Introduction
The shift from traditional landlines to cloud telephony is an important consideration for businesses these days – and one with a strict deadline on the table. The shutdown of the public switched telephone network (PSTN) and integrated services digital network (ISDN) is scheduled to happen by January 2027, phasing out across the country.
There’s never been a better time to switch to hosted VoIP solutions for your business. In this guide, we look at cloud telephony vs landlines to help you understand the key differences between the two and when you should consider switching your business over to cloud telephony.
What is Cloud Telephony?
Cloud telephony utilises VoIP, or Voice over Internet Protocol, technology to enable calls to be made over an internet connection. Your voice is converted into digital data packets that are then transmitted to the person at the other end of the phone.
With a cloud-based system, there’s no need to host servers for communications on-site. Working with an IT provider that offers hosted telephony solutions allows the entirety of your platform to be handled remotely. Once handsets are plugged into your broadband connection, they will work immediately and be available for calls.
Cloud phone systems are highly flexible to your business requirements and can easily be scaled as your business grows. It also enables easy remote access within the same infrastructure, allowing remote or hybrid employees to use the same communications system as staff in the office.
What are Traditional Landlines?
PSTN lines are also known as analogue phone lines. These landlines use copper wires to transmit voice as an electrical signal that is converted back at the other end of the line. Copper wire systems have been used since the latter 19th century and are designed solely for voice calls, with no ability to support messaging, analytics or video calls.
However, traditional landlines are a limited-time solution for your business communications. By January 2027, the PSTN network will be entirely phased out in favour of VoIP phone systems using broadband. This means if you are in an existing contract for landline services, you will not be able to renew them.
Key Differences: Cloud Telephony vs Landlines
a. Cost
Cloud telephony typically has a low price for entry, particularly if your business has pre-existing broadband that can support introducing a VoIP system. Working with an IT provider to host your telephony can further reduce costs while gaining access to expert support. Landlines are increasingly costly in the lead-up to their obsolescence, with Openreach doubling the current rental price for copper lines ahead of the shut-down.
b. Flexibility & Scalability
VoIP systems are highly scalable and flexible, allowing you to add additional handsets and services to your system with very little effort. This can include adding remote and hybrid employees to your platform and standardising your practices for communications.
In contrast, landlines are costly to expand and may require support from an engineer to expand on your available lines. As business communication solutions, landlines can be difficult to scale effectively, especially in periods of rapid growth.
c. Features & Functionality
Business phone systems in the UK have expanded far beyond basic call handling. Modern businesses utilise phone systems to make video calls, track customer interactions and even integrate directly into CMS systems. VoIP enables this additional functionality, providing new avenues for communication inside and outside of your business.
Landlines are analogue by name and nature, providing nothing in the way of integrations and simply offering a way to place and receive calls. These limited features often make landlines challenging to work with for contemporary businesses.
d. Reliability
Reliability is a key concern for businesses. Downtime is a serious problem for operations, potentially costing thousands in lost revenue and expensive fixes. VoIP for business relies on access to the internet, much like many of your other systems, which means internet failure leaves you without communications.
While landlines were historically considered a ‘solid’ option for businesses, the future shut-off means this isn’t an option for much longer. However, reliability for VoIP can be greatly increased with a managed IT service that ensures continuous uptime and resolves problems with connectivity promptly.
e. Installation
One of the most significant cloud telephony benefits is the ability to connect from anywhere, whether it’s plugging your phone into broadband in the office or connecting via a mobile app to your VoIP telephony platform. Once your system is set up, it is effortlessly scalable, with no significant work generally required.
Landlines, on the other hand, require a more complicated setup process with a trained engineer, particularly on sites where an existing telephone connection does not exist.
When Should You Switch?
Making the switch to VoIP as soon as possible is the best way to avoid increased fees. The sooner you switch, the sooner you can bring all of your operations under one roof. If you have remote or hybrid employees, implementing cloud-hosted phone systems can enable you to connect them directly to your system for more cohesion across your departments.
Conclusion
With the shutdown date rapidly approaching, it’s less a case of looking at landline vs VoIP. Instead, it’s time to consider your options for cloud telephony. Adopting the correct cloud platform for VoIP can streamline your operations, reduce your costs and help you get more from your communications. Is your business ready to embrace the cloud?