TDM (time division multiplexing) is a traditional form of call communication, a network that operates by transmitting analogue signals over a physical network of phone lines. With time, many such solutions have been replaced by more advanced communication networks, for example, VoIP. Voice over Internet Protocol (VoIP) is a unified communication network that works by using IP technology. With VoIP, your business can make and receive internet calls, media, voice messages, texts, and files.
When we discuss TDM and VoIP side by side, it gets easier to decide on which of the two options could prove to be better for your business. That’s exactly what we will be doing today, to understand the differences between TDM and VoIP.
What is VoIP?
Let’s circle back to the concept of VoIP technology and what exactly it is. VoIP allows you to use your daily internet connection for exchanging voice calls, but not limited to it. You can also make international calls, video calls, video conferencing, text messaging, call queuing, file sharing, and more.
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How does VoIP technology work?
VoIP uses the infrastructure capacity of an IP network to access communication over large distances. This means that there is no need to set up a physical connection via wires, which would be traditionally done to achieve a connection from one point to another.
To set up a basic VoIP system, you only need a few components. One of them is the internet, as the connection quality entirely depends on it. Other than that, you need a subscription to a VoIP service and a device to operate it on. VoIP can work on any device, whether that be a smartphone, laptop, tablet, or a traditional landline phone with an attached VoIP adapter.
The transmission of VoIP data can be explained to take place in three simple steps:
- For the first step, a call is initiated at one end of the connection. Any type of audio consists of analogue signals, which are converted into digital ones.
- These digital signals are sent to the network of your VoIP service provider. Here, they are converted into IP packets. Using compression and decompression algorithms, huge data take the form of packets, which use less internet bandwidth to travel.
- For the last step, these digital packets reach the other end of the connection and are converted back into audio signals. A clear sound is then heard via the speaker of the device being used.
What is TDM?
Time division multiplexing is a service used to make traditional phone calls over an analogue system. That means that a physical connection of copper wires is established between two points of connection. These copper wires are the same ones used in landline telephony.
Understanding the working of TDM
TDM transmits voice signals over dedicated time slots. This means that TDM only works with the exchange of voice data. Unlike VoIP, where video calls and file sharing are possible too, the same is not the case with TDM.
In Time Division Multiplexing, each call is given a fixed time slot. These time slots repeat continuously, making it seem like there are no breaks in the conversation. So even if no one is talking during their slot, the time is still taken up. This makes TDM more costly and less efficient for businesses with lower call requirements.
VoIP vs TDM: A Summary
| Aspect | TDM | VoIP |
|---|---|---|
|
Technology |
Uses analogue signals over copper wires. |
Uses IP technology over the Internet. |
|
Communication Type |
Only supports voice calls. |
Supports voice, video, text, and file sharing. |
|
Transmission Method |
Fixed time slots, even if unused. |
Sends data only when speaking. |
|
Hardware Requirements |
Requires specific PSTN hardware. |
Compatible with various internet-based devices. |
|
Integration |
No integration with other systems. |
Integrates with business apps and processes. |
|
Management |
On-site actions by professionals. |
Remote management via cloud-based tools. |
|
Scalability |
Lines bought in fixed sets (e.g., 23, 46) |
Add or remove users easily. |
|
Flexibility |
Location-bound due to physical wires. |
Accessible anywhere with internet.
|
|
Efficiency |
Time slots can go unused. |
Sends compressed data as needed. |
5 Key Differences between TDM and VoIP explained
Hardware requirements
- VoIP requires hardware that is easy to integrate and use with each other. You could get an internet connection from one service provider, your VoIP subscription from another, and easily use them with each other.
- On the other hand, TDM service providers provide you with a PSTN network along with all the required devices and technical support. You cannot mix and match different hardware because the integration capacity is minimal in this case.
Management and updates
- VoIP is a cloud-based software, and so the management actions (adding or removing users, overseeing operations, reporting problems, updating software, or integration) can be managed remotely.
- In case of TDM, all the administrative actions need to be done on-site. Plus, they require professionals, either the IT team of the business or the service provider. Ultimately, in this case, a maintenance charge would occur, too.
Scalability
- TDM is a traditional telephony method that does not have room for growth with business requirements. You can only purchase TDM lines in a set of 23. If your call capacity is less than that, the unused capacity will go to waste. Similarly, if you want to purchase more than 23 lines, the next possible amount is 46. Also, these lines are installed per user by the professional staff of your provider. There are a lot of technical steps involved, which incur an installation cost in a lot of cases.
- As opposed to TDM, adding and removing users from the system becomes easier with VoIP. Since there are no installation costs involved, the overall expense of using VoIP is lower than TDM, too.
Integration with business operations
- VoIP can integrate with existing business processes and applications, like sales and customer departments. This integration allows you to make direct calls within the software and generate call analytics reports.
- TDM doesn’t have any capacity to integrate with business applications. This is one of the main reasons why businesses prefer VoIP over TDM. It is because TDM cannot be implemented over IP technology, and there are already better alternatives available for the service.
Flexibility for remote teams
- VoIP supports remote teams to work flexibly. As long as an internet connection is available, VoIP calls can be made and received via software-based IP phones. So there is no need to carry heavy hardware around.
- In case of TDM, users are restricted to a specific location to make and receive calls. This is because the devices are connected to the system via physical wires that can not be extended or moved around.
How to upgrade from TDM to VoIP?
Upgrading from a traditional TDM system to VoIP starts with choosing the right provider that fits your business needs. At ComparedBusiness UK, we make this easier by connecting you with reliable VoIP service providers across the UK. Just submit your business details in under 2 minutes, and we’ll get back to you with a list of reliable VoIP service providers in the UK.
