What is VoIP? Benefits of switching from the PSTN

Ahead of the Public Switched Telephone Network (PSTN) switch off in January 2027, businesses are urged to upgrade to digital phone lines.

You’ll have likely heard suggestions that you need to switch to a PSTN alternative such as Voice over Internet Protocol (VoIP). But, if you’re finding yourself asking what VoIP is and how it works, don’t worry. We’ll explain all on this page.

The good news is your business has a lot to gain from switching. And as a VoIP provider, we can help you to switch phone lines with ease.

What is a VoIP phone system?

VoIP technology lets you make phone calls over the internet, removing the need for the PSTN.

BT Openreach has already stopped selling PSTN-based services and in January 2027, analogue phone lines relying on copper wires will no longer work. This means business phones using a PSTN line need to switch to VoIP as soon as possible.

When introducing digital phone lines to an office, it’s possible to do so with a single office phone, or with a hosted VoIP system that works across multiple phones.

If you’re interested in hosted VoIP solutions, chat to us about our unified communications solutions.

Keen to find out more about the benefits of switching phone lines? We’ll go through the top ones below.

Best VoIP advantages

Here are the top benefits of digital phone lines:

1) Reduced costs

VoIP systems can run on any internet-enabled device, meaning you don’t necessarily need to buy new equipment to use them. This is much more cost-effective than PSTN phone lines, which require equipment such as telephone adapters and phone kits.

Alongside this, VoIP calls can be made via data packets, without the need for phone lines to be installed and maintained. All your employees would need to do is install VoIP apps on their devices and they will be connected.

Digital phone lines also offer much lower prices for international calls over a long distance, ideal for businesses that operate internationally.

2) Future proofed

Switching to VoIP sooner rather than later also avoids a last-minute rush in choosing a provider that works for your business before the PSTN switch-off date.

While the switch off is officially scheduled for 31 January 2027, BT Openreach is urging businesses to switch by the end of December 2025 to avoid service issues. Now is the time to be researching your options and future proofing your phone systems.

By preparing well ahead of the digital switchover in 2027, you’ll have more time to research options such as unified communications (UC), which integrates video, voice and messaging into one platform.

3) Improved call quality

When the PSTN was introduced in 1875, the infrastructure allowed for ‘good enough’ voice quality. However, compared to newer mobile technologies, the audio quality from analogue landline phones is poor.

Switching to VoIP allows for clearer communication. In the age of remote and hybrid working, this can help your business:

• Communicate internally
• Deal with suppliers
• Win and retain new business

Some routers also let you prioritise video and voice calls over other activities. This goes a long way in ensuring high-quality sound.

4) Greater reliability

As traditional phone lines rely solely on the PSTN’s copper wires, anytime the lines go down, your phone systems will stop working until they are fixed.

With digital alternatives such as a VoIP system, you should be able to make calls as long as your business phones have a stable internet connection.

The availability of 5G routers means that if your Wi-Fi connection falters, you can use 5G as a backup, minimising the risk of a total phone outage.

As a result, switching to a digital system helps to make your business more resilient.

5) Increased flexibility and scalability

Switching from the PSTN to a digital phone line increases the flexibility and scalability of your phone system, making it easy to connect new devices to the system.

To expand an analogue phone system, you would need to add a new phone line every time your business hires new employees.

VoIP, on the other hand, can function on any internet-enabled device.

What’s more, it is fast and simple to forward incoming calls to any telephone number or device with a VoIP system. Home working won’t get in the way of contacting clients and suppliers.

6) Faster internet speeds

As well as traditional phone systems, some types of business broadband will also be impacted by the PSTN switch off.

Both Asymmetrical Digital Subscriber Lines (ADSL) and Fibre to the Cabinet (FTTC) broadband services rely on the PSTN’s copper wires.

Although these services won’t be retired until full fibre broadband is available across the UK, it is worth considering digital alternatives now.

Full fibre broadband means your business can benefit from faster speeds, helping you to boost productivity and future proof your connectivity.

Having the extra bandwidth allows room for business growth, while integrating future digital technology.