Running a small business is no walk in the park — you’re juggling managing a team, delighting customers, and making sure the lights stay on. With so much going on, the last thing you need is a phone system that holds back your growth.
And let’s face it, with all the options out there, picking the right one can feel like a full-time job in itself.
That’s why we’re here to make it simple. In this post, we break down the differences between Voice over Internet Protocol, or VoIP, vs cellular phone systems. This includes their perks, their quirks, and what they mean for your business.
Plus, we’ll cover specific phone solutions that are popular with growing businesses. By the end, you’ll know which one will help you best serve your customers and keep your business running smoothly.
TL;DR:
VoIP vs company cellular both provide basic communication features like calling and texting, but they support businesses in different ways. VoIP phone systems are often built for teams, making it easy to share numbers as a team inbox and stay connected across devices. Cellular, on the other hand, is designed around individual phones. This can make collaboration and scalability harder as your business grows.
What is VoIP technology, and how does it work?
VoIP technology lets you make and receive phone calls over the internet. This technology doesn’t have to incorporate a public switched telephone network, or PSTN, that traditional phones use.
When you speak on a VoIP call, your voice starts as an analog audio signal. Then, it’s converted into digital data packets that are sent over the internet to the person you called. These packets are turned back into the original audio so your voice can be heard.
💡 Comparing providers? See our guide to the best VoIP services for growing businesses.
What is a cellular service, and how does it work?
Cellular is a communication service that lets mobile devices make and receive calls and texts wirelessly. It works by converting your voice into an electrical signal, which is then turned into radio waves. Those waves travel to the nearest cell tower, which sends your voice to the person you’re calling so they can hear what you said.
VoIP vs cellular: Main differences
The main difference between VoIP vs cellular is that VoIP calls and texts are transmitted over the internet. On the other hand, cellular uses radio signals through cell towers.
VoIP calls and texts require a stable internet connection, but often cost less and work on multiple devices. Business cellular offers broader coverage but relies on a phone network subscription.
Here’s a side-by-side look at how VoIP phones vs cell phones compare across the areas that matter most to growing teams.
| VoIP | Cellular | |
|---|---|---|
| Mobility | Works on any internet-connected device, including your laptop, tablet, or mobile app, so your team can work from anywhere | Works wherever your carrier has coverage, but is tied to a physical cell phone using a SIM or eSIM |
| Call quality | Call quality depends on your internet connectivity; slower or unstable network coverage, along with used-up bandwidth, can cause lag or dropped audio | Typically delivers steady call quality since it makes and receives calls using radio signals via cell towers |
| Cost | Can come with unlimited domestic calling for a flat monthly price | Often bundled into old-fashioned cell phone service business plans with limits, extra fees, or higher costs for add-ons |
| Technology | Turns your voice into digital data and sends it over the internet through your VoIP provider | Sends voice over cellular networks like 3G, 4G, or 5G using radio signals |
| Features | Includes business tools like call routing, recordings, call logs, analytics, and app integrations | Designed mainly for cellular calls and texts, offers basic business communication features like call forwarding |
| Security | VoIP security can offer encryption and HIPAA compliance, depending on your provider | Vulnerable to SIM-swap fraud, where someone tricks your carrier into moving a rep’s number to a different SIM card and intercepts their calls and texts |
Pros and cons: VoIP and cell phones
Before choosing between VoIP vs cellular phones for your business, it helps to understand the tradeoffs of each.
Pros and cons of VoIP
Pros
- Lower costs, especially for international and long-distance calls
- Includes business features like voicemail transcription and summaries, auto-attendants, and shared phone numbers
- Easily add or remove team members, phone numbers, and extensions, and downgrade or upgrade your plan as your business scales
- Works with your existing tools, thanks to integrations with CRMs and apps like Zapier
Cons
- Requires a strong and stable internet connection to prevent dropped calls or less-than-crystal-clear audio quality
- Can be affected by power outages. You might need to have a backup, like access to mobile data
Pros and cons of cellular
Pros
- Works without relying on internet access, letting your reps make and receive calls and texts without nearby WiFi
- Easy to set up, and almost no onboarding is needed
- Reliable within coverage areas, especially in places with a strong carrier signal
Cons
- Expensive, especially for international and long-distance calls
- No business features like shared phone numbers, ring groups, snippets, team messaging, etc.
- You’ll often find yourself tied to long-term contracts, making it difficult to reduce costs if needed
- Creates security risks since SIM-swap fraud can let attackers transfer your phone number to a new SIM card and intercept your calls and texts
💡Are you considering getting a desk phone? Check out our post about VoIP vs landline phones here.
Upgrade your phone system: 6 VoIP providers compared
| VoIP provider | Best for | Key features | Starting price |
|---|---|---|---|
| Quo | Growing businesses | Unlimited calls and texts to the US and Canada, every rep you add to your plan will get a local or toll-free business number, SMS/MMS support, auto-replies, pre-saved messages, scheduled texts, Quo API, shared phone numbers, and on-demand call recording | $15 per user per month |
| Zoom Phone | Video conferencing | Voicemail transcriptions, team chat with an upgrade, IVR, native mobile apps for iOS and Android, and Microsoft integration with an upgrade | $10 per user per month |
| Microsoft Teams Phone | Companies already using Microsoft 365 | Make calls over the PSTN or internet, transfer calls between devices, AI-generated call summaries, call insights, call forwarding, and simultaneous ring | $10 per user per month, along with a Calling Plan |
| Cisco Webex | Enterprises | Unlimited domestic calling, phone menus, noise cancellation, call queues with an upgrade, and call recording with an upgrade | $15.30 per user per month |
| Google Voice | Existing Google Workspace users | Unlimited text messaging in the US, call forwarding, ring groups with an upgrade, desk phone and ATA support with an upgrade, and advanced reporting with an upgrade | $17 per user per month with Google Workspace |
| Viber | Personal or basic communication | Message other Viber users on Android and iOS, share stickers and GIFs, edit and delete seen messages, set disappearing messages, and call non-Viber users with an upgrade | Free plan |
VoIP vs cellular: What should I get for my business?
A VoIP solution like Quo is more cost-effective than regular cell phone plans and lets you make international calls without huge fees. You can also add or remove team members from your phone system whenever you need to. Plus, its feature-rich and offers tools like auto-replies and shared phone numbers your whole team can use to serve customers better.
Regular cell phone plans only give you one phone number per device, forcing you to juggle multiple phones if you need different numbers. With a VoIP communication solution, you can add as many numbers as you want. This can include local numbers to establish a presence in cities and toll-free numbers so customers don’t have to pay to call you.
Here’s more of what you can do using Quo:
- Share numbers with your team to solve customer problems together. Reps can make and receive calls and texts from the same business phone number. Plus, everyone sees the same recordings, contacts, and conversations to help reps get context faster on customer issues.
- Make unlimited calls and texts. Connect with customers across the US and Canada without worrying about per-minute charges or text limits.
- Set up professional phone menus. Help customers route themselves to the right rep or department so you can resolve their issues faster.
- Automatically record calls to identify coaching opportunities. Review recorded calls to understand how your reps handle conversations. This helps keep customer service consistent across your organization and shows where your team can improve.
- Auto-reply to missed calls so customers know you’ll get back to them. Set expectations with customers by automatically responding when you’re unavailable. You can also schedule messages to reach out at the perfect time and stay TCPA compliant.
- Integrate with your tools to save time. Quo lets you connect your business phone system to your current tech stack. For example, you can receive notifications directly in specific Slack channels when you receive a call. You’ll also be able to integrate with CRMs like HubSpot and Salesforce.
💡Related: How to set up VoIP systems
Quo: Try out the best VoIP system for growing businesses
With a cloud-based phone system like Quo, you can enjoy unlimited calls and texts across the US and Canada — no surprise charges, no stress. Your team can collaborate with shared phone numbers to solve customer problems faster. You’ll also have access to Quo’s AI voice agent, Sona, which answers calls when you’re unavailable so you don’t miss out on any potential customers.
Plus, you’ll never be tied to long-term contracts if your business needs change.
Start your seven-day free trial of Quo today.
FAQs
VoIP phones provide all the features you get with a traditional cell phone, letting you make and receive calls and texts on any device. Plus, you’ll get access to advanced features like auto-replies and shared phone numbers that aren’t available with a standard cell service.
Simply download the Quo iOS or Android app on your mobile phone, and you can start making and receiving calls using your WiFi connection.
While mobile phone calls rely on limited cell tower coverage, VoIP technology works with an internet connection. This gives you much more flexibility and reliability. If call issues do pop up, they’re usually easy to resolve on your own. Start by checking your internet connection, which is often the first step of troubleshooting VoIP systems.
Switching to a VoIP app requires just three things: a smartphone or computer, an internet connection, and a VoIP service provider. You can get started by creating an account and downloading the Quo app on your mobile device. You can also port your phone number from your current provider to Quo for free. If you run into VoIP system problems, you should be able to reach out to your provider to find a solution.
VoIP voice calls only need an internet connection to work. This means you can make calls in areas with poor cellular coverage and still have good call quality without calls dropping.
VoIP mobile phones send calls over the internet by converting your voice into “packets” that are transmitted using IP networks. Company cellular relies on mobile networks. This is where your voice is converted into radio waves and transmitted through cell towers before reaching the person you’re calling.
