PSTN vs VoIP: Which One’s Best For You?

Introduction

In today’s fast-paced digital world, communication systems have a great influence that leads to a business being successful. Whether it is getting the team together or creating wonderful customer experiences, it becomes more important than ever to have the right kind of telecommunication technology. Newer technology such as Voice over Internet Protocol, on the other hand, is quickly transforming businesses’ connections and operations. However, earlier methods of communication like traditional telephone systems (PSTN – Public Switched Telephone Network) have been the backbone of voice communication for decades, and are still relevant.

But how do these systems differ, and which one is better suited for your business? PSTN is solid enough, and it connects all the world; whereas, VoIP technology is cost-effective, scalable, and with added features specially designed for the modern era.

In this blog, we will cover the differences between PSTN and VoIP, elaborate on their unique advantages and disadvantages, and find out why companies tend to turn to online-based VoIP systems such as Emitrr more frequently. Whether you intend to upgrade your communication infrastructure or want to raise your awareness of your options, this guide will assist you in the decision-making process.

Let’s delve into the world of PSTN vs VoIP to find the right match for your business!

What is PSTN?

For decades, the Public Switched Telephone Network (PSTN) has been the bedrock of voice communication around the world, linking people across towns, cities, and countries. But what is PSTN phone line exactly? As an old analog telephone network, PSTN relies on an extensive and complex infrastructure of copper wires, fiber optic cables, and thousands of switching centers. These work together to process, route, and maintain voice calls, providing uninterrupted communication, no matter how far apart people are or where they are.

The strength of PSTN is in its universality and reliability. From cities to villages, PSTN has provided a consistent and dependable means of communication, allowing global connections to be made, and it forms the backbone of telephony for businesses and individuals alike. The ability to connect millions of users in real-time has been crucial in shaping how people communicate, conduct business, and stay in touch with loved ones worldwide.

However, with the rising demands for high-end features and integration with the modern digital system, the inadequacies of PSTN are coming to the fore. Even though it has served as a foundational backbone, newer technologies such as Voice over Internet Protocol (VoIP) are revolutionizing the communication world at a breakneck pace.

How Does PSTN Work?

PSTN’s design follows an analog method of signal transmission. We shall see, step by step, how PSTN works to connect and maintain voice communication. 

Call Initiation

When a call is made, the source device emits a signal to the nearest local exchange. This signal contains the respective phone number which is the only key for the machine to recognize the user.

Routing the Call

A local exchange deal with the phone number and then chooses the correct way to the called party. Some calls will be passed over a series of exchanges, part regional, national, or international carriers depending on the distance.

Connection Establishment

Once the system is sure of the path, it sets up a special line between the person who calls and the one who is called. This line is always on when the talking duration is, thus providing a steady unbroken link between the parties.

Signal Transmission

Voice signals are transferred through copper wires or fiber optic cables; if the network is built using this technology, otherwise, some other scientific advancements will possibly be made. PSTN is left with the analog nature which assures a clear sound with only a small amount of distortion or noise.

Call Termination

In the end, the call is disconnected, releasing the line for the next user to make a call. The efficient operation of switching centers ensures a high-quality product. Though being an older system based on analog technology PSTN’s main advantage is the quality of voice produced and constancy of connection. On the other hand, modes like video conferencing, information integration, or cloud-based functions are not supported by PSTN which is more important for businesses.

Features of PSTN

Let’s delve into key features of PSTN:

Reliability

PSTN is known for its reliability. The system provides a reliable voice communication system, especially in remote locations, due to its strong infrastructure of copper wires and switching centers. PSTN networks often have built-in redundancy, such as alternate routing paths, to minimize the impact of network failures.

Security

PSTN systems are inherently secure since it is a closed-loop system. While internet-based systems are exposed to cyber-attacks, PSTN employs dedicated physical lines, thereby not easily penetrated or hacked by anyone.

Extensive coverage

PSTN is universally accessible within urban, rural, and remote areas. The infrastructure spans across the world to ensure connectivity where internet-based communication systems are unavailable or not reliable.

Audio Conferencing

PSTN supports basic audio conferencing capabilities, allowing multiple users to connect on a single call. Although not as advanced as modern conferencing tools, this feature is a valuable addition for businesses requiring simple group communication.

Advantages of PSTN

Proven Reliability

With decades of consistent performance, PSTN is one of the most reliable communication systems. It can provide uninterrupted voice communication even with adverse situations such as natural disasters or power outages, which makes it a dependable choice in critical communications.

Universal Connectivity

Through PSTN’s global network, seamless voice communication across borders can be provided. Compatibility with virtually all standard telephones and devices ensures that any user can connect anywhere irrespective of the technology or carrier in use.

Ease of Use

PSTN is easy to install and use, and it does not require any special knowledge or sophisticated equipment. A person can start making and receiving calls right away after connecting a phone to the network. Therefore, it is available to anyone, regardless of technical background.

Disadvantages of PSTN

High Operational Costs

The maintenance of PSTN’s large physical infrastructure, which includes copper wires and switching centers, is expensive. The operational costs for business organizations, like line rentals and call charges, are also more than those of internet-based communication systems.

Limited Scalability

Adding new lines and physical infrastructure to a PSTN system is time-consuming and expensive. It is not ideal for fast-growing businesses or organizations whose communication needs vary constantly.

Outdated Technology

PSTN does not have the advanced features of modern digital communication systems, such as data integration, cloud-based functions, and call analytics. Its analog nature makes it incompatible with many contemporary business tools, limiting its functionality in a digitally-driven environment.

Use Cases Of PTSN

Emergency Communication

PSTN is highly reliable during emergencies due to its ability to function even when internet services or power supplies are disrupted.

Remote Areas

PSTN is the only communication system that is available in rural or underdeveloped areas without internet connectivity.

Backup Communication System

PSTN is a backup system used by most organizations to ensure there is continuous communication in case their primary VoIP or internet-based systems fail.

Critical Services

PSTN is preferred for critical services like hospitals, government offices, and financial institutions, which require highly reliable communication channels.

What is VoIP?

VoIP is a new generation of communication technology that provides voice and multimedia communications over the Internet instead of traditional telephone lines. It transmits analog voice signals as digital data packets to ensure smooth transfer over IP networks. This negates the use of physical phone lines, hence saving money and being flexible and scalable. Users can dial and receive calls from different gadgets, such as smartphones, computers, and IP phones, taking advantage of added features like call forwarding, voicemail-to-email, and video conferencing. The affordability, mobility, and functionality of VoIP makes it ideal for businesses and individuals alike.

How Does VoIP Work?

VoIP relies on digital technology to convert, transmit, and reassemble voice signals, enabling seamless communication across various devices. Here’s a closer look at the key processes that make VoIP work efficiently.

Signal Conversion

VoIP transforms analog voice signals into digital data packets by utilizing codecs. These packets are compressed and transmitted over IP networks, hence conserving bandwidth.

Transmission

The data packets travel over the internet to the recipient’s device, where they are reassembled into audible sound.

Call Setup and Management

VoIP systems use SIP or other protocols to initiate and manage calls. These protocols ensure that the call routing, signaling, and disconnection are carried out efficiently.

Device Compatibility

VoIP can be used with different devices such as IP phones, computers, and mobile devices, which provide flexibility and convenience.

Features Of VoIP

Advantages of VoIP

Lower costs

VoIP significantly reduces communication costs, especially for long-distance and international calls, compared to traditional PSTN systems.

Increased accessibility

 Accessible from anywhere with an internet connection, VoIP ensures you’re always connected, even while traveling.

Complete portability

VoIP numbers aren’t location bound so you could utilize your business number on whatever device, all around the globe.

Higher scalability

VoIP systems easily scale up and down with the changing needs of expanding businesses without changes to the overall infrastructure.

Advanced features for teams

With the use of features such as IVR, analytics of call and video conferencing, teams become more agile to interact with each other.

Clearer voice quality

With high-speed internet, VoIP provides better voice quality than analog systems.

Supports multitasking

Make calls while sharing files, screen-sharing, or collaborating on documents in real-time.

More flexibility with softphones

Softphones enable users to make calls directly from computers or mobile devices without the need for physical hardware.

Disadvantages of VoIP

Occasional Call Disruptions

Poor internet connectivity or network congestion can cause dropped calls or reduced voice quality.

Bandwidth Considerations

High-quality VoIP calls require bandwidth, which might be a challenge for users who have limited internet speeds.

Emergency Tracking Restriction

Unlike traditional systems, VoIP might not have accurate location tracking for emergency calls, which is a potential risk.

Service Compatibility

Compatibility issues might arise when VoIP is integrated with older equipment or systems that rely on analog signals.

Use Cases Of VoIP

Remote Work

VoIP enables remote teams to stay connected through video conferencing, instant messaging, and call forwarding.

Customer Support Centers

Customer service operations make use of VoIP because of the call routing, queuing, and analytics functionality.

Global Businesses

VoIP reduces international communication costs, so it is suited for companies operating globally.

Small and Medium Enterprises (SMEs)

Advanced features and scalability are enjoyed by SMEs in VoIP, without the steep costs of traditional systems.

Educational Institutions

VoIP offers online classes, virtual meetings and communication among the students, the teachers, and the administrative staff.

Key Differences Between PSTN Vs VoIP

Feature	PSTN	VoIP
Technology	Analog Transmission: PSTN relies on traditional analog signals transmitted through copper wires. This system has been the foundation of communication for decades, known for its simplicity and proven reliability.	Internet-Based Communication: VoIP works solely on the internet to carry voice data in digital form. It is a modern, scalable solution, suited for businesses operating in tech-intensive environments.
Cost	High Operational Costs: Maintaining PSTN’s extensive physical infrastructure is costly. Additionally, long-distance calls incur per-minute charges, adding to overall expenses.	Cost-Effective Solution: VoIP offers affordable communication with minimal hardware requirements and cost-efficient plans that often include unlimited calling and advanced features, making it a smart long-term choice.
Scalability	Limited Scalability: Expanding PSTN network requires significant investment, such as installing additional lines or equipment, making it less flexible for growing businesses.	Cost-Effective Solution: VoIP offers affordable communication with minimal hardware requirements and cost-efficient plans that often include unlimited calling and advanced features, making it a smart long-term choice.
Reliability	High Reliability: PSTN phone lines are highly reliable. They continue to function in case of a power failure or even in underdeveloped areas, thus becoming ideal for all critical communications.	Internet Quality Dependent: The reliability of VoIP gets entirely dependent on the internet connection’s quality. Poor connectivity can degrade performance and therefore easily prove to be challenging in unstable networks.
Security	Secure but Old Technology: Since a PSTN line is analog, it offers some level of inherent security, but its older technology is more and more susceptible to new forms of eavesdropping.	Secure with Appropriate Measures: VoIP has advanced security measures such as encryption and VPN to protect data. Still, constant security management is the key to ensure protection against cyber attacks.
Integration	Low Integration: A PSTN service cannot be integrated with most modern business applications such as CRM, analytics, or unified communication applications, which significantly limits its integration in the digital world.	Excellent Integration: VoIP integrates superbly with current business tools, including CRM systems, analytics platforms, project management software, and unified communication solutions, thereby boosting overall efficiency.

Choosing the Right System Between VoIP Vs PSTN

VoIP

VoIP is a great way to help companies with the nature of their business in the current technological age to be cost-efficient, scalable, and integrate a seamless process. With functions such as video conferencing, call analytics, and CRM integration, it has a base that is suitable for early-stage companies, remote teams, and technology inclined organizations. VoIP is highly adaptable and can be profiled to cater to different levels of inter-personal communication requirements. This serves as a great tool to start-ups or any enterprise seeking to be responsive and intuitive to market needs.

PSTN

A PSTN service is perfect for businesses operating in secluded places with no internet at all or businesses that watch reliability first besides advanced capabilities. Renowned for its unperturbed performance, PSTN is a worthy alternative for the emergency response, utilities, and the agri-business sector, which are often in bad infrastructure areas. 

The knowledge of the advantages and disadvantages of the systems’ different setups could help the business in creating an infrastructure that would be beneficial to their specific operational needs and is sustainable through growth.

Why Are Businesses Moving Away From PSTN Phone Line?

Businesses worldwide have started to abandon the traditional Public Switched Telephone Networks (PSTN) services to modernize their communication infrastructures with the evolution of the global communication landscape. Even though PSTN has been the main way for voice communication for many years, its poor performance factors in respect to scalability, cost-efficiency, and technology integration have lessened its application in this day and age. Along with growing requests for advanced features and the shift towards digital infrastructure at a global level, companies perceive it as a necessity and it may also be more specialized to Voice over Internet Protocol (VoIP) as a solution.

High Maintenance Costs

Operating PSTN line means a lot of money mainly because of the so-called copper circuit which is the main visual part of this system, the hardware. Service, improvements, and operational fees, notably for long-distance communication, are the reasons why the method becomes expensive in comparison with digital variants.

Limited Scalability

Being an analog communication protocol makes it hard for PSTN to expand and in many cases be unscalable and costly. The network’s enlargement most of the time involves the installation of new lines and hardware which limits its practicability for businesses that have dynamic changing requirements.

Outdated Technology

In a digital-first era, PSTN is the worst when it comes to offering services that are a must nowadays, like video conferencing, call analytics, or being able to integrate it with customer relationship management ( CRM ) tools.

Decommissioning Initiatives

Both governments and telecom providers are gradually changing the PSTN network infrastructure towards digital technologies such as VoIP and fiber optics. The demand caused by technological advancement is pushing companies to switch to communication platforms relevant to the future.

Sustention from PSTN is more than just an advanced technology— it is the right move for businesses to remain competitive, efficient, and in line with the ever-growing world of communication.

Need for Alternative Technologies

Nowadays, businesses are caught in a whirlwind of problems resulting from PSTN services and issues that go from expensive cost to limited scalability which calls for modern, efficient, and feature-rich communication solutions. PSTN phone can be replaced with these new technologies as these are the ones that fill the shortcomings of the past and now organizations are able to make the transition to a digitally connected world. Leading through the popularization of the open-source technologies, VoIP, PBX systems, and unified communication platforms are the most successful means of communication integration that offer scalability, integration, and advanced functionalities hence the private sector has further been enhancing communication.

Look at these alternatives in more detail:

VoIP (Voice over Internet Protocol)

VoIP, a new generation of telecommunication technology that allows voice to be transmitted digitally instead of radio-electric waves, gives users something they never knew in the past such as allowing the subscriber’s data to be carried over the internet rather than over the public switched telephone network. It revolutionizes phone calling as it offers more flexibility, lower costs and advanced features such as video conferencing, call analytics and real-time monitoring. Additionally, customers can now access their data over the electronic web, a breakthrough that is not only critical to enterprises but also end customers. At different stages in the progress, VoIP changed with the need and size of the businesses. A scalable way of communication is possible for remote groups and global constituencies on the one hand as well as integration with modern tools on the other hand like customer relationship management systems and project management platforms.

PBX Systems (Traditional, VoIP-Based, or Hybrid)

Private Branch Exchange (PBX) is the telecommunication systems installed in the company to connect users’ phones so that they can be linked and communicate with each other. Generally, the traditional PBX system must be hardware, but the VoIP-based PBX system and the hybrid PBX system can use digital data for features such as automatic call routing, voicemail-to-email, and mobile integration. The systems are generally suitable for any size of companies are due to their scalability and thus can be used effectively in businesses from SMEs to big scale companies.

Unified Communication platforms such as Emitrr

Emitrr offers businesses special features like artificial intelligence call management, automated workflow solutions, CRM integrations, and real-time analytics. Largely thanks to companies where one can communicate effectively, the work team can coordinate better, and the clients can get the best possible experience.

Objectively the initial paragraph blends well with the following passage to create a good mantra. Products like Emitrr are groundbreaking as the best thing is almost all the services it uses are powered by the cloud. VoIP and the call management AI provides are combined in an all-the-box solution for the Indian telecom company Emitrr. This communication product, being the only one in the market, permits interaction, productivity-boosting, and the possibility for live customer queries and activities.

Integration of communication technologies is a good investment as it is understandable that the majority of the communication systems already in use are old and can not provide the needed functionality to remain competitive. 

Why Emitrr’s VoIP is the Best Choice!

Emitrr is a cutting-edge unified communication platform designed to meet the dynamic needs of modern businesses. It goes beyond the traditional VoIP solutions by integrating AI-powered call management, workflow automation, and advanced analytics into a seamless communication ecosystem. With its robust feature set and intuitive interface, Emitrr empowers organizations to deliver exceptional customer experiences, improve operational efficiency, and scale effortlessly as their needs grow.

Features of Emitrr to make it the right choice

• Call forwarding: Easily redirect incoming calls to the appropriate team member or department, ensuring no customer query goes unanswered.
• Call recording: Record calls for quality assurance, training, or compliance purposes, with secure and easily retrievable storage.
• Users & extensions: Simplify team communication with user-friendly extensions, enabling effortless internal and external connectivity.
• Toll-free numbers: Enhance your business’s credibility and customer accessibility with toll-free numbers.
• Call pop feature: Get instant caller information displayed on your screen, empowering teams to personalize interactions and improve customer satisfaction with call pop.
• Call disposition: Organize and track call outcomes with disposition codes for better analysis and actionable insights.
• IVR menu customization: Customize interactive voice response (IVR) menus to guide callers efficiently to the right department or resource. 
• Mobile & Desktop app: Access Emitrr’s full suite of features on mobile or desktop, ensuring flexibility and productivity anytime, anywhere.
• Missed call text: Automatically send follow-up messages on missed calls to keep leads engaged and updated in the system.
• Multi-location management: Manage all your business locations under one platform to ensure consistency and smooth flow of communication.
• CRM integration: Seamless integration with a CRM system ensures that the customer’s information is synched up for streamlined workflows.
• Simultaneous & sequential calls: Manage massive volumes of simultaneous calls or even sequencing calls to ensure reduced wait times in queue.
• Set maximum caller wait time in the queue: Maintain a positive caller experience by capping wait times and ensuring quick service.
• AI-Powered Call Management: Apply AI to automate call routing, scheduling, and customer engagement for maximum efficiency.
• Automated Workflows: Simplify processes by automating routine tasks such as follow-ups, data entry, and notifications.
• Real-Time Analytics: Monitor and analyze call performance metrics in real-time to inform decisions and fine-tune strategies.
• Seamless Integration: Integrate Emitrr with your existing tools and systems to create a unified and efficient communication workflow.
• Scalability: Grow with your business easily with a scalable platform that grows with your organization.
• 24/7 Support: Get round-the-clock assistance from Emitrr’s dedicated support team to resolve issues and ensure smooth operations.

Emitrr is the ultimate choice for businesses looking to transform their communication processes, with its powerful combination of features and innovative solutions. Whether you want to improve customer service, enhance operational efficiency, or scale your business, Emitrr has got you covered.

*Emitrr offers the most affordable and flexible pricing option, starting at just $30  per month. 

FAQs on VoIP Vs PSTN

Conclusion

Choosing between PSTN vs VoIP is crucial for your communication setup. While PSTN has been a dependable choice for many years, it falls short in terms of scalability, flexibility, and cost-effectiveness. On the other hand, VoIP presents a contemporary solution that enhances productivity, reduces expenses, and offers features that support growth.

As more companies move away from outdated PSTN phone lines, embracing VoIP solutions like Emitrr will guarantee cost-effective and reliable communication, keeping you competitive in a connected world. Make the transition today to improve your business’s communication capabilities.

Book a demo with us today to discover how Emitrr can revolutionize your operations. Don’t miss out on the chance to streamline your communication and boost your success!