Business Landline Systems: Cost, Features & Alternatives
A business landline service is a traditional telephone system that uses analog technology to connect calls. It doesn’t rely on the internet, so calls are more reliable and audio is higher quality. But features are limited to essential call functions like voicemail, call forwarding, and three-way calling. With monthly prices ranging from $20 to $80 because of infrastructure requirements and regular maintenance, landlines cost more than cloud-based alternatives.
How business landline systems work
Business landline services use dedicated copper lines to connect to a switching station known as the public switched telephone network (PSTN). The PSTN converts voice audio into electrical waves, which are then transmitted through the copper lines. Once the signals reach your company network, they travel through the cables until they reach their destination, continuously connecting the sender and the receiver.
A local phone company handles the landline installation, ensuring each phone line is properly connected to the copper lines and integrated into the network. There are two types of landline phones: corded and cordless. A corded landline is plugged into the provider’s cabling through a wall jack, as the phone base and the handset are connected by a cord. A cordless landline is similar, except the handset is wirelessly connected to the phone base.
The service operates independently of the internet, making calls less affected by adverse weather conditions and power outages. However, this reliability comes with a cost, as landlines are known for their significant upfront expenses, including installing and maintaining the physical infrastructure. Still, many opt for a landline for business use because of its dependability and crystal-clear calls.
Pros and cons of business landline systems
While phone service providers are getting closer to phasing out landlines, many industries opt to keep them around because of familiarity and stable connections. To help you evaluate if a landline phone service for business is the right choice, consider the pros and cons.
Business landline vs VoIP
In 2017, the Federal Communications Commission (FCC) issued an order addressing the retirement of landline copper lines and the replacement of legacy services with voice-over-internet-protocol (VoIP).
As internet use increases, VoIP has become increasingly popular because of its flexibility and cost-effectiveness. If you’re undecided between investing in a landline service or a VoIP system, let’s explore how these two technologies compare. Businesses comparing traditional landlines and VoIP phone systems should consider differences in cost, flexibility, and available features.
A VoIP system is an internet-based phone service packed with advanced call features. It is generally cheaper than landlines because the service provider shoulders the system maintenance and upgrades. Users only need to pay a monthly subscription fee to start making calls through their existing devices, providing them with the ability to communicate from anywhere in the world.
Switching to VoIP also comes with limitations because call quality and access to the service depend on the speed and reliability of your internet connection. This is where landline has an advantage as it provides consistent connection and call quality that are not dependent on the internet. And since landlines have less exposure to internet-based threats like phishing and DDoS, this reduces the security concerns for companies exchanging confidential information.
Key features of business landlines
If you think traditional telephony fits your needs, it’s important to be familiar with what business landline phone service providers offer. While it has fewer functionalities than VoIP, landlines offer key features that may be enough for small business needs. Let’s take a look at them.
Top business landline providers for small business
The number of business landline providers offering legacy phone services has decreased over the years as the FCC freed telecom companies from the obligation to provide plain old telephone services (POTS). However, some companies continue to offer these services for businesses that prefer landlines over VoIP. Below are our top small business landline phone service providers with costs and features.
Why businesses upgrade from landlines to VoIP
A business landline phone service is an excellent tool for reliable communications with team members and customers, but its appeal has waned over the past years as digital platforms become the norm. In fact, 7 in 10 US adults have gone wireless and don’t have a landline.
Unlike landlines, VoIP features go beyond making and receiving calls. Features such as multilevel auto-attendant, call routing, and queue callback enable businesses to streamline interactions and ensure flexibility in managing calls.
Most VoIP platforms support team chat and video calls, allowing teams to collaborate easily. These features are accessible in the cloud, allowing users to work on-site and outside the office. If you’re ready to transition to a cloud-based phone system, here’s a quick overview of some of the top VoIP providers:
Common reasons businesses switch to VoIP include:
- Lower monthly communication costs
- Ability to make calls from computers and mobile devices
- Advanced call management features
- Integration with business tools such as CRM software
*All per-user prices are with a one-year commitment unless otherwise noted.
Frequently asked questions (FAQs)
Monthly business landline phone plans can cost anywhere between $20 and $80 per line.
A service provider may also charge an installation fee from $150 to $700, depending on the number of lines and location. This data is based on a 2024 survey by Angi,[1] a home improvement website.
Yes. However, only a few providers offer standalone landline services as they typically bundle their phone plans with internet or TV solutions. Ideally, these providers encourage customers to avail of bundled plans to save on monthly bills. But if you prefer a landline-only deal, a business landline phone service like CenturyLink is an excellent choice.
In a CNN[2] interview with Gartner’s research vice president Lisa Pierce, only about 5% of landlines will remain by 2030. However, it would take decades to remove them completely, as there are still 100 million active landlines in businesses and residences across the US.
Bottom line
A business landline phone service provides a secure and reliable way to make calls locally or long-distance. It includes a familiar set of features that makes it easy for users of any skill level to use the service. However, a landline setup comes with significant upfront costs, which may strain small business budgets.
VoIP services offer a more affordable and flexible alternative that meets modern communication needs. Their scalable plans include a range of call management capabilities and mobility features, allowing users to work anywhere. As you decide between landline or VoIP, look beyond your current business requirements and consider future growth.
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