The POTS Line Guide: POTS vs VoIP

In a not-so-distant past, POTS lines ruled the world, connecting people locally as well as globally. POTS lines were the gold standard of business telephone systems (especially considering there weren’t really any other options). But with VoIP (Voice over Internet Protocol) and cloud-based telephony, POTS lines are being replaced in favor of this feature-rich technology. 

If you’re looking for a business phone system, you’ve probably come across the term POTS and wondered what it means. Anyone who has used a landline phone has relied on a POTS line to make their phone call. But POTS lines are being replaced by VoIP service. If you’re used to reliable landline service or have a legacy system for your business phone service, you may be hesitant about trying VoIP. 

In this guide, we’ll explain everything you need to know about POTS lines and how POTS compares to VoIP. By the end, you should have a good understanding of the strengths and weaknesses of each and what one will work best for your business telecom needs. We’re based in Atlanta but we serve the entire US from Miami to Houston and Los Angeles. 

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What Is a POTS Line?

POTS means Plain Old Telephone Service. It’s a casual way of referring to the PSTN, or Public Switched Telephone Network. Chances are, unless you were born in the last decade, you’ve used a POTS line to call someone. Essentially, POTS lines are traditional analog telephone lines that provide basic voice communication over copper wires. POTS lines have been in use for decades. However, with the advent of smartphones and VoIP (Voice over Internet Protocol), POTS lines are being replaced by better technologies that offer more features and more flexibility for less money. 

How Does a POTS Line Work? 

A POTS line works by transmitting analog signals over copper wires to establish voice communication between two people. These copper wires are connected across the country, as well as globally. POTS lines are part of what is known as the “local loop” or “last mile” of the telephone network. The local loop connects your business to the nearest telephone exchange or central office. The telephone exchange houses the switching equipment that routes calls between POTS lines and connects them to other POTS lines or distant networks. 

Here’s a little bit more about how POTS lines work when making a phone call:

1. When you pick up a traditional landline telephone handset connected to a POTS line, you complete an electrical circuit. This action signals the telephone exchange that you want to make a call. 
2. After picking up the handset, you dial the phone number you wish to reach. Each number corresponds to a specific tone or combination of tones. 
3. At the telephone exchange, the dialed number is analyzed to determine the destination of the call. The exchange routes the call to the appropriate outgoing trunk line based on the dialed number. 
4. The exchange establishes a connection between your POTS line and the destination telephone number. This connection allows for the transmission of voice signals between the two telephones. 
5. Once the connection is established, your voice is converted into electrical signals by the microphone in your telephone handset. These signals are transmitted through the POTS line to the recipient’s telephone. 
6. At the recipient’s end, their telephone receives the analog signals and converts them back into audible sound through the speaker in their handset. This allows them to hear your voice. 
7. Both parties can now engage in a two-way conversation, with their voices being transmitted back and forth over the POTS line until one party ends the call by placing the handset down or pressing the appropriate button on the telephone. 

Throughout this process, the POTS lines rely on the physical copper wire infrastructure to transmit analog signals between telephones and the telephone exchange. While POTS lines have been the traditional method for telephone communication, they are gradually being replaced or supplemented by digital technologies like VoIP.

Do Businesses Use POTS Lines?

Yes, businesses still use POTS lines, although their usage is declining. Cloud-based telephone systems provide more features for a lower cost than POTS. However, there are several reasons why businesses may continue to use POTS lines:

• Reliability: POTS lines are known for their reliability, especially during power outages because they often work even when there is no electricity. 
• Security: Some businesses prioritize the security of their communication networks. POTS lines are considered less susceptible to cyber-attacks compared to cloud-based services.
• Voice quality: POTS lines sometimes offer higher voice quality compared to VoIP in places with poor internet connectivity or network congestion. 
• Compatibility: Some older telephone systems and equipment may only be compatible with POTS lines, making it impractical to upgrade to new technology. 
• Backup communication: Businesses often use POTS lines as backup communication channels in case of emergencies. 
• Remote location: For businesses in remote locations with poor internet access, POTS lines may be the only viable solution for their business telephone systems. 

 

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POTS vs VoIP

POTS lines and VoIP services both deliver the same product–voice communication–using different technologies. Where POTS relies on physical copper wires, VoIP relies on an internet connection to make and receive phone calls. Many businesses are upgrading to VoIP for its cost-effectiveness, reliability, scalability, and flexibility. Because all you need is an internet connection and an internet-capable device, you can access your business phone system from almost anywhere. This has enabled the explosion in remote and hybrid work environments in the past few years. 

Cost

One of the main differences between POTS vs VoIP is the cost. With POTS, you pay a fixed monthly fee for basic service, along with additional charges for long-distance calls and extra features. Additionally, POTS comes with some major upfront and ongoing costs, including installation, maintenance, and repair plus the cost of hardware. 

VoIP services, on the other hand, are typically much more cost-effective. Long-distance and international calls have lower rates. Plus, you have no physical hardware or infrastructure to maintain. All you need is a high-speed internet connection and an internet capable device. This saves you tons of money compared to POTS.

Reliability

When comparing POTS to VoIP, some people tend to assume that POTS is more reliable. One reason for this is that POTS lines still function during power outages if the telephone network has backup power sources. Plus, the sound quality on a POTS line is typically very good. However, if copper wires are damaged, POTS lines will be down until the infrastructure is fixed.

In comparison, VoIP won’t work during a power outage unless you have backup power sources for your networking equipment. But VoIP providers do typically offer features like call forwarding to mobile phones in case of service disruptions. Plus, some providers offer Service Level Agreements (SLAs) of 99.999% uptime, which is essentially a downtime of six minutes per year. As far as sound quality, VoIP does occasionally have issues with jitter or lag, but as long as you have a high-speed internet connection, this shouldn’t be an issue for your business. 

Scalability

Scalability is the ability to add lines and features to your business phone system. When it comes to scalability, VoIP is the clear winner. Because POTS lines rely on physical infrastructure, adding or moving phone lines is difficult and costly. You have to plan for future growth when you’re having the system installed, which is a large expense to deal with. 

In comparison, VoIP systems are much more flexible and scalable. Depending on the provider, deployment is typically fast and easy, allowing you to add or remove lines with a few clicks of the mouse. For example, if you need to hire more employees during the holidays, it’s easy to scale up for the season and then remove those lines when your seasonal hires leave. 

Features

Another area that VoIP wins hands down is features. POTS lines typically offer basic calling features like voice calling, caller ID, call waiting, and voicemail. Advanced features like call forwarding, extensions, calling queues, and all distribution require the installation of a PBX system, which can be pretty expensive. 

VoIP services, on the other hand, come with a wide range of features beyond basic calling. You can get all the features of a traditional PBX system without the cost. These features often include video calling, conference calling, messaging, business texting, auto-attendant and IVR, and many more.  

Flexibility

When it comes to flexibility, a POTS line typically has none. Because POTS relies on physical copper wires, you have to be on-location in order to make phone calls. This makes remote work or working on the go difficult. If you’re not in the office, you cannot make calls from your work phone.

VoIP service offers much more flexibility than POTS lines. VoIP works with both hard phones (physical phones) and softphones (software applications on mobile devices that can make phone calls). Even when your employees are working from home, they still have access to your business phone system. This enables seamless communication and collaboration between your team.   

Hardware

When it comes to hardware, POTS requires traditional telephones in order to make and receive phone calls. Plus, there’s the physical copper wires, server rooms, PBX systems, and so on. It takes a big capital expenditure to get everything you need to set up your business phone system with POTS.

VoIP, on the other hand, lets you get started without hardware. All you need is your high-speed internet connection and you can access the business phone system to make and receive phone calls on a laptop, computer, or mobile device. If you already have a legacy phone system and you’re looking to switch to VoIP, there is some hardware you may need to purchase, such as adapters to make your analog phones work with the VoIP system. 

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Pros and Cons of POTS Lines

While POTS lines are being replaced by VoIP service, some businesses still rely on landline service for their phone systems. There are some advantages to POTS lines, like reliable service, but there are also some major disadvantages. Here’s a breakdown of the pros and cons of POTS lines:

Pros:

• Known for their reliability
• Generally high-quality voice transmission
• Considered less susceptible to cyberattacks compared to VoIP
• Compatible with a wide range of analog devices like fax machines, alarm systems, and older telephone equipment

Cons:

• Fewer features than VoIP
• Depends on physical infrastructure of copper wires
• Difficult to scale
• Can be more expensive compared to VoIP

Pros and Cons of VoIP

VoIP technology has enabled the rise in remote and hybrid work environments, connecting teams across long-distances. While VoIP has many strengths that have drawn businesses to relying on it for their phone systems, it does also have some weaknesses. Here’s a breakdown of the pros and cons of VoIP:

Pros:

• Costs less than traditional phone services
• Comes with a wide range of advanced features, like video calling, voicemail transcription, and virtual receptionists
• Calls can be made from anywhere with an internet connection
• Easy to scale up or down
• Can be integrated with other digital services and applications

Cons: 

• Requires a high-speed internet connection to work well
• Voice quality can be affected by network conditions 
• Depends on power to operate
• More vulnerable to cyberattacks

POTS vs VoIP Summary

When it comes to POTS vs VoIP, it’s pretty easy to see that VoIP wins. POTS lines do have their advantages, but VoIP simply offers more benefits than POTS lines. VoIP gives you flexibility to work from anywhere with an internet connection. Plus, you get tons of advanced features that help you communicate and collaborate more efficiently. VoIP generally costs less and is easier to deploy than POTS. 

If you’re ready to switch to VoIP, OneStop Communications can help! We’ll compare providers to help you find the one that works for your needs and your budget. Whether you’re looking to upgrade from your legacy system or start from square one, we’ll help you find the right business phone system. 

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