Voice-over IP (VoIP) and 4-line phone systems give businesses the ability to simultaneously route calls to and from multiple extensions, but the technology that supports each system is different. For example, a 4-line phone uses a traditional office landline and copper wires, which can make the service more expensive, while VoIP makes low-cost phone calls over the internet.
In comparing the two options, here are the best use cases to consider:
- 4-line phone system: A great choice for companies with legacy PBX systems that don’t want to be dependent on high-speed internet.
- VoIP: The go-to option for businesses that need an affordable, feature-rich business phone system that they can access anywhere.
It is worth noting, though, that VoIP phone systems aren’t the only type of mobile-friendly business phone service and may include more functionality than a team of three or less needs. If this describes your team, we encourage you to also check out our guide on VoIP vs virtual phone systems.
4-Line Phone System vs VoIP at a Glance
4-Line Phone System | VoIP System | |
|---|---|---|
Monthly Cost* | Around $60 to $75 per user, per month | Around $19.99 to $59.99 per user, per month |
Setup Cost | $750 to $1,250 | Free or up to $750 for cloud-hosted VoIP |
Call Handling Features | Call transfer, caller ID, and voicemail (expensive PBX systems can do more) | Advanced call routing, IVR, and call recording |
Advanced Features | None | CRM integrations, video conferencing, and real-time analytics |
Ease of Use | Difficult installation; easy day-to-day use | Easy to set up and operate |
Call Quality and Reliability | Top-notch quality and reliability | Susceptible to power outages and poor internet connection |
Long Distance Rates | Around 2 cents to 12 cents per minute | Around 2 cents to 5.9 cents per minute |
*Based on RingCentral’s calculation for 20 users over two years and AT&T’s pricing plans.
Best Price: VoIP
4-Line Phone System | VoIP System |
|---|---|
You’ll need hard phones, wires, and potentially jacks. Setup can cost $750 to $1,250 and monthly subscriptions can be $60 to $75 per user, per month. | Cloud-hosted VoIP systems have no costs to get started (unless you want to purchase VoIP-enabled phones). You’ll then pay $19.99 to $59.99 per user, per month. |
Cloud-based phone systems use your existing internet connection and don’t require an office landline. This allows VoIP phone services to offer flexible plans. For example, you can get an all-inclusive business premier phone plan for $59.99 per user, per month from RingCentral, or you can get a basic virtual phone service for just $12.99 per user, per month from Phone.com.
On the other hand, 4-line services can cost anywhere from $75 to $300 depending on the phone you want. Advanced phones with sleek user interfaces and more call handling features will be on the higher end, while bare-bones phones will sit at the lower end.
Winner: VoIP wins when it comes to price and scalability. Cloud-hosted systems have nearly no startup costs, and the price per user, per month is smaller than landline rates.
Best for Call Handling Features: VoIP
4-Line Phone System | VoIP System |
|---|---|
Basic 4-line systems include caller ID, call forwarding and transferring, and voicemail boxes. More expensive PBX systems can do more, though. | VoIP systems include advanced call routing, call recording, IVR menus, and features like whispering, barging, and call takeovers. |
Four-line phone systems function as a standard phone service, allowing you to transfer calls, place customers on hold, and identify incoming callers. However, to get a feature-rich system, you need to invest in PBX infrastructure, giving you access to basic call handling functionality, additional lines, and auto-attendants. In both cases, your multiline service works on conventional desk phones and headsets.
When it comes to call handling, VoIP can do a lot more. You can get more granular with your call routing options and even build advanced interactive voice response (IVR) menus to help customers self-serve and find the exact extension they need. Within the call itself, you can automatically record conversations and monitor calls with agent whispering, barging, and call takeovers.
Winner: When it comes to call handling functionality, VoIP platforms can typically do more than 4-line phone systems.
Best for Advanced Features: VoIP
4-Line Phone System | VoIP System |
|---|---|
None. | Voicemail transcriptions, CRM integrations, collaboration tools, and multichannel functionality. |
Most 4-line phone systems are pretty basic. If you want access to auto-attendants and other technology, you’ll need to invest in an expensive PBX system. Most of these still can’t compete with what you can do with a VoIP business phone system.
The best VoIP phone services provide an expansive list of features. Plus, you can take calls on any device (phone, computer, or tablet) from any location. Like 4-line plans, you get call transferring, hold options, and caller ID, but small businesses get many other features that include:
- Voicemail options: VoIP plans offer standard voicemail along with voicemail-to-email via audio files or transcribed messages, or you can transcribe your voicemail and have it sent to your mobile phone by text.
- Integrations: As a cloud-based service, VoIP technologies can integrate with your customer relationship management (CRM) or help desk software, giving you access to client data and advanced analytics.
- Collaboration tools: Share screens, host whiteboarding sessions, or connect remote teams during a video call using your VoIP small business phone system.
- Multichannel functionality: Call, text, chat, video conference, fax, and share files using your VoIP service.
Winner: VoIP features some of the most advanced phone technology on the market. It’s hard to beat when you’re looking for the latest and greatest functionality.
Best for Ease of Use: 4-Line Phone System
4-Line Phone System | VoIP System |
|---|---|
Difficult to install but easy to use. | Easy to use but some systems can be confusing. |
With most 4-line phone systems, setup entails connecting the central PBX console with up to four analog phone lines. You can handle administration tasks from the console’s screen and use your desk phone’s keypad to manage calls. Once installed, a multiline phone system is simple to use.
However, for more expansive setups, there’s really no DIY solution—you’re going to need to contact your service provider to send over a tech engineer to get everything up and running. And if you need additional servicing or want to add extra lines later, you’ll need to contact them again.
Leading VoIP platforms (like RingCentral and Nextiva) are managed with web-based interfaces that are intuitive and user-friendly. Most services offer an online portal or dashboard to quickly set up your phone system, access contact data, and manage calls. Typically, programs are easy to set up, but the number of features and functionality can make some systems a bit overwhelming, especially if you bought a more complex package.
Winner: Many VoIP platforms offer an overwhelming number of features that can make navigating the apps tricky. Most 4-line phone systems are incredibly easy to use once you get past the installation.
Best for Call Quality & Reliability: 4-Line Phone System
4-Line Phone System | VoIP System |
|---|---|
Consistently deliver top-notch audio quality and reliability. | Dependent on solid internet connection and power. |
For a while, 4-line services had the edge over VoIP, but improvements in internet speed and technology have helped VoIP close the gap. Since a landline uses your phone lines, it’s not affected by a power or internet outage. As a result, the quality remains the same regardless of other online activities, like streaming videos or downloading files.
VoIP services rely on a solid internet connection and power. If you lose either, your VoIP system will stop working. Fortunately, you can automatically route calls to a mobile phone or another backup number during an outage. As long as you have a reliable high-speed internet connection, your call quality will be similar to 4-line systems.
If you’re worried about your internet connection, learn more about VoIP bandwidth requirements and expectations here. You can also give our free VoIP speed test a try below.
Winner: You won’t find a more reliable solution than a 4-line phone system. With VoIP, you always need high-quality internet and power.
Best for Long Distance: VoIP
4-Line Phone System | VoIP System |
|---|---|
Average rates of 2 cents to 12 cents per minute. You’ll need to pay a monthly fee ($15 to $190) to add long distance calling to your plan. | Average rates of 2 cents to 5.9 cents per minute. You’ll need to pay a monthly fee ($9.99 to $39.95) to add long distance calling to your plan. |
Both landlines and VoIP systems typically offer unlimited domestic calling, but they usually provide international calling at different rates. VoIP systems tend to offer cheaper international call rates because they transmit data over the internet (rather than over copper wires).
Another advantage of VoIP technology is that you can often get cheaper international rates by purchasing an international phone number. For example, RingCentral offers international numbers for over 70 countries, while 8×8 allows users to call up to 47 countries in its highest plan.
Winner: VoIP is the best option for businesses that plan to make frequent long distance and international calls. Its cheaper monthly plan and per-minute rates make it the more affordable choice.
Did you know?
Upgrading your 4-line phone services can save you up to 70% when choosing a VoIP provider like RingCentral. It’s also easy to port your number, and you can have as many lines as you want.
Alternative Business Phone System Solutions
VoIP and 4-line systems aren’t the best fit for everyone. Small teams and solopreneurs will be better off with less robust phone systems. Here are a couple of options to consider:
- Business cell phone: Teams and employees with basic calling needs don’t need anything fancy. All you’ll need to do is purchase a phone and pay the monthly rate for the subscription, which can be pretty affordable if you’re just using it to make phone calls.
- Virtual phone system: A virtual phone number gives you a business phone number but routes calls through an existing cell phone. It’s a better option if you need a simple, affordable way to separate personal and professional phone calls. Check out the top virtual phone number providers to find the best options.
Bottom Line
While some organizations are attached to legacy PBX systems, many small business owners are investing in VoIP services to run their communication programs. As technology continues to progress and high-speed internet becomes more accessible (and affordable), VoIP costs will progressively become the go-to option for every modern-day business.
VoIP phone service providers like RingCentral offer intuitive dashboards and intelligent features at a fraction of a 4-line phone system’s cost. You can add as many lines as you need, and the setup is simple. Get started by signing up for a free trial.
