VoIP uses modern, flexible internet protocols instead of traditional physical circuits to implement its communication pathways. There is a fundamental difference in how both technologies work, which sets them apart from each other. As a result, businesses need to choose between these two communication solutions: VoIP vs PSTN. In this blog, we explore the advantages of VoIP over PSTN to help you decide which option is better for your business.
1. Technology
VoIP is essentially a more advanced technology than PSTN because it is digital and packet-switched. It converts voice into hundreds of data packets, which then travel over an IP network. These packets follow the same internet infrastructure as other data, such as email and general web traffic. The VoIP system routes them through the available internet bandwidth using codecs (to compress and decompress data). This way, information is transmitted at high speeds, with minimal data loss and maximum accuracy.
However, PSTN is an analogue phone system based on a circuit-switched network. Such a system requires a copper wire infrastructure, along with physical connections and switches. To place a call from one connection to another, there must be an end-to-end connection throughout.
Compare VoIP Phone System Quotes Today
2. Features
VoIP provides a wide range of features integrated into its software as part of the basic package. This means businesses can utilise advanced features like call routing, video conferencing, voicemail-to-email transcription, and instant messaging, often at no additional cost from the provider.
However, PSTN was designed for the single purpose of voice calling. Additional features like caller ID or call forwarding would be expensive to install and maintain on this system.
3. Cost
VoIP calls cost significantly less for businesses, especially for long-distance and international communication. Calls travel over the internet, avoiding the cost of passing through multiple PSTN carriers along a fixed circuit. Businesses typically pay a monthly fee per user, while all the installation and hardware charges are usually one-time costs. This results in a predictable expense outcome that depends on usage.
On the other hand, PSTN calls involved distance-based charges, per-minute expenses, and a monthly rental fee. International calls, in this case, also tend to cost more than an average VoIP call.
4. Integration with business tools
VoIP can easily integrate with any existing business tools or software. It connects with customer relationship management (CRM) platforms, productivity applications and any other technical fronts. This helps businesses blend their VoIP system with existing infrastructure and benefit from its integrated functionalities.
PSTN is a completely isolated system that relies on its own physical infrastructure. Integrations are complex and often impractical due to their analogue nature in an analogue system.
5. Flexibility for users
VoIP is highly flexible for users in terms of connections, devices and management. They are not tied to a physical desk phone, unlike PSTN here. They can access their business number through a VoIP phone on their laptop, smartphone, or tablet from any location. As long as there is a stable internet connection, any VoIP setup can instantly turn into remote working mode. Adding or removing new connections is only a matter of simple software configuration.
PSTN is the opposite of all the above factors. It requires users to be physically available at their desk phones. Remote work is impossible, and each user needs a separate connection with dedicated hardware. If the number of people in a team changes, it would require a technician to rewire and install new lines.
6. Scalability
VoIP is highly scalable due to its digital nature. There is no need for additional physical hardware or wiring at the office. Scaling up is typically managed through a software-based administrative portal, where new users can be added by simply registering and configuring an endpoint.
PSTN scaling, however, can be lengthy and time-consuming. Adding more users means ordering more physical copper lines from the provider, waiting for installation, and buying new hardware.
7. Security
The security of VoIP and PSTN is completely different. PSTN security is physical, which means tapping a copper line would require access to the infrastructure. However, it lacks modern digital security measures.
VoIP operates via the internet, making it vulnerable to digital cyber threats. At the same time, these threats can be countered using security tools, like encrypted calls, secure signalling protocols, network firewalls, virtual private networks, and strong authentication methods.
8. Maintenance
Between PSTN and VoIP systems, maintaining the latter generally requires fewer protocols for businesses. That is because VoIP systems are cloud-based, so the maintenance is the responsibility of the provider. They handle all the software updates, security and backups. Businesses do not need a specialised IT team because operating VoIP software is intuitive, much like any other application.
However, PSTN requires telecom engineers for hardware repairs, software upgrades and technicians for moves, additions and changes. This contributes to higher maintenance expenses and also requires a specialised, in-house IT team.
Disadvantages of VoIP
VoIP is dependent on a stable internet connection and local power, which creates a disadvantage for business communication. A power outage or unstable internet could immediately disable the system, as most of the VoIP hardware relies on electricity to operate and uses the internet to transmit data. This is different from PSTN, which powers itself directly from the central exchange. This allows a traditional PSTN system to continue working during a power outage.
However, businesses can easily implement solutions to effectively counter this disadvantage. They can deploy solutions that reroute calls to mobile devices or a secondary internet connection. Cloud-based VoIP providers offer extensive infrastructure, which is far more resilient than any single on-premise PBX or landline system.
Therefore, VoIP has become the reliable choice for businesses with fast-paced communication needs. With its cost savings, modern features, scalability, flexibility and many more VoIP advantages, it provides a comprehensive package for all. Its only disadvantage of internet dependence is manageable with an advanced cloud-based VoIP system and implementing alternative solutions.
Avail yourself of all the advantages of a VoIP system with ComparedBusiness UK
A secure VoIP system should be encrypted, updated and monitored regularly. With VoIP, businesses can enjoy endless benefits across both financial and operational areas. At ComparedBusiness UK, we streamline the process of connecting businesses like yours with VoIP service providers to ensure the setup of such a system. Simply provide your business details in under 2 minutes, and we’ll promptly supply you with quotes from reputable VoIP providers across the UK.
