Transitioning from Traditional Landlines to VoIP: What You Need to Know
Mark your calendars: traditional landlines will be phased out on January 31, 2027. This pivotal shift requires both businesses and individuals to migrate their landline numbers to a Voice over Internet Protocol (VoIP) system. VoIP utilizes cloud-based technology, allowing you to make calls through your Internet connection.
However, a 2023 survey conducted by National Business Communications revealed a concerning trend: 62.1% of businesses still rely on landlines, and 44% are unaware of the impending switch-off. With the evolving landscape, it is essential for organizations of all sizes to stay informed and prepared.
Understanding the Current Challenges
Amidst significant changes since the Labour government took office, businesses are grappling with challenges like increasing Employer National Insurance costs, set to rise in April 2025, and a 6.7% hike in the National Living Wage. Such financial pressures have led many companies to hold back on investments, hiring, and in some cases, to downscale operations.
Additionally, UK businesses are experiencing the highest rate of staff reductions since the pandemic. According to the Managers Index Survey, which involved 650 manufacturers and 650 service sector companies, managers cite ‘softer demand, rising employment costs, and tight profit margins’ as reasons for their cautious approach. Notably, a survey by the Federation of Small Businesses (FSB) indicated that 33% of small businesses plan to cut jobs—an increase from 17% in Q3 2024.
The Implications of Landline Transition for Small Businesses
The shift from traditional landlines to VoIP adds another layer of complexity for small businesses already facing rising costs, skills shortages, and increased red tape. Yet, this transition can serve as an opportunity to enhance business operations and reduce costs. Providers like Virtual Landline offer virtual numbers equipped with advanced features like call reporting and routing for as low as £4.50 per month.
Future-Proofing Your Business Communications
It’s crucial to ensure that your business communications can withstand future changes. Let’s explore the key factors to consider for future-proofing your communications strategy:
1. Flexible User Count
In a fluctuating business environment, it’s essential to seamlessly scale the number of users up or down. Seek a VoIP package that allows flexibility without restrictive contracts. For sole traders and freelancers, single-user virtual number packages are typically more adaptable. For example, with Virtual Landline, you can modify your package after just 30 days if necessary.
2. Mobility with Your Communications
Moving locations should not disrupt your communication channels. VoIP allows you to retain your number whether relocating or implementing remote work arrangements, thereby streamlining operational transitions.
3. Optimal Value for Your Business
Transitioning to VoIP can lead to significant cost savings, primarily because you’ll avoid traditional line rental fees. As you evaluate providers, ensure you’re getting the best value for your investment. Beware of deals featuring “free” phone numbers, as they often carry hidden charges for additional services.
4. Professional Appearance
A local or toll-free number enhances your business’s credibility. Customers and partners are more likely to trust a business that presents a professional image with a recognizable number, creating an impression of an established operation.
5. Essential Features
Look for providers that offer invaluable features, such as:
- On-hold music
- Call menu
- Auto-attendant
These features can significantly enhance customer experience and efficiency as your business grows.
7 Steps to Transition to VoIP
While resources may be limited as the switch-off date approaches, following these steps can facilitate a smooth transition to VoIP:
1. Select Your Preferred Phone Number
You may opt to retain your current number; however, verify its compatibility for porting. Generally, it is portable, barring some potential charges from your provider.
2. Contact Your Landline Provider
Your landline provider will likely reach out to inform you of the upcoming changes. Initiate discussions regarding number porting and address any questions you may have.
3. Check Compatibility with VoIP Technology
Ensure that your existing software and hardware are compatible with VoIP technology. Anticipate potential upgrades, such as acquiring IP phones that boast features absent in traditional sets.
4. Evaluate Your Broadband Needs
Your current broadband package may suffice, but anticipate possible upgrades to accommodate VoIP requirements. Reports suggest a minimum of 90-100 kbps is necessary for optimal performance.
5. Assess Other Connected Devices
Remember, numerous devices—such as CCTV, alarm systems, and payment terminals—rely on your landline. Ensure these systems are updated to work with your new VoIP setup before the deadline.
6. Consider Backup Solutions
Plan for contingencies: VoIP services won’t function during power outages. Solutions like backup batteries or redirecting calls to mobile phones can maintain connectivity in emergencies.
7. Research Providers
Though your current provider may offer a suitable VoIP system, take the duration before the deadline to compare options. Consider features, prices, reviews, and integration capabilities.
If you’re curious about your options, check out our article on The 6 Best VoIP Providers for Small Businesses. Our top recommendation, Virtual Landline, seamlessly integrates with various devices, offering essential features such as call forwarding, call queues, and more.
Further Reading
Friendly Guide – Top Tips for Small Businesses Switching to VoIP – With the landline shutdown approaching, now is the ideal time to make the switch! Don’t let your small business fall behind!
Three Reasons Businesses Should Use VoIP for Communications – Explore valuable insights into the strategic advantages of leveraging VoIP.
