When deciding between PSTN and VoIP for your communication needs, it’s not just about the technology, but also about ensuring smooth business operations. The question remains: which one is truly better?

In this extensive review, we’ll break down the pros and cons of each. Whether you’re considering cost, reliability, or advanced features, the right choice is crucial.

With so much riding on your communication system, understanding the differences can save time and money. 

Are you ready to find out which suits your business best?

Let’s dive into PSTN vs. VoIP and discover which option can elevate your communication game.

Let’s start!!!!!!!!

🔑Key points 

  • The word PSTN stands for Public Switched Telephone Network. It’s the traditional landline phone system that connects calls across real telephone lines.
  • PSTN and VoIP are the telecommunication technologies used for communication.
  • PSTN helps organizations by providing a reliable communication channel with constant voice quality which reduces missed calls and service outages.
  • VoIP improves business efficiency by lowering phone costs through internet-based communication while removing the need for separate phone and data networks.

What is a PSTN?

what is PSTN

The PSTN is a public network of telephone lines consisting of operators from all over the world.

PSTN, which existed before the digital era, worked on analog, and hence, different actual lines were used for every call. For a while, it was a PSTN that offered a stable foundation for speaking.

However, due to its rigid framework and high maintenance and repair costs, it is less flexible than more modem forms of Internet-related communication instruments such as Voice over Internet Protocol (VoIP).

How Does PSTN Work?

The PSTN is a network of interconnected telephone lines that include satellite, cellular, optics, wire, and other prolific systems.

It operates based on the fact that it directs every landline call through a number of central switches that are the communication center.

These switches employ connected lines for transmitting signals toward the voice.

Earlier, people used dial-up modems and PSTN phone lines that had connectivity of only 56 Kbps for computers. This method was used at home since faster broadband plans are usually available today.

How PSTN Helps Your Business? 

PSTN helps businesses in several ways:

1. Reliable Communication

PSTN increases stable interaction by providing a solid constant connection, lowering the chance of missed calls or service outages.

It is a reliable option for reliable and clear audio communication because PSTN is more resistant to technical issues and network fluctuations than some internet-based systems.

Businesses that require a constant connection for everyday operations, customer interactions, and overall productivity must value this reliability.

2. An Effective Telecom Backup System

PSTN performs well as your company’s dependable backup in addition to being an excellent primary telecom option.

You can stay connected if your VoIP system has problems by switching to the PSTN.

Even when used rarely, its solid build makes it an effective backup. Even if PSTN requires some maintenance and updates, the cost is reasonable.

If your budget allows, adding a PSTN line as a backup system is a wise choice since it will make sure that your communication is broken.

3. Designed with Telephony in Mind

PSTN is a living example of “doing one thing and doing it well.” It was created only to make calls and it excels at voice traffic.

While most modern systems manage several tasks, PSTN focuses on and does its primary duty perfectly. Its performance has improved over time and many carriers now provide clear speech quality.

4. Simple to Set Up and Operate

The simplicity that comes with PSTN comes due to its well-known and simple devices and functions.

Users can easily maximize the features of their equipment and it has no complex learning curve.

Furthermore, telecom providers take care of setup and solving problems, saving you from worrying about technical problems.

What is VoIP?

What is VoIP

VoIP is a system that allows you to use computers, cell phones, or special VoIP phones to make and receive phone calls and send information over the internet.

This system uses a fast internet connection to send and receive digital data, which transforms back to analog for clear communication compared to traditional landlines which use copper wires and analog signals. 

VoIP systems are an adaptable tool for workplaces to improve interaction with teams and with customers because they often come with features like voicemail, call recording, personalized caller ID, and voicemail-to-text.

🧐You may Read: What is VoIP and How Can It Benefit Your Call Center?

How Does VoIP Work? 

How VoIP helps your business

VoIP transforms your voice into internet-speed digital packets. When these packets get to the target receiver, they turn back into audio, allowing online communication and call-making through the use of traditional phone lines. Let’s explore VoIP’s work step-by-step:

I. Initiating the Call

An analog-to-digital converter transforms your voice from analog to digital during a VoIP call made through an IP phone or softphone app.

This device turns the sound waves from your voice into digital signals that may be sent to the recipient’s device via the internet.

II. Sending and Receiving Voice Data

Before you contribute to a VoIP dialogue, your speech is first converted into digital data by an Analog-to-Digital Converter (ADC).

This data is then sent across the Internet using RTP or UDP protocols and broken into little pieces. 

On the receiving end of this process, a Digital Analog Converter (DAC) reconstructs the pieces of data and turns them back to audio.

Programmers convert audio for simpler and quicker sending but then decode the audio for quality, such as G. 711 and Opus.

III. Managing Calls

With VoIP, it is easy to carry out the first, mid, and last call control using various servers and protocols such as SIP.

As a result of such an organized manner, VoIP offers ease in communication, and other features that will not be available when using the phone lines.

IV. Rebuilding Data

On the other end, the device reconstructs the digital packets in the correct order and, if necessary, converts them back to analog form.

This technique ensures that the recipient hears your voice all the time and does not get any mixed signals.

How VoIP Helps Your Business?

VoIP helps businesses in several ways:

1. Reduced Phone Costs

VoIP lowers your company’s operational and calling costs while changing communication by transferring voice data over the Internet instead of traditional phone lines.

By moving to VoIP, you may reduce phone costs and do away with the requirement for different data and phone networks. Say farewell to expensive landline configuration and hardware, including routers and PBX systems

Additionally, virtual numbers allow us to maintain a clean and effective system while reducing expenses on both local and international calls.

2. Work from Anywhere

Due to cloud-based phone systems, VoIP improves work flexibility by allowing employees to make calls from anywhere.

This means that your company can easily switch to a remote or hybrid strategy. Your phone system stored in the cloud helps your operations function smoothly no matter where your team members are.

They may stay connected and productive whether traveling, working from home, or handling unexpected problems.

3. Improved Call Quality

Its use involves the use of the internet for the calls to be clear and this makes VOIP depend on good internet connection. Two, there is an option for microphones or headphones in order to change the sound quality. 

This is because even when making several calls the connection is so powerful that it does not have any vibrations or any form of delay. 

Also, noise reduction, better format audio encoding, and the ability to create microphones that do not make noise ensure that barriers are minimized so that one can focus during the meetings.

4. Combining Business Applications with Integration

VoIP systems can seamlessly integrate with CRM software, email clients, and project management apps. This integrated workspace allows employees to manage their communications from a single location. 

VoIP and CRM integration can enhance customer service by automatically recording calls and keeping records of customer interactions. It can also personalize and optimize each customer touchpoint.

PSTN vs VoIP: Key Differences

Technology

PSTN: Most PSTN systems of transmitting voice signals involve the use of analog physical network technology.

VoIP:  VoIP provides flexibility and scalability by transmitting data and voice over the internet using digital technologies.

It enhances communication by offering modern features such as video calls and virtual phones.

Call Quality

PSTN: Due to the use of separate voice circuits, PSTN calls have minimal interference and are not subject to interruptions or dropped calls.

VoIP: VoIP call quality depends on your internet connection, and it varies from one network to the other and from one provider to another.

However, if the connection is good and the service is good, then your calls will be clear and of good quality.

Accessibility

PSTN: PSTN only works where physical network lines are installed, hence it may not be available in rural or remote areas.

VoIP: VoIP works anywhere in the world, as long as you have an active internet connection.

User interface

PSTN: PSTN only provides basic call features such as making and receiving calls, call waiting, and call forwarding. It cannot perform tasks such as video calls or call recording without extra tools.

VoIP: The user interface is a software program that comes with a dial pad, call records, and other unique features like screen sharing and video calls on your computer or smartphone.

You can use it through an app or website on your desktop computer or mobile device.

Environment-Friendly

PSTN: To operate properly, PSTN requires a lot of physical equipment and energy.

VoIP: VoIP is similar to PSTN’s ecologically friendly relative because it requires less equipment and energy to operate.

Mobility

PSTN: Similar to a fixed workspace, PSTN is ideal for permanent locations but less useful for remote teams or traveling workers.

VoIP: VoIP allows you to work and collaborate from any location with an internet connection, much like a digital passport. It’s easy to use on mobile devices for professionals who are frequently on the road and remote teams.

Feature Comparison: PSTN Vs. VoIP 

Here is a feature comparison between PSTN (Public Switched Telephone Network) and VoIP (Voice over Internet Protocol) in the table below:

Feature PSTN VoIP
Infrastructure Dependency Depends on switching centers and physical lines  Internet-based, lowering the need for physical infrastructure
Advanced Features Basic (caller ID, voice calls) Advanced (voicemail, call recording, etc.)
Mobility and Remote Work Limited to fixed locations Supports mobile and remote work with flexible access
Signal Type Analog signals Digital data
Reliability Reliable for dependability and uptime Reliable with consistent speech quality
Scalability Less adaptable, requires physical line additions  Extremely flexible and scalable to meet evolving demands
Call Quality Consistent and reliable Relies on internet speed and quality
Maintenance Requires higher maintenance Requires low maintenance
Flexibility Less flexible, tied to physical lines Highly flexible and able to interact with various digital services
Cost considerations Generally higher (traditional fees) Typically lower (internet-based)
Call Setup Circuit-switched (dedicated connection) Packet-switched (data packets)
☎️Also read: What Is Business Communication and Why Do You Need It?

How to Switch From PSTN to VoIP?

The conversion from PSTN to VoIP offers several advantages to the business entity. VoIP also offers lower communication costs than traditional phone lines, which is a major boost in cost savings.

It has limited restrictions on growth and compatibility, meaning that it adapts well to your company.

Some of the features include video conferencing and call forwarding, among others, which ensure elevated productivity while keeping cooperation tight.

In addition, its applications can sustain remote working and form mobile connections.

Choosing VoIP means implementing an effective and up-to-date communication system that can help maintain a company’s competitive position in the modern environment.

How to Set up VoIP with Dialaxy?

Here are the following steps to set up VoIP with Dialaxy:

Step 1: Sign Up and choose a plan

Step 2: Download and install software

Step 3: Access the Dialaxy portal

Step 4: Configure VoIP accounts and extensions

Step 5: Set up network configuration

Step 6: Integrate and Test

Step 7:Train and Support

Final Words

Your business requirements should guide the decision between PSTN and VoIP solutions.

PSTN represents an excellent choice for locations with unreliable internet connectivity, offering dependable voice calls with stringent security measures in place.

On the other hand, VoIP is well-suited for companies looking to modernize and expand. It delivers cost savings, scalable capacity, and advanced features such as video conferencing and remote access.

It is critical to carefully evaluate your objectives and existing infrastructure to decide the best alternative for increasing productivity and boosting growth.

TFAQs

Is VoIP better than PSTN?

Since VoIP is more flexible, less expensive, and has more advanced capabilities than PSTN, PSTN is more reliable when there is no internet.

What are the three major components of PSTN?

The three major components of PSTN are:

  • Central Offices (COs)
  • Transmission Lines
  • Switching Centers

Which signaling is used in PSTN?

Signaling System No. 7 (SS7) is the primary signaling system used by the PSTN to handle call setup, routing, and failure and also provides caller ID and call forwarding functions.

What are the four technical elements in the PSTN?

The four technical elements in the PSTN are:

  • Switching Systems
  • Transmission Medium
  • End-User Equipment
  • Signaling Protocols

What are the components of the telephone circuit?

The components of the telephone circuit are:

  • Telephone Handset
  • Central Office (CO) Equipment
  • Signaling System
  • Power Supply
  • Switching Equipment
  • Telephone Line

Are VoIP calls secure?

VoIP calls can be safe, but how well they are implemented and what safety measures are taken will determine how safe they are.

VoIP calls are encrypted to prevent data from being captured, but if appropriate security measures, including robust authentication and encryption, are not followed, problems can occur. 

Is VoIP cheaper than PSTN?

Yes, VoIP is much cheaper compared to PSTN.

Does VoIP require a lot of technical maintenance? 

In general, VoIP systems require less technical care than traditional phone systems. To provide the best possible performance and security, it is essential to regularly update, monitor and manage hardware, software, and network security.

Prasanta Raut

Prasanta, founder and CEO of Dialaxy, is redefining SaaS with creativity and dedication. Focused on simplifying sales and support, he drives innovation to deliver exceptional value and shape a new era of business excellence.

Prasanta, founder and CEO of Dialaxy, is redefining SaaS with creativity and dedication. Focused on simplifying sales and support, he drives innovation to deliver exceptional value and shape a new era of business excellence.