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Why a VoIP Phone System Is Cheaper Than a Landline

In This Article

VoIP technology allows voice communications (like phone calls) to be transmitted over the internet, resulting in an significant reduction in communications costs (especially long-distance). VoIP works by converting voice signals into digital data, enabling users to make calls directly from a computer, a VoIP phone, or other data-driven devices. This is generally considered much more cost-effective than traditional landline phone services depending on various factors like service providers and specific plans.

Implementing an Affordable Business Phone System

Business phone systems have evolved significantly over the past few decades. Leveraging the power of the internet as a platform, VoIP (Voice over Internet Protocol) phone systems have become the most affordable choice for businesses. The best VoIP service providers provide affordable features that are challenging to integrate into traditional phone systems.

Related article: Setting up a VoIP Phone System

Use Your Existing Phone System

SIP (Session Initiation Protocol) trunking is a service that uses VoIP technology to connect a company’s existing SIP (Session Initiation Protocol) trunking is a service that uses VoIP technology to connect a company’s existing PBX (Private Branch Exchange) or phone system to the internet. Multiple communication channels are consolidated into a single connection providing VoIP connectivity between on-premise phone systems and the PSTN (Public Switched Telephone Network). Leveraging a SIP trunking service offers cost savings, simplified pricing, predictability in recurring expenses, and reduced equipment maintenance.

Key Benefits Gained from Adding a VoIP Phone System

Lower Cost of Calls

VoIP-to-VoIP calls are typically free, and VoIP-to-landline or mobile calls are significantly cheaper than traditional landline calls, especially for long-distance and international calls.

Reduced Infrastructure Costs

VoIP doesn’t require separate cabling and hardware like landlines, as it takes advantage of existing internet infrastructure.

Consolidated Communication Services

VoIP is the foundation of UCaaS (Unified Communications as a Service) and combines voice, video, and messaging into a single platform, eliminating the need for multiple communication services.

Related article: Why You Should Consider Unified Communications for Your Business 

Maintenance and Support

VoIP providers often handle system maintenance and support, reducing the need for in-house IT staff and resources.

No Long-term Contracts or Hidden Fees

Many VoIP providers offer flexible plans with no long-term contracts or hidden fees, providing predictability in communication expenses in addition to lower total cost of ownership.

Cost Savings on Hardware

VoIP systems are compatible with a wide range of devices, including softphones (software-based phone), IP phones (office phones that connect to the internet), and computers, reducing the need for expensive hardware. 

No Geographical Limitations

VoIP numbers can be used from anywhere with an internet connection, eliminating the need for multiple landline numbers in different locations.

Who Can Benefit From Using VoIP Technology?

  • Small to mid-sized businesses (SMBs) who are looking for low-cost, feature-rich alternatives to traditional landline solutions.
  • Businesses that require flexibility and portability, as VoIP allows calls from anywhere with internet connectivity.
  • Companies who would like to integrate voice, video and messaging into a single platform.

With additional features like voicemail to email transcription, video conferencing, call forwarding and more communication functionality without the extra costs associated are attractive for businesses looking to reduce their overall spending. After careful research and planning, a VoIP phone system can be a very powerful and flexible communication and productivity tool for your business.

Interested in learning more about VoIP phone systems, get in touch with one of our experts.

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