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Is your business under pressure as the traditional PSTN network switches off? Although you know you need to replace your old landlines to keep your business connected, figuring out the right PSTN alternative feels overwhelming. Look, there's no perfect answer, and options like VoIP, SIP trunking, and mobile solutions each have their unique challenges and considerations to navigate.
As a comms and connectivity solution specialist at Babble, I'm going to cut through the jargon and give you advice based on what I see happening with businesses like yours every day. From cloud solutions to SIP trunking, and everything in between, I've been working with these technologies for numerous years and will walk you through the viable options for replacing your old landlines.
In this article, we'll get into the brass tacks of your options: unpacking the pros and cons of VoIP, SIP Trunking and mobile solutions, covering cost considerations, benefits and features. By the end of reading this, you'll be in a position to evaluate which option is right for your business.
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What This Blog Covers:
- Understanding VoIP and SIP Trunking and Mobile Solutions
- Your Options for PSTN Replacement
- Cost Considerations
- Benefits and Features
- Which Option is Right for Your Business?
Understanding VoIP, SIP Trunking and Mobile Solutions
In a nutshell, VoIP (Voice over Internet Protocol) is simply making and taking phone calls using your broadband connection instead of old analogue or digital lines like PSTN and ISDN. This of course makes it dependent on an internet connection.
Interested in finding out more about VoIP in particular? Check out this blog for a deeper dive.
Now, SIP (Session Initiation Protocol) gets a little more into the nitty gritty of how phone systems work – but fret not, we'll keep things simple. SIP trunking is essentially a way to make phone calls over your internet connection using a "trunk" that connects either to a physical phone system you have on-site or a cloud-based version of one.
Lastly, we're seeing more and more businesses using softphone apps on their mobiles instead of desk phones – especially with the rise in remote work. What this means is that employees no longer need to be chained to their desks to make and receive phone calls, and can do so from wherever they please (as long as they have a stable internet connection). They'll be making and receiving calls on their personal devices, but still show a landline number when they call. They can get calls to their landline number on their mobile, too.
Think of it this way: there are phone systems that use SIP to make those internet calls, and then there are what we call UCaaS – Unified Communications as a Service – which are generally cloud-based systems. So, when you're ditching the old analogue lines, you're often looking at either a SIP-based system or going completely cloud-based.
While we at Babble are keen on our cloud solutions like Evolve and Gamma Horizon, we've got loads of customers still running their own physical phone systems and using SIP trunks to connect them. Although SIP trunking could be looked at as a kind of "happy medium" for businesses who aren't quite ready to get rid of their physical gear just yet, the world is becoming increasingly cloud native. So, we generally guide those customers towards the cloud because it just offers so much more flexibility – more on that in a second.
Your Options for PSTN Replacement
Although we're advocates for cloud-based communications, we understand that not every solution is for every business. And with the PSTN switch-off being heavily underway, we're going to lay out all of the viable options for replacing your old landlines. Let's have a look at the pros, cons and key considerations of SIP trunking, cloud-based VoIP and mobile solutions to give you a more holistic view before making a decision.
Option 1: On-Premise PBX with SIP Trunking
As mentioned earlier, SIP trunking connects your physical phone lines to the cloud. In other words, you'd be keeping your existing physical phone system on your premises and connecting it to the outside world using SIP trunks over your internet connection.
The Pros of On-Premise with SIP Trunking:
- Cost-Effective Calls: Generally, SIP is more cost-effective than traditional lines. This may come as a bit of a surprise when you think of all that it does, but with old landlines, you're paying for the line rental plus all your call charges. On the other hand, with SIP, the call costs are usually bundled into the price of the SIP trunk.
- Quicker Capacity Additions: If you need to handle more calls at the same time (i.e., more SIP trunks), it's usually quicker to add capacity. This means adding a license rather than waiting for new physical lines to be installed.
- Potentially Lower Ongoing Costs: If you've already invested in a physical phone system, the ongoing per-month costs for SIP trunks can sometimes be lower than the per-extension costs of a cloud-based system.
The Cons of On-Premise with SIP Trunking:
- Potential Initial Cost: If your current phone system isn't IP-ready or SIP-compatible, then you'd need to upgrade your system and buy the necessary SIP licenses, which, of course, come at a cost.
- Less Agility: With a physical system, adding users or features requires working with physical hardware. This is far less agile than adding and removing users and other bits "over the air" than you would on a cloud system.
- Physical System Maintenance: Given that the physical phone system hardware is on your premises, you are responsible for maintaining it. (Your provider could always assist, but they would need to be called out for a site visit instead of just logging into your system.)
Key Considerations for On-Premise with SIP Trunking:
- Check SIP Compatibility: If you've got a phone system sitting in your office right now, find out if it can work with SIP trunks. This will tell you if you have to get a whole new system to move away from PSTN.
- Budget Structure: Consider your budget and business needs. You may like the sound of this option, but it shouldn't break the bank. An on-premise PBX with SIP trunks often means higher upfront costs (CapEx) but potentially lower ongoing running costs (OpEx).
- Network Readiness: Although this isn't as critical as it is for new VoIP handsets, you still need a network that is stable and sufficient enough to carry voice traffic.
Option 2: Cloud-Based VoIP (UCaaS)
This option entails becoming cloud native and moving your entire phone system to a cloud-based service managed by a provider, which is what we in the Comms & Connectivity biz refer to as UCaaS.
The Pros of Cloud-Based VoIP:
- Agility and Scalability: I'd say that the biggest advantage here is agility and scalability. Cloud-based solutions of any kind are designed to evolve right alongside your business. Unlike SIP trunking, adding users or features is all done remotely by having a chat with your provider. This way, things can be sorted quickly and don't require fiddling with physical equipment.
- Quick Changes: If you have the know-how, you might even be able to make some tweaks yourself through a web portal. If not, the provider's support team can handle it much faster than waiting for an engineer to show up. Setting up and changing call routing when someone rings your main number is much easier than with a physical system.
- Lower Upfront Costs: The upfront cost for a cloud system is usually much lower because you're not buying and maintaining a physical PBX. This often means lower upfront costs (CapEx) and more bang for your buck.
- Instant Access to Features: UCaaS platforms generally offer a wide range of features like auto-attendant, call recording, and integration with other software, like customer relationship management (CRM).
The Cons of Cloud-Based VoIP:
- Potential Cabling Issues: A common issue, especially in older buildings, is inadequate network cabling. New VoIP handsets need data points on your network, and the current cabling often doesn't have enough. As Will previously mentioned, the infrastructure in the UK was originally built just for computers, not phones. But remember, this is exactly what the PSTN switch-off aims to resolve.
- Potentially Higher Ongoing Costs: Cloud VoIP often has a per-extension, per-month cost. This can sometimes make the ongoing costs higher than a SIP-based system, where you've already bought the physical phone system. So, while the upfront costs (CapEx) are generally lower, this often means potentially higher ongoing running costs (OpEx).
Key Considerations for Cloud-Based VoIP:
- Network Infrastructure: Take a good look at your current network setup. How many data points do you have? Do you have spare capacity on your network switches? What's your broadband speed like? If your broadband isn't up to scratch, you might need to hold off until you can get fibre or a dedicated leased line. Older buildings often lack the data points needed for modern VoIP phones.
- Budget Structure: As always, go back to your budget and take a moment to evaluate the upfront and ongoing costs involved.
- Essential Features: Make a list of the features that are must-haves for your business communication. Ensure the cloud provider offers everything you need before officially switching over.
Option 3: Mobile Solutions (Softphones)
Bring Your Own Device (BYOD) is quite popular amongst SMBs – and it makes perfect sense when you think about the flexibility it gives remote teams to get their work done. This approach involves leveraging softphone applications on mobile phones to replace traditional desk phones entirely.
The Pros of Mobile Solutions:
- Work from Anywhere: This is a great solution for remote and hybrid teams. It also allows users to make and receive calls on the go.
- Maintain Business Identity: When making calls, users can still present the business landline number, so the customer would think they're sitting at their desk.
- Significant Cost Savings: By employees using their own mobile devices and not needing desk phones, you'll be saving on the initial hardware investment like data cabling for phones and on-site installations.
Key Considerations for Mobile Solutions:
- Suitability: Assess whether this approach meets all your business's communication needs. Does everyone in the business only need a softphone, or do you need more features?
- Costs: The main costs will be the software licenses for the softphone apps and possibly mobile data plans for those who don't always work from the office.
- Network Reliance: Like making a "normal" phone call, the performance of the mobile solution relies heavily on the mobile network quality and data connection.
Cost Considerations
You may have noticed that I've mentioned cost across all three options. That's because I've been in the business long enough to know that it's always a big factor (understandably so).
In summary, here are the cost considerations for each option:
- An on-premise PBX with SIP trunks often means higher upfront costs (CapEx) but potentially lower ongoing running costs (OpEx).
- Cloud-based systems are usually the other way around: lower upfront costs (CapEx) but potentially higher ongoing running costs (OpEx).
- Going mostly mobile can cut down on the initial hardware investment, but there are other costs involved, like data and software licenses.
So, when you go back to your budget, look at how your cash flows, too. Are you looking to keep the initial investment as low as possible, or are you more focused on minimising what you spend each month? This will point you towards the right solution.
Benefits and Features
Costs aside, you also want to make sure that the PSTN replacement option you go for meets your business's current and future needs. When it comes to features and what you can do, both VoIP and SIP trunking offer a lot more than traditional PSTN and just using mobiles alone. However, it really depends on what your business needs. Sometimes there isn't a cost saving compared to your current setup, and you might even end up paying a bit more. But that isn't necessarily the end of the world if you get to keep your customers happy and keep your competitive edge.
Make a list of the features that are must-haves for your business communication (things like auto-attendant, call recording, and integration with your other business software). Then, see which of these options ticks the most boxes.
Which Option is Right for Your Business?
Whether you decide to walk through Door Number One, Two or Three, there is no right or wrong answer here. The "best" option hinges on your unique business setup, your current IT infrastructure, and what you're trying to achieve.
As we've discussed, you need to consider:
- Your current IT infrastructure, especially network cabling and broadband speed.
- Your budget structure and cash flow (CapEx vs. OpEx preference).
- The essential features your business relies on.
- Whether physical desk phones are necessary or if a mobile/softphone approach is feasible (which is usually the case).
Making the Right Decision for Your Business
Now that we've dug into the different viable options for replacing your old landlines as the PSTN network gets switched off, you now have a better understanding of VoIP, SIP Trunking, and mobile solutions.
While I've given you the key factors to consider as you make your decision, it's rarely that simple. I'm here to help you navigate this decision and find the perfect fit for your business.
Now that you’ve got your PSTN replacement options laid out on the table, it’s time to talk about upgrading your legacy system. We’re offering 12 months free of Gamma Unified Comms. Click here to find out more or book a readiness assessment!
