Is PSTN still used? Yes, but there are better options

Alexander Graham Bell invented the telephone in 1876. In 1915, he made the first-ever transcontinental (coast-to-coast) phone call, contributing to the creation of the Public Switched Telephone Network (PSTN).

Although much has changed since then, many core PSTN functions remain the same as they always were. Like the legacy technology behind the postal service and radio stations, the PSTN still has useful applications today.

Businesses such as restaurants, gyms, and clinics may find it makes sense to have a landline for making local calls. Registering a landline may also be a regulatory requirement for some businesses.

If you are not such a person, then Voice over Internet Protocol (VoIP) services – such as Nextiva and Soaring — Are cheaper, offer better integration, and allow for greater scalability.

That’s not to say the PSTN doesn’t deserve praise—it has had a remarkable rise as the world’s top communications system. But it can hardly match the features and functionality of more modern VoIP services.

The Evolution of the PSTN

The history of the PSTN can be traced back to the telegraph networks of the mid-19th century. These networks transmitted coded electrical signals over copper wires. Telegraph operators entered and decrypted Morse code messages at both ends.

First Phone Call

When Alexander Graham Bell first spoke to his assistant Thomas A. Watson, two miles away, the connection was made using a ringing circuit. This system could not connect multiple phones, only one device directly to another over a line.

Before the advent of ringtones and chimes, early telephones also had no system to notify you of an incoming call. Instead, users would often whistle into the receiver to get attention.

Switchboard system

The next major innovation in the PSTN was the creation of the telephone exchange. Before this system, every phone had to be hardwired to every other phone.

The switching system allows users to connect to any other telephone service user in their area. This process involves calling the switch and asking the operator to connect their line to the other party’s line.

Automatic switching

In the early 20th century, automatic switching systems were invented. These systems allowed callers to dial multiple phones without the need for a human operator. Automatic switching meant faster call setup, lower costs, and a more efficient system overall.

Automatic switching also facilitated the expansion of the telephone system to more remote areas, and it was designed to be more scalable. This made long-distance calls more feasible and the network more comprehensive.

Digital Innovation

Analog technology began to give way to digital innovation as researchers in the 1950s attempted to encode voice signals in digital form.

In the 1960s, with the advent of digital transmission systems, multiple voice channels could be converted into a single signal for transmission, further increasing the overall capacity of the PSTN.

Likewise, the advent of digital switching systems in the 1970s further improved call quality, producing clearer, more reliable audio because digital channels are less susceptible to interference and noise.

Digital switching systems also brought new features such as call waiting, voice mail, three-way calling and caller ID. This may have paved the way for integrated data transmission services such as those we use today on the Internet.

Finally, the rise of digital switching systems has brought global standardization to many telecommunications networks. The implementation of digital standards has improved interoperability between network providers, allowing users on different networks and in different countries to communicate seamlessly.

Integrated Services Digital Network (ISDN)

ISDN was developed in the 1980s to replace older analog systems. It is a versatile digital standard that can simultaneously transmit voice, video, and other data over a digital network.

The telecommunications industry and businesses quickly adopted ISDN technology because it provided better call quality, faster data transfer speeds, and allowed for video conferencing. ISDN’s popularity declined until the advent of broadband and cable Internet services in the late 1990s.

The rise of broadband and mobile

The Internet became an integral part of business and social life when broadband emerged in the early 2000s. At the same time, VoIP services and cell phones that supported text and voice calls were available.

Meanwhile, PSTN remains a popular way to contact businesses or professionals.

When cell phones became smartphones, things changed. Apps can now send messages and make voice and video calls. VoIP Softphone Now integrate with other business applications, making it easier to schedule appointments, send follow-up emails, and stay on top of your busy schedule.

Today’s PSTN

Some countries, such as the United States, Australia, and Singapore, are preparing to phase out their national PSTNs. Other countries, such as the Netherlands, Sweden, Germany, and Japan, have already shut down their PSTN networks.

The UK will shut down its PSTN and ISDN services in 2025.

Most, if not all, countries are replacing their PSTN systems with Internet Protocol (IP) networks because they are better suited to modern communications and data transfer needs.

In the United States, you can still use plain old telephone service (commonly referred to in the telecommunications industry as POTS). As more countries move to IP networks, this may change – but for now, you can still install a copper-wire phone for voice communications.

PSTN and VoIP

VoIP functions the same way as a traditional phone, but adds support for video and text messaging. It also uses the internet to connect, rather than a telephone switching system.

Because PSTN technology uses analog signals transmitted along copper wires, it does not support multiple data channels and is susceptible to noise and interference.

In contrast, VoIP uses encrypted packets that are routed over the Internet and reassembled at the other end, providing better call quality and reliability. VoIP services also use application programming interfaces (APIs) to integrate with other business applications.

For example, an integrated Customer Relationship Management (CRM) The system can help businesses maximize their potential for lead generation and customer nurturing. This integration is not possible with analog phone systems.

PSTN costs

Traditional landline service usually charges a monthly service fee. The service fee covers a certain number of local and long-distance calling minutes. Businesses can pay the service fee on a per-line or per-user basis. Usually, the destination of the call determines the rate.

For individuals, purchasing a landline phone is relatively cheap, even cheaper than purchasing a brand new VoIP-compatible device.

However, businesses often have different needs. For example, a company with many agents may need a private branch exchange (PBX), multiple phones, and professional installation.

PSTN phone systems also typically require regular maintenance. Combined with the need to periodically upgrade hardware, the cost of a PSTN can be very high.

VoIP Fees

VoIP services are usually free to individuals. In many cases, the only equipment cost is the IP phone and adapter.

These costs are typically lower than the initial setup costs of PSTN service.

Some VoIP providers offer Subscription Packages This includes a certain amount of local and international calling minutes. Other VoIP services use a pay-as-you-go model, charging users only for the data they use.

For businesses, setting up a VoIP system means purchasing IP phones, routers, and possibly even a PBX, which typically requires monthly payments per user or extension.

Integrating your existing phone system with a VoIP service will incur additional costs.

PSTN Advantages

• reliability: The PSTN has been around for decades; its infrastructure is reliable, albeit at the expense of some functionality.
• No Internet Required: Even without internet, landline connections still work.

VoIP Advantages

• Initial cost: VoIP systems are generally less expensive to install and maintain than PSTN systems. This is true for both businesses and individuals.
• Monthly costs: The monthly fee for VoIP service is usually lower than that for PSTN landline.
• Feature-rich: VoIP services offer many features to support business growth.

Using traditional PSTN equipment with VoIP

Analog telephones and fax machines can be used with VoIP through an analog telephone adapter (ATA). This device bridges the gap between PSTN equipment and VoIP by converting analog signals into digital signals that can be transmitted over the Internet.

Likewise, an ATA can convert incoming digital signals to analog signals. Using an ATA is a great way to take advantage of VoIP services and leverage existing infrastructure and hardware.

VoIP phones can also make calls over the PSTN. When you make a VoIP call, it is routed through your VoIP service provider. The service provider uses a gateway as a bridge between the analog nature of the PSTN and the digital nature of VoIP.

Enterprises that want to integrate PSTN and VoIP systems need Session Initiation Protocol (SIP) Gatewaywhich enables them to take advantage of the capabilities of VoIP services while maintaining connectivity to the PSTN network.

Generally speaking, business owners can configure SIP gateways to accommodate increased call volumes. PSTN systems cannot scale in this way.

If you’re looking for a VoIP service provider, keep in mind that many of the top VoIP services offer slightly different features for specific personal and business needs. For example, Nextiva is one of the most full-featured services. RingCentral Great for small businesses, and Large room Perfect for remote working teams.