Between a traditional phone and a VoIP phone, which one tends to be cheaper? Can switching to VoIP phone service save you money? There are a few key areas to compare costs.
System Setup
Landline phones need access to phone lines. If you’re using a cell phone, it needs to be close enough to a cell tower to get good service. VoIP phones need access to the internet in any form. This could be from wi-fi, mobile data, or an ethernet cable from a router. All things being equal, VoIP setup usually costs less because there’s little to no extra equipment needed, unless you want to integrate predictive dialing.
VoIP phones do exist that can be plugged into a router for use, or you can get an adaptor that makes a traditional phone line and phone into a VoIP phone system. However, you can also just use your laptop on any wi-fi connection, even at your local coffee shop.
Setup costs are probably not going to be a problem for you if you’re choosing between VoIP or traditional phone plans for your home. But, they can matter more for a business. Most businesses will have wi-fi anyway, so this part of setup will already be taken care of. If you need to wire an office to support multiple phone lines for traditional phone, that will cost you. Wi-fi can reach anywhere, ethernet cables are very affordable if necessary, and wi-fi signal can be boosted for greater reach.
Call Bundles
Call bundles for traditional phones range in price greatly depending on where you want to call, if you want to do unlimited calling or have a certain number of minutes, and whether the phone is for personal use or a business. VoIP has some of these same concerns, but the cost for calling bundles is almost always lower overall than it is for a traditional phone.
If you use a VoIP phone to call another VoIP number, the call is free. No matter where in the world the other person is, that call can be placed entirely for free. You won’t find any phone service with deals like this, which makes VoIP extremely cost-effective if you’re an individual wanting to make calls to a few specific people, or if you’re communicating with co-workers or clients who have access to VoIP calling.
Making international Calls
At this point, VoIP always beats traditional phone lines in terms of price for international calls. There’s usually little or price difference between local and international calls placed on a VoIP phone. They’re both cheap, and VoIP phones are just as reliable when making calls, even to traditional phones.
If you need to make international calls, VoIP is likely going to save you a lot of money. You can usually choose between a dedicated number of minutes per month or an unlimited international call plan. If you need service from different providers to get the best rates, it would likely still be cheaper to pay for 2 different VoIP plans than to pay for traditional international phone service.
Adding Multiple Lines
If you’ve chosen the right plan, you can add new lines to your VoIP service for a fraction of the cost of a traditional phone plan. The difference is that no additional infrastructure has to be added to increase your VoIP lines. You can add as many lines as you want without ever having to get new cables, a switchboard, new line, or otherwise. While you may have to purchase extra phones, but even 1 VoIP phone can use multiple lines at once.
Individual VoIP plans don’t always have multi-line functionality automatically, but in most cases you can easily upgrade to it for a small price increase. If you do think you’ll need multiple lines now or in the future, make sure to add that in with your criteria when you’re comparing plans. Check on GetVoIP or another reliable comparison site to find a plan that can accommodate you.
With a traditional phone, there’s extra infrastructure that goes into adding new lines. You could spend a significant amount of money paying for the stuff you need to get it set up, then the monthly plan will also go up by a lot. It’s far cheaper to have multiple lines on a VoIP phone than on a traditional phone.
Extra Call Features
Most phone plans charge extra for simple features. If you want a plan that does the most for you, you’ll have to pay for it. VoIP gives you a ton of extra features without putting up the same price barrier.
Extra features you may want are things like conference calling, call routing, transferring calls, caller ID, etc. Most of these and other features come standard with a VoIP plan but will not always come with a traditional phone plan. You may have to pay extra just for the simple features, making VoIP a better option for cost-cutting.
Video Calls
A distinct advantage you get with VoIP that you don’t have to pay extra for is the ability to do video calls with other VoIP users. Regular phone service doesn’t have this option at all, making this a great extra benefit for VoIP plans. Technically, you don’t have to purchase a VoIP bundle to get this benefit, because there are many free video calling apps out there that you can use alongside your traditional phone.
Reliable Internet
The one cost that will likely increase with VoIP is the cost of data or internet service. If you’re using a smartphone for VoIP calling, you’ll need to make sure you’re always within range of wi-fi or that you always have access to mobile data. At home or at the location of your business, you may have to make sure you have a strong enough internet plan to stay connected and get a good connection during every call or chat.
This may warrant an upgrade in your internet plan. Especially as a business, you need to keep phone service up all the time and make sure there’s no significant delay that might cause distortion or disconnection. If you’re using a multi-line VoIP phone setup, make sure your internet is capable of handling calls from all of your lines simultaneously, just in case that situation occurs.
Overall, the cost of using a VoIP phone service is likely to be cheaper for both individuals and businesses. Setup charges, service charges, and feature charges are generally cheaper for VoIP apps than they are for traditional phones. While it may seem like an unconventional option, it could be a good way to cut your phone costs down.
