Telecoms9 min read

VoIP vs Traditional Phone Systems: What UK Businesses Need to Know

With the PSTN switch-off approaching, UK businesses need to move to VoIP. Here's what you need to know about costs, features, and migration.

Published 25 January 2026

The UK Phone System Revolution

If your business still uses traditional landlines, you need to act. Openreach is switching off the Public Switched Telephone Network (PSTN) by December 2027. After that, traditional phone lines simply won't work.

This isn't a scare tactic—it's infrastructure reality. The copper network that's carried phone calls since the Victorian era is being retired. Everything moves to digital.

The good news? VoIP (Voice over Internet Protocol) phone systems are cheaper, more flexible, and packed with features that traditional systems can't match.

How VoIP Works

Traditional phones send voice as electrical signals over copper wires. VoIP converts voice into data packets sent over your internet connection—the same way you'd stream a video or send an email.

You need:

  • A reliable broadband connection (minimum 1Mbps per concurrent call)
  • VoIP phones (desk phones or softphone apps)
  • A VoIP provider (who routes your calls and provides features)

That's it. No expensive PBX hardware. No telephone engineer visits. No line rental to Openreach.

Cost Comparison

Traditional System (10 Users)

  • PBX hardware: £2,000-£5,000
  • Desk phones: £80-£150 each = £800-£1,500
  • Line rental: £15-£25/line × 4 lines = £60-£100/month
  • Call charges: £50-£150/month
  • Maintenance: £200-£500/year
  • 5-year total: £12,000-£20,000

VoIP System (10 Users)

  • Hardware: £0 (use existing phones or softphones)
  • IP desk phones (if wanted): £50-£100 each = £500-£1,000
  • Monthly subscription: £8-£15/user = £80-£150/month
  • Calls: Often included or heavily discounted
  • Maintenance: £0 (cloud-managed)
  • 5-year total: £5,000-£10,000

VoIP typically costs 40-60% less than traditional systems.

Features You Get with VoIP

Standard Features (Usually Included)

  • Voicemail to email: Missed calls sent as audio files to your inbox
  • Call forwarding: Route calls to mobiles when out of office
  • Auto-attendant: "Press 1 for Sales, 2 for Support..."
  • Call recording: Essential for training and compliance
  • Hold music: Professional image while customers wait
  • Call queues: Manage busy periods without engaged tones
  • Video calling: Built-in to most VoIP systems
  • Mobile apps: Take your business line anywhere

Advanced Features (Often Included or Low Cost)

  • CRM integration: Caller info pops up automatically
  • Microsoft Teams integration: One platform for calls and collaboration
  • Analytics: See call volumes, wait times, missed calls
  • Call whisper: Managers can coach staff during calls
  • IVR (Interactive Voice Response): Sophisticated call routing

With traditional systems, many of these features require expensive add-ons or aren't available at all.

The PSTN Switch-Off: What You Need to Know

Timeline

  • Now: Openreach has stopped selling new PSTN lines
  • September 2025: Stop-sell on all legacy products
  • December 2027: Full switch-off—PSTN lines stop working

What's Affected

  • Traditional landlines
  • ISDN lines
  • Alarm systems using phone lines
  • Payment terminals using phone lines
  • Fax machines (yes, some businesses still use them)

What You Need to Do

  • Audit your current phone setup
  • Check your broadband can handle VoIP
  • Choose a VoIP provider
  • Port your numbers (you can keep existing numbers)
  • Install and test before switch-off
  • Don't wait until 2027. Providers will be overwhelmed with last-minute migrations. Act in 2026 to get proper support and avoid disruption.

    Choosing a VoIP Provider

    Key Questions to Ask

  • What's included in the monthly fee? Some providers charge extra for basic features.
  • How reliable is the service? Look for 99.9%+ uptime guarantees.
  • Where's support based? UK-based support resolves issues faster.
  • Can I keep my numbers? Number porting should be free.
  • What hardware do I need? Some providers work with any SIP phone; others lock you into their hardware.
  • What's the contract length? Monthly rolling is ideal; avoid 3+ year lock-ins.
  • UK VoIP Providers to Consider

    • 8x8: Enterprise features, good Teams integration
    • RingCentral: Popular for mid-sized businesses
    • 3CX: Flexible, can self-host
    • Gamma Horizon: UK-focused, reliable
    • Vonage: Good API integrations
    • Local providers: Often better support and competitive pricing

    Common Concerns (And Reality)

    "What if the internet goes down?"

    Modern VoIP systems can failover to mobile apps automatically. You can also add a 4G backup connection for critical businesses.

    "Call quality will be worse"

    On decent broadband (50Mbps+), VoIP call quality matches or exceeds traditional lines. Issues only arise on very poor connections.

    "It's complicated to set up"

    Cloud VoIP systems are plug-and-play. You can often self-install desk phones in minutes.

    "We'll lose our phone number"

    Number porting is standard. Your existing number moves to VoIP seamlessly.

    Next Steps

    The PSTN switch-off isn't optional. Every UK business needs to move to VoIP eventually—the only question is when.

    Moving now means:

    • Lower costs immediately
    • Better features today
    • No last-minute panic in 2027
    • Proper time for staff training
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