the trend towards remote work, VoIP has become increasingly popular and is used by many organizations in nearly every industry. One of the main advantages of VoIP is that it requires little to no hardware at your physical location. This makes VoIP more cost-effective and efficient, and it works effectively in a remote work environment. It allows you to make and receive phone calls using a wireless phone from any location with a strong and reliable internet connection. A VoIP connection is integrated into your phone system by a VoIP provider that manages the hardware and services from their data centers. VoIP technology functions by taking your analog signal and converting it to a digital voice signal that is sent to your VoIP provider. The VoIP provider receives this signal and then connects it to the Public Switch Telephone Network (PSTN), allowing you to make and receive calls over the Internet.

On the other hand, a traditional phone system (also known as a landline, Plain Old Telephone Service (POTS) line, or Private Branch Exchange (PBX) phone system) enables the user to make and receive calls over physical wires. Most traditional phone systems use underground copper wires to make and receive calls. However, new technology has made this mostly obsolete. This results in the need for hardware at the customer’s locations and space for the hardware to reside. Additionally, the management and maintenance of this solution are usually taken care of by an in-house IT team.

What Is The Difference Between VoIP And Traditional Phone Systems?

There are several differences between VoIP and traditional telephony. One of the main differences is call routing. VoIP calls are routed over an internet connection while traditional phone calls are routed using physical wires. As a result, VoIP requires far less hardware than a traditional phone service. Traditional phone systems have hardware that must be installed on the premises of the customer’s location.

Are The Prices Comparable?

A VoIP solution is less expensive than traditional telephony for a couple of reasons. The main reason is the hardware costs. A traditional phone service requires wires to be installed to make and receive calls, in addition to hardware costs such as landline phones. VoIP, on the other hand, requires significantly less hardware and uses an internet connection to make and receive calls. Since VoIP does not require a POTS line, additional phones are an optional expense. Because calls are made over the internet, any device can be used to connect the call such as a computer or cellphone, eliminating additional costs for phones. Maintenance costs are also significantly different with a VoIP solution. Since VoIP has very little hardware, there is virtually no cost to maintain your phone service. Alternatively, traditional phone systems can require maintenance where there are problems with the hardware, resulting in increased costs.

In conclusion, understanding the differences between VoIP and traditional telephony is crucial in determining which solution is right for your organization. VoIP is a cost-effective and efficient solution that is ideal for businesses. TotalBC can help you determine if VoIP is the right solution for your organization and can provide you with a reliable and cost-effective phone system.

To learn more about our VoIP systems, click here to schedule a call with one of our trusted professionals or for emergency assistance, call our offices at 866-673-8682.

What Our Clients Are Saying:

  • If You Are On The Fence About TotalBC, Get Off

    five stars
    Thanks for choosing TotalBC