Out With The Old, In With The New: PSTN vs. VoIP
PSTN represents the old guard of business telephony, but it’s become a bit outdated. VoIP technology, on the other hand, has rung in an exciting new age of efficient, cost-effective communication. Explore how PSTN and VoIP compare, and discover which solution fits your needs best.
Main differences between
PSTN & VoIP
| Parameter | PSTN | VoIP |
|---|---|---|
| Connectivity | Hardware setup can be costly and hinder expansion. | No hardware needed, expansion made easy. |
| Affordability | Costly hardware setup. | Save on costs with easy setup. |
| Features | Legacy solutions offer comparatively few features. | VoIP is typically packaged as part of comprehensive call center software. |
| Reliability | Since PSTN operates on its own without the need for a stable internet connection, it is generally considered more reliable than VoIP. | Connection quality is dependent on internet provider. |
| Scalability | Difficult to expand since you need on-site hardware wherever calls are made. | VoIP is more scalable than PSTN on account of the fact it doesn’t require landlines or on-side infrastructure of any kind to operate. |
| Best fit | Ideal for businesses valuing traditional networks, PSTN ensures reliable communication without internet dependency. | Small businesses that want some snazzy features or make plenty of long distance calls and would like their phone system running through an internet connection. |
| Worst fit | Recommended for companies without reliable internet connections or those worried about frequent service interruptions. | Businesses that don’t have an internet connection or would be worried about it dropping. |
What is PSTN & How does it work?
PSTN, or Public Switched Telephone Network, operates by sending analog signals over traditional copper wires. When you make a call, a dedicated path is created for the conversation using circuit-switching technology.
This path is maintained through a network of exchanges, ensuring a reliable connection between you and the person you’re calling.
What is VoIP
& how does it work?
VoIP is an acronym for a Voice over Internet Protocol. It converts voice signals into digital data packets. Those are then transmitted over the internet, with no need for traditional phone lines. Once the data packets arrive at a recipient’s end, they transform back to voice signals.
VoIP software is cost-effective, scalable, and offers a wide range of features. If you are seeking an efficient and affordable communication solution, it’s a great choice.
PSTN vs. VoIP: Which is best for your business?
PSTN, with its reliance on traditional copper wires and circuit-switching technology, ensures a dedicated and reliable call connection. On the other hand, VoIP leverages the internet to transmit digital data packets, offering cost-effectiveness and a rich feature set, including can’t-miss features like Smart Analytics and Click-to-Call.
Choose PSTN for a reliable, established infrastructure or opt for VoIP for its cost efficiency and versatility in meeting modern communication needs.
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Pros and Cons of PSTN and VoIP
| Dependability Unmatched Enjoy a straightforward and reliable phone service unaffected by internet outages, ensuring consistent calling capabilities. | |
| Effortless Setup Easily set up your phone system with existing infrastructure, requiring only the purchase of phone sets and service provider assistance. | |
| Ready for Anything Be prepared for any situation with a system that works during power outages and internet interruptions, crucial for emergencies and security systems. | |
| Enjoy a Local Infrastructure Advantage Leverage pre-existing physical infrastructure in most locations, minimizing setup hassles and streamlining installation and maintenance processes. | |
| Costly Calls Face high charges for long-distance and international calls, with limited access to modern value-added services, impacting overall cost-effectiveness. | |
| Scalability Hurdles Encounter difficulties in scaling your system; expanding requires purchasing additional hardware and paying for extra lines, potentially hindering growth. | |
| Global Obsolescence Risk Acknowledge the urgent drawback that PSTN faces—declining usage in various places globally, posing a risk of becoming completely obsolete. |
| Save Money on International Calling Avoid expensive long-distance calling charges with features like International numbers and save both yours and customers’ money. | |
| Embrace Freedom With a Remote-friendly Solution Break down geographical barriers. VoIP lets you receive calls from anywhere with an internet connection. This possibility is invaluable for remote teams. | |
| Adjust Your Calling Software As You Grow VoIP adapts to your needs, no matter the size of your business. The highly scalable and adjustable software helps you grow seamlessly. | |
| Streamlined Growth and Savings Experience streamlined growth and financial savings with VoIP. The software adapts to your business size, providing a cost-effective and scalable solution. | |
| You Need a Reliable Internet Connection Just like cloud-based software, VoIP relies on a stable internet connection. You may experience delays, packet loss, and reduced call quality if your internet connection falters. | |
| Location tracking May Be Limited VoIP technology may fail to provide accurate location information to emergency services when a user dials 911. It can happen that VoIP doesn’t transmit accurate geographic data. | |
| You Can Face Security Threats Depending on a provider, VoIP can be vulnerable to security threats and cyberattacks like hacking, eavesdropping, and other malicious activities. |
Features
Discover 4 most popular
VoIP features
Call Flow Designer
Design your inbound calling journey to fit the unique needs of your business and customers’ expectations.
Read more
Analytics
Get a 360° view of everything happening within your team and unprecedented control over your performance.
Read more
Call Transcriptions
Transcribe calls instantly with an AI technology and save your team time, resources and administrative work.
Read more
International numbers
Expand your business to new markets and reach customers all around the world with over 160 international numbers.
Read moreWhat real users are saying
The inside scoop from actual CloudTalk customers.
From 20-Minute Waits to 3-Minute Service
“With CloudTalk, we dropped our missed calls from 80% to 16% and cut wait times by over 85%, while scaling from 2 to 20+ agents.”
Read case study
40% Lift in Call Connections
“With CloudTalk, our pre-sales team stopped wasting time on dropped calls and started having more of the right ones.”
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20% More Efficient Call Handling
“We replaced personal phones and manual processes with a scalable VoIP solution and saw a 20% jump in team productivity.”
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40% Fewer Missed Calls
“We replaced personal phones and manual processes with a scalable VoIP solution and saw a 20% jump in team productivity.”
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From 3 Phone Systems to One Source of Truth
“Before CloudTalk, our data was scattered. Now, everything lives in HubSpot — connected, visible, and fully unified.”
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66% More Capacity Without Hiring
“CloudTalk made it easy to scale support fast: we cut handle time by 33% and now handle 66% more calls per agent.”
Read case studyCloudTalk is a data-driven solution for exceptional customer experience and intelligence is a key part of it.
Schedule a demo today and find out for yourself.
Frequently asked questions
PSTN (Public Switched Telephone Network) and VoIP (Voice over Internet Protocol) represent two distinct methods of voice communication. PSTN relies on traditional telephone lines, while VoIP operates over the internet, offering cost-efficiency, flexibility, and enhanced features.
No, PSTN and VoIP are different technologies. PSTN is the traditional analog phone system, whereas VoIP utilizes internet connections to transmit voice data. They differ fundamentally in infrastructure and functionality.
VoIP offers numerous advantages over PSTN, including cost-effectiveness, scalability, advanced features like call analytics and automation, and seamless integration with business applications. VoIP enhances productivity and customer experience, making it a preferred choice for modern businesses.
While PSTN is still in use, its limitations are prompting a shift towards advanced communication technologies like VoIP. The evolving business landscape demands flexibility and efficiency, qualities where PSTN often falls short.
VoIP offers a secure means of communication with clients and customers, thanks to continuous network protection and monitoring. Cloudtalk stands out as a prominent VoIP provider, guaranteeing robust security measures at budget-friendly rates.
VoIP users have the choice to use or not use a phone headset; there are alternative methods available. Calls can be made through specific mobile apps or on a desktop using a microphone/speaker setup or a connected headset.
The Common Channel Signaling System 7 (SS7) oversees signaling in the PSTN, managing call setup, operation, and termination. These standards support various global versions used universally.
Integrating a VoIP call with a PSTN line follows the same process as making a regular VoIP call. Analog voice is transformed into digital data packets, which are transmitted over the internet to reach your VoIP provider and their carriers.
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