POTS vs PSTN vs VoIP: What Businesses Need to Know Before Making the Switch

Think about it, when was the last time you used a landline at your work? It might have been years ago. However, many businesses are still relying on these outdated phone systems that cost more and do less. POTS and PSTN were the primary gold standards of communication for decades. The reason behind it was that they were simple, reliable, and easy to manage. However, these days, the scenario has completely changed. Remote teams, cloud software, and global customers demand smarter and faster communication, and here is where VoIP comes in handy.

The debate around PSTN vs POTS or VoIP vs PSTN is not just about technology, but it is also about efficiency, cost, and business growth. As per the study done by Cisco, VoIP can help save 32 call minutes per day. Even the global market for business VoIP services is expected to reach $508.7 billion USD by the end of 2030. When exploring business phone systems, you may have encountered acronyms such as POTS, PSTN, and VoIP. If you’re confused about what they mean and how they differ, this blog provides a detailed comparison of POTS vs PSTN vs VoIP. After all, you’re investing in the business telephone system, so you must know what you are getting. Knowing the difference between PSTN, POTS, and VoIP will help you understand which one is the best for your business’s success and growth.

Let’s dive in!

What is POTS?

POTS stands for Plain Old Telephone Service. It means traditional analog phone service that makes use of copper wires to connect users to the PSTN (Public Switched Telephone Network). Individuals and businesses have used POTS since the 1880s, as it is the basic telephone call service.

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In POTS, your voice data converts into the electrical analog pulses. After that, your call travels along copper wires to reach its intended recipient. These copper wires are connected through central control rooms at the local, national, and international levels.

What are the Key Features of POTS?

Let’s check out some amazing key features of POTS.

• It lets users make and receive voice calls through copper lines. Users do not have to rely on the Internet for real-time communication.
• POTS offer a caller ID feature so users can easily identify who is calling before receiving the call. It improves privacy and helps users decide whether to answer a call.
• Users can easily manage multiple calls at the same time through the call waiting feature.
• It lets users redirect incoming calls to another phone number that ensures they do not miss important calls when away from their phone. This feature is useful for businesses that require maintaining continuous communication.
• POTS providers offer a voicemail facility that lets callers leave voice messages whenever the recipient is unavailable. Users can listen to these messages at their convenience.
• These types of phone lines are reliable for emergency calls because they can function perfectly without internet connectivity. It’s important for safety and emergency response situations.

What are the Pros and Cons of POTS?

Here are the pros and cons of POTS.

What is PSTN?

PSTN stands for Public Switched Telephone Network. It is the worldwide network of interconnected public telephone networks. PSTN makes use of the traditional circuit-switched technology to set up the voice calls. It uses telephone lines, cellular networks, fiber optic cables, and switching centers and allows users to make and receive calls globally.

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As shown in the above image, whenever you place a call from your home landline phone, your call goes through the PSTN. It connects your phone to your intended recipient, which allows you to talk in real time.

What are the Key Features of PSTN?

PSTN provides you with the following features.

• PSTN provides basic voice communication services. Therefore, users can make and receive calls. The circuit-switched architecture supports PSTN so that it offers a reliable voice call.
• It lets users redirect calls. Therefore, businesses can manage calls easily without any additional setup.
• Caller ID is also available on PSTN, so users can easily identify incoming calls and decide whether or not to answer them.
• PSTN lines are best suited for emergency situations because they’re easily traceable. They are important when there are internet disruptions or power outages.
• The PSTN usually comes with voicemail services that let callers leave messages when the recipient is not available. Users can listen to those messages at their convenience.

What are the Pros and Cons of PSTN?

Let’s check out the pros and cons of PSTN.

What is VoIP?

The full form of VoIP is Voice Over Internet Protocol. It is the type of phone service that allows you to make a voice call through the Internet instead of the traditional telephone networks. VoIP offers greater flexibility, which allows users to make calls from anywhere through an internet connection.

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For example, whenever you dial a call, VoIP converts your voice into digital data packets. These data packets are then transmitted over the Internet and converted back into the normal sound to the person on the other side of the phone line.

What are the Key Features of VoIP?

VoIP offers the following amazing features.

• VoIP provides you with a virtual receptionist who routes calls to your intended person/department. Therefore, you can improve customer service by ensuring your calls are directed efficiently.
• It supports video conferencing so you can easily conduct remote meetings and collaborations. The video conferencing feature is beneficial for teams that work across different locations.
• VoIP manages incoming calls by placing them in the queue, reducing wait times, and ensuring that phone calls are handled efficiently.
• You can access VoIP phone systems through mobile devices and desktop applications without using a dedicated desk phone.
• VoIP systems can be easily integrated with the CRM tools, so you can easily track customer interaction and management.

What are the Pros and Cons of VoIP?

Here are the pros and cons of VoIP.

POTS vs. PSTN vs. VoIP: How Do They Differ?

POTS, PSTN, and VoIP are the different types of telecommunication technology. Here is an in-depth comparison of them, which will help you understand how they differ.

POTS vs. PSTN vs. VoIP: Which One Should Businesses Choose?

POTS, PSTN, and VoIP all have their own features, benefits, and limitations. As a business owner, if you’re in search of reliable communication solutions, you must know which technology best meets your needs. Knowing it makes a big impact on your business ROI and productivity.

Whether to choose POTS, PSTN, or VoIP, is depends on your personal needs and wants. POTS offers simplicity and reliability for simple voice communication. PSTN is the global network that integrates POTS and digital technology to offer extensive coverage. On the flip side, VoIP uses internet access, which provides cost savings and facilities like unified communication and video conferencing.

Let’s understand which one you should choose.

POTS is Best For:

• Rural areas where there is limited internet access
• Individuals who need simple, reliable voice communication without cutting-edge features.
• Emergency situations where internet connectivity might be unreliable.

PSTN is Best For:

• Businesses that require high-quality voice communication over long distances.
• Organizations that are tight on budget for advanced communication features.
• An environment where guaranteed connectivity is important.

VoIP is Best For:

• Businesses that are seeking inexpensive and scalable communication solutions.
• Companies that require advanced features like call routing, CRM integration, video conferencing, etc.
• Organizations having remote teams that need smooth communication from anywhere using internet access.

How Can Businesses Switch From POTS and PSTN to VoIP?

Congratulations! Finally, you have decided to upgrade your old-school phone system. When you transition your traditional phone systems to VoIP, you will enjoy many benefits in terms of cost, flexibility, and advanced features. If you’re wondering how to switch from POTS and PSTN to VoIP, here are a few steps involved.

1. Select the PBX for the Secure Network with VoIP Features.

If you want to experience secure and feature-rich VoIP, you must implement a PBX (Private Branch Exchange) system. It can be cloud-based or on-premise and offer advanced features like voicemail, call routing, and conferencing.

2. Utilize SIP Trunking to Enjoy VoIP Service with Existing Equipment

PBX systems also support SIP trunking. It’s important to integrate the VoIP service with the existing infrastructure. You don’t need to replace your entire infrastructure. It connects the PBX phone system to the Internet. Therefore, you can enjoy voice and multimedia communications over IP networks.

SIP trunking is affordable and scalable. Therefore, businesses want to upgrade their phone system without major hardware investments.

3. Sign Up with the VoIP Provider

You need to first assess your needs. You need to find out the number of users, the budget, and the required features. Choose the reputable VoIP service provider that provides features like call queue, analytics, and CRM integration.

In A Nutshell

POTS offers simplicity for those who require a basic phone service, particularly in rural areas or during emergencies. PSTN offers a global network for top-quality voice communication. VoIP is affordable and modern. It offers cutting-edge features, flexibility, and scalability.

These days, customers expect instant support, teams collaborate from different cities, and flexibility is the new currency of growth. Therefore, switching to VoIP is not just a tech upgrade; it is the smarter way to connect people, opportunities, and ideas.

When you switch from PSTN and POTS to VoIP, you will experience fewer dropped calls, lower bills, and features that actually make work easier, like video meetings, call recordings, and smart integrations.

However, whatever decision you make, it should align with your business requirements, whether your priority is cost, reliability, or flexibility. However, one thing is clear: VoIP makes communication easier and future-ready.