At Town & Country Communications, we're committed to making communication easy and affordable, both inside and outside the office. Below, we'll break down the two main phone systems you can invest in for your business, how they work, and the pros and cons of each option.
Landlines
Landlines are phones that use a physical wire connection to make and receive calls. Traditionally, these wires were made of copper and connected to a large network called the Public Switched Telephone Network (PSTN).
Landlines have been around since the late 19th century. The rise of modern alternatives has caused their popularity to decline, but they still remain in use in many places around the world.
Keep reading to learn more about how landline systems work and whether investing in one is worthwhile for your small business.
How do landlines work?
Landlines work through a network of wires and switching centres to connect you to the person you're calling. Here's a quick breakdown:
- When you speak into the phone, sound waves travel to a microphone that converts them to electrical signals.
- These signals travel through wires to a switching centre that connects you to the phone number you dialled.
- The switching centre then sends the signal over more wires to the other phone, where it's converted back into sound waves by the receiver so the other person can hear you.
What types of business landlines are there?
Generally speaking, there are two types of business landline system:
- Key system units (KSU): A KSU is a basic phone system suitable for small businesses with up to 20 employees. KSUs offer limited features, such as call forwarding, call waiting, and voicemail. They're relatively inexpensive and easy to install, but they don't offer the same scalability or flexibility as PBX systems.
- On-premise private branch exchanges (PBX): A PBX is a more advanced phone system that offers a wide range of features, including call routing, auto attendants, voicemail, conferencing, and integration with other business applications. On-premise PBX systems require a significant upfront investment in hardware and software, but they offer the most control and flexibility. PBX systems can also be VoIP-based.
Most small businesses would only need a KSU. PBXs, while powerful, can be expensive and a hassle to set up, making them less practical for smaller operations.
Pros of landlines
- Landlines are independent of your internet connection and don't require electricity to work. This means no dropped calls due to internet or power outages - crucial for businesses that rely heavily on phone communication, especially in emergencies.
- Landlines are familiar and require minimal setup or maintenance. They work right out of the box with traditional phone equipment, which some businesses might already have.
- Landlines work seamlessly with older equipment like fax machines, security systems, and point-of-sale systems that rely on analog signals. While adapters can bridge the gap with VoIP, landlines avoid any compatibility issues.
Cons of landlines
- Landlines are generally more expensive than other phone systems. You'll pay for installation, monthly service fees, per-minute charges, and potentially long-distance fees. This is especially important to keep in mind if, like many small businesses, your budget for technology is limited.
- Most (but not all) landlines are feature-light. You might get basic voicemail and call waiting, but more modern systems tend to offer far more features like auto attendants, call forwarding, video conferencing, and call analytics.
- Landlines chain you to your desk. Other systems allow you to make and receive calls from anywhere with an internet connection, using a computer, smartphone, or desk phone. This flexibility is ideal for remote workers and businesses with a mobile workforce.
- Adding new landlines can be a hassle and expensive, unlike more scalable systems.
Voice over Internet Protocol (VoIP)
Voice over Internet Protocol (VoIP) is a technology that lets you make phone calls using your internet connection instead of a traditional phone line. While the groundwork for VoIP can be traced back as early as the 1930s, the technology we know today as VoIP emerged in the 1990s.
Read on to find out how VoIP systems work and the pros and cons of investing in one for your small business.
How does VoIP work?
VoIP lets you make and receive calls using the internet instead of a traditional phone line. Here's how:
- VoIP converts your voice into digital data packets, similar to how information travels on the web.
- These packets are then sent over your internet connection to the VoIP provider's network.
- The provider reassembles the data and converts it back into an analog signal for the recipient, who could be answering a regular phone or using another VoIP system.
- This digital conversion allows VoIP calls to be more cost-effective and can even come with extra features compared to landlines.
Pros of VoIP
- VoIP shines in terms of affordability. Calls are routed over the internet, eliminating traditional phone line charges and often bringing down long-distance costs. Many VoIP plans also bundle features like voicemail and call forwarding, further reducing expenses.
- If you opt for a cloud-based (or hosted) system, you don't have to worry about buying and maintaining your own equipment. Hosted systems leverage the cloud, meaning the hardware and software for the phone system are located at the service provider's facilities, and you access it remotely over the internet.
- VoIP goes beyond basic calls, offering advanced features like video conferencing, call forwarding, voicemail transcription, and auto-attendants. All of these can streamline communication and boost productivity.
- VoIP is exceptionally scalable. As your business grows, you can easily add or remove lines without complex rewiring.
- VoIP allows your employees to use their business phone numbers from any device with an internet connection, increasing their flexibility. This is particularly useful if you're limited to a small office space and need your employees to work remotely a lot of the time.
Cons of VoIP
- Unlike landlines, VoIP relies on a strong and stable internet connection. Power outages or internet disruptions can completely halt your phone service, disrupting customer communication and potentially leading to lost revenue. Landlines often provide better coverage in remote areas, making them more feasible if your business operates in a location with unreliable internet access.
- Fluctuations in internet bandwidth can cause choppy calls, dropped connections, and delays. This can be a major turn-off for customers and hinder clear communication.
- VoIP data travels over the internet, which makes it inherently more susceptible to interception compared to a closed landline network. However, reputable VoIP providers offer encryption to mitigate this risk.
So, Which Telephone System Should You Choose?
For most small businesses, VoIP is the best system to go with. It's cost-effective, packed with advanced features, and easy to scale as your business expands. This makes it a smart investment overall.
There's also another major reason - in 2025, all landline phone services will transition from the PSTN to broadband lines. This means that landlines will operate via VoIP, making the difference between the two much less distinct.
Find the perfect phone system for your small business with Town & Country
Whether you decide to go with landlines, VoIP, or still aren't sure, Town & Country Communications can help. We know every business is different, and our experienced technicians will work with you to understand your call volume, features you need, and budget. Whatever your requirements, we'll help you find the perfect fit for your workflow.
Our services cover all of Dorset, Hampshire, and Wiltshire. Book a free consultation online or call us on 01202 514444, and let's design a solution that helps your business thrive today!
