Why Upgrade to VoIP? The Real Cost of Keeping Traditional Phones

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If you want to cut your company’s phone bills and gain access to advanced features that traditional phone systems can’t offer—such as allowing employees to work from anywhere, hosting video meetings, or generating detailed communication reports—then VoIP (Voice over Internet Protocol) is the ideal solution for your business.

We’ve previously explained in detail what VoIP is and its main advantages (you can read that article here). In this article, we’ll show you why it’s time to replace your old communication system with a modern, Internet-based VoIP system.

Key Facts and Statistics

Companies save 50% to 75% on communication equipment costs after switching to VoIP.
Businesses typically reduce their monthly communication expenses by around 50% using VoIP. (Source: www.itworld.com)
Global investments in VoIP-related technologies were projected to reach $88 billion by 2018. (Source: www.infonetics.com)
Traditional landline companies lose around 700,000 customers per month to VoIP. (Source: www.infonetics.com)
By the end of 2017, there were over 1 billion VoIP users worldwide. (Source: www.technews.tmcnet.com)

These figures clearly show that the future of business communication lies in VoIP. Internet-based systems are rapidly replacing traditional telephony across companies and institutions worldwide.

Comparison: Traditional Telephony vs. VoIP

IP Phone VS PSTN Comparison

The following comparison highlights the key differences between traditional phone systems and VoIP:

Feature	Traditional Phone Service (PSTN)	Voice over Internet Protocol (VoIP)
Installation Cost	Typically high in most cases	Varies by setup; computer-to-computer calls are often free—only equipment costs apply
Operating Cost	Based on usage time	Much cheaper; no per-minute costs once implemented
Equipment	Low-cost but limited functionality	Provided by the service provider; requires modern IP-based devices and good infrastructure
Mobility (Flexibility)	Fixed and non-portable	Fully mobile; accessible from anywhere via the Internet
Features	Basic call functions (dial, receive, hold)	Includes advanced features like voicemail, group calls, and video conferencing
Reliability	Highly reliable	Very reliable with stable power and Internet connection
Security	Generally secure	Secure with firewalls and encryption, though network precautions are needed
Scalability	Difficult to expand; requires new wiring and possibly construction	Easy to scale—just add new VoIP phones or software users

Why VoIP is the Better Choice

From the comparison above, it’s clear that VoIP has become the practical and flexible alternative to traditional phone systems. It offers:

Reduced communication costs—especially for international calls
Simplified scalability and management
Enhanced flexibility, allowing calls and meetings from anywhere
A wide range of modern features that improve collaboration and productivity

Sahab Technology, through its brand XonTel, is one of the pioneering VoIP providers in the Arab world. XonTel offers a complete range of VoIP products and services, helping businesses transition smoothly to modern Internet-based communication systems.

Click here to learn more about XonTel’s products and services.