For more than a century, the Public Switched Telephone Network (PSTN) carried nearly every business call placed around the world. It was the backbone of landlines, the technology that made it possible for call centers to exist at all. But with internet-based systems now widely available, companies face an important decision: stay with the traditional system or move toward Voice over Internet Protocol (VoIP).
What Is the Public Switched Telephone Network (PSTN)?
The PSTN is the classic landline network. It’s built on copper wires, switching stations, and trunk lines that connect neighborhoods, cities, and countries. When a call is made, the network creates a dedicated circuit between the two phones. That line stays open until the call ends, which is why conversations are consistent and rarely cut out.
Over time, upgrades like fiber cables and digital switches have been added, but the system still relies on physical infrastructure. People trusted this system for everyday calls long before digital networks arrived. In spots without strong internet, it continues to do that job.
PSTN Calling: The Dependable Legacy System
PSTN built its reputation on stability. Telephone exchanges carry their own backup power, so calls can still go through when the lights go out. That’s why 911 centers and emergency services continue to lean on the network.
Tracing calls is also straightforward, providing first responders with a reliable method to locate the source of an emergency. With uptime measured at 99.999%, the system earned a level of trust that newer technologies still work to match.
PSTN calling involves a dedicated circuit. Scaling up wasn’t just a software change; it meant pulling new wires and bolting in more gear. Voicemail and caller ID could be added, but anything beyond the basics quickly became complicated and expensive.
PSTN vs VoIP: Key Differences for Call Centers
VoIP changed the model by shifting voice traffic to the internet. Instead of holding a circuit open for the entire call, VoIP breaks speech into data packets and sends them over existing networks; a difference that reshaped how call centers think about cost, flexibility, and features.
With PSTN technology, businesses often pay installation fees, rental charges, and long-distance rates. VoIP runs on broadband connections already in place, so the cost is usually lower.
In terms of features, PSTN covers the basics. VoIP, on the other hand, comes with tools that help call centers work more smoothly, like conference calling, real-time dashboards, voicemail to email, and integrations with customer management software.
Scalability is another clear difference. Expanding a PSTN system requires technicians and physical lines. With VoIP, adding an agent often means setting up a new account or device, which can be done quickly.
That said, PSTN remains more resilient to power or internet outages, and its closed network makes it harder for outside parties to intercept calls. VoIP depends on bandwidth, so call quality can dip if the connection is weak. Security is also more complex, though encryption and monitoring tools have narrowed the gap.
For most call centers, VoIP offers the flexibility that PSTN can’t match, but the older system still carries weight where reliability and security are the top priorities.
Choosing Between PSTN and VoIP for Your Call Center
The choice often comes down to priorities. A call center that handles critical services may keep a handful of PSTN lines in place for emergencies. Businesses that expect to grow or rely heavily on digital tools usually find more value in VoIP.
VoIP makes it easier to add staff during seasonal peaks or expand into new locations. Since features can be layered in through software, teams also gain access to data and routing options that improve customer interactions. Platforms like a call center platform bring these tools together in one place, without the need for extra hardware.
Some organizations take a hybrid path, keeping PSTN for backup while shifting most daily calls to VoIP. This gradual approach lets them test the new system while holding on to the reliability of legacy lines.
Future Outlook: Is PSTN Being Phased Out?
Across the world, PSTN is on the way out. The Netherlands and Germany have already retired their networks. The United Kingdom plans to switch off by 2027. Other countries, including New Zealand and Denmark, have announced similar timelines.
In the United States, the phase-out is slower, but providers are steadily moving in that direction. Running two systems (analog and digital) costs more than focusing on all-IP networks. Maintaining copper lines is expensive, while demand for internet-based services keeps rising.
This shift means call centers should be preparing now. Moving to VoIP in advance avoids last-minute disruption and opens the door to digital features that support customer service, such as integrated tech support or advanced routing within call center services.
PSTN FAQs
Why are many companies transitioning from the public switched telephone system to VoIP?
PSTN is costly and difficult to scale, while VoIP lowers expenses and makes it easy to adjust capacity. The gradual shutdown of PSTN in many regions also makes migration a practical step.
How do call quality and security differ between PSTN vs. VoIP?
PSTN provides consistent call quality and operates on a closed system that is harder to intercept. VoIP depends on internet strength and requires safeguards against cyber threats, though encryption has made it much more secure.
Can a modern call center use both PSTN and VoIP together?
Yes. Hybrid setups are common. With session initiation protocol (SIP) trunking, PSTN and VoIP can work side by side, giving call centers the ability to keep some legacy lines while moving most traffic online.
Smitha serves as the CEO and CFO of TeleDirect, a premier 24/7/365 call center recognized among the Top 5 Call Centers by Forbes.com. A licensed CPA since 2007 through the California Board of Accountancy, Smitha brings over 20 years of expertise in business and finance to her leadership role.
As a results-driven executive, Smitha has a proven track record of driving profitability, fostering growth, and enhancing operational efficiency. Her strategic vision has not only improved customer satisfaction but also elevated employee engagement, creating a culture of excellence at TeleDirect. Smitha’s deep expertise in financial analysis and planning empowers her to develop innovative solutions that align the needs of clients, employees, and stakeholders.
Passionate about building lasting relationships and delivering exceptional results, Smitha remains dedicated to leading TeleDirect in setting industry benchmarks for quality and service.