Analog Phone Systems Versus VOIP Phone Systems: 5 Differences You Did Not Know

September 18, 2021
Analog Phone System-Featured Image

You thought the pandemic was over and you would go back to work. But as we all are aware, we still can’t see the light at the end of the tunnel. If you have been postponing investing in a new telephone system to keep your team connected and customers happy – wait no more.

There has never been a better time to invest in a new telephone system.

Whereas traditional analog phone systems are still very pricey, VoIP phones’ monthly fees are at an all-time low.

The time to buy a new telephone system is now.

Let me show you why.


Analog Phone System Diagram

What’s An Analog Phone System?

An analog phone system, sometimes referred to as Plain Old Telephone Service (POTS), converts speech impulses into electrical signals that go over the phone line to their destination. Because the phone system enables bidirectional communication, these voice signals can travel both ways – from one phone to another. 

Analog phone systems continue to operate in the same manner they did over a century ago. Electrical pulses on a wire are used to convey sound. These cables link to the phone company.

Desk phones, which serve as the foundation of daily workplace communications, are simple to use and come with a variety of useful functions. Professionals prefer analog phone systems because they understand the process and they have been around for a long time.

Furthermore, they are cost-effective without sacrificing dependability and quality. Many uses feature such as caller ID, redial, contact directory, speed dial, and many more. Check out our high-quality analog desktop phones for all-day communication efficiency.

Users interacting through POTS or analog networks are linked by a copper wire subscriber loop that runs from a central switch office to numerous residences and businesses. Subscribers are given a phone number that allows them to contact others.

Even though analog phones employ less modular technology and are more expensive to manage, set up, and update, there are still many applications for their use in the market, even in the realm of voice over Internet Protocol (VoIP).


An IP Based System - Basic Diagram

What’s An IP-Based Phone System?

IP telephony (Internet Protocol telephony) refers to technologies that use various protocols to communicate voice, fax, and other forms of data that were formerly sent via the Public Switched Telephone Network (PSTN). The call is sent in the form of packets across a LAN or the Internet, eliminating PSTN fees.

VoIP phones are the most common term for IP phones. VoIP, which stands for “Voice over Internet Protocol,” is exactly what it sounds like: a phone connection over the internet.

An IP phone system uses VoIP technology to replace traditional phone service, often known as POTS (Plain Old Telephone Service).

In the mid-to-late 1990s, the Internet and the TCP/IP protocol transformed the telephone and communications industries. Almost all data communications now use the Internet Protocol as a transport. 

Today, all communication providers use an IP infrastructure for some or all of their voice services. As part of their Unified Communications solution, the majority of businesses have converted or intend to make the transition from PSTN to VoIP (Voice over IP) for internal voice communications.

The advantages of IP telephony in the business context are numerous, but they are largely limited to cost savings on infrastructure and monthly telecom costs.

IP telephones function by scanning and identifying an individual’s analog speech signal and converting it to digital signals. Then, in the form of data, these digital impulses are sent across the broadline. 

In layman’s terms, IP phones function by intercepting phone calls and routing them into the network through an IP phone system via a network cable, then out, and finally into the internet connection.


Feature comparison: Analog Phone System vs. VOIP

Analog Phones vs. VoIP Phones: Feature Comparison

Modern VoIP systems have new and sophisticated capabilities that may be customized to match your specific company requirements without breaking the bank. You may program your music on hold, IVR, phone queueing, and other features. Many of these features are not provided by traditional phone service companies.

Another advantage of VoIP systems is that they offer considerably better sound quality than analog phone lines. This is due to the digital system’s compression of audio signals, which removes superfluous frequencies.

Most of us associate analog phones with the landline phones we grew up with. To link calls between two phones, voice signals are transferred over copper cables through a series of actual switch boxes.

Businesses that employ analog phone technology typically have had their system in place for a long time. In most situations, a Private Branch Exchange (PBX) system is also used. The PBX is a switching machine that links the company’s phones and extensions to one another as well as to outside analog lines.

This enables a large number of employees to share a small number of outside lines, potentially decreasing costs. 

VoIP, on the other hand, is a wireless, cloud-based technology that digitally transmits voice over the internet as data packets. Because VoIP operates over the internet, you must have a stable broadband connection for it to function properly and provide acceptable call quality.

Even with all of the extra features mentioned above, commercial VoIP services are generally less expensive than traditional phone services. There is less gear to buy or lease, and monthly subscription rates are lower. 

Several hosted providers provide smartphone apps that allow customers to make and receive calls through their data connection, which may be tied to or utilized independently of your office phone. In addition, with VoIP communication solutions, adding new extensions is a breeze.

One of the numerous advantages of VoIP is increased productivity. Using a VoIP communication solution streamlines and unifies your communication tools. This is an advancement over analog or conventional phone lines.


Analog Phones vs. VoIP Phones_ Technology Comparison

Analog Phones vs. VoIP Phones: Technology Comparison 

A Private Branch Exchange (PBX) is used by landlines as well as VoIP to manage phone calls both internally and externally inside a company. This system was designed to assist small and medium-sized enterprises to reduce communications costs by allowing them to control their phone system routing while still connecting to their telco’s PSTN (public switched telephone network).

A PBX system enables a firm to allocate one extension to several offices inside the same building. Analog PBX systems used in landlines need phone lines and a complex hardware arrangement within a corporate location. 

The cloud-based VoIP uses the internet to transmit and receive phone calls, so a phone connection is not necessary. This is a significant benefit for SMBs with a strong broadband connection that wants to embrace and use diverse technologies.


Analog Phones vs. VoIP Phones_ Which One Is More Reliable_

Analog Phones vs. VoIP Phones: Which One Is More Reliable?

There is no doubt about the dependability of your VoIP phone if you have compatible network capacity and a high-speed internet connection. Simply ensure that you have a backup power source in the event of a power outage or a secondary internet connection if your primary internet service provider is having network problems.

If you are not running a large contact center with hundreds of employees, your home internet speed should be sufficient to fulfill your demands while also providing you with decent and clear voice quality.

Because VoIP is digital, it provides very dependable communication. IP information exchanges are routed over some of the world’s most resilient infrastructure. When this infrastructure supports voice calls, it significantly improves the process’s dependability.


Analog Phones vs. VoIP Phones Equipment Needs

Analog Phones vs. VoIP Phones: Equipment Needs

Additional hardware may be required, although this is mostly dependent on your preferences and demands. The hardware required to call from your desktop computer is usually accessible. 

Furthermore, PBX devices require a continuous software upgrade. That is why businesses generally engage an expert to make sure their system is working well and to solve any difficulties that develop.

However, with VoIP’s Cloud PBX capabilities, you no longer need to operate a hardware device such as the PBX box because everything takes place in the cloud! There are no software upgrades to worry about, and there is very little risk of losing call capability.

Analog Phone Systems Hardware

Businesses using analog PBX systems should anticipate a large amount of hardware for their phone system to be installed and managed.

PBX Switch Unit

A PBX switch is often made up of telephone wires and the switchboard itself, which is typically contained in a cabinet and put on-site at the business. The majority of units are around the size of a small refrigerator and must be stored on-site (so be sure you have extra space available). 

To guarantee optimal performance, these systems require skilled installation as well as regular maintenance. With Analog phone systems, companies need to purchase a separate handset for each employee, which interacts with the larger PBX system to allow call transfers between extensions and corporate phone lines. You own the entire system if you have an analog PBX phone system.


Analog phone systems require a separate device for each employee that integrates the larger PBX system, thus allowing transfers of phone calls between extensions and company telephone lines. 

You own the whole system when you have an analog PBX phone system. Though this considerably raises the initial price, it does provide more control over the system and how it functions, including exclusive connections and customizations.

VoIP Hardware

A VoIP phone system, in its most basic form, requires only a computer or smartphone and a constant internet connection. Businesses that use analog PBX systems can expect to install a substantial amount of gear to manage their phone system.


Many VoIP service providers provide customized handsets that enable employees to use a VoIP phone service while still retaining a phone at their desk. In addition to PC and mobile apps, most VoIP service providers provide dedicated phones.


Employees who use a VoIP softphone program on their PC utilize a headset to help them manage incoming calls. A VoIP-compatible headset can cost anywhere from $10 to over $400, depending on the kind and capabilities.

Adapters For VoIP

VoIP adapters allow you to connect your VoIP system to your current analog office phones. VoIP adapters can be a useful tool for making the move whether you’re just starting with VoIP or just want to maintain your existing workplace hardware.


Analog Phones vs. VoIP Phones Recurring Maintenance Costs

Analog Phones vs. VoIP Phones: Recurring + Maintenance Costs

A hosted VoIP service requires little or no maintenance. Since VoIP operates via the internet, there is no hardware to maintain. To avoid disruptions, landline phones may require an onsite technician or frequent tech visits for basic maintenance.

In the United States, numerous low-cost VoIP options are available that allow you to call anywhere in the world or anywhere in the country for a fraction of the cost of traditional phone services.

When compared to landlines, the expenses of adding services with VoIP are relatively minimal. If you wish to add a new feature to your landline, you may need to upgrade or install new equipment, increasing the cost of your monthly plan. 

As your company grows, you will need to consider the additional ongoing expenditures of analog PBX system configuration, maintenance, security patches, and more.

Based on research from 2017, these expenses average around $7,600 per year. Individual handsets cost approximately $200 apiece, so keep that in mind if you want to expand your workforce.

VoIP expenses range from $10 to $60 per user per month.  The amount you pay is determined by the number of services you want in addition to common choices such as call forwarding, call waiting, business SMS, and basic teleconferencing.


What’s The Best Phone For Small Businesses_

What’s The Best Phone For Small Businesses?

If you own and run a business, you must invest in a business phone system, whether for internal or external communication. When choosing a dependable business phone system, several factors should be weighed.

The entire phone system (physical desk phones or virtual phone service), the type of service needed (VoIP system or landline phone service), and the location of the phone system (on-premise or cloud-based) are all critical elements contributing to the effective installation and operation of a corporate phone system.

1. Traditional Landline System

Landline systems are appropriate for large organizations with a significant budget and IT personnel to maintain them.

A local or regional phone company generally supports the traditional phone system. It has analog technology that goes through the telephone company’s standard copper cable and is known as a public switched telephone network (PSTN). 

An exchange for private branches PBX hardware is used to create multiple extensions and provide system features such as call transferring and call directories. 

Pros: This system is a very trustworthy, time-tested solution that is used by numerous organizations.

Cons: Because many service providers are abandoning landlines, this method may soon become obsolete.

2. VoIP Phone System

The VoIP phone system is ideal for small enterprises that need a low-cost but sophisticated phone system.

It is also ideal for organizations with distant staff who require phone system access. This method uses an Internet connection rather than the copper cables that are normally used for landlines. Automated answering systems, phone queues, and computer integration are among the characteristics of the VoIP system.

Pros: This system is simple to set up and configure, and is far less expensive than traditional landlines.

Cons: This method is largely reliant on your Internet connection. It will not operate unless there is a stable and active connection.


What’s The Best Phone System For Medium_Large Companies

What’s The Best Phone System For Medium/Large Companies?

Communication is the cornerstone to efficient business operations in any given firm. Setting up a solid company phone system is critical for assisting employees in their communications with one another within the firm as well as with consumers and other external clients. 

Most smartphones now support VoLTE, and nearly all network carriers globally support VoLTE. If your phone does not support VoLTE, you have two options: replace it or wait for a software update that may contain this feature.

Because VoIP services provide so much capability at such a low cost, your company may have a big-business feel when clients call and a top-notch internal communication system regardless of company size.

Modern VoIP systems, both on-premises and in the cloud, provide considerable cost reductions over old fixed-line infrastructure. PBX systems are more durable and secure, but they may not provide the flexibility your company and employees want.

Determining whether your company needs a virtual phone system, a landline system, VoIP, or on-premise VoIP is a major decision.  Consider the relevant elements of each system type to decide which phone system is right for you.

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