The short version
A landline carries calls over the phone company's dedicated network, traditionally copper wires. VoIP carries calls over your internet connection. For most small businesses, VoIP offers more features and flexibility for less money. Landlines still have a few strengths, mainly around working without your own internet connection, and a handful of devices that were built for them.
| VoIP (cloud phone system) | Traditional landline | |
|---|---|---|
| How calls travel | Over your internet connection | Over the phone company's network |
| Pricing | Usually per user, per month, with features bundled | Usually per line, with features often extra |
| Phone menu, ring groups, voicemail | Typically included, changed in software | Often needs on-site PBX equipment |
| Answer from a cell phone or laptop | Yes, with apps | Usually only by forwarding calls |
| Add a user or move offices | Software change; phones plug in anywhere with internet | Often needs new wiring or a service visit |
| Needs your internet and power | Yes (calls can fail over to cell phones) | Traditional copper lines can work in a power outage with a corded phone |
| 911 location | Registered address per line; keep it updated | Tied to the physical line's address |
Cost
Landline pricing is usually per line, plus charges for features like voicemail, call forwarding or hunt groups, plus the cost of an on-site phone system (PBX) if you want extensions and a menu. VoIP is usually priced per user per month, with most calling features included and no phone system hardware to maintain. Both come with taxes and regulatory fees on top, so compare total bills, not just headline prices. Our savings calculator can give you a quick estimate.
Features
This is where VoIP pulls ahead. Because the phone system is software in the cloud, features that once required expensive equipment are standard: auto-attendants, ring groups, call queues, voicemail to email, business texting, mobile and desktop apps, video meetings and integrations with tools like Microsoft Teams. Changes like a new greeting or a new employee are made in software instead of by rewiring.
Call quality
Landlines have a reputation for consistent quality, and it's deserved. VoIP quality depends on your internet connection and local network. On a stable business broadband connection with a properly configured router, VoIP calls are typically clear, and calls between VoIP users can sound better than a landline thanks to wideband (HD) audio. On a congested or unstable connection, VoIP calls can break up. If your internet is unreliable, fix that first, whatever phone service you choose.
Reliability and outages
A traditional copper landline can keep working during a power outage because the phone company supplies a small amount of power over the line to basic corded phones. VoIP desk phones need both power and internet at your office. The flip side is that a cloud phone system keeps running even when your office doesn't: calls can be routed automatically to cell phones or another location, and anyone with the mobile app can keep answering. Many businesses find that more resilient overall than a single copper line.
Also worth knowing: phone companies across the US have been retiring copper networks and moving customers to fiber or other IP-based services. In many areas, a "landline" today is already delivered over newer technology that also needs local power, so the outage advantage isn't what it used to be. Check with your carrier what your line actually runs on.
911
With a landline, 911 location is tied to the physical line. With VoIP, each line has a registered 911 address that your provider sends to emergency services, so it needs to be accurate and updated if phones move. Business phone systems must also allow direct 911 dialing. A good VoIP provider will collect your 911 address during setup and explain how to keep it current.
Things that may still need a landline (or a plan)
Some equipment was designed around analog phone lines: older alarm panels, fire alarm communicators, elevator emergency phones, fax machines, and some card terminals. Many of these now have IP or cellular alternatives, or can work through an adapter, but check before you cancel a line that one of them depends on. Your alarm or elevator service company can tell you what's supported.
Which should you choose?
- Choose VoIP if you want a professional phone menu, need to answer from anywhere, have more than a couple of people on the phone, or want to lower costs and simplify changes.
- Keep a landline for specific equipment that requires one, or if your location has no reliable internet service.
- Many businesses do both: VoIP for the phone system, and a single line kept for an alarm panel until it's upgraded.