What is VoIP?
The technology of Voice Over Internet Protocol allows cloud communication between two or more business locations. It uses the internet instead of traditional copper lines to make and receive calls and perform additional functions. A basic VoIP system includes a router (to connect to the internet), a handset (to make calls) and VoIP phones (which could be either physical or softphones). VoIP process high-quality calls in addition to providing features that you may not find in a landline service. We discuss these features in detail next.
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Advanced features of VoIP
VoIP comes with advanced features of video conferencing, CRM integrations, analytics and more. As compared to traditional landline or analogue phone systems, it does not require businesses to invest heavily in hardware. It is easy and quick to set up, as it uses the internet as its fundamental communication technology. Unlike a landline phone that needs to be attached at a specific place in your office, VoIP lets you take the handset anywhere. You can also handle calls from your phone, tablet and laptop. The subsequent maintenance and scaling costs for a VoIP technology are easily manageable.
To set up a basic VoIP system for your business, you will need the following components:
- An application-based VoIP subscription.
- A stable internet connection with bandwidth enough to support VoIP calls (an average of 100-180 kbps per call).
- A digital device with the ability to connect to the internet, such as a softphone, an IP phone, a smartphone, a laptop, or a tablet.
- Additional hardware is optional, but could include headsets or microphones to maintain the privacy of calls.
What is an Analogue Phone System?
An analogue phone system is a traditional phone system that uses copper lines to make and receive calls. The audio signals from the speaker are converted to electrical signals that are then transmitted over copper lines to the recipient’s phone line. An analogue or traditional phone system does not rely on the internet to make and receive calls.
An analogue phone system requires a considerable amount of hardware setup, including handsets or physical phones and a network of copper wires connecting the landline to the PBX. It offers reliable and consistent call quality and is very simple to operate. Traditional analogue phone systems come with limited features, including call transfer, voicemail, etc.
VoIP vs Analogue: Key Differences
| Features | VoIP | Digital Phone |
|---|---|---|
|
Technology |
Uses internet to transmit data signals |
Uses copper cables to transmit analogue signals |
|
Infrastructure |
Cloud based, requires broadband with minimal hardware |
Heavy hardware required like physical lines & analogue handsets |
|
Setup & Installation |
Instant activation within minutes |
Long set-up time with cable and hardware installation required |
|
Call Quality |
High-speed internet ensures HD calls |
Consistent quality, not dependent on internet |
|
Features |
Rich features e.g. video calling, analytics, CRM integration, mobile apps |
Limited features of calling, voicemail, call transfer |
|
Scalability |
High, easily add more users |
Costly, requires hardware investments |
|
Mobility |
Calls can be made and received anywhere with internet |
Limited to a physical location |
|
Cost |
Low upfront costs; pay monthly subscription; cheap international calls |
High upfront & maintenance costs; expensive international calls |
|
Ideal For |
SMEs, startups, business with remote teams in need of feature-rich communication |
Small traditional businesses who do not want calls to be internet dependent |
VoIP or Analogue Phone System: Which One Should You Choose?
Choosing between a VoIP and a traditional analogue phone system depends upon your company size, the nature of your business, and your budget.
VoIP is the most suitable option if :
- Your team works in a remote or hybrid setup or is spread across multiple locations.
- You want to make international or long-distance calls at cheaper rates.
- Your focus is to scale your business quickly without investing heavily in hardware.
You want advanced features like video conference calls, analytics, CRM integration, etc.
Choose an Analogue phone system if:
- Your business is located in a single location.
- Your communication needs are limited to simple voice-calling, without any need for additional features like video calls, analytics, etc.
- You prefer a traditional landline setup.
Upgrade to VoIP with ComparedBusiness UK with Ease
If you are looking to switch to VoIP and upgrade your traditional phone system, ComparedBusiness UK is here to make things easy for you. Simply submit your business requirements in under 2 minutes, and we’ll promptly provide you with quotes from reputable VoIP providers across the UK for FREE. You can pick and choose as per your own liking.
