Running a small business is no walk in the park — you’re juggling managing a team, delighting customers, and making sure the lights stay on. With so much going on, the last thing you need is a phone system that holds back your growth.
And let’s face it, with all the options out there, picking the right one can feel like a full-time job in itself.
That’s why we’re here to make it simple. In this post, we break down the differences between Voice over Internet Protocol (VoIP) and cellular phone systems — their perks, their quirks, and what they mean for your business. Plus, we’ll cover specific phone solutions that are popular with growing businesses. By the end, you’ll know which one will help you best serve your customers and keep your business running smoothly.
What is VoIP, and how does it work?
VoIP is a service that lets you make and receive phone calls over the internet rather than through a traditional phone line.
When you speak on a VoIP call, your voice is converted into digital data packets that are sent over the internet to the person you called. Then the packets are turned back into the original audio so your voice can be heard.
Pros and cons of VoIP
Pros
- Lower costs, especially for international and long-distance calls
- Includes business features like voicemail transcription and summaries, auto-attendants, shared phone numbers, and scheduled texts
- Easily add or remove team members, phone numbers, and extensions and downgrade or upgrade your plan as needed
Cons
- Requires a strong and stable internet connection to prevent dropped calls or less than crystal clear audio quality
What is a cellular service, and how does it work?
Cellular is a communication service that lets mobile devices make and receive calls and texts wirelessly. It works by converting your voice into an electrical signal that gets turned into radio waves. Those waves travel to the nearest cell tower, which sends your voice to the person you’re calling so they can hear what you said.
Pros and cons of a cellular service
Pros
- Works without relying on internet access, letting your reps make and receive calls and texts without nearby WiFI
- Easy to set up, and almost no onboarding is needed
Cons
- Expensive, especially for international and long-distance calls
- No business features like shared phone numbers, ring groups, snippets, team messaging, etc.
- You’ll often find yourself tied to long-term contracts, making it difficult to reduce costs if needed
💡Are you considering getting a desk phone? Check out our post about VoIP vs landlines here.
Upgrade your phone system: 5 VoIP providers compared
Provider | Starting price | Unlimited calling to US & Canada | SMS/MMS to US & Canada | Shared phone numbers | Additional phone numbers |
---|---|---|---|---|---|
OpenPhone | $15 per user per month | ✓ | ✓ | ✓ | $5 per number per month |
Zoom Phone | $10 per user per month | Requires upgrade | ✓ | ✓ (calls only) | $5 per number per month |
Microsoft Teams | $4 per user per month | ✓ (requires add-on or calling plan) | X | ✓ | ✓ (requires purchasing a calling plan) |
Cisco Webex | $15.30 per user per month | ✓ | ✓ (requires upgrade) | Shared call appearance only | No public pricing |
Google Voice for Google Workspace | $16 per user per month (must have Google Workspace) | Unlimited calls to Canada from the US only | US customers only | Requires upgrade (ring groups only) | X |
1. OpenPhone
OpenPhone is the #1 business phone system, as voted on G2 by thousands of growing teams. Every team member you add to your plan will get a local or toll-free business number (local US, Canadian, or North American toll-free number) they can use from anywhere and on any device with unlimited calling and texting to any US or Canadian number. You’ll have access to texting automation features that help speed up your workflow, such as auto-replies, snippets (pre-saved message templates), and scheduled messages. Plus, you can integrate OpenPhone with your tech stack — for example, a CRM like HubSpot, so your reps don’t have to manually enter call activity, reducing time spent on admin work.
2. Zoom Phone
You probably know Zoom as a video conferencing tool, but it also offers a VoIP phone system called Zoom Phone. If your team already uses Zoom for video calls, adding the phone service could make sense for your business.
But while Zoom Phone offers you basic VoIP features like voicemail transcriptions and call forwarding, its interface is a bit clunky compared to other providers. Plus, the platform doesn’t let you schedule text messages, making it difficult to stay TCPA compliant.
3. Microsoft Teams
Microsoft Teams is a communication and collaboration app that’s designed for organizations. It lets you make and receive calls while offering features like group calls and call transfers. If you want to have access to its additional apps, like Microsoft Forms, you’ll have to upgrade to its Microsoft 365 Business Basic plan. Plus, file storage is limited to 10GB on the base plan, which can cause issues if you need to store important documentation or customer call recordings over a long period of time.
4. Cisco Webex
Cisco Webex combines a collaboration suite that offers five different solutions. Its calling solution gives you access to features like noise cancellation, phone menus, unlimited domestic calling, and more. If you want access to live polling, you need to upgrade to the Webex Suite plan, which costs $22.50 per user per month.
Want to make and receive texts and record customer calls? You’ll need to upgrade to its highest-tier plan, which requires reaching out to support since its pricing isn’t listed on the website.
5. Google Voice
Google Voice provides VoIP calling for personal and business use. However, accessing its business features requires paying for a Google Workspace subscription along with a Google Voice business plan. Want to integrate your business phone system with a CRM like HubSpot or Salesforce? You can’t with Google Voice since it only connects with other Google apps. It also doesn’t offer toll-free phone numbers, and you can’t port them over to your Google Voice account either.
VoIP vs cellular: What should I get for my business?
A VoIP provider like OpenPhone is typically more cost-effective than regular cell phone plans and lets you make international calls without huge fees. You can also add new team members and remove them from your phone system whenever you need to. Plus, you get access to features like auto-replies, call transfers, and shared phone numbers your whole team can use to better serve customers.
Regular cell phone plans only give you one phone number per device, forcing you to juggle multiple phones if you need different numbers. With a VoIP service, you can add as many numbers as you want, including local numbers to establish a presence in cities and toll-free numbers so customers don’t have to pay to call you.
Here’s more of what you can do with OpenPhone:
- Share numbers with your team to solve customer problems together: Reps can make and receive calls and texts from the same business phone number. Plus, everyone sees the same recordings, contacts, and conversations, helping reps get context faster on customer issues.
- Make unlimited calls and texts: Connect with customers across the US and Canada without worrying about per-minute charges or text limits.
- Set up professional phone menus: Help customers route themselves to the right rep or department so you can resolve their issues faster.
- Record calls to identify coaching opportunities: Ensure consistent customer service across your organization by listening to recorded calls and finding ways reps can improve.
- Auto-reply to missed calls so customers know you’ll get back to them: Set expectations with customers by automatically responding when you’re unavailable. You can also schedule messages to reach out at the perfect time.
- Integrate with your tools to save time: OpenPhone lets you connect your business phone system to your current tech stack. For example, you can receive notifications directly in specific Slack channels when you receive a call.
Factors to consider when choosing a VoIP provider for your business
Here are the key factors to look for when choosing the right VoIP provider:
- Scalability: Your business phone system should grow with your company, letting you easily add new users and phone numbers.
- Security: Look for providers that prioritize data protection with features like end-to-end encryption and perform daily backups.
- Features: Look for features that will save your team time, like auto-replies and automatic call recording.
- Flexibility: Your phone system should let your team members make and receive calls whether they are in the office or on the go.
- Compatibility: Choose a provider that integrates with your existing tech stack, such as email, Google Contacts, and Zapier.
- Customer support: What type of customer support does the VoIP phone service offer? Do they respond within 24 hours, or do users often find themselves following up to get a response?
OpenPhone: Try out the best VoIP system for small businesses
With OpenPhone, you can enjoy unlimited calls and texts across the US and Canada — no surprise charges, no stress. Your team can collaborate with shared phone numbers to solve customer problems faster and prevent missing customer calls. Plus, you’ll never be tied to long-term contracts if your business needs change.
Start your seven-day free trial of OpenPhone today.
FAQs
VoIP provides all the functionality you get with a traditional cell phone, letting you make and receive calls and texts on any device. Plus, you’ll get access to advanced features like auto-replies and shared phone numbers that aren’t available with a standard cell service.
Simply download the OpenPhone for iOS or Android app on your mobile phone, and you can start making and receiving calls using your WiFi connection.
While mobile phone calls rely on limited cell tower coverage, VoIP works anywhere with an internet connection, giving you much more flexibility and reliability.
Making the switch to a VoIP app requires just three things: a smartphone or computer, an internet connection, and a VoIP service provider. You can get started by creating an account and downloading the OpenPhone app on your mobile device. You can also port your phone number over from your current provider to OpenPhone for free.
VoIP voice calls only need an internet connection to work. This means you can make calls in areas with poor cellular coverage or power outages and still have good call quality, and the calls won’t drop.