What is the difference between VoIP and a Leased Line?

Let’s explore the two! Both super beneficial for businesses but in different ways. 

So first off – let’s remind you what a leased line is! A leased line is a broadband connection that flows straight from your Internet Service Provider directly to your business. It’s a private connection just for your business – you don’t have to share with others, like typical broadband options – which means you access a much faster, stronger, and reliable connection.

And VoIP – otherwise known as Voice over Internet Protocol – is a technology that enables voice communication over the internet or other IP networks. It allows users to make voice calls using the internet rather than traditional telephone lines – easy peasy!

How is a leased line used for communication purposes?

A leased line is used primarily by providing a dedicated, point-to-point connection between two locations and businesses often use leased lines for:

Transferring data
Leased lines provide high-speed, reliable data transfer between locations, facilitating communication, data sharing, and collaboration between businesses.

Internet access
Businesses often use leased lines to connect to the internet, offering consistent, high-speed internet access.

Private networking
Leased lines can establish private networks between multiple locations, allowing secure and efficient communication within a business.

Voice and video conferencing
Leased lines support real-time communication applications such as voice and video conferencing, ensuring a stable and uninterrupted connection.

How is VoIP used for communication purposes?

VoIP is used for voice and multimedia communication over the internet or IP networks. Here’s how it’s commonly used:

Voice and video calls
VoIP allows users to make voice calls over the internet using computers, smartphones, or dedicated VoIP phones – and allows the user to engage in face-to-face communication over the internet, too. Platforms like Skype, Zoom, and Microsoft Teams use VoIP technology for video conferencing.

Messaging
Any VoIP services offer instant messaging features, allowing users to send text messages, images, and files in addition to voice and video communication.

Integration
VoIP can be integrated with various applications and services, such as customer relationship management (CRM) systems or call centre software, to streamline communication and improve productivity.

Business communication
Widely used across businesses for internal communication amongst employees, as well as for external communication with clients and partners. It offers features like call forwarding, voicemail, and call recording.

Remote working
With the rise of remote working, VoIP has become essential for great communication within remote teams. It allows employees to stay connected regardless of their location!

VoIP provides flexible, scalable, and cost-effective communication solutions for individuals, businesses, and businesses of all sizes.

Essentially, a leased line provides a physical connection for the transfer of data from one digital device to another and VOIP simplifies voice communication over digital networks. While they can both be used for communication purposes, they serve different functions and operate with different layers.

Contact us
We’re specialists in helping you find the right phone system for your business. We understand that each business is unique, so all of our advice is tailored specifically to you! Give the Equations team a call today on 01237 420010 to discuss your options or to book a free review of your current system.

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We’re specialists in helping organisations like yours find and implement phone systems that not only handle your calls, but add value to your organisation. Our personal approach means you'll get great service from start to finish.

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Installing a new phone system or changing supplier can be a big decision; you want to make sure you’re teaming up with the right people. We've been specialising in phone systems and technology for more than twenty five years.

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