VoIP vs. POTS: Which Communication System Is Right for Your Business?

Introduction

In the growing communications industry, companies must make a difficult choice: stick with the outdated Plain Old Telephone Service (POTS) or move on to the modern Voice over IP services (VoIP) provided over the Internet.

These two systems, while having different tasks to complete to ensure the accuracy of communication processes, contain integral components. Voice over Internet Protocol (VoIP) is a type of Internet-based personal computer network that offers a wide range of features at a cost-effective price. As opposed to POTS which relies on the traditional infrastructure of copper wires and provides some ease of use and reliable performance. Determining the primary distinctions between these two systems is the first step in carrying out the evaluation of your business’s requirements and establishing the best solution.

Telecommunication systems play a vital role in businesses, and hence, selecting the right communication system becomes mandatory, as it affects efficiency, cost, and scalability. There are two different approaches to communication: VoIP and POTS.
While POTS has served as the backbone of traditional telephony for decades, VoIP delivers a more modern, internet-powered solution that allows advanced features and flexibility.

While every business is different, there are certain advantages and limitations on each side that you can fully weigh through this blog to see which best meets your business’s unique needs. Whether you value reliability or bleeding edge performance, we give you the info to make an educated decision.

What is POTS? (Plain Old Telephone Service)

So let’s understand in depth what is POTS:
Plain Old Telephone Service, or POTS, is a traditional phone system that uses regular copper wires twisted together to make phone calls. This service is provided directly by your local phone company and has been around for many years. It operates straightforwardly, allowing people to connect with each other using basic landline phones.

Some Key characteristics:

• Sending balanced audio signals over a two-wire copper loop.
• Limited to a frequency range of 300–3,300 Hz, known as the voiceband, which is significantly less than the human hearing range of 20–20,000 Hz.
• Call progress tones include sounds like the dial tone and the ringing tone.
• Loop initiation, ground initiation, and E&M signaling.
• It offers greater reliability compared to other telephony systems.

The Practical Uses of POTS Lines in Today’s World

Despite the rise of digital communication, POTS lines still perform common tasks in both home and business environments. It’s been called on to patch up some fire alarms, security panels, or elevator service lines that still rely on POTS for communication.

Moreover, fax machines, point-of-sale (POS) terminals, and building entry systems are commonly used POTS telephones due to their reliability and compatibility with other technologies.

Limitations of POTS

• Tied to One Place: It is restricted to physical points and it has a lower agility than what the internet-based system offers. 
• Restricted Features: POTS is basic, offering only voice communication and missing modern conveniences like voicemail, call forwarding, or conferencing tools.
• Expensive: The costs, especially for long-distance or international calls, can go up significantly, making it a pricey option for many.
• Scalability: POTS system isn’t straightforward; adding lines or upgrading can be time-consuming and costly.
• Minimal Data Support: POTS struggles with transmitting data, making it incompatible with today’s internet-dependent systems.
• Reliable in Power Outages: While it can work during power outages, it’s still vulnerable if the main infrastructure gets disrupted, such as during a natural disaster.
• Aging Technology: The quality of calls often depends on the condition of the old infrastructure, leading to static or dropped calls.
• Declining Relevance: With telecom providers focusing on newer technologies, support for POTS is diminishing, leaving businesses with fewer options for maintenance or upgrades.

What Is VoIP? (Voice Over Internet Protocol)

VoIP stands for Voice over Internet Protocol, a technology that allows one to make phone calls over the Internet rather than using traditional phone lines. Instead of relying on a landline or cellular network, VoIP converts your voice into digital signals transmitted over the internet. This method makes communication faster, more flexible, and often more affordable. VoIP is compatible with numerous devices, such as smartphones, computers, and dedicated VoIP phones, making it an excellent choice for both personal and business communication needs.

To have a comprehensive understanding of VoIP check out our YouTube video:

Some Key characteristics:

• Conduct voice calls and video conferences with high-definition audio quality while also sharing screens 
• Handle all calls with functionalities like call waiting, call forwarding, call screening, and also call recording 
• Send text messages to clients through the service provider’s application 
• Monitor all call records and logs 
• Integrate with CRM and various other software 
• Use of mobile and desktop apps to access your VoIP services 

Practical Applications of VoIP in today’s communication:

• In the Healthcare industry, VoIP streamlines patient communication through various functions like appointment reminders, visit follow-ups, and monitoring prescriptions. At the same time, it helps businesses collect patient feedback, reviews, and surveys. 
  
• VoIP helps Schools and Universities stay connected with their students for their everyday schedule/timetable and important events like sports day or interschool activities, student attendance, & grades.
  At the same time, it also helps to connect parents with real-time updates about the PTA meetings, exam scores, any important changes to the school schedule in case of emergencies, etc.
  
• It also assists Home Service businesses like plumbers, and electricians, use VoIP to manage incoming service requests, schedule appointments, and send follow-up messages to ensure customer satisfaction. With VoIP, these businesses can easily collect reviews post service completion to gather valuable feedback with minimal effort.
  
• With the help of VoIP Real Estate Agents can leverage for better communication with potential buyers, sellers, and renters. Through VoIP property viewings can be scheduled, automated reminders can be sent, and also set up follow-up with clients to request feedback on properties.

• VoIP offers personalized guest services for Hotels, such as automated check-in/check-out notifications and room service requests. It also enables post-stay follow ups to gather feedback, enhancing customer relationships.
  
• Nonprofits & Churches can enhance their connections more effectively with members and donors through events. They can encourage participation by building a stronger sense of community engagement with VoIP.

Limitations of VoIP

• Occasional Call Disruptions: While VoIP provides exceptional flexibility, occasional disruptions or reduced clarity might occur if there is an unstable internet connection.
• Bandwidth Considerations: Bandwidth should be within an acceptable range (80 to 100 kbps for each telephony call) as performance may be affected by network congestion.
• Emergency Tracking Restrictions: Location tracking in an emergency is restricted and there are privacy concerns as some online services don’t permit the usage of VoIP numbers. 
• Technology Integration: Certain legacy systems, such as older alarm setups, may require adjustments to work alongside.
  Service Compatibility: While VoIP numbers may face limitations with some online platforms, these instances are becoming rarer as VoIP adoption grows globally.

VoIP vs. POTS – A Detailed Comparison

Here, we outline the key differences between the two options in a simple table to assist you in making the right choice for your needs.

Voice over Internet Protocol (VoIP) is recognized for its flexibility, cost-effectiveness, and advanced features, which positions it as an excellent option for both businesses and individuals seeking a versatile communication solution. Hence in the evolving digital age, VoIP makes a better choice than POTS. 

Key Considerations When Choosing Between VoIP and POTS

Here’s a detailed guide to the when choosing between VoIP and POTS

Business Size and Needs

• Small Businesses or Startups: Often benefit from the flexibility and cost-efficiency of VoIP, especially when scaling operations.
• Established Organizations: May choose POTS for its reliability, especially if they have minimal need for advanced features and adaptability to digital technology. 
• Rural Businesses: POTS might be easier in locations where the high-speed internet is unavailable.
  

Internet Infrastructure

VoIP: Needs to have an internet connection that is fast and very stable. Unreliable or slow internet causes call problems such as jitter and latency.

POTS: Works independently of the internet availability. Thus, it could be very reliable when internet facilities are either scanty or unreliable.

Cost Consideration

Initial Investment: POTS demands an initial investment in physical structures, while VoIP could be run on existing Internet setups.

Running Costs: VoIP usually is cheaper, especially for far-off or international calls; POTS may incur relatively higher monthly charges and extra charges for additional lines.

Features and Functionality

VoIP: Provides advanced features such as call forwarding, video conferencing, integration with CRM tools, voicemail-to-email, and AI-based analytics.

POTS: Only provides basic calling features, which makes it less versatile for modern business needs.

Mobility and Remote Work

VoIP: Ideal for businesses that have remote or hybrid work models since calls can be accessed from any internet-connected device, including smartphones and laptops.

POTS: Being fixed-line, it is less portable; therefore, not very apt for remote work or individuals on the move.

Scalability

VoIP: Scalability with minimum changes in the underlying infrastructure; you may increase/decrease lines or users without high incremental costs.

POTS: Expanding it does require hardware installations; thereby a time-consuming and costly process.

Call Quality and Reliability

VoIP: Dependent on internet bandwidth and infrastructure. High-quality internet ensures good call performance, but outages or slow speeds can degrade the experience.

POTS: Known for its reliability and consistent voice quality, particularly in emergencies and power outages.

Integration Capabilities

VoIP: Seamlessly integrates with other business tools like CRM, ERP, and project management software, enabling automation and improving workflows.

POTS: This can be used alone but does not offer the integration feature.

Emergency Services

VoIP: Has restrictions with location tracking for emergency calls because it is based on an IP network.

POTS: Allows location tracking in emergency services and hence a very reliable option in such critical times.

Future-Proofing

VoIP: Designed for adaptability and innovation, with regular updates and new features being introduced.

POTS: With the shift of technology to digital solutions, POTS is being phased out by service providers, which makes the long-term viability questionable.

Security

VoIP: Vulnerable to cybersecurity risks, such as hacking and eavesdropping, without robust encryption and security measures.

POTS: Provides a more secure, isolated communication line less vulnerable to cyber threats.

Industry-Specific Requirements

Companies involved in healthcare, education, NGOs, or legal services would benefit more from VoIP’s flexibility and data-driven capabilities as they are highly moving towards technology-intensive sectors.

Hence, businesses should consider their unique needs, such as scalability, budget, internet quality, and the need for advanced features, when deciding between VoIP and POTS. POTS remains a reliable choice for basic, location-specific calling, but VoIP aligns better with modern business goals in terms of flexibility, cost-effectiveness, and integration.

How To Transition From POTS To VoIP

The way businesses communicate has undergone a revolutionary change with the rise of VoIP (Voice over Internet Protocol). By 2028, the VoIP market is projected to hit $236.25 billion, growing at an impressive 11.8% annually. Did you know that businesses can cut communication costs by up to 50% simply by switching to VoIP? Its affordability, scalability, and unmatched flexibility are why this modern solution is rapidly replacing traditional phone systems.

Setting up VoIP may initially seem overwhelming, but the process is simpler than you think. Whether you’re a startup or an established enterprise, understanding how to transition from a traditional phone system to VoIP ensures a smooth and effective transformation.
Here’s a step-by-step guide to help you make the shift:

Step 1: Assess Your Internet Connection

The foundation of VoIP lies in a strong internet connection. Stable, high-speed internet is essential for clear calls and smooth operations. Each VoIP call typically requires around 80–100 kilobits per second (kbps) of bandwidth per call. Conduct a quick bandwidth test to ensure your network can handle your business’s call volume. If needed, upgrading the internet plan can prevent interruptions like dropped calls or poor sound quality.

Step 2: Understand Your Business Needs

Before choosing a provider, identify what are your business’s communication goals. How many users will you have? What call features do you need—like voicemail-to-text or CRM integrations? Tailoring your choice to your specific needs ensures you only pay for features that add value to your operations.

Step 3: Choose the Right VoIP Provider

Not all VoIP providers are created equal. Look for the one offering reliable service, robust security, and scalability. A trusted provider like Emitrr offers advanced tools such as call recording, auto-attendants, and voicemail-to-email—perfect for businesses seeking a comprehensive solution.

Step 4: Gather the Right Equipment

From VoIP-enabled phones to softphones for remote teams, choosing the right equipment is crucial. Consider adapters for traditional phones or high-quality headsets for a seamless communication experience.

Step 5: Install and Configure VoIP Software

Your provider’s software dashboard will allow you to manage features like call routing and voicemail settings. Many providers, including Emitrr, offer user-friendly apps, making it easy to stay connected from anywhere.

Step 6: Optimize Your Settings

Customize your VoIP system to fit your workflow. Features like call forwarding, auto-attendants, and video conferencing can be adjusted to suit your business’s needs, ensuring smoother operations.

Step 7: Prioritize Security

Protecting your VoIP system is non-negotiable. Use encryption, firewalls, and regular updates to safeguard sensitive information. Access controls can limit who has permission to access key features, ensuring a secure environment.

Step 8: Test and Refine

Once set up, rigorously test your system for call quality and stability. Periodic reviews and updates will keep your communication tools aligned with your growing business needs.

Step 9: Train your staff

Conduct comprehensive training for all staff on using the new system, including hands-on
workshops and instructional materials. Offer ongoing support and follow-up sessions to address any questions or challenges.

Choosing The Right VoIP Provider – Why Emitrr Is The Best Choice! 

Emitrr is the best VoIP for remote workers and our top pick for those looking for a high-quality VoIP system for their remote team. This phone system comes with 99.99% uptime, robust security, and plenty of calling functions, including call forwarding, recording, call analysis, extensions, etc. Emitrr is super affordable, offers the best value for money, and is one of the only software that is rated 5/5 for its customer support on Capterra. The software also integrates with 1000+ external CRM/EHR/PMS tools and is the best choice for businesses of any size and industry. 

Features of Emitrr That Make It the Top Choice

Call forwarding: This simply redirects an incoming call to another number or device.

• Call recording: The calls are recorded so that later on, you can access it for quality purposes. 
• Users & extensions: You assign, edit, remove, or add extensions to different users that determine the call-forwarding behavior.
• Toll-free numbers: Customers are allowed to call you for free.
• Call pop feature: This shows important caller information and calling history to the person during a live call. 
• Call disposition: Tag or label the call based on the call outcome. 
• IVR menu customization: Design and configure your custom IVR menu with edit, delete, etc. based on your business requirements.
• Mobile & Desktop app: Access remote office phone systems on a desktop, mobile, laptop, etc.
• Missed call text: Sends an automated text message in case the call does not get answered.
• Multi-location management: Manage and track performance across multiple locations.
• CRM integration: Integrate with your existing CRM software to access caller information faster.
• Simultaneous & sequential calls: Determine if the call should go to your team simultaneously or in a sequence.
• Set maximum caller wait time in queue: Set maximum time the caller waits for an available member.

*Emitrr offers the most affordable and flexible pricing option, starting at just $30  per month. 

Frequently Asked Questions

Conclusion

Businesses today are turning to VoIP as a means to enhance their communications because VoIP is an incredible tool thanks to its great cost-effectiveness, scalability, and versatility. This way, it is not only money-saving but also brings about the chance of building a more remote and dynamic work environment, as the way teams link and communicate gets reformed. Small startup, mid-sized expanding businesses, or large enterprises are convinced that Emitrr as a VoIP provider supports innovative technology, ensures a minimum of downtimes, and is the master of customer support.

With Emitrr, VoIP implementation can be done in a smooth and trouble-free manner no matter the magnitude of your organization. Ready to redefine your communication strategy?Book a demo now and find out the new level of efficiency and connectivity you can reach by using Emitrr.