Is it time to replace your old phone system? Or perhaps you're setting one up for your business for the first time. Either way, this decision shapes how customers reach you, how your team works together, and what you pay each month. Choose poorly, and you might end up paying for features you never use, or wrestling with limitations that slow your business down.

For most businesses today, the decision comes down to VoIP versus landline.

Landlines offer steady call quality because they don't depend on internet connectivity. VoIP systems, however, run over your internet connection. This makes them more flexible, often more affordable, and better suited to growing teams.

This guide breaks down how VoIP and landline systems compare, where each makes sense, and what to weigh up before you choose.

VoIP vs Landline: The Key Differences at a Glance

Before diving into detail, here's a quick overview of how these two technologies differ across major categories:

What Is VoIP?

Voice over Internet Protocol (VoIP) is technology that lets you make calls and send messages using internet access rather than traditional phone lines. If you've used video calling apps or messaging platforms, you've already experienced VoIP in action.

With VoIP, your phone system is software-based. You download an app, sometimes called a softphone, onto your mobile, tablet, or computer, and you're ready to go.

Most VoIP systems offer features that traditional phones simply cannot match:

• Business messaging for SMS and MMS from your business number
• Automated messages for appointment reminders and follow-ups
• Call routing to direct callers to the right person without manual transfers
• Auto-attendants that let callers choose where to route their call using a menu
• Call recording and transcription for reviewing conversations and keeping records
• Mobile and desktop access so your team can work from anywhere
• Integrations with CRMs, email, and other business tools
• Call analytics to track patterns, volume, and missed calls

How VoIP Works

VoIP converts your voice into small digital data packets that travel through the internet. Before reaching the other person, they're converted back into sound in real time.

As long as you have WiFi, mobile data, a hotspot, or Ethernet, you can stay connected anywhere. While VoIP works differently from landlines and traditional mobile phones, your customers won't notice any difference. A VoIP call sounds just like any other call.

The Advantages of VoIP

VoIP is particularly well-suited for businesses that want a reliable phone system without managing hardware or complex installations:

Pros:

• Built-in business features that improve customer communication
• Highly scalable, add users without adding hardware
• Predictable monthly costs with lower overall spend
• Affordable long-distance and international calls
• Minimal setup effort
• Supports remote and hybrid teams
• No technical expertise required to set up and maintain

Cons:

• Requires a stable internet connection
• Audio quality depends on your connection quality

What Is a Landline?

A landline is a traditional, analogue phone system. It provides basic features like voice calling, voicemail, and caller ID.

Landlines can suit businesses in areas with unreliable internet. However, these systems tend to be costly and limited in capability. Many organisations are phasing them out entirely or keeping them only as backup.

How Landlines Work

Landlines carry your voice over physical phone lines, usually copper wires or fibre optics. These lines connect your desk phone to the Public Switched Telephone Network (PSTN), the global network used to route traditional calls.

Setting up a landline typically requires hiring a technician to install phone lines throughout your office, set up desk phones connected to wall jacks, and configure on-site equipment (known as PBX, Private Branch Exchange) to manage calls between lines.

Once installed, your phone system stays tied to that physical space. Making changes often means bringing a technician back.

The Advantages of Landlines

Some businesses still use landlines for their consistency and independence from internet:

Pros:

• Available during internet and power outages
• Secure against online threats like call tampering

Cons:

• Limited features
• High costs to install, maintain, and repair
• Limited mobility, you're tied to your desk
• Poor scalability
• Declining carrier support

Eight Key Differences Between Landline and VoIP

Let's examine how these systems compare in practice:

1. Mobility

VoIP calls occur over an internet connection, meaning you can make calls anywhere you have internet access.

Landlines use physical wires. Even if your desk phones are cordless, none of your team can answer incoming calls when they're away from the office.

2. Costs

VoIP typically requires little to no upfront cost. You pay a monthly fee per user and can use devices you already own. Providers handle maintenance and updates, making VoIP the better option for growing teams.

Landline systems usually require significant upfront investment. You pay for desk phones, wiring, and installation before making your first call. You'll also need to budget for ongoing maintenance, repairs, and technician support.

3. Hardware Required

Landlines need new hardware every time you set up a system or add team members. VoIP can work on your existing computer or mobile device, though some providers also support compatible desk phones.

4. Scalability

Business VoIP systems scale easily because they don't rely on hardware. Everything runs through the cloud.

With modern unified communications platforms, you can:

• Add phone numbers instantly
• Customise settings for each number without outside help
• Let multiple team members share numbers for handling higher call volumes
• Use AI-powered features to support more callers without hiring extra staff

5. Ease of Setup

Setting up a VoIP system is similar to setting up any business application. With good providers, you can be running within minutes.

Landlines are less intuitive and require technician visits. If your building needs new phone jacks, expect additional costs and delays.

6. Features

This is where VoIP truly shines. Landlines cover the basics, but VoIP business communication systems go far beyond:

7. Security and Compliance

Since VoIP services rely on the internet, they need smart security practices. Reputable providers include built-in safeguards like call encryption, permission controls, firewalls, spam blocking, and real-time network monitoring.

Many VoIP providers also support compliance with standards like HIPAA and SOC 2, making VoIP viable for healthcare, legal, and other industries handling sensitive information.

Landline systems avoid online threats, but security is entirely your responsibility. You'll need to manage physical security, firewalls, manual updates, and access controls yourself.

8. Reliability and Call Quality

With a good internet connection and sufficient bandwidth, VoIP delivers excellent call quality. Plus, reliability isn't tied to one piece of hardware. If your building's internet goes down, your team can still take calls using mobile data.

Landline call quality is usually stable with quality hardware, but weather and wiring issues can affect it. These problems can be expensive and time-consuming to fix. Landlines are also vulnerable to local failures. A power outage or hardware issue at your location can take down your entire phone system.

Which Phone System Fits Your Business?

Here's when to consider each option:

Choose VoIP if you're:

• A growing hybrid or remote team (5-50+ employees)
• A healthcare practice needing compliance features
• A multi-location service business
• Looking to reduce costs and increase flexibility

Consider landlines if you:

• Operate in an area with unreliable internet
• Run emergency services requiring guaranteed uptime
• Are already committed to an expensive landline system
• Don't plan to grow your team

What to Look for in a VoIP Provider

If you're thinking about switching to VoIP, focus on these features:

• SMS and MMS capabilities, text customers from your business number
• Shared phone numbers, let multiple team members handle calls and messages
• Quick replies and templates, save time on repetitive messages
• Auto-replies, set up automatic responses for missed calls or after-hours
• Auto-attendants, give callers menu options to route themselves
• Integrations, connect with CRMs, project management tools, and email
• Business hours and call rules, route calls differently during and after hours
• Call recording, review conversations for training and quality control
• Flexible pricing, clear monthly costs without long-term contracts
• Multi-device access, take calls from phone, computer, or browser

Making the Right Choice

While landlines work for some specific situations, most businesses find that VoIP saves considerable time and money. VoIP provides far more flexibility and features than traditional phones, and the gap is only widening as technology advances.

The key is choosing a provider that scales with your business and includes the features you actually need. Look for systems built around unified communications, platforms that bring voice, messaging, and integrations together in one place.

Modern business communication shouldn't be limited by physical infrastructure. With the right VoIP solution, your team can work from anywhere while customers enjoy seamless, professional service.

Frequently Asked Questions

Is VoIP better than a landline?

It depends on your situation, but most teams benefit from VoIP. The main reasons to stick with landlines are if you're in an area with unreliable internet, already committed to an expensive landline system, or don't plan to grow your team.

Can a VoIP phone be used like a regular phone?

Yes. You can use VoIP exactly like a regular phone for making and receiving calls. The only difference is that you're using the internet rather than copper wires.

Can I keep my existing phone number if I switch to VoIP?

Yes. You can keep your current number when switching providers through a process called number porting. Most providers make this straightforward. You fill out a form and wait a few business days.

Why might landlines seem to have better quality than VoIP?

This usually comes down to internet connection quality. A stable connection with good bandwidth delivers crystal-clear VoIP calls that match or exceed landline quality.

What happens to VoIP when the internet goes down?

If your internet goes down, VoIP calls won't work on that connection. However, you can switch to mobile data or a hotspot to keep taking calls, something impossible with landlines.