VoIP vs Landline: Which Is Better for Business?

VoIP vs Landline: A Complete Business Comparison

If you are weighing up whether to stick with your traditional landline or switch to a VoIP phone system, you are not alone. Thousands of UK businesses are asking the same question — especially with the PSTN switch-off on the horizon. This guide compares VoIP and landlines across every factor that matters to help you make an informed decision.

Cost Comparison

One of the biggest differences between VoIP and a landline is the cost. Here is how they typically compare for UK businesses:

Monthly Line Costs

VoIP — £8–20 per user per month, usually including unlimited UK calls
Traditional landline/ISDN — £25–35 per line per month, plus call charges on top

Call Charges

VoIP — most packages include unlimited UK landline and mobile calls at no extra cost
Landline — calls are typically charged per minute, especially to mobiles and international numbers

Hardware and Installation

VoIP — IP handsets from £50–300, or use free softphone apps; no engineer visit needed
Landline/PBX — on-premise PBX systems cost £2,000–10,000+, plus installation and maintenance

Most businesses save 30–60% on their phone costs after switching from landlines to VoIP.

Features Comparison

The feature gap between VoIP and traditional landlines is significant:

VoIP Features

Auto attendant and IVR menus
Call recording and call analytics
Voicemail to email transcription
Mobile and desktop softphone apps
Ring groups and hunt groups
CRM and Microsoft Teams integration
Video conferencing
Real-time presence and availability status
Call queuing with music on hold

Traditional Landline Features

Basic call forwarding
Voicemail (often basic)
Three-way calling (on some systems)
Caller ID

With a traditional office phone system, advanced features require expensive PBX hardware and ongoing maintenance contracts. With VoIP, they are included as standard.

Scalability

VoIP — add or remove users in minutes through an online portal; no physical installation required
Landline — adding lines requires an engineer visit, new wiring and a lead time of days or weeks

Remote Working and Mobility

VoIP — staff can make and receive calls from anywhere with an internet connection using their business number; perfect for hybrid and remote working
Landline — tied to a physical location; remote working requires call diverts to personal mobiles, losing professional features

Call Quality

VoIP — supports HD voice (wideband audio), delivering noticeably clearer calls than traditional telephony
Landline — uses narrowband audio, limited to frequencies established decades ago

With a good broadband connection, VoIP call quality is superior to traditional landlines.

Reliability

VoIP — hosted platforms use redundant data centres with 99.99% uptime; if your broadband fails, calls can automatically redirect to mobiles or a 4G backup
Landline — traditionally very reliable, but ageing copper infrastructure means more frequent faults; repair times can be lengthy

Future-Proofing and the 2027 PSTN Switch-Off

This is perhaps the most important factor. BT Openreach is switching off the PSTN and ISDN networks by 2027. After this date, traditional landlines and ISDN services will no longer be available. Every business will need to move to an IP-based phone system.

Switching to VoIP now means you can plan the transition carefully, rather than being forced into a rushed migration as the deadline approaches.

International Calls

VoIP — international calls are significantly cheaper, often just 1–5p per minute to major destinations; some packages include international bundles
Landline — international calls can cost 20–50p per minute or more

The Verdict

For the vast majority of UK businesses, VoIP is the better choice. It costs less, offers far more features, supports modern working practices and is future-proof. The only scenario where a landline might still make sense is if you have no reliable broadband — and even then, 4G/5G solutions can fill the gap.

Ready to compare options for your business? Get a free quote from Connection Technologies and see how much you could save by switching to VoIP.