PSTN vs UCaaS: Which is right for your company?

Business communications have evolved rapidly over the past decade. Conference calls have been replaced by video meetings and many enterprises have moved from on-premise private branch exchange (PBX) to unified communications as a service (UCaaS). This does not mean, however, that PBX and public switched telephone networks (PSTN) are completely redundant.

Choosing between PSTN and UCaaS depends on your communications goals and strategies. Telephone networks still play an important role in enterprise communications. According to a global study of over 400 companies, conducted by Metrigy, nearly one-third of businesses still use on-premise calling platforms. This is largely due to costs and the perceived reliability of on-premise PBX.

Many of the companies that still use PSTN communications do so through third-party carriers that offer direct routing services. Essentially, choosing PSTN over UCaaS comes down to reduced costs. About 70% of businesses surveyed by Metrigy state that cost-savings are the top reason for sticking with PSTN and PBX voice services.

Budget and finances play a major role in determining which communications solutions are best for a business. SEACOM offers cloud-based PBX voice services and UCaaS to companies in South Africa. We can help you find the ideal communications solution for your business.

Differences between PSTN and UCaaS

PSTN represents the traditional telephony infrastructure that has been around for years. It relies on physical copper wires to transmit voice communications over a network of circuit-switched telephone lines. PSTN offers stability, reliability and familiarity to businesses.

UCaaS, on the other hand, is a cloud-based service that combines various communication tools and technologies into a single platform. It offers a range of features, including voice calls, video conferencing, instant messaging, presence indicators and collaboration tools. UCaaS leverages internet connectivity to enable seamless and flexible communication experiences.

Advantages of both technologies

PSTN is known for its reliability, even during power outages or internet disruptions. It provides uninterrupted connectivity for voice communications. It offers compatibility – since it is widely used and accepted, it is compatible with a variety of analogue devices such as fax machines and traditional desk phones. PSTN also ensures high-quality voice calls with minimal latency or audio disruptions.

UCaaS allows businesses to scale their communication capabilities up or down based on their needs. It offers flexibility in terms of geographic location and device compatibility, enabling remote work and collaboration. UCaaS might be more costly initially, but it eliminates the need for on-premises equipment and maintenance costs. It operates on a subscription model, reducing upfront capital expenditures. UCaaS also includes robust collaboration tools like screen sharing, file sharing and virtual meetings, enhancing team productivity and communication.

Choosing the right technology for your business

Deciding between PSTN and UCaaS depends on various factors that are unique to each business. Here are some considerations to help you make an informed choice:

Business size and structure - Larger organisations with multiple locations and remote employees might find UCaaS more suitable for a distributed work environment.

Budget and cost-effectiveness - UCaaS typically requires an initial investment for the migration to the cloud and ongoing subscription fees. However, it can lead to long-term savings by eliminating the need for on-premises infrastructure and maintenance costs. Smaller businesses with budget constraints might prefer the cost-upfront model of PSTN.

Connectivity and reliability - Consider your business's connectivity requirements and the level of reliability needed. If your business operates in an area with unstable internet connectivity, PSTN might be a more dependable option.

Future growth and scalability - Evaluate your business's growth plans. If you anticipate expansion, remote working or increased collaboration needs, UCaaS provides the scalability and flexibility required to adapt to changing circumstances.

Integration and compatibility - Assess your existing communication infrastructure and determine if it can be seamlessly integrated with UCaaS or if PSTN compatibility is crucial for specific devices or applications.

Selecting the right communication technology, whether PSTN or UCaaS, requires a thoughtful evaluation of your company's unique needs, size, budget, connectivity requirements and growth plans.

SEACOM is available for consultations to help you make an informed decision and implement the ideal communication technology that aligns with your company's goals and aspirations. For more information about our communications services or to get a quote, email us at marketing@seacom.com or leave us a message.

SEACOM owns Africa’s most extensive network of information and communications technology (ICT) infrastructure, including subsea cables and secure internet connections. We offer a diverse range of flexible, scalable and high-quality solutions for businesses that meet world-class standards for connectivity.

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