What are VoIP and PSTN? What’s the Difference?

VoIP, or Voice over IP, was created in order to afford more convenience to people all across the world. It works by using a public Internet connection or private Internet Protocol (IP) network to make phone calls or conduct teleconferences with a desktop, laptop, tablet, VoIP phone or with a traditional phone with a special adapter. The calls can go to other computers, cell phones and even landlines.

VoIP makes teleconferencing seamless.

VoIP transforms your voice into a digital signal (called data packets) and transmits these packets over the existing Internet connection or IP network. Unlike phone calls made with the PSTN, or Public Switched Telephone Network (sometimes referred to as POTS, or Plain Old Telephone Service), the calls made by VoIP are transmitted over one Internet connection. PSTN sets up a dedicated circuit through copper wires for each call.

 How Can VoIP Help Your Business?

More and more businesses, small, moderately-sized and large, are utilizing VoIP services. Smart businesses know that doing this can greatly help their operations.

  • Save money. On the PSTN, you’re technically paying for each minute you are speaking on the phone. Additionally, if you want to make an international call, the prices get much steeper. Because VoIP uses the Internet, it’s much cheaper than the traditional phone line. You can even make international calls with no extra costs associated. What’s more, features that usually cost extra with PSTN such as caller ID and call waiting are typically standard with a VoIP service. You could be saving your business upwards of $20,000 per year if you switch to a VoIP service. In turn, you could invest that money back into your employees or into upgraded equipment.
  • Increase productivity and mobility. Today’s worker is certainly different from one of even 15 years ago. Today, they travel for conferences many times a year or go to offices in different states or even countries. Some workers even partly or fully work from home. The Internet is a beautiful thing that can afford us more and more opportunities as it becomes more advanced. Because VoIP utilizes a single network, it’s that much easier to work from home, the office, in the airport or in a hotel. Just because a worker is traveling doesn’t mean he or she has to fall behind on work.
  • Make your employees’ lives easier. When your employees’ lives are easier, then the overall productivity of the business is increased, which makes your life easier. VoIP often takes special features to another level. For example, many VoIP services give clients the option to also attach an audio file of a voicemail into an email. This likely will make it to the appropriate person faster, as most workers today are constantly checking email. Find me/follow me is another great feature that can cut down on playing the all too time-consuming phone tag game with clients. This allows a person to set up a list of numbers where he or she can be reached. For example, the office number would be the primary number. If your employee is out of the office, then after two or three rings, that person’s cell phone would start ringing instead of sending the call to voicemail. 
VoIP’s find me/follow me feature can make it easier for your employees to stay connected, no matter where they are.

VoIP can be a great productivity-increasing, mobility-allowing and money-saving option for your business. Do you have any questions about VoIP that weren’t covered in this article? Please click below to contact us today!