Analog Phone Systems vs. Digital: Which Is the Right Choice?

1. Equipment

Business analog phone systems include on-premises wiring, handsets, and other equipment that are connected to the local telephone company via “twisted pair” copper wires. There are two general points to remember with analog systems: One assigned phone number is associated with each line, and that line can handle one conversation at a time.

In contrast, VoIP service uses the broadband internet connection that most businesses already have on hand, while basic digital service transmits over cable or fiber optic technology. VoIP is less expensive than analog or digital because data is sent over the existing internet infrastructure, which reduces the cost of installing new or separate phone lines.

VoIP requires less hardware and cables than traditional telephone systems, which translates into a less cluttered workplace and reduced implementation costs.

2. Costs

In general, both VoIP and digital phone service are more cost-effective than a traditional phone line. VoIP services cost less than digital phone service but require a high-speed broadband internet connection to work their best. If you don’t have broadband Internet, digital phone service is more cost-effective than VoIP.

Set-up costs can be a different story and depend on your current situation. For example, if you have an on-premises analog system, there are costs you might face switching to VoIP, including buying digital phones or softphones, a router and modem (that you likely already have for your existing internet set-up), VoIP headsets, sufficient internet bandwidth, and a monthly provider subscription. But you also have ongoing maintenance, updates, and other costs with an on-premises system that you won’t have with VoIP.

VoIP phone systems are relatively easy to install. And even if you have an existing analog phone system in place, you can use VoIP adapters to enable service. Landlines require physical connections and therefore need cable installations — digging up dirt, running cables through office buildings, etc. This not only requires more installation time, but can also limit the number of active phone lines in your office depending on the number of cables and junctions involved. And if you need a phone system in more than one location, e.g., at multiple storefronts or office sites, then landlines require a physical connection at each location.

For VoIP and UCaaS services like Vonage offers, maintenance is often the provider’s responsibility. The software that VoIP phone systems use lives in the cloud, so there’s no need to pay for on-site hardware. Long-distance or international calls are another area of potential cost savings. (This can vary on a case-by-case basis — check with phone service providers for details.)

3. Reliability

Both analog and digital systems are reliable when you consider call quality — analog is often described as having a richer tone, while digital offers superior clarity and less background noise — and performance.

The basic requirement of a phone is that when you pick it up, it works — and both analog and digital options check that box. The notion of reliability can be expressed as uptime, and the gold standard for uptime is 99.999%, which Vonage consistently delivers*.

VoIP does have one disadvantage compared to analog landlines: It requires a strong internet connection and constant power supply. If your business loses power or internet, it will hurt your ability to answer calls. But that can be mitigated if your VoIP provider gives you the ability to accept calls on a mobile device working with a hotspot, and if you have a back-up power supply. In contrast, landlines don't require either internet or power — although phone lines can be cut or downed due to a storm or other incident, which often takes longer to repair than a lost internet connection.