10+ VoIP advantages and disadvantages you need to know

The nature of work is changing, and being chained to a desk phone is becoming less and less appealing. As flexible work grows, more businesses are ditching traditional phone systems and personal cell phones in favor of VoIP technology. 

Voice over Internet Protocol makes life simpler. With just an app and an internet connection, your team can make reliable calls from any device — without sharing their personal number. The advantages of VoIP are hard to beat.

But even if the benefits of VoIP phone services are enormous, you still want to make an informed decision and know your options before you invest. This guide can help you weigh the advantages and disadvantages of VoIP so you can decide if switching to VoIP is the right choice for your business.

Pros and cons of VoIP at a glance

We’ll break down the top VoIP pros and cons in detail so you can determine whether a VoIP solution is a great fit for your business. 

Advantages of VoIP phone systems

Business VoIP systems have a lot of benefits over traditional phone systems, including greater ease of use and lower costs. Let’s take a look at 11 advantages of using VoIP.

VoIP advantages: Visual breakdown

Here’s a quick visual breakdown of the top VoIP advantages:

Advantage	Category	Description
1. Cheaper costs	Financial	Save nearly $3,000 in the first year by eliminating PBX hardware, installation fees, and maintenance costs. VoIP uses existing devices with transparent monthly pricing.
2. More options to easily use your phone	Usability	Call and text from any device — computer, laptop, smartphone, or tablet.
3. Increased mobility	Flexibility	Make calls from anywhere with an internet connection.
4. Easy to scale	Growth	Add team members instantly via email invitation. Choose local, toll-free, or international numbers. Upgrade or downgrade features as needed without hardware constraints.
5. Larger presence	Branding	Appear more established with phone menus, toll-free numbers, and local numbers in multiple cities. Build trust with customers through professional features.
6. Modern features	Functionality	Access call recording, analytics, heat maps, integrations with Slack and Zapier, local numbers, and browser-based calling. All of these are beyond the capabilities of traditional landlines.
7. Lower learning curve	Usability	User-friendly interfaces similar to the apps your team already uses on their phone.
8. Reliable voice quality	Performance	Crystal-clear calls with QoS protocols, HD voice, noise-canceling microphones, and advanced audio compression. No more “Can you hear me now?” moments.
9. Increased security	Security	Protected with WebRTC encryption, TLS, identity management, and SOC 2 compliance. Guards against hacking, social engineering, and denial-of-service attacks.
10. More context	Integration	Integrate with HubSpot, Salesforce, and Slack for a 360-degree customer view. Access CRM data, call transcriptions, AI summaries, and text messages in one place.
11. Easier to multitask during calls	Productivity	Offer customer visual support during calls by sending documents, images, and videos.

1. Cheaper costs

Traditional phone systems come with a lot of costs. You pay for the hardware, setup, and ongoing upkeep. And those costs add up quickly as your business grows. With VoIP platforms, you skip most of those expenses. You use the devices you already have and pay an easy-to-manage monthly rate. That alone makes it more affordable for small and growing businesses.

While every provider is different, the real savings become clear when you compare VoIP to older phone setups. You save on direct costs like VoIP implementation and equipment, and on indirect costs like remote work support. Here’s a closer look at both.

Direct savings 

Before we get into the indirect savings, it helps to start with the direct costs you avoid by switching to VoIP.

PBX savings

You don’t have to pay for installation or ongoing maintenance with VoIP phones. Instead, you pay a monthly fee and use existing devices to call and text your customers.

How much could a VoIP phone save you per year? Try nearly $3,000 within the first 12 months. 

Here’s a chart of setup and hardware costs you can expect to pay for the average analog PBX system for a team of five:

Expense	Cost
PBX server	$995
Telephony card	$1,162
PBX server support	$75 per year
Desk phones	$525, one-time fee
Line rental costs	$1,668 per year — Verizon
Installation costs	$331 per day’s work
Equipment maintenance costs	$250 per year
Labor maintenance costs	$331 per day’s work
Total	$2,682 one-time fee+$2,986 per year =$5,668

Some businesses try to lower their calling costs by moving away from analog phone lines. One way to do that is through SIP trunking. It connects your on-premises PBX to the internet so you can replace traditional phone lines. But it still comes with extra expenses. You’ll need IP phones and a SIP trunking provider that’s compatible with your existing PBX — adding additional equipment, setup steps, and more.

Here’s a chart of setup and hardware costs you can expect to pay for the average on-premises PBX system:

Expense	Cost
PBX server*	$645
Support package	$75 per year
Desk phones	$525 one-time fee
Extended warranty	$52 one-time fee
Installation costs	$331 per day’s work
Equipment maintenance costs	$315 per year
Labor maintenance costs	$331 per day’s work
Total	$1,222 one-time fee+$1,383 per year=$2,605*

*We calculated yearly costs by adding equipment maintenance costs for five desk phones, one PBX server, and two PBX technician visits. Keep in mind, this is likely a conservative estimate.

Eliminate optic fiber and copper wiring costs

If you use an analog PBX system, you’re still relying on copper wiring or optic fiber running through your office. That setup works — until you need to make a change. Every time you hire, rearrange your space, or move to a new building, you’ll need a technician to come in and add or reroute those lines.

And in some newer buildings, traditional wiring isn’t installed at all. People have reported that developers didn’t include telephone or cable lines in the buildings they purchased.

VoIP solutions remove all of those problems. Making and receiving calls only need your internet connection. There’s no physical wiring to maintain or replace. You can add new team members, move floors, or relocate entirely without touching a single copper cable. It also keeps your setup simple and your costs predictable as your business grows.

Lower monthly costs

The best VoIP systems offer low-cost plans with the features you need to grow your business. Recurring monthly or annual subscription costs are transparent, so you always know what to expect.

For example, Quo, formerly OpenPhone, plans start at $15 per user per month. It provides a business phone app with one free local or toll-free virtual phone number per user. Each plan also comes with on-demand call recording and voicemail transcriptions. Plus, you can always upgrade to access more features whenever you’re ready. 

Compared to hardware and desk phones, this is a much lower and predictable monthly cost for what you get.

Lower calling costs

Analog phones rely on the Public Switched Telephone Network, or PSTN, to route calls. The PSTN is a global system of physical wires and switches that routeeach call to its destination. Because these calls travel across a complex physical network, they can quickly get expensive.

VoIP works differently. It routes callers using the internet, which offers lower rates on long-distance calls. If you’re working with international clients or team members, this can save you from massive phone bills.

With Quo, you can even make unlimited voice calls to the US and Canada when working abroad. All you need is an internet connection to chat with customers on the go.

Indirect cost savings

Let’s take a look at some of the indirect ways you can save money.

Savings by enabling remote work

Have you been looking for ways to take your business remote? A VoIP system can help. Virtual numbers support team members wherever and however they choose to work.

First, you can see immediate cost savings from not renting a physical office. Everyone on your team can make calls from anywhere, so there’s no reason to pay for a coworking space.

Second, remote work offers better access to international talent. Contractors outside the US have more affordable hourly rates, letting you scale without busting your budget. You can also have employees in different time zones so customers can access support around the clock.

Additional features without paying extra

VoIP systems come with many more features than your average smartphone, making it easy to scale your business. 

For example, Quo bundles multiple features into a single monthly rate. A few of our customers’ favorites include:

• Unlimited calling and messaging to US and Canadian numbers
• Shared numbers
• Voicemail transcripts
• Call recording 

Now compare this list with legacy phone providers that require an upgrade or add-on fee to access the same features. Platforms like Nextiva, for example, require you to upgrade to access features like call recording.

Increased productivity

The more productive your team can be, the further your dollar can stretch. Plugging your VoIP system into automations and integrations helps you streamline repetitive tasks. This lets your team focus on what counts — building customer relationships and growing your business.

Just imagine how much more efficient you could be by routing calls through an IVR. Or instantly responding to missed calls and voicemails, even if you’re not around to pick up the phone. 

Have you ever wished you could follow up a little faster? VoIP also makes that easy. For example, snippets give you ready-to-use responses so you don’t have to type the same message again and again. Scheduled texts help too. They let you send follow-ups at the right time, helping your business stay TCPA compliant.

All this and more is possible with Quo — you can create phone menus, auto-replies, and custom Zaps to take repetitive work off your team’s plate. For example, our Zapier integration lets you automatically send AI call summaries to more than 8,000 apps. That way, you can access your summaries wherever you prefer to work.

2. More options to easily use your phone

A VoIP phone system lets you easily call and text customers from your computer, laptop, smartphone, or tablet. Since you don’t need to purchase third-party hardware, you can start making business calls from wherever you are.

Plus, VoIP phones separate personal calls from business ones so you can draw a line between your personal and professional life. By setting business hours, incoming business calls can go straight to voicemail when you’re not working.

Plus, you can have two numbers on one phone — so you don’t need to carry a second device.

3. Increased mobility

When you’re working on the go, you can’t take your desk phone with you. Traditional phone lines rely on hardware stored in your office, so when you walk out the door, you may not know if you miss a call.

A key benefit of VoIP and softphones is their mobility. You can manage calls from whatever internet-enabled device is most convenient for you. Working from your office? Manage calls from your desktop or browser. Walking through a park? Pull out your mobile phone and tap on your app. Flying in an airplane? As long as you have the internet, you can make it work.

Many business VoIP providers have mobile apps designed to ring your business number on your phone. This means you get all the convenience of using your cell phone without having to share your personal phone number. 

And keep in mind some VoIP providers do offer compatibility with desk phones, so the option’s open if you want it.

4. Easy to scale

Wouldn’t it be nice to add new team members to your phone system without having to wait for IT to order and install new equipment? With a VoIP service, adding a new team member is as simple as inviting them via email and paying a little extra each month. Quo gives you the option to assign each new employee either a brand-new phone number or a shared one.

If you choose to create a new number, you can select from a wide range of US and Canadian numbers, as well as toll-free numbers. This way, you can:

• Expand your business to Canada from the US, and vice versa
• Establish a presence in multiple large cities by having a local number
• Give callers across the North American Numbering Plan a toll-free phone number they can reach without paying high fees 

You’re also never boxed into a certain number of features with VoIP solutions. Want to add new features? Just upgrade your plan when you’re ready for call transcriptions, analytics, and more. Need to remove some team members from your plan? With Quo, you can do this right from your dashboard.

This flexibility can prevent you from overpaying for unused phone lines or features you don’t need yet.

5. Give your team a larger presence

The larger your business appears to customers, the more likely they’ll see you as established and professional. With VoIP systems, you can use phone menus, toll-free numbers, and other features to make your team appear larger than it actually is.

Let’s say you’re located in New York City and want to connect with customers in Canada. With Quo, you can purchase local Canadian numbers without having an office there. This helps ensure that your company feels more familiar with the community you serve.

6. Advanced business features to strengthen your team

You’re not missing anything by ditching traditional phone hardware. Many VoIP service providers offer all the key features of a desk phone — and much more. 

On top of features like voicemail and call forwarding that are available on traditional landlines, VoIP services like Quo let you:

• Make more informed decisions. Enhance coaching and staffing decisions with call recordings and analytics. For example, heat maps is a feature that  shows you when you’re getting the most calls and texts. This can help you identify the days you’ll need more reps working to pick up the phone. Plus, you can use AI call tags to track customer sentiment. You choose the labels you want, such as “Positive.” They’re applied at the end of each call so you can quickly understand how the conversation went.
• Streamline business processes. Connect to the tools you already use through integrations with email, Jobber, Slack, Zapier, the Quo API, and more.
• Create a stronger local presence. Build trust and increase the likelihood of clients picking up their phones with local phone numbers in the communities you serve.
• Stay on top of business relationships from anywhere. Stay informed about client and team needs from any device. The best providers even let you take VoIP calls and send messages straight from their browser-based app. You can even VoIP text and host conference calls from most platforms.

Unlike landline phones, VoIP services help you streamline all your business processes. Plus, you’ll get access to insights that help your team perform better.

7. Lower learning curve

Using a desk phone system often requires memorizing a list of codes to use the features you need. It’s not intuitive at all. Most of your team members won’t know off the top of their heads to dial *72, a phone number, and pound # to forward calls.

VoIP platforms have user-friendly interfaces that look like the phone apps your team members are already using. For example, auto-attendants make sending calls to a specific teammate a breeze. There’s a much smaller learning curve, which means you don’t need to spend much time, if any, training your team.

Plus, setting up your first VoIP number only takes minutes once you sign up for a free seven-day trial with Quo.

8. Reliable voice quality

We’ve all experienced poor sound quality, lags, and dropped calls with our smartphones. There’s a reason why the phrase “Can you hear me now?” resonated with so many people in the 2000s — and still does today. Standard calls may drop when your signal isn’t strong, which is a major nuisance for your customers and team.

Today’s VoIP phones are some of the most reliable phones around. As long as you have a solid internet connection — whether you’re using WiFi, data, or broadband — VoIP phones deliver crystal-clear call quality.

VoIP call quality is already quite advanced, and engineers continue to make improvements. These include:

• VoIP QoS, or Quality of Service, protocols. You can think of QoS as a traffic director for your VoIP data. Your QoS attendant directs traffic over your network to allocate the most resources to the greatest type of traffic. This ensures callers receive a reliable and high-quality audio message from your team.
• HD voice. This is designed to transmit high and low-frequency sounds over a wideband signal. You can ensure clear audio for callers through a 5G, 4G LTE, or Bluetooth connection.
• Noise-canceling microphones. These allow you to speak clearly to customers without worrying about background noise. They’re perfect for busy call centers or bustling coffee shops — wherever your voice may be competing with others.
• Advanced audio compression. Calls have better sound quality, making it easier for callers to hear your reps. This makes it easy for them to get the information they need, which leads to happier customers.

9. Increased security in VoIP

Cybersecurity threats are one of the most significant issues facing small businesses today. You need a phone system designed to prevent problems — something VoIP systems are uniquely qualified to do.

VoIP providers use advanced security measures to protect against threats. These can include social engineering, hacking, and denial-of-service attacks. A few of their most common security features include:

• Encryption. Quo encrypts phone calls and texts with WebRTC technology and Transport Layer Security, or TLS. This helps to ensure unauthorized recipients don’t receive your sensitive messages.
• Identity management. Most VoIP systems require you to verify your business identity to prevent bad actors from engaging in phone fraud.
• SOC 2 compliance. Providers like Quo monitor the security of your data. They can also maintain audit logs of events and account changes so you can pinpoint potential problems in advance.

10. Give your team more context 

When all your communication and business tools are in one place, your team can save time and get more context to build better relationships with customers.

VoIP systems such as Quo integrate with tools like HubSpot, Salesforce, and Slack so you can manage customers with a 360-degree view.

You also have access to:

• CRM software. This helps you manage client relationships with sales and deal dashboards, analytics, and more. When you connect your phone system and CRM, you can automatically pull customer calls, texts, and messages into your CRM.
• Call transcription software. You can easily get full transcriptions of phone calls, so you don’t need to listen to entire recordings. You can also get AI transcriptions and summaries to create a list of potential follow-up points.
• Customer communication software, or CCM. You want each customer to feel heard and valuable, which means you need CCM tools like contact properties and custom notes. With Quo, you can access dozens of contact management tools in-app or integrate with a third-party tool to connect your existing tech stack.

11. Make it easier to multitask during calls

VoIP systems make it easier to support customers while you’re on the phone. Instead of trying to understand a problem based only on what someone describes, you can ask them to send a photo or a short video. 

Let’s say you’ve recorded videos that show customers how to fix common issues on their own as part of your call reduction strategy. You can send those during the call so they can follow the steps themselves. That way, you can wrap up the conversation sooner and serve more customers.

Disadvantages of VoIP phone systems

There aren’t many limitations with a phone that runs on the internet — but there are a few. While VoIP systems are continually improving, four disadvantages of VoIP may affect your business.

VoIP disadvantages: Visual breakdown

Here’s a quick visual breakdown of the top VoIP disadvantages you should consider:

Disadvantage	Category	Description
1. No offline functionality	Flexibility	Without the internet or during power outages, customers might not be able to reach you.
2. Strong internet connection required	Performance	Voice quality depends on bandwidth — you need at least 100 Kbps upload per device.
3. Potential for jitter	Performance	Audio data packets can be delayed or arrive out of order, causing choppy calls.
4. No built-in emergency services	Security	Non-fixed VoIP phones can’t trace locations for 911 calls, potentially sending help to the wrong address.

1. No offline functionality

If you’re somewhere with no internet or experience a power outage, your clients and team members may not be able to reach you right away.

Let’s look on the bright side: When you want to vacation in a remote destination, there won’t be any business calls ruining your peace and quiet. And even if you’re without service, VoIP systems can send callers to voicemail so you can call back when you have signal. 

You can also set up shared phone numbers so multiple team members can answer calls from the same number. That way, even if you lose connection, someone else on your team may have service and can pick up.

What if you’re on a call through WiFi and you need to step out of the office? Depending on your provider, you may be able to switch to your data plan without having to call back. 

2. Strong internet connection required

The voice quality of your VoIP depends on your internet bandwidth. In general, you need at least 100 Kbps upload speed on each device and a good connection with less than 70 ms ping and jitter. You can check these numbers using a tool like BandwidthPlace.

What are the best types of internet connections for VoIP? You have several options:

• Fiber optic internet
• Cable internet
• DSL, or Digital Subscriber Line
• Fixed wireless internet
• Business-grade internet
• 5G mobile broadband connection

Just keep in mind you shouldn’t use satellite internet unless no other options are available. Because radio waves need to travel long distances, satellite internet may offer lower bandwidth and be prone to latency. This creates delays during voice calls and can negatively impact the customer experience.

3. Potential for jitter

To help you make calls over the internet, your VoIP service breaks your audio down into small data packets. When you and your caller receive clear messages — as is normally the case — that’s because these bits of data are assembled on time and in the right order. But when jitter occurs, some packets may be delayed, leading to choppy audio and other call-quality issues.

The most common cause of jitter? A poor internet connection. VoIP solutions typically use less bandwidth than video conferencing services. However, having a high-speed internet connection is still ideal to avoid this disadvantage of VoIP.

How to troubleshoot for jitter

Poor audio quality with a VoIP call usually indicates a problem with your internet connection.

You can troubleshoot for jitter and latency by:

• Checking your internet speed using a tool like Speedtest. VoIP calls require more bandwidth than sending emails or chatting. You may need to contact your internet provider about increasing your bandwidth if you don’t have enough.
• Checking your router and Ethernet cables. You should replace old or bad cables to ensure a stable internet connection.
• Running tests to check your phone’s frequency. If your device operates at a frequency above 2.4GHz, you may need to switch to a different device.
• Performing software and hardware updates. The sooner you update your devices and VoIP platform, the quicker you can write them off as potential culprits.
• Restarting your device and resetting your router. Sometimes the simplest fixes can get the job done. 

4. No built-in emergency services

Non-fixed VoIP phones aren’t tied to a physical location, which gives them the mobility many professionals need. But this can cause issues when calling 911 — there’s no way for emergency services to trace your location. If you have a physical address linked to your VoIP account but you’re working on the go, emergency workers may be dispatched to the wrong location.

The Federal Communications Commission, or FCC, notes that VoIP 911 calls can  be routed to an administrative phone number. This can create problems if that number isn’t staffed.

Fortunately, your team members can still use their standard cell phone services to call 911 when needed.

Quick summary of VoIP advantages and disadvantages 

Here’s a quick rundown of VoIP problems and advantages so you know what to expect.

Feature	Advantages	Disadvantages
Cost	Helps lower your phone bill and removes the need for extra hardware	Service depends on your internet connection
Mobility	Lets you call and text from anywhere you have internet access	911 calls may not always show your precise location
Phone numbers	Keep the same number when you move or switch providers	Some older desk phones may not work with VoIP
Scalability	Add or remove users in minutes as your team changes	More users can require more bandwidth
Features	Get useful tools like call routing, voicemail, and texting	Audio quality can dip if your internet is unstable
Call quality	Clear calls when your connection is strong and consistent	Weak WiFi can cause choppiness or delays
Productivity	Handle calls, texts, and follow-ups from one place	Teams still need to stay aware of security risks
Flexibility	Works across mobile, desktop, and browser apps	Some people may need time to get used to a new setup

How to switch to VoIP

Switching to VoIP technology means moving your phone system from traditional phone lines to the internet by changing providers. 

You’re still making and receiving calls — you’re just using your internet connection instead of copper wires or a landline. 

The first step in switching is choosing how you want your team to make calls.

You have three options:

1. Use dedicated VoIP phones. They connect to the internet through Ethernet or WiFi and give you the same desk phone experience your team is used to.
2. Use an Analog Telephone Adapter, or ATA. This is a small device that connects your traditional desk phones or fax machines to the internet. It lets older analog hardware work on a digital VoIP network.
3. Use softphone apps. These are apps you install on a computer, tablet, or smartphone so you can make calls and send texts using your devices. 

Once you choose how to connect, you can start the process of switching to a VoIP provider:

1. Review your current phone setup. Look at how your landline is set up today and decide what you want to bring to your new system. This includes whether you want to keep your existing business numbers and if you want to use the same desk phones. This gives your VoIP provider everything they need to confirm compatibility and start the porting process.
2. Check your internet speed. Make sure your connection can handle your team’s call volume, so call quality is good during busy hours.
3. Pick your VoIP provider. Look for features your team needs to scale your business. These can include shared numbers, phone menus, call recording, AI call tags, and third-party integrations. 
4. Set up your equipment. This could mean plugging in a VoIP phone, connecting an ATA, or installing an app on your devices.
5. Port your phone numbers. Submit a port request if you want to keep your current numbers so customers don’t have to update their contacts.
6. Walk your team through the basics. Offering training sessions can help your reps learn how to place calls, send texts, and use their new tools.
7. Test everything. Make a few test calls to ensure your new phone system is running correctly.

During the transition, you can expect minimal downtime if you plan everything in advance. Your team may need a little time to adjust to the new tools, and number porting may take a few weeks. After that, your VoIP system should be ready for everyday use.

How to select the right VoIP provider

Not all VoIP services are created equal.

Before picking the right provider for your needs, be sure to consider factors like: 

• Reliability: You can’t afford downtime when calling and texting your customers. The best VoIP platforms offer 99.99% uptime, so you can rest easy knowing you can always pick up the phone.
• Pricing: The last thing you want as a growing business is to pay for a bare-bones VoIP. You may want to evaluate pricing plans to get the best bang for your buck without compromising on the features you need.
• Customer support: While rare, problems can happen with your VoIP system. You need to choose a reputable provider that offers customer service and troubleshooting support.
• Scalability: It should be easy to add or remove team members from your plan. It should also be easy to upgrade your plan and unlock new features as your business grows.
• Security: How safe is the provider’s VoIP platform? Do they have a history of leaks or data breaches? If you can’t get clarity on how the service secures its platform, you may want to look for an alternative.

How to maintain VoIP quality

If you want to maintain high call quality using VoIP technology, there are a few things to keep an eye on:

• Check your connection often. Run quick VoIP tests on sites like OpenSpeedTest or fast.com. You should look for signs of lag so you can fix issues before they affect callers.
• Make sure you have enough bandwidth. Choose an internet plan that can handle your team’s busiest hours so calls don’t compete with other online activities. According to the FCC, you should have a download speed of 100 Kbps of bandwidth per simultaneous call.
• Give VoIP traffic priority. Enable QoS, or Quality of Service, on your router. This setting ensures voice calls are prioritized, even when someone’s streaming or downloading files.
• Use reliable equipment. A good headset or microphone can make your voice sound clearer and reduce background noise.
• Keep everything up to date. Update your VoIP apps, devices, and router software so you stay secure and avoid bugs.
• Run test calls regularly. A quick morning test call helps you spot issues early and maintain your brand’s reputation.
• Plan for outages. Decide ahead of time how your team will handle a power or internet outage, like switching to mobile data.

Quo: Tap into the benefits of VoIP

The advantages of VoIP systems are hard to deny: more ways to save time, more data-backed decisions, and more mobility at a lower cost. That’s a win-win-win in our books. VoIP phones can improve your business communication while keeping your wallet happy.

When you consider VoIP’s advantages and disadvantages — the latter of which may not even affect your business — the perks make the switch from traditional phones to internet phones an easy decision.

If you want to test all the benefits of VoIP phones before you commit, start your free trial of Quo to see how powerful an internet-based system can be.

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