Did you know that most businesses cut down on phone costs by 30-50% by switching to VoIP? 

If you have experience with traditional landlines, you’re probably already aware of the unbelievably high on-premise setup costs. These costs depend on different factors, including business size, equipment costs, and the number of lines you need.

And if you are hoping to tap into any additional features on top of the costs for a basic landline package, you may have to install a PBX system—and those add-on fees can add up quickly.     

If your business uses a traditional landline system, you’re paying way more for an outdated phone system than you would for a more modern solution. 

VoIP has changed the telecommunications industry like nothing we’ve ever seen before. And if you are wondering how installing VoIP phone systems can help you lower your business’s phone bill, allow us to fill you in.

voip - flexible phone system

How VoIP Systems Can Help Lower Your Business’s Phone Bill

Throughout this blog post, we’ll shed light on how businesses can tap into VoIP phone systems to cut down their telecommunication costs.

Let’s dive into it.

No Long-Distance Fees

First, for those who aren’t already familiar with the basics of VoIP, VoIP stands for Voice-over-Internet-Protocol. As the name suggests, it’s a technology that allows you to make calls over the internet. 

If you run a business based in the United States and frequently have to make calls to your vendors based in China using traditional landlines, then you may have to pay anywhere from $1 to $5 (USD) for every call you make. Imagine the business expense each month if most of your vendors and customers are international.  

Since VoIP calls take place over the internet, you don’t have to rely on the Public Switched Telephone Network (PSTN) infrastructure to make international calls. 

Instead, all you need is a VoIP phone system and a good internet connection. No matter how many long-distance calls you have to make, all you need to pay for is the internet plan. 

And the best part is that you don’t need to keep a track of the minutes, which means you can have as many calls as you need with your vendors or customers without having to worry about expenses.    

Less Equipment Required

Traditional landline phones use analog technology, which means the infrastructure is based on twisted-copper wires and a solid core. These phones are plugged into two-four pin wall jacks. 

If you need any additional features for a traditional landline, you may have to install a PBX system, which can turn out to be really expensive.

The bottom line is that if you are running a business, then using traditional phone systems will require you to spend a lot of money on a lot of equipment.

On the other hand, the VoIP phone system requires limited equipment. For instance, if you opt for a Cloud-Based VoIP system, then all you’ll need are landlines, an adaptor, and an active internet connection. 

That’s all. 

Switching to VoIP will not only save you from unnecessary equipment expenses but also from the monthly maintenance and repair costs. 

This brings us to the next point.

Less Maintenance

Since the traditional landline system infrastructure is complex, maintenance fees can be steep. As we mentioned before, with traditional landlines, you’re paying a lot more for an outdated phone system that has so much less to offer than other alternatives. Add in the limitations and the maintenance requirements, and this solution simply isn’t worth the headache.

On the other hand, when it comes to VoIP, there’s no copper wiring involved, and less equipment is required. All you need is a VoIP phone, adaptor, and an active and reliable internet connection. And since there’s minimal equipment, the maintenance efforts are minimal.

Higher Scalability

Let’s say you raised $10M in funding and are looking forward to a few new sales members to your team. These staff members will definitely need phones as part of their daily job. 

If you are using a traditional landline system, then you’ll have to add extra lines. A traditional landline phone line may cost you anywhere between $50 and $75 per month. And that’s just the cost you’ll have to pay for adding a single business line. Let’s not forget about the additional costs which involve numbers, extensions, and any other features that your newly-hired staff members may need. 

A VoIP phone line may only cost you between $10 and $60 per month. 

It’s also important to note that the traditional phone line installation process takes time. However, with VoIP systems, the process is simple and straightforward. This means you’re not only scaling affordably but quickly too. 

Encourages Mobility

Unlike traditional landlines, VoIP phone systems don’t really require you to be tied to your desk or conference room. Whether you’re working remotely from Thailand or from the comfort of your couch, you can still communicate as if you were in the office.

Let’s say you and your team have scheduled a conference call with one of your international clients at 10 PM your time. If you have a traditional phone system, you’ll probably have to ask your team to stay late in the office. 

On the other hand, if you switch to VoIP, you and your team members can get on the conference call without having to stay late in the office. That’s the beauty of VoIP systems—they allow for flexibility. 

Let’s Not Forget the Additional Features

Depending on the VoIP provider you choose, you and your employees can tap into numerous features that will help you work more effectively.  

With a traditional landline system, all you can do is make and receive calls. To access additional features, as we’ve mentioned, you would have to install a PBX system which is expensive and will charge you on a per-additional-feature basis. However, with VoIP, you can tap into numerous additional features easily—and often at little to no additional cost.  

For instance, many VoIP systems allow you to prioritize, hold, or block calls, which will allow you to optimize your customer service operations. A few other popular VoIP additional features include:

  • Advanced Call Management
  • Auto Attendant
  • Call Forwarding
  • Call Notify
  • Call Presence
  • Call Routing
  • Conference Bridge
  • Find Me/Follow Me
  • Instant Messaging
  • Number Porting

These features may vary based on VoIP providers, so we’d advise you to keep that in mind as you decide which provider is right for your business.  

Bring Your Costs Down with VoIP

Businesses can save thousands of dollars each month by switching from traditional landline phone systems to VoIP. If you still have been relying on traditional landlines and are confused about whether switching to VoIP is a good decision or not, we’d advise you to read our article that compares VoIP systems vs. landlines for small businesses.

Pat Johnson
Pat Johnson Product Marketing Manager

Pat Johnson is a product marketing professional at Podium, the leading communication system that connects local businesses with their customers. He is based in Denver, Colorado

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