Voice Over Internet Protocol (VOIP) industry is predicted to reach approximately USD 55 billion worth by 2025, according to a report by 2019 Global Market Insights, Inc.
Considering that the industry was worth around USD 20 billion in 2018, this growth is remarkable.
Innovation by the VOIP industry, as well as improved internet connectivity, is driving this trend.
PSTN vs VOIP: How do they differ?
Let’s briefly go over how VOIP is different from traditional telephones before we begin exploring the reasons why the telecommunications industry is undergoing this change. The telecommunications industry was originally built on the foundation of the Public Switched Telephone Network (PSTN). When you dial a phone number, the beeps that you hear represent signals that are carried through a physical network, such as wires. The signals enter the local exchange where they are translated, and the recipient of the call is identified. The signal often goes through several networks and switches, especially if the distance is long.
This is the core reason why international calls are expensive, as they need physical infrastructure that requires a financial investment.
On the other hand, VOIP does not require such a process. The audio is quickly transformed into data packets whenever you make a call. The internet then carries these packets to the call recipient. The process of conversion to data packets happens just the way you send or receive all forms of information online.
Shifts in the telecom industry
Part of the reason why the telecom industry is undergoing such a drastic change is that VOIP services offer features that traditional telephony does not. Similarly, traditional telephones, whether wireless or landline, require the establishment and maintenance of costly physical infrastructure, while VOIP only needs an internet connection.
Another important reason for the growth of the VOIP industry is because of the increased global reach of businesses and changing working models. The gig economy is growing, and the changing nature of business requires organizations to retain the ability to communicate anywhere in the world at a moment’s notice.
Even government bodies are beginning to recognize that traditional landline will ultimately need to be replaced by better technology such as VOIP.
A report by UK’s Ofcom predicted that “during the next few years these broadband-based call services will become more common, as the PSTN is reaching the end of its life and becoming increasingly difficult and costly to maintain. Major landline providers will offer VoIP products delivered over broadband to their residential customers before the PSTN is retired completely.”
“It is industry-led, and decisions to retire the PSTN lie with the companies. This means that the switch to phone calls over broadband will be undertaken by different companies, at different times, and in different locations depending on their plans,” Ofcom emphasized.
“This change is not unique to the UK and many countries around the world have completed, or are in the process of, a similar transition,” the report added.
Advantages of VOIP
VOIP offers far more benefits in almost every way as compared to PSTN. In terms of connectivity, VOIP does not require public bodies or private companies to establish and maintain physical infrastructure, only the internet is required. Similarly, expanding and upgrading PSTN requires financial investment, but for VOIP, the upgrade can happen with a simple software update.
Many of the features available on VOIP, such as call waiting or call forwarding, are generally part of the package. On the other hand, such features require extra costs on PSTN.
Perhaps the most powerful advantage VOIP has is that it is simply much cheaper to operate. Companies can save up to 60% of their costs by shifting to VOIP. Most businesses nowadays need to stay in touch with their international clients, and PSTN is just too expensive for that purpose. Remote working is also a new trend, so managers need to stay in touch with such employees, too. Major telecommunication companies are already moving to VOIP services because advances in internet technologies, such as 5G networks, remove obstacles for VOIP such as internet speed.
Planning to shift?
If you are planning to switch to a VoIP service, one such solution is Axvoice. It offers incoming call features such as caller ID, calls Filtering, calls blacklisting and simultaneous ring.
Similarly, its outgoing services have features such as caller ID blocking, conference calling, and advanced 911 support.
Music on hold and access to multiple codecs to save up on internet data packages are some other offerings of this VoIP service.
The service also provides a dedicated web portal through which you can check call logs. Other advanced features include facilities such as failover management in case the internet is disconnected and free in-network calls. You can also download the softphone support app and make calls via another device while using Axvoice’s original package.
There are further benefits for businesses too, such as quick, hassle-free installment, shifting your original contact number to the service, and using the free in-network calling feature for communication within the organization.
Axvoice is quite affordable too, with the business plan coming in at USD14.99 a month. For an additional sum, you can also opt to get virtual numbers and even a toll-free number. These offerings and other packages are highly suited for small and large businesses alike.
The telecommunications industry is changing, and VOIP technology is all set to replace older PSTN systems currently in place.
It is not about if, but when, and the reasons are rather obvious.
The technology is more superior, and the features are much better. For businesses, there are added benefits and significant savings on communication costs. There are already services available in the market that cater to the communications needs of businesses. For companies that wish to cut down on expenses, VOIP is the way to go.