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VoIP vs Traditional Phone Service: How To Decide for Your Business

Updated: Jan 17

Every established organization has published phone number(s) that when called, ring into a phone system whether that's an on-premise PBX, cloud-based/hosted PBX, or hybrid of the two.

How those phone calls are delivered and the type of telephone service are ever-changing as the telecommunications industry advances.

There are different types of voice and non-voice service options today which include VoIP and Traditional connectivity. Keep in mind, there are options to have a hybrid mix of VoIP and traditional services depending on how your organization needs to communicate.

VoIP Phone Service

VoIP (Voice over Internet Protocol) transmits voice in the form of data running over an internet connection. Or in simple terms, making phone calls over an internet connection versus traditional phone lines.

VoIP service is required to utilize a hosted PBX or cloud-based phone system and is also available with an on-premise PBX phone system. If using VoIP with an on-premise phone system, this is called SIP Trunking service (Session Initiation Protocol).

To achieve optimal call quality and service uptime with VoIP, internet connectivity must be free from jitter, packet loss, and latency with at least 5Mbps download and upload dedicated for voice services at all times. Understanding if a network is capable of supporting quality VoIP service should be part of initial discussions with any telecom partner.

Traditional Phone Service

Known as the PSTN (Public Switched Telephone Network) or more simply put, 'landline' phone service. There are three options to consider for traditional phone service which also supports non-voice lines used for fax machines, credit card machines, emergency services, security systems, elevators, and HVAC systems.

1. POTS (Plain Old Telephone Service) - Analog voice transmission phone system implemented over copper twisted pair wires.

2. PRI Circuit (Primary Rate Interface) - Digital voice transmission allowing for 23 channels or simultaneous phone calls.

3. T1 Line (Data Transmission Line) - Digital voice and data transmission allowing for 23 channels or simultaneous phone calls and 1 channel for data transmission.

Overall, VoIP service can provide greater flexibility and lower monthly phone bills, but without quality internet connectivity, real-time communications like phone calls, may suffer.

Partnering with a full-service telecom company can help determine the best mix of phone services for your organization as they have access to a range of options.

Know a business or organization that could benefit from understanding the options when it comes to phone services? Let them know about our local, full-service telecom company at Recent Communications, Inc.

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