RingLeader Blog

Is VoIP Phone Service a Better Value than a Traditional Phone Service?

February 12, 2020

Over time, companies are transitioning from traditional phone services to VoIP phone service. So if your company is still on traditional phone service, or you are starting a new company and trying to decide which one to go with, you need to ask yourself whether VoIP phone service is going to be a better value than a traditional phone service.

What is VoIP Phone Service?

VoIP phone service takes analog audio signals and converts them to a digital signal that can be routed through standard IP networks. VoIP works with standard phones (with adapter), newer IP phones, smart phones, computers, tablets, etc. With a digital signal using a standard IP network, VoIP phone services can use an existing network infrastructure that you need for computer access anyways, so you no longer need a dedicated phone network. As well, multiple campuses can be hooked up to the same phone network easily when using VoIP phone services, no longer requiring multiple networks to be cross connected.

Features of a VoIP Phone Service

VoIP phone services come with many features that, for traditional phone services, would either be costly additions or not available at all. VoIP often comes with features like caller ID and answering services by default. VoIP phone services can also be easily encrypted, since the audio information is converted to digital before being transmitted. This means you have a much more secure connection to wherever you are calling (as long as the end is also VoIP). Speed dialing features are much more easily accessed, with memory banks built into the phones to remember all the previous calls made, but also lots of storage for phone numbers in an address book type of system. Conference calling and multi-party calls are also much easier to facilitate with VoIP phone systems. VoIP systems can also easily put calls on hold, park a call, or transfer a call between phones quickly.

Since VoIP phone services use the internet outside the building, setting up multiple office locations on the same phone network is easily done between the offices. Effectively, both locations will act as a single location for the purposes of your phone network, where traditional phone systems will need more complicated infrastructure to connect two buildings. As well, this means that remote use of the phone system is also possible, so phone calls can be routed to employees’ smartphones anywhere in the world (as long as they can get a stable internet connection.)

Traditional Phone Systems

While VoIP has many advantages, there are still some features of traditional phone systems that are better. Voice phone quality is more consistent with traditional phone systems (although with a stable network, VoIP phone quality is superior.) As well, traditional phone systems have a dedicated power source from the telephone exchange, so they do not go offline during a power outage (VoIP systems can have battery backups, but they only last so long). VoIP systems are also vulnerable to Denial-of-service attacks, especially with a public IP address.

Cost Differences

Cost difference may be where the true value of VoIP starts to shine. With a traditional phone system, depending on your location, you could be seeing upwards of a $250/month cost for just a 5-phone-number system. VoIP phone systems, however, often cost adjust per phone you add to the system, starting at prices in the range of $35/month, with additional phone numbers being only $20/month or less each. For companies of any size, VoIP phone systems will often be the most affordable and flexible option.

VoIP Phone Service

If you are looking for VoIP phone service for your business, no matter the size, contact RingLeader today and talk with their sales representatives to set up a 30 day risk-free trial.