Voice over Internet Protocol (VoIP) sends communication over the Internet. “Plain old telephone service” (POTS) uses traditional circuit-switched telephony.
Which one is better for your organization? Let’s find out!
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Trying to decide between VoIP and POTS? Give us a call and let us explain how transitioning to digital technologies can help your organization!
How do POTS Lines Work?
POTS is the basic analog landline phone system that has been in use since the late 1800s. It relies on a network of copper wires and analog devices to transmit voice signals between callers.
A POTS line operates on a circuit-switched network, where a dedicated circuit or channel is established between the caller and the receiver for the duration of the call. This circuit is created by making connections through a series of switches and transmission lines within the telephone company’s network.
The use of copper wires and analog devices is a defining characteristic of POTS. Analog telephone sets, which convert sound waves into electrical signals, are connected to the network via copper wire lines. These copper lines carry the analog signals to and from the local telephone exchange, where they are routed to the intended destination.
How does VoIP Work?
VoIP transmits voice calls over the internet instead of traditional analog telephone lines. Unlike POTS, VoIP employs the internet’s packet-switched network to send and receive voice data.
VoIP converts analog voice signals into digital data packets. These packets travel over the internet to their destination, where they convert back into analog signals for the recipient to hear. This process requires specialized software or hardware devices called VoIP adapters or IP phones.
VoIP integrates seamlessly with smart devices and the internet. Users can access VoIP services on various devices, including smartphones, tablets, laptops, and desktop computers, as long as the devices have an internet connection. This integration allows users to make and receive calls from virtually anywhere.
VoIP services offer software applications or softphones that users install on their smart devices. These applications enable users to manage calls, access voicemail, and configure settings directly from their devices. Many VoIP providers also offer dedicated hardware solutions, such as IP phones or adapters, which connect to the internet and provide a familiar telephone experience.
Types of VoIP Services
There are several types of VoIP services available, each designed to cater to different business needs and communication requirements.
- Hosted PBX/VoIP. This type of VoIP service involves a hosted private branch exchange (PBX) system, which is managed and maintained by a third-party provider. Businesses can access the PBX features and functionality through an internet connection, without the need for on-premises hardware or maintenance.
- Unified communications as a service (UCaaS). UCaaS integrates various communication channels, including voice, video, messaging, and collaboration tools, into a single platform. It enables seamless communication and collaboration among team members, regardless of their location or device. Key features include video conferencing, screen sharing, instant messaging, and file transfer capabilities. UCaaS solutions benefit team communication and productivity by streamlining communication processes and enhancing collaboration.
- Contact center as a service (CCaaS). CCaaS provides cloud-based contact center solutions specifically designed for customer service and support operations. These solutions offer advanced features such as call routing, interactive voice response (IVR), and call queuing, as well as analytics and reporting tools. CCaaS solutions also often include features like call recording, workforce management, and integration with customer relationship management (CRM) systems. The benefits of CCaaS include improved customer experience, increased agent productivity, and better insights into customer interactions.
The Key Differences Between VoIP and POTS
To determine which solution is best for your business, consider the following factors associated with VoIP and POTS.
Cost Comparison
VoIP and POTS have different cost profiles. When comparing costs, we need to consider setup and ongoing expenses separately.
Initial Setup Costs
- POTS:
- Relatively lower initial setup costs, primarily involving the installation of physical telephone lines and analog devices.
- Additional costs may arise for complex setups or if wiring needs to be laid out.
- VoIP:
- Higher upfront costs for purchasing IP phones, VoIP adapters, or softphone software licenses.
- Potential costs for upgrading internet connectivity and networking equipment to support VoIP traffic.
- Implementation and configuration costs, especially for larger businesses or complex setups.
Ongoing Operational Costs
- POTS:
- Monthly subscription fees for telephone service.
- Long-distance and international call charges, which can add up quickly for businesses with high call volumes.
- Maintenance and repair costs for physical infrastructure, such as copper phone lines and analog devices.
- VoIP:
- Lower monthly costs, often with flat-rate pricing or per-user pricing models.
- No additional charges for long-distance or international calls (may vary based on the VoIP provider).
- Lower maintenance costs, as software updates and troubleshooting can often be done remotely.
Cost-effectiveness for Different Business Sizes
- Small businesses:
- VoIP is generally more cost-effective for small businesses with low to moderate call volumes, as the savings on long-distance charges and maintenance can quickly offset the initial setup costs.
- Medium-sized businesses:
- The cost-effectiveness of VoIP becomes more significant for medium-sized businesses with higher call volumes and multiple locations, as the scalability and flexibility of VoIP can provide substantial savings compared to POTS.
- Large enterprises:
- For large enterprises with complex communication needs, the initial setup costs for VoIP can be higher, but the long-term savings on operational costs, advanced features, and seamless integration with other business tools often make VoIP a more cost-effective choice.
The actual cost savings or expenses will depend on the specific VoIP provider, the business’s communication needs, the number of users, and the existing infrastructure.
Functionality
VoIP stands out as the clear functionality winner, providing a wide array of advanced features that empower businesses to communicate more efficiently and effectively.
VoIP excels in call management, offering a comprehensive set of features designed to streamline and optimize communication processes. These features include:
- Voicemail. Users can access and manage their voicemail messages from any device, ensuring that important messages are never missed.
- Call forwarding. Incoming calls can be redirected to another number or device, allowing users to receive calls even when they are away from their primary phone.
- Call dcreening. VoIP enables users to screen calls and decide whether to answer, send to voicemail, or forward to another number.
- Call recording. Conversations can be recorded for training, quality assurance, or legal purposes.
- Conference calling. Multiple participants can join a call simultaneously, facilitating collaboration and decision-making.
In contrast, POTS has limited call management features, often restricted to basic functions such as voicemail and call forwarding. It lacks the advanced functionality and flexibility that VoIP provides.
Integration with Other Business Tools
VoIP integrates with other business tools, creating a unified and efficient communication ecosystem. This integration offers several benefits:
- CRM integration. When a customer calls, VoIP phones can automatically retrieve relevant information from the CRM system, providing users with valuable context and enabling personalized interactions.
- Productivity app integration. VoIP integrates with productivity apps, such as email and calendar, allowing users to schedule and manage their communication tasks effortlessly.
- Streamlined workflows. The seamless integration of VoIP with other business tools eliminates the need for manual data entry and ensures that all communication-related information is readily accessible.
On the other hand, POTS systems operate as standalone entities, lacking the ability to integrate with other business tools. This isolation results in siloed communication processes, reduced efficiency, and missed opportunities for personalized customer interactions.
Reliability
Both POTS and VoIP have their strengths and limitations when we look at their reliability.
POTS
POTS has been known for its reliability, as it has been the standard for voice communication for decades. POTS’s traditional copper wire infrastructure is relatively stable and can continue to function even during power outages. This is because POTS phones draw power from the telephone line itself, ensuring that calls can still be made and received during electrical failures.
However, the reliability of POTS is not without its drawbacks. The aging copper wire infrastructure is susceptible to physical damage, such as wear and tear, and can be affected by environmental factors like extreme weather conditions. Additionally, the quality of service can degrade over long distances, leading to issues like noise, static, or dropped calls.
VoIP
VoIP faces different reliability challenges compared to POTS. The quality and reliability of VoIP calls can be affected by several factors:
- Internet connection. VoIP requires a s high-speed and reliable internet connection. Any disruptions or fluctuations in the internet service can lead to poor call quality, latency, or dropped calls.
- Network congestion. If the network is congested with heavy traffic, VoIP call quality can suffer, resulting in delays, echoes, or choppy audio.
- Power outages. Unlike POTS, VoIP phone services require a power source to function. In the event of a power outage, VoIP service may be interrupted unless backup power solutions, such as uninterruptible power supplies (UPS), are in place.
Despite these challenges, advancements in VoIP technology and network infrastructure have significantly improved the reliability and quality of service. Many VoIP providers now offer robust network infrastructures with built-in redundancy and failover mechanisms to minimize downtime.
Quality of Service
In this field, VoIP emerges as the clear winner. VoIP leverages advanced audio codecs and digital signal processing techniques to deliver superior sound quality. With sufficient bandwidth and proper network configuration, VoIP can provide high-definition (HD) audio and offer crisp and natural-sounding conversations that surpass the limitations of traditional analog phone lines.
VoIP call quality can be affected by various network factors, such as jitter, latency, and packet loss. Jitter refers to the variation in the arrival time of audio packets, while latency is the delay in the transmission of voice data. Packet loss occurs when audio packets fail to reach their destination. These factors can lead to degraded audio quality, resulting in choppy or distorted sound.
To mitigate these issues, VoIP utilizes Quality of Service (QoS) protocols, which prioritize voice traffic over other data types. QoS ensures that voice packets receive the necessary bandwidth and are delivered promptly which minimizes jitter and packet loss. This prioritization helps to maintain optimal call quality, even in congested network conditions.
POTS is constrained by the limitations of analog technology. While POTS can provide satisfactory call quality for most users, it is susceptible to noise, static, and echo, particularly over long distances. The limited frequency range of POTS audio also restricts its ability to reproduce high-fidelity sound, resulting in a less immersive and natural audio experience compared to VoIP’s HD audio capabilities.
Moreover, POTS uses the G.711 audio codec, which has limitations in terms of audio fidelity. In contrast, VoIP can take advantage of advanced audio codecs like G.722 and Opus, which offer superior sound quality and compression efficiency.
Security and Privacy
It’s good to understand the potential risks and the measures that can be taken to protect sensitive information and maintain confidentiality.
VoIP Security
VoIP, being a digital and internet-based technology, is susceptible to online security threats. Some of the main security concerns associated with VoIP include:
- Eavesdropping. VoIP calls can be intercepted and monitored by unauthorized parties if proper encryption and security measures are not in place.
- Denial-of-service (DoS) attacks. VoIP systems can be targeted by DoS attacks, which flood the network with traffic, causing service disruptions and making the system unavailable to legitimate users.
- Phishing and social engineering. Attackers may attempt to trick users into revealing sensitive information or credentials through phishing emails or social engineering tactics.
- Malware and viruses. VoIP devices and software can be vulnerable to malware and viruses, which can compromise the security of the entire system.
To address these security risks, VoIP providers and organizations implement security measures, such as encryption, secure protocols (like SIP over TLS and SRTP), regular software updates, and user authentication mechanisms. Encryption ensures that voice data is protected from unauthorized interception, while secure protocols establish secure communication channels between VoIP devices.
POTS Security
POTS, being a traditional analog system, is generally considered more secure than VoIP in certain aspects. The main security advantage of POTS lies in its physical infrastructure. As POTS calls are transmitted over dedicated copper wire lines, intercepting or eavesdropping on these calls requires physical access to the telephone lines.
However, POTS is not immune to security risks. Analog phone lines can be vulnerable to wiretapping, where an attacker physically connects a recording device to the telephone line to intercept conversations.
Privacy Considerations
Both VoIP and POTS have privacy implications that users should be aware of. With VoIP, there is a risk of unauthorized access to call logs, voicemail messages, and other sensitive data stored on VoIP servers or devices. VoIP providers must implement strong security measures and adhere to data protection regulations to safeguard user privacy.
POTS, while generally considered more private due to its physical infrastructure, is not entirely immune to privacy breaches. Analog calls can be intercepted and recorded if an attacker gains physical access to the telephone lines. Moreover, POTS providers may keep records of call logs and other metadata, which could potentially be accessed by third parties under certain circumstances.
Future Trends
The telecommunications industry is constantly evolving, with emerging technologies and changing business needs shaping the future of voice communication. As your organization looks to stay ahead of the curve, consider the potential impact of these trends on POTS and VoIP adoption.
One of the most significant developments on the horizon is the widespread deployment of 5G networks. With its promise of faster speeds, lower latency, and increased capacity, 5G is set to revolutionize the way we communicate. For VoIP, 5G networks will enable even higher-quality audio and video calls, with virtually no lag or interruptions. The increased bandwidth and reliability of 5G will also facilitate the adoption of advanced features like high-definition video conferencing and augmented reality applications within VoIP platforms.
Another key trend is the growing prominence of cloud-based solutions. Cloud-based VoIP services, also known as hosted VoIP, are becoming increasingly popular among businesses of all sizes. These solutions offer scalability, flexibility, and cost-effectiveness, as organizations can easily add or remove users and features based on their changing needs. Cloud-based VoIP also eliminates the need for on-premises hardware and maintenance, reducing upfront costs and simplifying management.
The rise of remote work and distributed teams is also driving the adoption of VoIP and cloud-based communication solutions. With more employees working from home or remote locations, the ability to stay connected and collaborate seamlessly is more important than ever. VoIP’s flexibility and mobility features, such as softphone apps and virtual phone numbers, enable remote workers to communicate effectively, regardless of their physical location.
As these trends continue to shape the telecommunications landscape, the future of POTS appears uncertain. While POTS has been a reliable and stable technology for decades, it may struggle to keep pace with the evolving demands of modern businesses. The limitations of POTS, such as lack of scalability, limited features, and high maintenance costs, may make it less attractive than the flexibility and advanced capabilities offered by VoIP and cloud-based solutions.
To future-proof their telecommunication strategy, organizations should consider the following recommendations:
- Assess your organization’s specific requirements, considering factors such as scalability, remote work support, and integration with other business tools.
- Embrace the benefits of VoIP and cloud-based communication platforms, which offer flexibility, cost-effectiveness, and advanced features that can adapt to changing business needs.
- As 5G networks become more widely available, explore how this technology can enhance your VoIP and cloud-based communication solutions, enabling even higher-quality audio and video calling, and supporting innovative applications.
- Ensure that your chosen communication solution adheres to robust security standards and data protection regulations to safeguard sensitive information and maintain user privacy.
With new technologies and trends, organizations can make informed decisions about their telecommunication strategy. With these technologies, your business will stay agile, competitive, and connected in the years to come.
About Symplicity
At Symplicity, we can guide you through POTS to VoIP switching. We’ll show you how to get the right system for your requirements, and how to minimize vulnerabilities. We are experts in the latest communication technologies, service providers, and platforms.
If you are still now sure if you want to switch from traditional phone lines to unified communication platforms, let’s talk. We can:
- Assess whether UCaaS or on-premises UC best aligns with your use cases.
- Ensure smooth migrations away from legacy systems.
- Help realize the full benefits of communication modernization.
Not only can we help you with VoIP adoption, but we can also give your invoices a once-over to identify cost savings. Our technology expense management experts are extremely good at finding redundancy, waste, and (in many cases) money owed to you.
From contact center solutions to networks and mobile phone management, we can modernize every aspect of your communications infrastructure.
POTS vs. VoIP FAQ
Is VoIP replacing traditional landline phones?
VoIP is increasingly replacing traditional landline phones. As monthly phone bills rise and the reliability of traditional phone service declines, customers are looking for alternatives. VoIP offers a modern solution by allowing phone calls to be made through an internet connection, providing several benefits over traditional landlines, such as lower costs, advanced features, and the ability to make calls from various devices (computers and smartphones).
Why are VoIP lines better than PBX?
Here are some advantages of VoIP over private branch exchange (PBX) systems:
- VoIP provides cost savings by eliminating the need for expensive hardware and maintenance associated with PBX.
- VoIP solutions allow businesses to scale their communication infrastructure easily without significant upfront investments.
- VoIP offers advanced features such as virtual phone numbers, call forwarding, voicemail-to-email, and seamless integration with other business tools.
- VoIP users can make and receive calls from anywhere with an internet connection. This is particularly beneficial for remote teams and flexible working arrangements.
Does VoIP have better voice quality than POTS?
VoIP generally has better voice quality than POTS. VoIP can deliver sound at a minimum of 22kHz at 16-bit resolution, which is roughly FM radio quality and can go even higher, up to CD quality, which is 16-bit 44.1kHz.
In contrast, POTS usually offers a maximum of 10kHz at 8-bit resolution, which is comparable to an AM radio station. The superior sound quality of VoIP is also due to better speakers and microphones used with internet communication tools.
What is the difference between POTS and PSTN?
The difference between POTS and public switched telephone network (PSTN) is that POTS refers specifically to the basic landline telephone system that operates over copper wires without using VoIP technology. PSTN encompasses a broader range of technologies, including copper wires, ISDN, and fiber, for transmitting voice data.
While POTS and PSTN are often used interchangeably, PSTN can utilize more than just copper wires, whereas POTS is limited to the traditional copper wire infrastructure.
Is IP telephony reliable?
IP telephony, or VoIP, has become increasingly reliable over the years. Advancements in network infrastructure, quality of service (QoS) mechanisms and redundancy measures have significantly improved the reliability of VoIP services. Modern VoIP providers invest in robust network architectures with built-in failover and load-balancing capabilities to ensure high availability and minimize downtime.
The use of secure protocols such as session initiation protocol (SIP) over transport layer security and secure real-time transport protocol enhances the security and integrity of VoIP communications.
While VoIP does rely on internet connectivity, the widespread availability of high-speed broadband and dedicated voice networks has made VoIP a dependable choice for businesses and individuals alike.
Do POTS have outdated infrastructure?
POTS operates on an outdated infrastructure. It relies on copper wires to transmit voice data, a technology that has been in use for over a century. As digital technology advances, PSTN systems, which include POTS, are being phased out, making it increasingly difficult to find parts and support for repairs and upgrades.
Why to avoid POTS?
It is generally recommended to avoid POTS if you are looking for high-quality audio, modern features, and cost savings. POTS is limited in terms of sound quality and does not support the advanced features that VoIP systems offer. Also, with the phasing out of PSTN systems, maintaining a POTS line may become more challenging and expensive over time.
Do people still use fax machines?
While the use of fax machines has declined significantly in recent years, there are still some industries and situations where fax remains relevant. Certain legal, healthcare, and government sectors may require faxing for secure document transmission due to regulatory requirements or legacy systems.
Fax machines are also occasionally used in international business communications, particularly when dealing with countries where electronic signature laws are not well-established.
However, with the advent of digital alternatives like email, electronic fax services, and secure file-sharing platforms, the reliance on physical fax machines has diminished.
Further Reading
How can voice technology enhance CX?
CX vs. UX: what is the difference?
What are the benefits of SIP trunking?
UCaaS analytics and reporting: what do you need to know?
