Telephone systems are more complex today than their predecessors with lots of functions to take into consideration for your business. How you decide what is best for your organization’s communication comes down to the basic key components of those systems. Two of those popular lines are the traditional Plain Old Telephone System lines (POTS) and Voice Over Internet Protocol (VoIP). When you begin looking at the best fit for your organization’s needs, it is best to understand what these two systems are and what they both deliver to your company.

What are Plain Old Telephone Services (POTS)?

POTS are your traditional analog phones of copper twisted wires creating a dedicated circuit between two points of transmission. The phone wires allow for connectivity between your provider’s switching system. However, the numbers for copper lines have steadily decreased over the years resulting in an increase in costs to install and maintain traditional POTS lines.

What is Voice Over Internet Protocol (VoIP)?

VoIP is a phone system using IP technology in the form of digital hardware or a program from a computer or phone to transmit calls. VoIP systems collect bundles of data converted from the sound generated by one person, send it over the internet, and decompress the data to be understood and heard by the other person at the end of the line.

Understanding the Difference Between Voice Over Protocol (VoIP) and Plain Old Telephone Lines (POTS)

Many businesses choose to stick with their POTS lines due to conventional standards and habits. However, VoIP phone systems are gaining traction due to their flexibility, cost-efficiency, and scalability.

POTS lines require employees to be within physical proximity of the phone or system wherever their office may be. With VoIP, your employees are not confined to their office to answer important incoming calls or sales opportunities, thus increasing their flexibility and mobility to effectively communicate with colleagues and customers. The voice-over internet protocol systems integrate with your emails, CRM systems, and multiple other business applications allowing for greater productivity.

A key component of a healthy business is growth. As the expansion of your business happens, so does the price of traditional analog phones. Companies who install POTS lines create your phone plan off your subsequent growth meaning you may pay more upfront than is necessary for your phones. Additional equipment, maintenance fees, and operational expenditures will be added to allocate for the growth which is then added to your capital. Due to VoIP systems working through IP technology, there is no upkeep of equipment, considering equipment depreciation costs, or factoring call volume into your budget. This system is scaled to grow with you as your business requirements grow which makes VoIP the most cost-efficient option for any business.

VoIP system’s immense scalability comes down to its cost efficiency and flexibility. Many features are bundled together such as voicemail to email, voicemail to text, CRM integration, and many other aspects to elevate your company’s productivity and growth. POT systems normally charge extra for those additions and even base certain charges on the number of calls made at the same time by different users. Call volume-related expenditures are the last thing you want to worry about as you’re scaling your business.

The scalability of VoIP systems allows for long-term solutions to your long-term company growth. For more information regarding VoIP systems or to start your phone conversion to VoIP systems today – fill out our form.