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How to prepare for VoIP disrupting the telecom sector
Kay Takeaways- VoIP has been commercially available since 1996
- Since 2014, VoIP has grown from 10% of users to 40% of users
- Analysts estimate the technology will replace PTSN by 2025
- Traditional PTSN phones translate audio into electric signals, VoIP turns audio into digital signals that can be transmitted over the internet
- VoIP offers mobility, collaboration, and convenience at a lower cost than PTSN
- Telecom companies that want to stay relevant need to adopt VoIP technology
VoIP's rise in popularity
The first commercial VoIP application was surprisingly available in 1996, but at the time, fewer than 1% of users adopted the technology. To make calls, users had to listen to advertisements before, during, and after their conversations. Over the next 20 years, however, VoIP slowly gained ground as the technology's benefits began to outweigh its challenges. In 2014, cloud-based phones accounted for 10.7% of telephony installed-base users. Since then, the share of cloud-based users has grown dramatically each year. By 2020, VoIP users accounted for 40% of North American phone users, and analysts estimate that VoIP could replace PTSN completely by 2025.The advantages of VoIP
VoIP undoubtedly deserves the increased attention. The technology offers users and telecom companies a long list of advantages over traditional calling technology. In particular, VoIP ushers in the following benefits over traditional phone lines:- Lower cost: VoIP doesn't require expensive hardware or phone lines. As long as the end-user has a reliable internet connection and a device, the system just needs the right software. Additionally, users don't need to pay extra for long-distance or international calls, and making calls tends to be cheaper with VoIP than PTSN.
- Portability: With VoIP, employees can make calls from anywhere that appear to come from their business's landline. This is one of the reasons VoIP technology grew so much during the COVID pandemic as businesses shifted to remote workforces.
- Extra features: VoIP systems do more than facilitate calls. They are unified communication portals that can handle instant messaging and video conferencing as well. They also integrate with other business applications and come with features such as virtual receptionists.
- Maintenance: For telecom companies, shifting to VoIP instead of PTSN will save time and money on maintenance. These businesses will no longer need to worry about maintaining vulnerable phone lines.
- Easy setup: IP telephony lends itself to an easy setup process. Users don't have to worry about wires or cables, they just need to attach the phone or other device they want to use for calling to the internet and install the required software.
- Scalability: With traditional phone systems, you have to add new phones and extra lines and potentially change your subscription plan to add new users. In contrast, as long as you have the bandwidth, you can easily scale with a VoIP system.
