VoIP (Voice Over Internet Protocol) transmits real-time voice signals from one IP address to another. Your voice signals are transmitted in digital form over the Wi-Fi or Ethernet through an analog telephone adapter or a softphone. The VoIP calls can be made from one phone to another or from a computer to a phone.
Public Switched Telephone Network (PSTN), on the other hand, uses circuit-switched telephony between two points for the duration of a call. It is the traditional telephone system that carries analog voice data via copper wires. Today, this voice data is digitized but it's carried over the phone network and it's separate from the internet traffic. PSTN is like a combination of telephone networks spread worldwide and this includes not just telephone lines but cellular networks, switching centers, cable systems, and fiber optic cables. These lines h elp telephones to communicate with one another.
Let's have a look at the difference between VoIP and PSTN:
VoIP uses the internet to connect but PSTN uses a landline. Both have their own connectivity perks. With VoIP, you can make a call anytime as long as you are connected to the internet. With PSTN, you can only connect if you have a landline.
VoIP is a highly customizable phone system. PSTN, on the other hand, is structured with copper wires. Your voice is transmitted through these copper wires to complete the call. With VoIP, your voice is converted into data packets and transmitted via the internet. VoIP lets you add new phone numbers, extensions, and devices on a single service. It is very scalable and you can easily make it grow as your business expands.
VoIP offers features such as call hold, call forwarding, voicemail, Do Not Disturb, follow me/find me, etc. Other than this, you get mobility, call management, and collaboration features. There is even a feature called auto attendant that helps you route calls to the right department based on the information provided by the caller. All these features can be used by a business to improve its customer services. A PSTN service only lets you make and receive calls; it hardly has additional features.
VoIP is more affordable as compared to a PSTN. Your VoIP phone bill will solely be determined by the type of calling plan you choose. For instance, with Axvoice, you have different residential, business and international calling plans, so choosing wisely could make you save hundreds of dollars, monthly. Even with an extensive feature list, a VoIP is still cheaper compared to the standard PSTN since it uses your existing internet connection to place calls. Plus, if there is anyone else using the same VoIP phone system as yours, the calls will be free regardless of their location. No wonder why even the small business owners choose to get the VoIP phone services for telecommunication.