Business and communication are inseparable. If you own a business, you must use a
communication tool to have full control over your communication transactions, which is
essential for the success of your business.
However, the type of communication technology you use is crucial and must satisfy your
business communication needs.
The Public Switched Telephone Network (PSTN) has been in use for decades, while Voice
over Internet Protocol (VoIP), also known as internet telephony, has been used as an
alternative to traditional phone systems for several years.
Both technologies have made significant contributions to improving business
communication.
However, since every business has unique requirements, choosing the right communication
technology can be challenging.
But don't worry, in this blog, we will help you determine which communication technology
is best suited to your business needs. So, read on to find out more!
What is PSTN and how does it work?
The Public Switched Telephone Network (PSTN) is a widely used standard
communication system that has been in use for decades. It is a circuit-switched
telephone network that uses underground copper wires, commonly referred to as
"landline network systems," to facilitate communication.
PSTN networks work by utilizing various communication technologies, such as
telephone lines, fiber optic cables, and switching centers.
When you dial a phone number, the call is transmitted through the network and
reaches its destination. This network allows telephones to communicate with each
other, making it a reliable means of communication.
What is VoIP and how does it work?
VoIP (Voice over Internet Protocol) is a technology that allows you to make and
receive calls, send SMS, and set video meetings using the internet instead of
relying on traditional phone lines.
With VoIP, you only need an internet connection to communicate from any location
without the need for a physical landline. This is because VoIP converts your
voice into digital data packets that travel over the internet to the receiver's
IP, softphone where it is decoded
back into voice format.
Here is a detailed comparison of VoIP and PSTN
Connectivity
VoIP utilizes the internet for communication, while PSTN relies on traditional
landline technology. These two methods of communication are entirely different
from each other.
With VoIP, you can make calls using your existing devices like mobile, PCs,
computers, and even desk phones as long as you have internet connectivity,
whereas PSTN only works with the help of physical landlines.
Flexibility
VoIP phone systems
offer flexibility and convenience as they allow you to make and receive calls
from anywhere in the world as long as you have an internet connection.
Moreover, you can customize your VoIP
plan based on your business requirements, adding or removing features as
needed. Expanding your cloud phone system is also easy when your business grows,
with no physical work required.
In contrast, PSTN is limited to the physical location where the landline is
installed. Customizing the PSTN, such as adding more lines, can be challenging
and may require physical work.
Features
When comparing features, a VoIP
business phone system has several advantages, including call queuing, custom
caller ID, virtual numbers, advanced call routing, and more, as well as the
ability to analyze performance metrics.
These features can greatly improve internal and external communications and help
you identify areas that need improvement.
On the other hand, a PSTN system only allows for making and receiving calls.
Cost
Compared to the PSTN, VoIP offers more affordable call charges and requires less
maintenance. As a virtual phone system, VoIP can be
easily set up by purchasing a monthly or yearly plan from providers like
TeleCMI, without the need for any physical hardware installation at your
premises.
Furthermore, VoIP solutions provide remarkably low rates for both domestic and
international
calls compared to the PSTN, which, as mentioned earlier, uses
traditional phone lines.
With VoIP, calls are made over the internet, resulting in significant cost
savings for businesses. These cost-effective options make VoIP a more practical
and budget-friendly solution for businesses looking to improve their
communication infrastructure.
Finally…
Choosing between VoIP and PSTN for your business communication needs careful
planning, as the two technologies are entirely different. While PSTN has been
used for decades, it struggles to keep up with the modern requirements of
businesses.
As the saying goes, modern problems require modern solutions, which is why you
should consider utilizing VoIP technology and cloud telephony to stay
competitive. They are affordable and versatile and perfect for small businesses
and big organizations.
If you're interested in TeleCMI's VoIP phone system, sign up for a free trial today and get started with
the service. They are packed with advanced features that meet and fulfill your
business communication requirements.
With VoIP, you can enjoy the benefits of increased flexibility, scalability, and
cost-effectiveness. By embracing this modern solution, you can streamline your
communication infrastructure and ensure that your business stays ahead of the
competition in today's rapidly evolving business landscape.