Virtual landlines and VoIP are two modern alternatives to traditional phone systems. While both operate without a physical landline connection, they differ in three key areas: technology, features, and pricing. To select a communication solution that matches your needs, you must understand these differences.
That’s where this guide helps. It explains what each service offers, along with how they work and when each is most beneficial.
What Is a Virtual Landline?
A virtual landline is a phone number hosted in the cloud. It routes incoming calls to your chosen device, such as a smartphone or desk phone. There’s no physical connection or extra hardware required, like with traditional fixed-line systems. You simply require a connected phone to receive calls.
These services are popular for those who desire a professional-looking landline number without installing a traditional system. Calls can be forwarded anywhere, making it easy to stay reachable – whether in the office, at home, or on the move.
A virtual landline often includes useful features like voicemail-to-email. Just keep in mind they’re typically more basic compared to advanced digital systems. Although for small businesses and freelancers seeking a simple, low-cost solution to create a professional image and keep personal numbers private, they’re ideal.
What Is VoIP?
VoIP, short for Voice over Internet Protocol, is a technology that allows phone calls to be made over the internet rather than traditional copper telephone lines. By converting voice signals into digital data, VoIP enables calls to be made through a variety of devices such as laptops and smartphones using dedicated apps, or VoIP desk phones.
Unlike a virtual landline, VoIP isn’t only about receiving calls. It’s a complete communication platform. Many systems include features like video conferencing, instant messaging, call analytics, and integrations with CRM software. The result: it’s a popular choice for businesses demanding a versatile, multi-user system.
Because VoIP operates online, it also delivers excellent flexibility. Staff, even when working remotely, can make and receive calls from anywhere with a stable internet connection. Quality depends on bandwidth, admittedly, but a strong internet setup can achieve clear calls at a lower cost than many traditional phone services.
The Key Differences Between Virtual Landlines and VoIP
Both virtual landlines and VoIP replace traditional phone systems. However, they incorporate different technologies and serve different needs. Here’s a breakdown of the key variances between the two: Technology and setup: A virtual landline works by forwarding calls to an existing number. VoIP, however, uses the internet to transmit calls directly. It also tends to require additional facilities like a softphone app, IP desk phone, or headset.
- Hardware and equipment: Virtual landlines can utilise any existing phone. VoIP systems might need VoIP-enabled devices, but can also run entirely on computers and smartphones.
- Features and flexibility: Virtual landlines include the essentials like call forwarding and voicemail. VoIP includes advanced tools in the equation. These tools include video conferencing, call analytics, auto-attendants, and CRM integrations.
Scalability: Virtual landlines suit individuals and small teams with stable call needs. VoIP is built for growth. It’s easy to add users and numbers – as well as features – as the business expands.
Call quality and reliability: With a virtual landline, this depends on the mobile or fixed network of the receiving phone. VoIP quality is dependent on internet speed and stability. It’s excellent with good bandwidth. It’s also vulnerable to outages if the internet fails.
Pricing: How Do Virtual Landlines and VoIP Compare?
Another difference between the two is pricing. Virtual landlines are generally cheaper than VoIP, although the cost can vary depending on provider, features, and usage levels.
Virtual landlines
The price for virtual landlines typically starts from around £10 per number. Some providers include a set number of inclusive minutes, while others bill forwarded calls separately at local or mobile rates. They often work out as the most budget-friendly option for low-volume callers or those receiving inbound calls.
VoIP
VoIP services tend to be priced per user, ranging from £10-£25 per month for standard business packages. Basic packages can be cheaper, while premium ones are, naturally, more expensive. Many include unlimited calls and access to advanced features. Although the per-user cost is higher, VoIP can be more economical for larger teams and high call volumes.
For minimal setup and lower running costs, virtual landlines lead the way. For feature-packed, scalable communications, VoIP justifies the higher monthly rate.
Virtual Landline: The Benefits in Summary
Virtual landlines supply businesses with a professional presence without the expense or complexity of traditional systems. They can be set up quickly, often within minutes, and require no specialist hardware. You only require a phone to receive calls.
Key benefits include:
- Quick, hassle-free setup with no specialist equipment necessary.
- Professional business number without needing a fixed location.
- Ability to divert calls to mobiles, home phones, or other numbers.
- Separation of personal and business calls for better privacy.
- Flexible features like voicemail, time diverts, and call whispers.
VoIP: The Benefits in Summary
VoIP goes beyond voice calling. It’s a complete communications platform, one that includes everything from video conferencing to business tool integrations. This makes it an ideal solution for companies that manage remote teams or work across multiple sites.
Key benefits include:
- Combines voice, video, and messaging in one system.
- Supports remote work with calls from any internet-connected location.
- Advanced features such as call recording and auto-attendants.
- Easy scalability to add users, numbers, and features.
- Integration with CRM, productivity, and collaboration tools.
- Virtual Landline or VoIP: Which Should You Choose?
As this guide highlights, a virtual landline is ideal if you want a low-cost, professional number that is quick to set up and simple to manage. It works best for smaller businesses, sole traders, and outlets with light call volumes.
Do you manage a team or a remote workforce? Maybe you run a large organisation? In scenarios like these, VoIP is the better choice.
Ultimately, your decision should be based on three main areas: call volume, desired features, and budget. In some cases, starting with a virtual landline and upgrading to VoIP later down the line offers the best of both worlds.