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Standard Phone Service vs VoIP: What’s the Difference?

The main differences between landline calls and VoIP can be seen in the way they work. With the standard Phone Service vs VoIP there are a number of unique differences. Landlines transmit voice into analog signals through a copper wire connection from your home or office to your telephone service provider’s central office.

In short, landlines require a physical connection (copper wire) in order to work.

On the other hand, VoIP uses a wireless, cloud-based system that transmits voice digitally over the internet in the form of data packets. Since VoIP works through the internet, you need to have a reliable broadband connection for it to work efficiently and have good call quality.

In this article, we will do an in-depth comparison between an analog and a VoIP phone, and see which one wins in technology, cost-effectiveness, reliability, and features.


Both landline and VoIP use a Private Branch Exchange (PBX) that manages phone calls both internally and externally in an organization. It was developed to reduce the costs of a company’s communications bill by letting them handle their own telephone system routing while still being able to connect to their telco’s PSTN (public switched telephone network).

PBX allows them to assign an extension in each of their many offices within the same building. Analog phone systems have a PBX box within the premises.

Analog PBX systems used in landlines require phone lines and need a complex hardware setup within a company location. VoIP, on the other hand, does not always need one because it’s all cloud-based and uses the internet to send and receive phone calls.

Moreover, PBX boxes require a constant software upgrade. And that’s why companies usually hire a telephony expert to keep their system running well and be available if there’s ever a need for repair.

But with VoIP’s cloud PBX feature, there’s no need for you to manage a hardware device like the PBX box because everything happens in the cloud. There are no software upgrades to deal with and very little chance of being without call functionality.


If there’s anything that makes VoIP the number one choice for small businesses, it’s the ability to be location independent and to scale with ease. You can add or remove users/lines easily and at nominal fees.

Analog phone systems keep you stuck in one location because it needs a physical connection to work, and if you ever decide to scale or open up a business in a new location, you’re going to have to buy extra hardware and phone lines.

Most VoIP vendors usually offer a mobile app that allows your employees to use a smartphone or a computer as their desk phone whenever and wherever they are in the world.

Rich Features

Modern VoIP systems have new and advanced features that meet your unique business needs without breaking the bank. You can set up your own music on hold, IVR, call queueing, etc. and some of these are not available with traditional phone services.

With SIPcity’s VoIP for small business, you can create a call centre styled system where you can record calls for KPI purposes. You can also add an international toll-free number so your customers can call you wherever they are for free.

Moreover, most VoIP providers also offer CRM integration for tools like Salesforce. This way, your employees will be able to load customer information faster and with ease as the customer reaches them.


You might think a basic standard phone service is cheaper than a more advanced and sophisticated one like VoIP, but that’s not actually the case. VoIP rates are very affordable and the service is excellent.

With a traditional phone system, initial setup for a landline is expensive because it’s labour-intensive, but with VoIP, that’s not the case. In fact, with SIPcity there’s no setup fee because all you need to do is create an account to get started.

There may be a need for additional hardware however that is based on personal preferences. SIPcity offers a convenient soft phone as well as the option to purchase reliable, and professional Yealink Handsets.

If you choose, you can buy an upgraded headset or a VoIP phone that you can connect via Wi-Fi for added convenience.

Second, maintenance with a hosted VoIP service is little to zero. Since VoIP runs via the internet, there are no hardware or systems within the business premises that need to be maintained. Landline phones sometimes require a technician onsite or periodical tech visits for routine maintenance to prevent interruptions.

Third, VoIP Service Providers like SIPcity offer plans in Australia that allow you to call internationally or anywhere in Australia at a fraction of the cost of standard voice plans. Also, the costs of adding features with VoIP is very low compared to landlines. With landlines, you may need to upgrade or add a new piece of equipment if you want a new feature, and that only adds to the cost of your monthly plan.

And finally, VoIP has a more expansive list of features like a virtual receptionist, IVR, etc. that usually come included in your monthly plan.

Switch To SIPcity VoIP Australia Now

There’s no doubt that VoIP is the clear winner, and we can safely say that it is the future of business communication. It’s high time to take your business to new heights and experience the difference that VoIP can bring.

SIPcity is one of the leading VoIP providers in Australia and has helped many businesses set up their business phone systems in Sydney and many other cities across the country.

Get in touch with us today and we’ll show you how you can change the way you communicate with your customers and clients for the better through VoIP.