Digital Phone Service vs. Analog

The analog telephone system has been around for many years. However, the system is reliable -- one analog telephone provider claims a 99.9 percent uptime rate for its customers. Your analog service also guarantees you a spot (if you want one) in your local telephone directory, something you normally won't have if you only have digital phone service through a third-party provider. Purchasing analog service also ensures that you will receive a local phone number.

The cost of landline service is typically higher than digital service. Unless you purchase a package, you'll have to pay separate charges for common calling features, like caller ID and call-waiting. Most analog providers also charge the customer for each long-distance phone call.

Digital phone service uses the Internet to place, receive and transmit phone conversations. This service is usually referred to as VOIP, or "Voice Over Internet Protocol" phone service. It's necessary to purchase high-speed Internet service, such as DSL or cable, for your digital phone service to work. Usually, VOIP service includes unlimited local and long-distance calling. Most of the typical telephone calling features are bundled in as well, such as call-waiting and caller ID. Most VOIP providers also host online portals where customers can view call logs, listen to voicemail and change their phone system settings. Often, VOIP is less expensive than comparable landline service.

Analog phone service will function even in a power outage. Digital phone systems require both power and a reliable Internet connection to function properly. If your power should go out, your modem and VOIP device will not work (unless you have a battery backup system.) If your Internet connection is not reliable, or if the speed drops, you can experience noise on your phone line, and even lose calls. Also, depending on the installation of your digital system, you won't be able to use all the phones presently connected to wall jacks in your home; you'll likely need an expandable phone system operating from a base station near your VOIP device. Also, you may not be able to get a local number -- so your next-door neighbor may incur long-distance charges to call you.