VoIP vs Landline: What Actually Works Better for a Small Business?
If your business still uses an old landline, you may be wondering whether it is worth changing.
A basic landline can seem difficult to replace. It has worked for years, your customers already know the number, and the handset is simple to use. Why change something that is not obviously broken?
For many small businesses, however, a VoIP phone system now provides more flexibility, better call handling and stronger business continuity than a traditional copper line. It can also reduce the cost of running multiple business numbers.
The important point is that changing to VoIP does not mean changing the way your customers contact you. In most cases, you can keep your existing number. Callers dial the same number and have the same experience. The difference is what happens behind the scenes.
What is the difference between VoIP and a landline?
A traditional landline carries calls over a fixed telephone line, historically using copper and the public switched telephone network.
VoIP, or Voice over Internet Protocol, carries calls through an internet connection. A VoIP service may use:
- A compatible desk handset
- A computer or laptop application
- A mobile phone application
- A hosted PBX, which manages users, numbers and call handling in the cloud
A hosted PBX gives your business many of the functions that once required an expensive phone system installed in the office. These can include call queues, auto attendants, voicemail, call transfers, business hours and extensions.
Call quality: can people tell the difference?
With a reliable internet connection and a properly configured service, VoIP call quality can match or exceed a basic landline.
Many VoIP systems support high-definition audio. Voices can sound clearer and more natural than they do over older narrowband telephone services.
Call quality depends on the quality of your internet connection and local network. A congested connection, poor Wi-Fi or an unstable service can cause delay, dropouts or distorted audio. This is why a business VoIP installation should be set up with enough bandwidth and sensible network priorities.
A basic landline has one advantage: its call quality is relatively independent of your business internet connection. If your internet is unreliable, it may still be the better short-term option until the underlying connection is improved.
For most businesses with a stable NBN or business-grade internet connection, this is no longer a major disadvantage for VoIP.
Reliability: what happens if the internet goes down?
This is one of the most common concerns about switching to VoIP.
A traditional landline can sometimes continue working during a local power outage, particularly when used with a basic handset. VoIP equipment, including your router, NBN equipment and desk phones, needs power.
That does not mean VoIP is less reliable overall. A cloud-based system can offer more ways to keep operating when something goes wrong at the office.
For example, calls can be:
- Sent to the mobile app
- Forwarded to a staff member’s mobile
- Answered by someone working from home
- Routed to another office or team member
- Diverted automatically when the main service is unavailable
With Cloud Phone Company, your business can use the mobile app over mobile data if the NBN connection at the office has an issue. Your team can continue making and receiving business calls without being tied to the office or the local internet connection.
For additional protection, businesses can also consider a backup mobile connection, battery backup for important network equipment and clear failover rules.
It is worth remembering that mobile coverage, device battery and power availability still matter. No phone system removes every possible outage. The advantage of a cloud system is that it gives you more options when the office connection is unavailable.
Cost: is VoIP cheaper than a landline?
A single basic landline may be inexpensive to maintain. If you only need one number, one handset and occasional local calls, the cost difference may not be dramatic.
The value of VoIP becomes clearer when your business needs more than a basic line.
Traditional phone services can become costly when you add:
- Multiple lines
- Additional numbers
- Call forwarding
- Call queues
- Business-hour routing
- Voicemail services
- Call recording
- A physical PBX
- Installation and technician visits
A VoIP phone system usually combines these functions into one service. You may pay per user, extension, number or plan, depending on the provider.
VoIP can also make it easier to control call costs, particularly when your team regularly calls mobiles, interstate customers or international numbers. The right plan depends on your call volumes, so it is important to compare the complete monthly cost rather than just the advertised line rental.
What happens when you need multiple lines?
With a traditional landline, adding another line may require new cabling, hardware and a technician visit. Your phone system may also need to be reconfigured.
A hosted PBX works differently. Users and extensions are managed in the cloud. You can add another staff member, remove an old extension or give someone a direct number without installing a new physical telephone line.
This is especially useful for businesses with:
- Seasonal employees
- Contractors
- Multiple locations
- Hybrid teams
- Staff who work from home
- Employees who travel between sites
A person can use the same business extension on a desk phone, computer and mobile app. The customer does not need to know which device answered the call.
Voicemail and call handling
A basic landline generally gives you a number and a handset. Anything more advanced may require additional services or on-site phone equipment.
VoIP gives small businesses professional call handling without the same level of complexity.
Depending on your system, you can set up:
- A recorded welcome message
- “Press 1 for sales” menus
- Call queues
- Ring groups
- Business-hours routing
- After-hours messages
- Voicemail-to-email
- Call transfers between team members
- Call recording
- Call reporting
These features can reduce missed calls and help customers reach the right person more quickly.
They also help a small business present a consistent service when staff are working remotely or when the office is closed.
Can you keep your current business number?
Usually, yes.
You can generally port an active Australian business number to a new business phone service, including a VoIP service. Local numbers, 13, 1300 and 1800 numbers may be portable, although the provider needs to confirm that your particular number and service type can be transferred.
The important rules are:
- Confirm the new provider can port your number.
- Provide accurate account details and authorisation.
- Keep the old service active until the port is complete.
- Do not cancel the old service first.
- Test inbound and outbound calls after the changeover.
The porting process may take longer for multiple numbers, number ranges or complex business systems. Plan the changeover rather than leaving it until your old service is disconnected.
Your customers should not need to update their records. They call the same number, reach the same business and have the same experience.
Do you need to replace your handsets?
Not necessarily, but your current handsets need to be compatible.
Some older analogue phones can work with an adapter. Other businesses choose new IP handsets that connect to the network. Staff who work remotely may use the desktop or mobile app instead of a physical handset.
The basic requirements are usually:
- A suitable internet connection
- A compatible handset, headset or app
- A cloud phone or hosted PBX service
- A plan for power and internet outages
- Number porting, if you want to keep your existing number
A provider should explain what equipment you need before the service is ordered. You should also identify any other devices using the old phone line, such as fax machines, alarms, EFTPOS equipment, lift phones or monitored systems.
Why the decision is becoming less optional
In Australian fixed-line areas, older copper phone and internet services are being progressively retired as businesses move to the NBN or another network.
According to nbn guidance on services being switched off, businesses may need to move existing phone services before the relevant disconnection date. A phone service delivered over the NBN is generally an IP-based service.
The timing and requirements depend on your location and the services connected to your premises. Businesses should also check for special services such as alarms, EFTPOS, lift phones and other equipment that may need a separate migration plan. See nbn’s business special services information for more detail.
This means the question is increasingly not “Will we ever need to move from our landline?” It is “How do we move without disrupting the business?”
How to switch from a landline to VoIP
A typical changeover can be planned in a few simple steps.
1. Review your current service
List your phone numbers, extensions, handsets and any equipment connected to the line. Check your current bills and contract terms.
2. Check your internet connection
Confirm that your NBN or business internet service is stable and has enough capacity for your expected calls. If it is unreliable, address that before moving your main phone service.
3. Choose your devices
Decide whether staff need desk phones, a desktop app, a mobile app or a combination of these.
4. Confirm number porting
Ask the provider to confirm that your existing number can be ported. Keep your old service active while the transfer is processed.
5. Set up call handling
Choose your business hours, voicemail message, call groups, forwarding rules and mobile failover arrangements.
6. Test before cancelling anything
Test incoming calls, outgoing calls, transfers, voicemail and failover. Only cancel the old service after the new system is working and the number port has completed.
So, which works better for a small business?
A basic landline is still fine if you only need one phone, your current service is reliable and you do not need remote access or advanced call handling.
For a growing small business, a cloud-based VoIP phone system is usually the more flexible choice. It can help you:
- Keep your existing number
- Add or remove users quickly
- Work from the office, home or anywhere
- Use a mobile app over mobile data
- Continue operating when the office NBN connection fails
- Add professional call handling without a large on-site system
- Avoid building your business around technology that is being retired
The best system is not simply the one with the most features. It is the one that keeps your business reachable, gives your team flexibility and can change as your business changes.
Ready to move off your landline?
Talk to Cloud Phone Company about switching without disrupting your business. We can check if your existing number can be ported, confirm what equipment you need and set up calls to work from the office or anywhere through the mobile app over mobile data. Call us on 07 5238 8578 or email hello@cloudphonecompany.com.au for a free quote.