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VoIP vs Traditional Phone Systems: Which is Better for Your Business?

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With BT's PSTN switch-off arriving in January 2027, every UK business will be forced off traditional phone lines. But which is actually better — and is there any reason to stick with traditional lines until then? Here's the definitive comparison.

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For almost every UK business, VoIP is better than traditional phone systems. It's cheaper, more feature-rich, more flexible and — critically — the only option that works after January 2027 when BT permanently switches off all ISDN and PSTN lines.

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The biggest difference between VoIP and traditional phone systems is cost. Here's a real-world comparison for a 10-person business:

The Quick Answer

For almost every UK business, VoIP is better than traditional phone systems. It's cheaper, more feature-rich, more flexible and — critically — the only option that works after January 2027 when BT permanently switches off all ISDN and PSTN lines.

Cost Comparison

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The biggest difference between VoIP and traditional phone systems is cost. Here's a real-world comparison for a 10-person business:

Reliability: Which is More Reliable?

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This is the most common concern when switching to VoIP. Traditional phone lines have a reputation for reliability because they work even when the power is out. VoIP needs internet connectivity.

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In practice, for businesses with a decent broadband connection, VoIP reliability is excellent. Our Cloud X platform maintains 99.99% uptime. The key is having a failover arrangement — a 4G/5G backup connection that activates automatically if your main broadband drops. With failover in place, VoIP is more reliable in practice than traditional lines for most businesses.

What About SIP Trunks?

If you have an existing phone system (PBX hardware) that you're not ready to replace, SIP trunks are a middle ground. SIP trunks replace your ISDN lines while keeping your existing PBX hardware. You get the cost savings of VoIP without changing your phones or internal setup. It's the lowest-disruption route to PSTN compliance.

📊 Compare & decide

The complete picture

VoIPTraditional ISDN
Monthly line rental (10 lines)£99.90–£150£200–£400
Setup & hardware£0 (phones provided)£500–£3,000
UK callsUnlimited includedPer-minute charges
International callsLow-cost per minuteHigh per-minute rates
Adding a new line5 minutes, no engineerEngineer visit + cost
Works after Jan 2027✅ Yes❌ No
FeatureVoIPTraditional
Call recording✅ Included❌ Expensive add-on
Mobile app✅ Included❌ Not available
Call queuing✅ Included❌ Expensive add-on
Auto-attendant (IVR)✅ Included❌ Expensive add-on
Voicemail to email✅ Included❌ Not typically available
Multi-site single system✅ Easy❌ Complex & expensive
Work from anywhere✅ Any device, any location❌ Desk-bound
MS Teams integration✅ Native❌ Not possible
AI receptionist✅ Available❌ Not possible
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★ Google Reviews

What our customers say

★★★★★5.0· 312 reviews
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Sarah M.
★★★★★

"Switched our entire office phone system and broadband. The team handled everything, zero downtime. Saving over £200 a month compared to our old BT contract."

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James T.
★★★★★

"Had failover installed after losing internet for a whole day. Assure X kicks in within seconds. Our team didn't even notice when the main line dropped last week."

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Rachel K.
★★★★★

"Our dental practice needed reliable phones and fast broadband. Telexico sorted everything in one visit. The AI receptionist handles after-hours calls brilliantly."

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