Business Phone Options: Landline vs VoIP vs Virtual

The Phone System Debate You're Having Wrong

You just upgraded your business phone system. New VoIP setup, crystal-clear call quality, professional auto-attendant greeting. Feels great.

Then you check your call log after a week on the job site. Fourteen missed calls. Three voicemails. Eleven potential customers who called, got no answer, and moved on.

Here's the thing most "business phone comparison" guides won't tell you: the telephone for business you choose is far less important than whether someone picks it up. In our analysis of thousands of calls from home services businesses, 74.1% went completely unanswered. That stat holds whether the business uses a landline, VoIP, or a virtual number.

But you still need to choose a phone system. So let's do this properly. I'll give you an honest comparison of all three options, what they actually cost, and then we'll talk about the factor that really determines whether your phone makes or loses you money.

Understanding Your Three Business Phone Options

Before you can pick the right system, you need to understand what you're actually choosing between. These three categories cover virtually every telephone for business solution on the market.

Traditional Landlines (POTS/PBX)

Traditional landlines use copper wiring connected to the public switched telephone network (PSTN). They've been the standard for over a century. For businesses with multiple employees, a Private Branch Exchange (PBX) system routes calls internally.

The hardware lives on-site. The lines are physical. And the technology, while proven, is being actively phased out by most carriers. AT&T, Verizon, and others have already started sunsetting copper infrastructure in many markets.

VoIP (Voice over Internet Protocol)

VoIP converts your voice into digital packets and sends them over the internet. Cloud-hosted VoIP means no on-site hardware beyond your phones or headsets. Everything runs through your provider's servers.

The global VoIP market hit $151.21 billion in 2024, growing at 12.1% annually. That growth tells you where the industry is heading. Most new business phone installations today are VoIP.

Virtual Phone Systems

Virtual phone systems give you a business number that forwards to your existing devices. No hardware, no desk phones, no PBX. Calls to your business number ring on your cell phone, laptop, or whatever device you designate.

Think of it as a professional layer on top of your personal phone. You get a separate business number, basic call routing, and voicemail without carrying a second device.

Cost Comparison: The Real Numbers

Let's cut through the vague pricing language and look at what each option actually costs for a small business.

Monthly Costs Side-by-Side

What the Pricing Tables Don't Show

Most comparison guides stop at the monthly bill. They're missing the biggest cost: what happens when nobody answers.

For a typical business receiving 42 calls per month, if 74.1% go unanswered, that's 31 missed calls. If just 20% of those would have converted at an average $3,500 project value, you're looking at $21,700 per month in lost revenue. That's $260,400 per year.

Your phone bill is $50 or $200 a month. Your missed-call problem is potentially $21,000 a month. Which number deserves more attention?

A full-time receptionist costs $35,000 per year according to the Bureau of Labor Statistics. That's nearly $3,000 a month just in salary, before benefits, training, or vacation coverage.

The Bottom Line on Cost

VoIP saves most businesses 40-60% compared to landlines on their phone bill. Virtual systems save even more. But the real financial question isn't "which system costs less?" It's "which approach captures the most revenue?"

Features and Reliability Compared

Call Quality and Reliability

Landlines win on raw reliability. Copper doesn't need internet or power (for basic service). In a power outage, your landline still works. For businesses in areas with spotty internet, this matters.

VoIP quality depends on your internet connection. With a stable connection (25+ Mbps), modern VoIP is indistinguishable from a landline. Leading providers guarantee 99.999% uptime. But if your internet goes down, so do your phones.

Virtual systems piggyback on your cell carrier's network. Quality matches whatever your cell service provides in your area.

Feature Comparison

Scalability and Flexibility

VoIP scales effortlessly. Adding a new employee means adding a user to your account, not running new copper to their desk. Remote workers connect from anywhere with internet.

Landlines require physical installation for each new line. Moving offices means reinstalling everything.

Virtual numbers add lines instantly but lack the advanced collaboration features (video, team messaging) that VoIP bundles in.

Which Phone System Fits Your Business?

Solo Operators and Freelancers

Best fit: Virtual phone number or basic VoIP

If you're a one-person operation, you don't need a complex phone system. A virtual number keeps your personal and business calls separate for $10-25/month. You answer on your existing phone.

If you want voicemail transcription, call recording, or texting, upgrade to a basic VoIP plan at $15-25/month.

Small Teams (2-10 Employees)

Best fit: VoIP

Once you have employees taking calls, VoIP becomes the clear winner. Call routing, shared lines, team messaging, and auto-attendants handle the complexity of multiple people answering for one business. Budget: $20-40/user/month.

Growing Businesses (10+ Employees)

Best fit: Advanced VoIP or UCaaS (Unified Communications)

At this size, you need call analytics, CRM integration, call center features, and video conferencing. VoIP platforms like RingCentral, Nextiva, or 8x8 bundle everything. Budget: $30-50/user/month.

Whatever system you pick, the real question remains: who answers when you can't? That's where most small businesses hit a wall no phone system alone can solve.

The Problem Nobody Talks About: Missed Calls

Here's where every other "business phone comparison" guide stops short. They'll help you pick between landline and VoIP, but nobody addresses the elephant in the room.

The Data on Missed Business Calls

We analyzed thousands of calls from home services businesses over 7 months. The results were brutal:

• 74.1% of calls went completely unanswered - that's three out of four potential customers
• 25.4% of callers explicitly requested callbacks - callbacks that rarely happen without a tracking system
• 15.9% contained urgency language ("emergency," "urgent," "ASAP")
• 6.2% were genuine emergencies requiring immediate response

These aren't theoretical numbers. These are real calls from real customers trying to spend real money.

What Happens When Nobody Answers

Industry research found that 85% of callers who don't reach someone won't call back. They don't leave voicemails. They don't try again later. They call your competitor.

For contractors and service businesses, this is devastating. You're on a ladder, under a house, or elbow-deep in a project. The phone rings. You can't answer. By the time you check your missed calls at 6 PM, that customer has already booked someone else.

One plumber in our study had 76 missed calls in a single month. His reaction: "I didn't even know I was missing that many calls until I saw the data. I just thought business was slow."

The After-Hours Gap

Here's another stat that changes the conversation: 30-35% of calls come outside traditional 9-5 hours. For home services businesses in our data, it's closer to 73%.

Your VoIP system doesn't answer calls at 8 PM. Neither does your landline or virtual number. The phone rings, nobody picks up, and an after-hours answering service becomes the difference between capturing that customer or losing them.

Emergency calls after hours command 1.5-2x premium pricing. Missing them isn't just lost revenue. It's lost premium revenue.

How an AI Receptionist Works With Any Phone System

The telephone for business you choose determines how calls reach you. But what determines whether those calls get answered? That's a separate decision entirely.

An AI phone answering system sits on top of your existing phone setup, whether that's a landline, VoIP, or virtual number. It works like this:

Call comes in. AI answers in under 5 seconds. No hold music. No "press 1 for sales."

AI handles routine questions. Hours, pricing, service area, scheduling. The questions that make up 60-80% of your calls.

Urgent calls get routed. Emergency language ("pipe burst," "no power," "leaking") triggers immediate transfer to your phone.

Everything gets logged. Caller name, number, reason for calling, follow-up needed. No more scribbled notes or forgotten callbacks.

NextPhone does this for $199/month with unlimited calls. Compare that to:

• Traditional answering services: $500-800/month for 100 calls
• Full-time receptionist: $35,000/year ($2,900/month)
• Voicemail: Free, but 85% of callers hang up without leaving one

The math isn't complicated. A phone system costs $15-100/month. An AI receptionist costs $199/month. Together, they capture customers you'd otherwise lose.

For a business losing $21,700/month to missed calls, spending $199/month to answer every single one isn't a cost. It's a 10,000% return on investment.

Try NextPhone AI answering service

AI receptionist that answers, qualifies, and books — 24/7.

Get StartedBook a Call

Frequently Asked Questions

What is the cheapest phone option for a small business?

Virtual phone numbers start at $10-15/month with providers like Google Voice or Grasshopper. VoIP starts around $15-25/user/month with Ooma or Zoom Phone. Both are dramatically cheaper than landlines at $50-100/line/month plus installation. For most solopreneurs, a virtual number with an AI receptionist for small business provides the best value.

Can I use my cell phone as my business line?

Yes, but you'll want a separate business number. Virtual phone services and VoIP apps give you a dedicated business number that rings on your personal cell. Customers see your business number on caller ID, and you keep work calls separate from personal ones without carrying two phones.

Is VoIP reliable enough for business calls?

With a stable internet connection (25+ Mbps download speed), modern VoIP matches landline quality. Top providers like Nextiva and RingCentral guarantee 99.999% uptime. The main risk is internet outages, which most businesses mitigate with mobile backup or failover routing.

Do I need a landline if I have good internet?

Probably not. The only scenarios where landlines still make sense are areas with truly unreliable internet, businesses requiring absolute uptime guarantees (911 call centers), or locations where internet infrastructure is poor. For 95% of small businesses, VoIP or virtual provides better features at lower cost.

Can I keep my existing phone number if I switch systems?

Yes. Number portability is legally mandated and supported by all major providers. The porting process typically takes 7-14 business days. During the transition, your old number continues working until the port completes. No calls are lost during the switch.

What is the difference between VoIP and a virtual phone number?

VoIP is a complete phone system with features like video conferencing, team messaging, call recording, and CRM integrations. Virtual numbers simply forward calls to your existing phone. VoIP is better for teams needing collaboration tools. Virtual numbers are better for solopreneurs who just want a separate business line.

How do I handle business calls after hours?

Three options: voicemail (cheapest but 80% of callers hang up), live answering services ($500-800/month for limited calls), or AI receptionists ($199/month for unlimited 24/7 coverage). AI answers every call, handles routine questions, and routes emergencies to your phone regardless of the hour.

Making the Right Choice for Your Business

The telephone for business debate comes down to this: VoIP works best for most small businesses in 2026. It's cheaper than landlines, more feature-rich than virtual numbers, and scales as you grow.

But the phone system you choose is only half the equation. The other half is whether someone answers when customers call. Our data from thousands of calls shows that three out of four calls go unanswered. That problem costs businesses far more than any monthly phone bill.

Pick the phone system that fits your budget and team size. Then solve the answering problem separately. Your phone system handles how calls reach you. An AI receptionist handles what happens next.

The businesses winning right now aren't the ones with the fanciest phone systems. They're the ones answering every call.

Try NextPhone AI answering service

AI receptionist that answers, qualifies, and books — 24/7.

Get StartedBook a Call