PSTN Switch Off

Jan 21, 2024

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Openreach by BT is currently upgrading the outdated, analogue Public Switched Telephone Network (PSTN) to a faster, full-fibre digital network.

By the end of December 2025, any business or home phone call will instead be hosted over Internet Protocol (IP). Named the ‘Big Switch Off’, the move has big implications for any firm using broadband in its operations. In today's world, that's pretty much everyone.

To prepare for the change, all existing phone systems and older internet connections – including any used by hardware like card machines and CCTV – will need to transition to an IP mode.

The later you postpone the shift, the more complicated and costly the process will become – especially if you don't leave enough time to research the right provider.

In short, the Big Switch Off might not be happening until 2025, but the preparation starts now. This guide will outline what the change means for small businesses, what the risks and opportunities are, and how to get ready.

PSTN, which stands for Public Switched Telephone Network, is the traditional telephone network that first facilitated calls across the UK in 1875.

Exactly 150 years later, BT Openreach has decided the equipment is too old to stay in use. The company has already begun work on upgrading the old copper wires that currently make up the PSTN.

Over the next two years, Openreach will swap these wires out for fibre-optic cables as part of the so-called Big Switch Off. Simply put, it's bye-bye landlines, and every home and business in the UK will instead be moved onto a digital network.

As a result, telephone lines that aren't running over the internet through IP will no longer be supported by the UK networks from the year 2025, onwards.

Other companies with their own networks, such as Virgin Media, plan to follow a similar timescale.

The ISDN was introduced to the PSTN in 1986 by BT to transmit data that the PSTN couldn't facilitate previously, like video calls.

However, the ISDN is now outdated and only available in older teleconferencing systems and similar legacy systems.

Because fibre optic cables ensure a stronger internet connection, IP telephone systems are a high-quality method for calls than ISDN. This gives users:

Any business that currently uses ISDN in its operations will be affected by the Big Switch Off, which is why it's important that every firm starts preparing for the change by upgrading their business telephone system.

The Big Switch Off will essentially shutdown all technologies currently running through the ISDN, such as:

Once the PSTN has been turned off, businesses will lose all service if they are still using legacy products connected to ISDN.

Sara Sheikh is the head of product management at Gamma, a telecommunications provider. Sheikh predicts that the Big Switch Off "will have far-reaching implications for every industry".

Brick-and-mortar businesses are not immune from the change. "Retail, hospitality, and other customer-facing businesses will need to update their systems to ensure that they can still provide quality customer service," Sheikh clarifies.

To lay the groundwork for the Big Switch Off – and take full advantage of better connectivity – UK organisations should purchase or upgrade their existing broadband package to a VoIP (Voice over Internet Protocol) subscription.

For firms that have ISDN telephone lines at present, now is the time to shop around from the top business telephone providers to find the best small business VoIP system.

If you want to stick with your current provider, start a conversation with their customer service team now about the options available. Should you need to buy new equipment, like a new router, your provider should be able to arrange this.

Card machines and other hardware is a different story. If your machines still connect to a physical telephone line, we would recommend finding a unit that uses WiFi.

Don't feel confused if you’ve only just heard about the Big Switch Off. A recent Which? survey shows that 74% of consumers with a copper landline connection are unaware of the migration.

That said, Openreach has already begun the copper switch off in some locations, which means anyone who hasn't already upgraded their service is now playing catch-up.

Kristian Torode is the director and cofounder of the business telecoms provider, Crystaline. He says SMEs must make the move early enough to ensure a seamless transition.

"There could be some interruptions to services as businesses scramble to upgrade," Torode cautions. "There are over 25 million connections to be switched over by 2025. Making the switch sooner rather than later will be essential."

The risks for businesses of not switching to a VoIP system in time include:

By switching to VoIP, which uses the internet to transmit data, business owners will be able to take advantage of the opportunities that fibre optic offers SMEs.

Tom Grange is the head of connectivity at Bionic, a business broadband provider. Grange explains, "The service is quicker and more adaptable than copper and ISDN lines. Calls can be made from smartphones and laptops from wherever you are, with high-quality sound."

The benefits include:

There will not be an option for businesses to continue on the PSTN. From September 2023, if you can get Full Fibre, Openreach will not let suppliers order any new broadband or phone services that rely on the old copper network.

This means they will no longer sell any more legacy products using ISDN. Current equipment will continue to work for at least another two years, but this infrastructure will not support calls without a separate VoIP service.

However, while the move might be inevitable, now is still a good time to audit your current telecommunications strategy. You might be able to save money by getting rid of any products that aren't being used.

Duncan Shaw, the director at Connectus, a tech firm, recommends that SMEs don't see the switch-off as a straightforward process of replacing what they have today. "Consider how you want to make communications work for you to maximise your ability to reach customers."

By example, if you have a hybrid workforce, it might make more sense to purchase business mobile phones than upgrade to a brand-new telephone system.

"It's vital to take informed decisions, remove risk, and minimise the complexity from the process," says Shaw. "This, in turn, will help you to control costs."

While migrating any existing business technology is always stressful, it's important that SMEs recognise the huge opportunities that the Big Switch Off presents – not just the challenges.

Transitioning to a VoIP subscription as soon as possible will give business owners access to a much cheaper and more powerful call infrastructure. IP systems give firms access to high-quality lines, which can boost productivity and help ensure a seamless customer experience.

To get ready for the change, small businesses should begin their research now. Start by comparing quotes with our simple cost comparison webform to find the best VoIP provider for your budget.

It's entirely free and will recommend the most suitable VoIP system for you based on details, like telephone line, user needs, and feature requirements.

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Helena is a Senior Writer at Startups. As resident people and premises expert, she's an authority on topics such as business energy, office and coworking spaces, and project management software.With a background in PR and marketing, Helena also manages the Startups 100 Index and is passionate about giving early-stage startups a platform to boost their brands.From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK.