How do we make calls across the world? These days, there are tons of ways to connect. Calls, texts, video chats you name it. But when it comes to actual phone calls, it is not as simple as picking up and dialing. Behind the scenes, there is some serious tech making it all happen.
Two big players run the show: PSTN and VoIP. Both have their pros and cons, and if you are running a business, picking the right one matters.
Let’s break it down in plain English and figure out what works best for you.
What Is PSTN?
PSTN stands for Public Switched Telephone Network. It also goes by “Plain Old Telephone Service” (yep, POTS). It is the old-school landline system that’s been around since the late 1800s.
Back in the day, operators had to manually plug in wires to connect your call. Wild, right? Now, it is all automatic. The system still uses cables, but many of them are fiber optics instead of copper.
PSTN uses something called circuit switching. That just means when you make a call, it builds a direct path between your phone and the other one, like a straight road just for your conversation.
How Does PSTN Work?
A PSTN network is a worldwide network that includes fiber optic cables, cellular networks, cable systems, switching centers, and satellites. All these systems let telephones connect.
When you dial a number on your phone, your call travels through the network to reach its destination and connect two devices.
Here are some steps that can help you understand in a better way what happens when you dial a number:
- When you place a call, your phone’s receiver converts sound waves into electric signals and sends them to the terminal through a cable.
- The terminal collects and transmits all the electric signals to the central office or a local exchange.
- The central office uses fiber optic cables to transmit electrical signals. These cables transport these signals through light pulses to their destination.
- Your call is then sent to a tandem or central office for regional calls.
- Once your call reaches the central office, it is again converted to electrical signals and sent to a terminal.
- This terminal routes the call to the correct phone number. When the call is received, the telephone converts these signals into sound vibrations.
Although it looks confusing and complex, reaching its destination takes only a few seconds. Fiber optic cables and a global network of switching aids this process.
What Is VoIP?
VoIP (Voice over Internet Protocol) lets you make calls through the internet instead of phone lines. It doesn’t need copper wires or phone jacks. Just a good internet connection.
VoIP works using packet switching. That is a fancy way of saying it breaks your voice into small bits (called packets), sends them through the internet, and puts them back together on the other end.
You can use VoIP with all kinds of stuff—VoIP phones, apps on your computer, office desk phones, or even your cell phone. As long as it’s online, you’re good to go.
The call between different participants is set by the VoIP service provider. This digital information is decomposed at the receiving end into the sound you hear through your speakerphone or smartphone.
How Do VoIP Calls Work?
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How VoIP Works (And What You’ll Need)
VoIP is a smarter way to make calls; it uses the internet instead of old-school phone lines or cell towers.
Here is the deal: when you talk, VoIP turns your voice into digital data. Then it sends that data over your internet connection. A VoIP server helps connect your call to the right person, whether they are using a phone, computer, or app.
Setting it up is not too hard. You will need:
- A solid, high-speed internet connection
- A modem and router
- A VoIP phone or app
- A SIP server (that’s the brain of the setup)
Even a simple VoIP setup, like a desk phone linked to a SIP server, can do way more than a regular landline. You get clearer calls, extra features, and more freedom.
Furthermore, no tangled wires or clunky hardware. Just smart calling with better options.
How Can VoIP Help Your Business?
Most businesses are shifting to VoiP or other cloud-based communication applications to make their employees more adaptable. Other than flexibility, VoIP providers offer numerous advantages that help businesses improve customer experience and promote growth. Due to these immense benefits, the size of the VoIP market has crossed $43.92B in 2023 and is expected to grow at a CAGR of 9.8% from 2023 to 2033.
Let’s find out how VoIP can be helpful for your business:
1. Reduced Calling Costs
Since VoIP sends calls over the internet, not phone lines, it can cut your costs big time.
Most businesses that switch to VoIP see their phone bills drop fast. You are not paying for separate phone lines, and you don’t need to buy a bunch of new gear either.
There is no extra network to manage, no pricey hardware to install, and way less upkeep. Everything runs over your existing internet setup. Less stuff to worry about. More money saved. Simple as that.
You can also save expensive landline setup charges as you do not need to pay for PBX (Private Branch Exchange) systems, switches, hubs, telephone adapters, or other gears.
VoIP phone systems also help you save costs on local and international calls, as you will get a virtual number and do not need to use one linked to a physical landline.
2. Advanced Features
One significant advantage of VoIP for businesses is its feature-rich functionality. VoIP and other internet-based phone systems have gotten super popular lately and for good reason. There are tons of providers out there, so you can shop around and pick one with the features your business needs.
Some common VoIP features include:
- Call recording
- Call forwarding
- Auto attendant
- IVR (that’s the menu that says “Press 1 for sales…”)
- Call queuing
These tools are not just bells and whistles. They help you give faster, smoother service. Plus, you get data and call insights that show how your team is doing and where you can improve.
On the other hand, with landline systems for business, you need to purchase a costly PBX system and pay for additional functionality.
3. Better Security
With VoIP, you can get advanced features and include essential security measures. Landlines or internet-based calls may have security threats, but setting up your VoIP phone system correctly helps you develop a secure calling system.
You can also use the following VoIP tools to improve the security of your business calls:
- End-to-end encryption
- Endpoint protection
- Call Blocking
- Two-factor authentication
Furthermore, choose a hosted phone system provider that follows the highly high data center, network, and product protection requirements to ensure security.
4. Work Flexibility
VoIP makes it way easier to work from anywhere. When your phone system runs through the internet, your team is not tied to a desk. They can jump on calls from home, a café, or even while traveling. This means you can offer remote or hybrid setups without skipping a beat.
Once everything is hosted in the cloud, staying connected becomes easier. Your team can meet with clients or join meetings, no matter where they are.
5. Improved Call Quality
Great calls start with a solid internet connection. If your Wi-Fi is strong and fast, VoIP delivers sharp and clear sound.
You are not stuck with whatever comes out of your phone as a speaker either. You can fine-tune settings, use headsets, and get rid of annoying background noise.
Without that reliable connection, though? Things can get messy. Calls might drop. Voices might echo and background noise sneaks in.
Ever been on a call where one person’s using speakerphone in a noisy room? Yea it is not ideal. VoIP helps fix that.
It uses tech like noise-canceling mics and smart audio tools to cut distractions. So everyone can focus on the actual conversation.
PSTN VS VoIP
Let’s break it down. PSTN, the old-school phone system, does not need the internet. That is a plus if your connection ever drops.
But VoIP has come a long way. Those choppy calls and dropped signals? Mostly a thing of the past. One heads-up, though: emergency services can be a bit tricky with VoIP.
It is not always easy to trace your location through an internet call. Still, VoIP has a lot going for it:
It costs less to run. It is super flexible. You can scale it up or down, add cool features, and integrate it with apps you already use.
Here’s a quick comparison:
| Aspect | PSTN | VoIP |
| Infrastructure | It relies on analog copper wires and traditional infrastructure | It uses the internet and digital data transmission. |
| Set Up | Requires physical installation and maintenance of landlines and equipment. | Relatively easy to set up with minimal physical equipment and is mostly software-based. |
| Reliability | It is highly reliable and often remains operational during power outages | VoIP reliability can vary depending on internet connectivity and service provider. It may be less reliable during power outages. |
| Cost | Typically involves per-minute charges and is potentially expensive for long-distance or international calls. | Often more cost-effective, with flat-rate calling plans and reduced long-distance or international call costs. |
| Call Quality | Consistent call quality with minimal latency, jitter, or packet loss. | Call quality can be affected by internet connection quality, but technological advances have improved this aspect. |
| Features | PSTN gives you the basics—like caller ID and call waiting.
It works, but that’s about it. |
VoIP, on the other hand, comes packed with extras.
Think video calls, voicemail-to-email, call forwarding, and more. It also plays nice with other business tools, so everything runs together. |
| Portability | Location-bound which means phones are tied to specific physical lines. | Enables users to make and receive calls from anywhere with an internet connection, promoting remote work. |
| Scalability | Can be less scalable, requiring physical infrastructure changes to add or remove lines. |
Highly scalable, allowing easy addition or removal of phone lines whenever you need. |
| Flexibility | Limited flexibility to adapt to changing business needs. | Offers greater flexibility and adaptability for evolving business requirements. |
| Emergency Services | Typically provides accurate location information for emergency services. | May face challenges in providing accurate location information for emergency services, though significant improvements have been made. |
Features Comparison Of PSTN And VoIP
Here are the features of PSTN & VoIP :
1. Which Is More Reliable: PSTN or VoIP?
Let’s keep it real. If you want a phone system that just works—no fuss, no fails—go with PSTN. That’s the old-school landline. It’s been around forever, and for good reason. Even during a blackout, it usually still works. And call quality? Steady as ever.
Now, VoIP (Voice over Internet Protocol) runs through your internet. So if your Wi-Fi cuts out or slows down, your calls might get glitchy. VoIP can feel a little moody if your connection isn’t solid.
So don’t overthink it. Look at your setup and pick what fits best.
2. Cost Comparison Of PSTN And VoIP
$99 to $400 per line. Then you’re looking at $20 to $30 a month for service, updates, and support. Not bad.
PSTN costs more.
Installing and keeping landlines running is pricey. You also miss out on some neat features—voicemail-to-email, call recording, video calls… yeah, VoIP wins that round
3. How To Choose Between PSTN And VoIP
Here’s where you think about what actually matters to you.
Pick PSTN if:
- You need a rock-solid line.
- Power cuts or internet dropouts are common.
- You’re handling life-or-death calls (think hospitals, emergency lines).
Pick VoIP if:
- You want to spend less.
- You need to scale fast.
- You want to work from anywhere.
VoIP’s packed with features. Auto-attendants, call forwarding, even video meetings. Super handy for remote teams or growing businesses.
Can’t decide?
You don’t have to. Lots of folks use both. Keep PSTN for your most critical lines, and switch everything else to VoIP. Best of both worlds.
Conclusion – PSTN vs. VoIP
PSTN and VoIP are like snapshots of two different tech eras. PSTN had its moment. It was reliable, strong, and helped build the way we talk today.
But things have changed. Now, VoIP is leading the way giving businesses more tools, lower costs, and the freedom to work from anywhere.
If you’re looking to keep up with how people connect today, moving to VoIP just makes sense. It’s not just about calls anymore. VoIP gives you features like auto-attendants, call forwarding, video meetings, and even call center insights all in one place.
FAQs – PSTN vs. VoIP
i. What makes up a PSTN system?
Three parts:
- Access: Your phone and how it connects
- Switching: Routing your call
- Transport: Moving the call from A to B
ii. Which one’s more reliable?
PSTN. It keeps going even in a blackout. VoIP needs the internet to work.
iii. Is VoIP cheaper?
Yep. VoIP cuts out a lot of the costs, especially for long-distance or international calls.
iv. Can I keep my number if I switch to VoIP?
Most of the time, yes. It’s called “number porting.”
v. Can I use VoIP for international calls?
Absolutely. And it’s usually way cheaper than landline rates.
vi. Is the call quality the same?
PSTN is super steady. VoIP depends on your internet. But with a good connection, it’s often just as clear.
Read More: Are VoIP Calls Free? Exploring the True Cost of VoIP Calls
