Evaluating the differences between PSTN and VoIP

As you know, running a business involves making smart decisions for budget and growth potential - and choosing the right phone system is paramount to this. It’s key for you to understand the different options available to you to choose the right option for your business specifically.

The Public Switched Telephone Network (PSTN) is the traditional landline system run over copper wires, while Voice over Internet Protocol (VoIP) is a newer, Internet-based system which is often deployed in the Cloud.

Understanding the basics of PSTN and VoIP

The PSTN is what traditional landlines use to make calls. You likely have one in your home, or in the office if you have a traditional desk phone. It is sometimes referred to as POTS, or ‘Plain Old Telephone System’. It uses a vast network of wires to transmit your voice as an audio signal, and there are exchange buildings in different locations needed to operate this system.

On the other hand, VoIP is a system that uses the Internet, or an ethernet connection, to convert your voice into ‘digital data packets’. These then travel across the Internet and are ‘reassembled’ at the other end for the recipient to hear.

Choosing the right phone system for your business

There are a few factors that you need to take into consideration when deciding which option to choose for your business.

Perhaps the most important consideration is that the PSTN is being switched off by BT completely by 2027. This means that while you may not want to switch right now, everyone will eventually be pushed to do so; even your Nan’s house phone will be on VoIP, so it’s best to get with the program now and stay ahead of the curve! This will help you avoid unnecessary complications at the last minute, and give you time to become a VoIP whizz by the time BT switches off the PSTN for good.

This being said, let’s take a look at the benefits of both options:

Benefits	VoIP	PSTN
Costs	VoIP solutions are often supplied on a predictable month-by-month basis for manageable billing, with less chance of surprise fees.	PSTN is charged on a per-minute basis, which makes it difficult to manage costs, especially in businesses.There are also additional charges for long distance calling and ‘tack-on’ features.
Flexibility and scalability	With VoIP it is easy to add users, work remotely from almost any smart device with an internet connection, and integrate with other tools you already use day-to-day.	PSTN lines have limited features and require physical phone lines. This restricts remote work, and can be expensive to set up new users and departments.
Reliability	The idea that VoIP is more unreliable than PSTN is not true, especially with Yay.com. We are load-balanced, while using the latest technologies and best CODECS for a reliable and high quality calling experience.	PSTN is not limited to internet connection, and so is often reliable, however quality can be lowered by damage to phone lines or hardware issues.
Numbering options	You have a wide choice of numbers to choose from, including local, non-geographic, and even international numbers, no matter where you are based in the world.	With PSTN you are limited to local numbers and often allocated numbers based on your physical location which offers very little customisation.
Call features	VoIP solutions offer features such as messaging, hold music, voicemail transcriptions and even video calling, so that all communications solutions are all under one roof.	With PSTN features are very limited, and will offer a basic call functionality which can seem dated to your callers, making it hard to get the information they want quickly.

The future of business phone systems

While PSTN has been the standard for almost 150 years, VoIP is becoming an increasingly favoured choice due to its cost-effectiveness, additional features and flexibility. It’s something you should consider for your business, especially as eventually everyone will have to make the switch after the PSTN switch-off. Keeping ahead of the curve, getting things in place now and training staff to use VoIP before 2027 will set you ahead of the competition and position your business for success.

Taking the next step with VoIP phone systems

Now that you have a better understanding of your options, you can weigh the pros and cons to choose the system that will best suit your business needs both now and in the future.

If you want to learn more about Yay.com’s business phone system and how we can help, or even if you are still unsure and would like to chat, please get in touch! We can help you make an informed decision and choose the right phone system plan for your business.