Only 25% of U.S. Homes Will Have Landline Telephones by 2015

Wired telephone service, also known as the Public Switched Telephone Network (PSTN), is seemingly nearing their extinction. This is thanks to the more economical and convenient Voice over Internet Protocol (VoIP) telephone option. Until recently, nearly every American home was connected to the PSTN, but by 2015, this option will see a 75% decrease. What does this mean for your business?

VoIP is a Better Option
VoIP is an excellent communications solution that uses an Internet connection to transmit and receive data packets that contain audio, video, and data. With a VoIP communication system, you can conduct telephone calls, video conferences, webinars, and even access your communication apps through your cloud solution. Can you see why this system may make PSTN extinct?

Not only does VoIP allow you to do all of these things, but it's all available at a fraction of the cost of the traditional phone line option. In fact, VoIP has been able to save businesses up to 80% on their long distance phone bills. To top it off, VoIP can also be paired with cellular phone technology, to centralize all telephone communication needs. With all of this in mind, it's easy to see why many businesses and consumers are scrapping PSTN solutions for the more functional and less expensive VoIP options.

Do They Care?
Strangely enough, it almost appears as if PSTN phone companies would prefer their customers to switch to VoIP. It seems as if they are not interested in adjusting their business models to stay competitive in the market. By choosing to keep their rates high and making little change, it's no wonder why this massive shift is occurring. In a recent article by Forbes, they testify to the observation that PSTN systems are seemingly committing suicide:

The endgame is now in sight. Even the FCC, which regulates the old network (in the US) ... has called for its quick and orderly retirement ... PSTN providers can't beat better and cheaper with worse and more expensive, especially when worse and more expensive has to stay that way as a matter of law. Something has to give, and regulators know it.

The truth is that many PSTN providers are in fact allowing the PSTN market to die. Many of these companies have shifted their focus from the market and have invested into developing other communication solutions, like cell phones.

The Future of VoIP
Upon the arrival of VoIP in the mid-2000s, PSTN providers didn't consider it a threat to their industry. They didn't realize VoIP's potential to handle the multiple communications demands of businesses, or how it could all be provided more affordably. Forbes further testifies about the power of VoIP; "Carriers large and small have now embraced the Internet as the only option to satisfy exploding demand from consumers, cloud-based services, and the coming data deluge of machine-to-machine communications known as 'the Internet of Things.'"

If your business is a current PSTN customer, you may want to re-evaluate your communications solution. Now that many businesses and residences are switching from PSTN lines, you'll want to keep up to date with the communications demands of your current and potential customers. If you'd like to learn more about the benefits of VoIP, like saving money and staying relevant, call Directive today at 607.433.2200.