The UK’s phone network has been gradually upgraded over the years, but many businesses still rely on the ageing, analogue, Public Switched Telephone Network (PSTN) for their phone operations.

By 2025, this will be replaced by digital phone services, more technically known as Voice over Internet Protocol (VoIP), enabling phone calls to be carried out over the internet.

This means businesses have until the end of 2025 to switch to IP calling or see their phone systems become obsolete and unsupported.

IP phone services operate using packet switching. This means when you speak into an IP phone, your voice is compressed into a digital signal, broken up into packets sent to your internet router. These packets are sent over the internet via the most efficient path to the person on the other end of the line.

The switch from PSTN to IP is more than just a change in the standard that is necessary to keep the phones on. It’s a major move in digital transformation that brings business phone networks to the cloud and will allow businesses to use all the flexibility and insight that comes with it.

Many businesses have already embraced this new way of making calls, but those who haven't made the switch may wonder what benefits IP can offer.

Many businesses use their phone lines for more purposes than calls, with alarm systems being a notable example. When the PSTN switch-off happens in 2025, firms that rely on their legacy security systems could be left unprotected.

Luckily, IP is not only capable of fulfilling the same roles as the PSTN about alarm systems – it’s also a marked improvement. Because PSTN relies on establishing a direct connection via a copper phone line, alarms connected to the PSTN must first phone an alarm monitoring centre when tripped. This can lead to a delayed response by private security or emergency services.

In contrast, IP can establish a connection in seconds over the internet and simultaneously notify security personnel via notifications to their handsets.

Because IP is hosted in the cloud, it’s also a flexible and scalable solution. This is ideal if you’re looking to supply your startup with a phone system. Start with a few phones connected to the network and expand as your business grows, without needing additional connections to be installed.

We offer a range of packages to suit the needs of your business, covering the users on your phone system, the bandwidth, and extra features – ensuring that you only pay what you need while always having the option of expansion at hand.

As IP calls are routed over the cloud, those on the call can connect in a number of ways. Employees could dial in on an IP phone or their smartphone, but also through their laptop, desktop, or tablet. This means that calls can be both audio and video.

Additionally, BT has worked with Cisco to integrate the latter’s Webex package into its digital phone service offering, bringing high-quality video with automatic transcription to conference calls. Webex also lets users connect their calls to productivity apps like Microsoft Teams.

If you’re a business based in a number of locations, video conferencing can help your team feel connected, heard, and seen. With IP calling, employees can engage with meetings and client calls in the way that best fits the situation.

Whenever there is a change to a new way of working, business leaders will question whether the cost of switching outweighs the benefits. With IP calls, plans can cost as little as half as much from day one as they run over an internet connection, which most businesses already have. All you need to buy is the phones themselves.

In addition, IP services receive regular updates free of charge, a far cry from the slow and expensive maintenance cycles that businesses have endured with PSTN phone systems for decades.

Because IP phone services work over the cloud, businesses are no longer limited by physical restrictions for their phone systems. Remote working employees can be routed into the shared business network to ensure they’re just as productive in their home office as they are at their desks.

Calls can be automatically switched from an office handset to an employee’s business smartphone when they leave the premises. This ensures that businesses can continue to offer great customer service without being tethered to just one site at a time.

Another benefit of IP is the analytical insight that one can gather from calls made through the cloud. Businesses with IP phone systems can leverage data on calls made and received, and investigate detailed trends on customer and team metrics. This could be ideal for a company launching a new marketing drive via phone, providing easy-to-access data on how long customers stay on the phone on average and what times of day produce the best engagement.

On a larger scale, it can benefit businesses running call centres and IT support hotlines with real-time information on incoming calls, allowing managers to run their departments efficiently and ensure customers receive the best phone service possible.