Why Traditional Phone Systems Are Becoming Obsolete

If you’re unhappy with your business phone system, you aren’t alone. In fact, legacy phone systems will soon be a thing of the past.

Traditional phone systems are quickly becoming obsolete and being replaced with newer technology that offers benefits to both customers and phone carriers. In this post, we’re going to look at why traditional phone systems are becoming obsolete and how you can easily upgrade your business phone system.

Why Are Traditional Phone Systems Becoming Obsolete?

There are several reasons why traditional phone systems are becoming obsolete. Ultimately, landline phone service is becoming outdated and expensive, while modern systems offer more mobility and features without needing the physical infrastructure of landline service.

Here’s a breakdown of what has contributed to the downfall of landline systems.

The Rise Of Cell Phones

While cell phones were commercially available in the 1980s, these portable devices really caught on in the early 21st century. As cell phones became more advanced and plan pricing more affordable, more people began to use cell phones — with many eventually getting rid of their landlines altogether in favor of the mobile phone.

A survey conducted by the Centers for Disease Control and Prevention shows just how much landline usage has declined through the years. In 2008, over 80% of households surveyed had a landline phone. During the same period, less than 20% of surveyed households had a cell phone only.

Compare this to 2022, when less than 29% of households had a landline phone and nearly 71% had a cell phone only. This can likely by attributed to the mobility of cell phones, available features, and competitively-priced monthly plans.

The High Cost Of Landline Infrastructure

Landline phone systems rely on physical infrastructure to operate. While the technology was advanced at the time it was implemented and for decades afterwards, this infrastructure is now old, outdated, and deteriorating.

The cost of repairing, maintaining, and installing landline infrastructure is time-consuming and expensive. Telephone companies aren’t simply shouldering these high costs. Instead, many of these costs are passed along to the consumer.

Instead of simply focusing on this dated infrastructure, many carriers are switching to more cost-efficient options, such as fiber optics. Verizon Fios, AT&T, and Cox Communications are just a few of the companies that have opted to upgrade their landline phone service offerings.

The Introduction Of VoIP

Voice over Internet Protocol (VoIP) was made commercially available in 1995. In these early days, VoIP allowed users to make and receive phone calls through computers connected to the internet. Today, VoIP is transforming business phone systems in a variety of ways.

While we won’t get too into the weeds about how VoIP works, here’s a quick breakdown.

When speaking into a phone receiver, your voice is captured as an analog audio signal, which is converted into digital packets. These packets are routed through the network and are converted back into an analog signal before reaching the person on the other end of the line. All of this is done through an internet connection.

This is in contrast to traditional landline service, which uses physical infrastructure (copper wires, switches, etc.) to connect callers.

To break it down in a less technical way, just know this: VoIP utilizes the internet for phone calls, while landlines rely on outdated infrastructure — that infrastructure that’s difficult and expensive to maintain.

So, what does this mean for you? This means that VoIP provides clear, reliable phone service that’s extremely affordable. It also means that you get to take advantage of great VoIP features you won’t find with your landline system — things like social media management, detailed reports and analytics, and more.

The Switch-Off Of PSTN

Finally, the switch off of the Public Switched Telephone Network (PSTN) is signaling the end of landline systems. PSTN  — the landline network simply known as “Plain Old Telephone Service” or POTS — is set to go offline by the end of 2025 in the United States.

While this date may change (the UK, for example, extended the timeline to 2027), carriers are making the move to IP phone systems that operate through an internet connection.

Remember in 2009 when analog TV broadcasts ended in favor of digital? It’s the same concept here. Old analog telephone systems are being replaced by digital VoIP services.

Next Steps To Upgrade Your Phone System

Once PSTN is shut off, businesses with analog systems will need to sign up for VoIP. But given the challenges of outdated phone systems, you may want to switch sooner.

The great news about VoIP is that plans are available for every budget, getting set up is easy, and you’ll have access to features that you didn’t have with your old phone system.

Similar to how analog TVs needed digital converters, analog equipment can be used with VoIP service provided you have an analog telephone adapter (ATA).

IP phones designed specifically for use with VoIP are also an option, as well as apps that can be downloaded to your smartphone, tablet, or computer.