Why voip over pstn

This is the system that has been in general use since the late s. Using underground copper wires, this legacy platform has provided businesses and households alike with a reliable means to communicate with anyone around the world for generations. PSTN phones are widely used and generally still accepted as a standard form of communication. However, they have seen a steady decline over the last decade. In fact, there are currently just million fixed-line telephone subscriptions in use worldwide, the lowest tally this century so far.

Think of a Public Switched Telephone Network PSTN as a combination of telephone networks used worldwide, including telephone lines, fiber optic cables, switching centers, cellular networks, as well as satellites and cable systems.

These help telephones communicate with each other. Put simply, when you dial a phone number your call moves through the network to reach its destination — and two phones get connected. To fully understand how a POTS actually works, consider what happens when you dial a number from your own phone. Step 1 - Your telephone set converts sound waves into electrical signals. These signals are then transmitted to a terminal via a cable. Step 2 - The terminal collects the electrical signals and transmits these to the central office CO.

Step 3 - The central office routes the calls in the form of electrical signals through fiber optic cable. The fiber optic conduit then carries these signals in the form of light pulses to their final destination.

Step 4 - Your call is routed to a tandem office a regional hub responsible for transmitting calls to distant central offices or a central office for local calls. Step 5 - When your call reaches the right office, the signal is converted back to an electrical signal and is then routed to a terminal.

Step 6 - The terminal routes the call to the appropriate telephone number. Upon receiving the call, the telephone set converts the electrical signals back to sound waves. This may sound complicated, but the thing to remember is that it takes a few seconds for your call to reach its destination. This process is facilitated by using fiber optic cables and a global network of switching centers.

Related: Ready for VoIP? Advantages and Disadvantages to Make the Right Choice. You could say that PSTNs are all about switching, which forms the backbone of traditional phone networks. When a call is made, switches create a wire circuit between two telephones, with this particular connection lasting as long as the duration of the call. A local exchange - which may consist of one or more exchanges - hooks up subscribers to a PSTN line. Also known as a central office or a switching exchange, a telephone exchange may have as many as 10, lines.

All telephones are connected to the local exchange in a specific area. Interestingly, if you were to dial the number of your supplier located in the building next to yours, the call won't leave your local exchange and will be routed to the supplier as soon as it reaches the exchange. The exchange then identifies the number dialed so it can route the call towards the correct end destination.

This process works as follows:. The first three digits of a phone number represent the exchange the local switch , while the last four digits identify the individual subscriber within that exchange. This means that when you dial a number and it reaches your local exchange, your call is immediately linked to the subscriber without the need for any further routing.

Also known as a junction network, a tandem office serves a large geographical area comprising several local exchanges while managing switches between local exchanges. This is where any national long-distance switching takes place. A toll office is connected to all the tandem offices. International gateways manage international call switching, routing domestic calls to the appropriate countries.

Exactly how much would it cost you if you were to install and use a PSTN phone system in your home or office? Not too bad for a single household phone line. Things change dramatically when you switch to businesses. If you need a PSTN phone system for your business, you'll need to have a separate line for each employee. This is why most businesses prefer VoIP instead of conventional phone systems.

And, of course, you'll need to purchase handsets too. This option provides you with several additional features, making it a better choice than a regular telephone connection.

A PBX converts your organization into a local exchange where all the phones in your organization are connected and you get to enjoy a range of services such as call transfer, call conferencing, auto attendant, voicemail, call hold, and more.

The PBX is connected to your local exchange. It routes external calls to a local exchange while all internal calls are routed by your PBX. A PBX is a combination of software and hardware, so it will cost you some serious bucks.

It comes with hubs, switches, phone adapters, routers , and several telephone sets. It is like creating your own small exchange where your PBX handles switches internally.

Most businesses use PBX phone systems to manage calls because they are easier. However, installing and managing a PBX is costly. The actual cost may vary depending on the number of features you prefer to have and the complexity of the PBX. A massive, complex, and feature-rich PBX will cost your business more than a simple PBX system with just some basic capabilities.

PSTN utilizes the telephone lines you drive past every day. Over the decades, millions of dollars have been put into these networks.

Reliable PSTN lines also ensure connections of the highest quality. Even if you have thousands on a call, the infrastructure can manage even the largest loads. The guarantee of great voice and audio will always keep businesses coming back. Lastly, PSTN networks can be leveraged to bolster security during confidential calls.

Companies that disclose sensitive info over the phone want the assurance their call is secure. Intense competition over the last few decades has required PSTN providers be at the top of their game. This competition has also driven per-minute prices way down, making conferencing significantly cheaper than at previous times.

Unfortunately, these rates do not compare with VoIP costs, which can be close to nothing on a per-minute basis. Many providers can accommodate international calling and ensure reliability no matter where a call begins or terminates.

Providers can also provide organizations unique local access numbers that make it easy for multinational teams to dial into without incurring additional costs. PSTN integrations with web conferencing platforms provide excellent reliability during online sessions, and present users an option — telephones — they may be more comfortable and familiar with than computer mics. Typically, you only get these integrations from PSTN providers. While PSTN may be the older technology, it is still serves many business needs effectively.

Paying for business internet services basically covers the actual costs for VoIP. Having VoIP dial-out to telephones is another matter….

VoIP is affordable — and beyond what was mentioned above. Because VoIP is based on Internet Protocol, the mics and speakers in a computer become sufficient substitutes for a traditional hand-held telephone.

This eliminates expensive purchases, like enterprise-wide phone systems. Being the default for web conferencing software, VoIP also eliminates the need for outside voice integrations. The larger benefit is the minimization of the number of services a business uses.

There are also cases where VoIP is more desirable when used with web conferencing events, such as webinars. Adding a new user is as simple as adding a new licence and configuring it — it can be done in hours. When you have a PSTN system, adding a new user typically involves purchasing another line and more hardware. This is complex, costly, and can take a long time. The same can be said again of VoIP when it comes to upgrades in general.

Providers upgrade and maintain VoIP in the cloud. With PSTN, upgrades typically involves, again, purchasing new hardware and onsite work. Once again, this is very costly and complex.

VoIP telephone systems have a host of call management facilities that enhance the way that your business communicates internally and with customers. For example, call waiting, forwarding and call transferring come as standard with virtually any VoIP telephone system.

With PSTN, call management features such as call waiting and call transferring are available. Unfortunately, providers usually charge for these features with PSTN and depending on the provider, they may take longer to set up.

For example:. These features can be revolutionary for communication, so you need a telephone system that offers them. Businesses can save a lot of money by moving over to a hosted VoIP telephone system. IP telephony is typically much cheaper than traditional telephony for numerous reasons.

VoIP is primarily cheaper because it uses the internet to make calls, so calls are typically not charged according to the length of call or distance. Setting up a VoIP telephone system is usually much cheaper than setting up a traditional telephone system. VoIP is typically plug and play, as your provider will configure your system remotely.