Your grandmother’s rotary phone is charming, but the landline you’re paying $50 a month for is a financial relic that’s quietly draining your retirement fund. In 2025, the average American household still shelling out for a traditional copper-line phone service is overpaying by a factor of five compared to modern Voice over Internet Protocol (VoIP) alternatives. That $600 annual expense doesn’t seem like much until you calculate the opportunity cost over a decade—$6,000 in direct payments plus another $3,000 in lost investment returns. This article breaks down the real math, the hidden risks of clinging to copper, and how to transition to VoIP without sacrificing the features you actually rely on.
Let’s start with the sticker price. A traditional landline from major carriers like AT&T or Verizon runs between $40 and $60 per month, including taxes and fees. VoIP services like Ooma, MagicJack, or even free tiers of Google Voice cost $0 to $20 monthly. Over ten years, that’s a $4,800 to $7,200 difference in cash alone. But the gap widens when you factor in the opportunity cost—if you invested that $50 monthly savings in a simple index fund earning 7% annually, you’d have over $9,000 after a decade. That’s the true cost of sticking with copper.
Why do landlines still cost so much? The infrastructure is aging, and telecom companies are hiking rates to discourage new subscribers. They want to retire copper networks entirely. In 2025, the FCC is phasing out subsidies for legacy services, so your bill is likely to rise further. VoIP, on the other hand, runs over your existing internet connection, so the marginal cost is almost zero once you’re paying for broadband.
The number one reason people keep landlines is fear: fear of power outages, fear of hurricanes, fear of being stranded without 911. But in 2025, the assumption that landlines are more reliable is outdated. Copper lines can go down during storms, and they require backup power just like VoIP—if your home loses electricity, a traditional phone is often dead too unless you have a corded phone that draws power from the line, which isn’t guaranteed anymore. VoIP has improved dramatically with battery backups, cellular failover, and even satellite options. You can pay for a VoIP adapter with a built-in battery pack for $50, or use a service like Ooma Telo that offers 911 calls through a mobile app if the internet drops.
More importantly, 911 dispatch centers now have the technology to locate VoIP callers accurately, but you must register your physical address with your provider. If you skip that step, you’re risking a delayed response. The modern approach is to keep a cheap prepaid cell phone or a $30 battery backup for your router—that’s still far cheaper than paying $600 a year for a landline you rarely use.
If you’re paying $50 a month for a landline, you’re likely getting features like call waiting, caller ID, and voicemail. VoIP gives you all of those plus extras that would cost extra on a traditional plan—or that don’t exist at all. For example:
When you price out these add-ons on a legacy carrier, you’re looking at $10–$15 extra per month. VoIP offers them at no additional charge, so the effective savings are even greater than the headline price gap. The only feature you might genuinely lose is the ability to ignore your phone entirely—and let’s be honest, you’re already ignoring it.
One of the biggest fears about dropping a landline is losing your phone number. But you don’t have to. The FCC mandates number portability—you can keep your existing number and move it to a VoIP provider. The process takes two business days on average, and you’ll need your account number and PIN from your current carrier. Be careful: if you cancel the landline before porting, you’ll lose the number permanently. Start the port before you even set up the new service, and don’t cancel the old account until the port is complete. It’s a smooth process but you need to be methodical.
Order your VoIP adapter, plug it into your router, and get it working with a temporary number. Then, submit a port request with the provider. Wait for the confirmation email—typically within 24–48 hours. Once your VoIP provider confirms the port, you’ll get a text or call on the new service. Only then should you call your old carrier to cancel. This sequencing ensures you never miss a call from your aunt or your doctor’s office.
If you’re ready to switch, here’s a concrete setup that costs under $100 and replaces your landline entirely:
In two months, you’ll save enough to cover the equipment. In a year, you’ll have $600 extra, and in ten years, you’ll have $9,000 in invested savings. The only additional cost is your internet connection—but you’re already paying for that. If you don’t have broadband, check if you’re eligible for the Affordable Connectivity Program, which offers discounted internet to low-income households.
There are valid reasons to keep a traditional phone line. If you live in a remote area with unreliable internet and frequent power outages that last for days, a landline might be your only lifeline. But modern VoIP systems can mitigate that. For instance, you can get a VoIP adapter that uses a cellular 4G backup SIM card—it will work even if your internet goes down, as long as the cell network is up. That’s a $10/month add-on that still keeps you under $25 monthly. Another edge case: if you have a medical alert system that specifically requires a landline, check with your provider—most now offer models that work with VoIP or cellular. The industry standard is moving away from landline reliance.
The other consideration is if you have a fax line for a home business. But faxing is obsolete—switch to eFax or a scanning app. If you’re only keeping the line for the fax machine you haven’t used in eight years, then you’re literally paying to store dust.
As telecom companies push to retire copper networks, they’re using a strategy of “rate rebalancing.” You might see notices in your bill that say “regulatory compliance fee” or “network access fee” that have doubled from $5 to $10 per month. These are designed to push you off the network. In 2025, several states are allowing carriers to refuse service on old lines if they can show a reasonable replacement exists. That means your landline might be shut off with a few months’ notice, leaving you scrambling to find an alternative. Being proactive is better than being reactive—if you switch on your own terms, you control the transition and can port your number without a shortage of time.
If you’re skeptical, call your current provider and ask for a voluntary disconnection. Do not be surprised when they try to convince you to stay with a “retention offer.” Often you can negotiate a $10 discount for a year, but that still doesn’t get you below $30. Compare that to $0—why would you bother?
This same principle applies to your mobile service. Are you paying for a landline in your back pocket? If you have a smartphone, you don’t need a separate line for your alarm system, security cameras, or intercom. Many people keep a landline solely for their home alarm that uses a phone line. But in 2025, all major alarm companies offer cellular backup modules that cost $10–$15 a month, which replaces the need for a landline. Check your alarm panel—if it’s a legacy model, you can often cut the landline and use a SIM card instead. This can save you the entire landline cost.
Furthermore, you can apply the opportunity cost framework to other recurring bills. Any monthly subscription you don’t need is costing you more than the nominal fee because that money could be invested. The Landline Tax is a perfect example of friction spending—money that goes out automatically without a second thought.
Take 15 minutes today to review your last three months of bills. Look for the actual charges: taxes, equipment fees, and any “optional” add-ons like voice mail or call waiting. If the total is above $30 per month, you’re overpaying. Then search for “VoIP providers” and compare plans—you’ll see that the cheapest option is always free with a one-time equipment purchase. Remember, you don’t have to switch today, but you should know your options.
One final tip: when you switch to VoIP, tell your internet provider that you’re dropping your landline. They might offer a discount for bundling, but in many cases, you can get a $10–$20 discount just by asking. That’s an extra $120 per year in savings. Combine that with the $600 you save by cutting the landline, and you’re looking at $720 annually. Invest that over 10 years at 7%, and you’ll have over $10,000—enough to buy a nice used car or take a great vacation. The choice is yours: hang up the old phone or let your money grow.
Start your switch this weekend. Order a VoIP device, check number portability, and set up a battery backup. You’ll be done in under an hour, and you’ll never miss the landline again—except maybe the occasional telemarketer’s call, and you won’t miss those at all.
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