VOIP vs. Analog Phone System

No matter how large your business is, or the industry you’re in, you must have a phone system in order to conduct business on a day-to-day basis. There are many options and the biggest choice you must make is whether or not to go with a VOIP system or an analog system. There are pros and cons to each, and understanding the difference between the two will help you make an informed decision.

VOIP, or Voice Over Internet Protocol, uses the Packet Switching Network (PSN) to transmit data packets over the internet. These packets are transmitted sequentially in order for the original voice signal to be generated at the receiving end.

Analog is the traditional method of using phones, which work using electronic waves to convert voice signals. The electronic waves are of varying frequency and amplitude which are received at the other end of the telephone exchange. This system uses a system known as Circuit Switching Network (CSN), which enables the analog signals to travel through cables, providing point to point connectivity to establish communication.

Components of an Analog Phone System  

This type of phone system allows you to establish calls using a telephone exchange. The basic components consist of:

  • Switch hook and ringer: These remain connected to the telephone line when the hook is engaged. Once the phone is taken off of the hook, connection gets established and the system is able to transmit and receive.
  • Telephone exchange: Once a number has been dialled from an analog phone, electronic signals are sent via a transmitter and the telephone exchange acts as a switching device, to ensure that the message is received by the correct party.
  • Coil Circuitry: In order to ensure that there is no interference in transmitting and receiving signals, an analog phone system is equipped with complex coil circuitry.

 Components of a VoIP Phone System  

The basic components of a VoIP phone system are comprised of:

  • Modification to a traditional handset: These have additional features including a call hold button, caller ID, a mute button, call forwarding options and a display screen.
  • Internet Access: This is one of the biggest differences between analog and VoIP. All communication in a VoIP system is via the internet.
  • Switching Device: This is incorporated into the VoIP system to allow shared lines between multiple users.


As long as there is an internet connection available, VoIP phone systems can operate anywhere. This makes it a more cost-effective option compared to analog systems, particularly long distance communication. Analog systems are only able to provide connectivity with locations with physical wiring; this can make for high call rates and expensive long distance communications.


VoIP systems are extremely portable and there are several VoIP supported communication applications, such as Skype.

If your business is small or just starting out, and you are not going to be making many long distance calls, an analog system may fit your needs. But, as your business grows, you may outgrow your antiquated analog system and switch to VoIP for your future needs. With a VoIP system, all long distance calls are ‘free’ and do not warrant any extra charges.

IntegrIT Network Solutions can help with all of your business technology needs. Visit the website today for more information.

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