For well over 100 years, the basic telephone has been the backbone of communication globally. Just as it did for cassette tapes, dial-up internet, and the milkman, the time has come for traditional phone systems to take their final bow. Technological advances have made POTS (Plain Old Telephone Service) price-restrictive and downright unjustifiable.
Don’t despair for too long, though. The good news is that the replacement, cloud-based solutions, is a revolutionary upgrade. Now’s the time to get acquainted with the new kid on the block.
What is a Traditional Phone System?
A traditional phone system used copper lines, which also powered phones, to connect the world. Most businesses with advanced calling needs required a unit or PBX (Private Branch Exchange) onsite at every location if multiple inbound and outbound lines, voicemail, call routing, and more were needed.
The telephone is one of the oldest communications systems. According to a 2015 CIA: The World Factbook report, approximately 1.263 billion fixed telephone lines were active worldwide in 2003. For comparison, Statista reported approximately 861 million fixed telephone lines in 2023. This is a dramatic decrease and will continue to fall.
What is the Difference Between Traditional and Modern Phone Systems?
If you ignore all the technical jargon, the differences can be boiled down to how the phone system is delivered.
- Traditional Phone System: A complicated PBX is installed at your location. Physical phone lines are plugged in, and connections need to be run throughout the location for anyone needing to make or receive calls. If your business improves and more calls come in, you need someone to bring in more physical lines to accommodate your needs.
- Cloud-based Solution: Through your internet connection, you log into a web portal and can start making calls from your computer. Since the system is serviced and maintained by your provider, you don’t have to worry about physical devices at your business needing to be cared for. If more lines are needed, the system accommodates them, and more lines are instantly available.
Don’t worry; we will get deeper into this, but the description is a high-level overview.
A Modern Phone System Avoids These Pitfalls
Regarding business communication, a cloud-based solution is the way to go. You get to free yourself of constant tinkering and testing of an older system to add an extension for a new employee. You manage your setup through a portal and take calls wherever you are. It really shouldn’t be more complicated than that. Here are some additional areas that a cloud-based solution will solve.
POTS Extinction
The FCC has deregulated POTS lines, and by 2025, service providers will no longer be required to maintain them. However, since most active landlines are still used by older generations, there isn’t a viable replacement option yet for the general public.
A recent California court filing might reject AT&T’s request to leave the landline business and their COLR (Carrier of Last Resort) objections altogether, but California needs more public input before making the decision. If rejected, this would mandate providers to keep servicing landlines, which could possibly affect the rest of the country.
Expensive Maintenance
Due to the dwindling maintenance infrastructure, POTS lines are becoming increasingly expensive. With the rapid decline in subscribers and the expectation that the same core service is available when needed, for example, when people move into a house or business that wants the service, the cost benefits are entirely unsustainable.
Scalability and Flexibility
With cloud-based solutions, you can scale quickly and without a second thought for prep time or waiting for an installation to occur. Your options for connecting to the system were unimaginable 30 years ago; whether you use a desktop phone, laptop, or cell phone, the choice is yours.
Your business deserves flexibility, and you get that backed right in. Do you offer remote or hybrid work options? Perfect! Your new standard is based on collaboration and location flexibility; embrace it.
Redundancy
Unlike the communication option of the past, you do not need to rely on the on-premise telephone system in a closet in your office. If that ever had issues and you were down, it wasn’t going to be a quick recovery. Now, with the phone system in the cloud, which is distributed in multiple data centers, if one location has a problem or a natural disaster comes through, you would never know because the load automatically switches to a different data center. You stay connected to better serve your customers.
Blast Off into the Future with a Cloud-Based Solution from Decibel
Interestingly, cloud-based solutions have been around for about a decade but have shot up in popularity since the pandemic. All that to say, you get mature technology at an even better price. On average, you can save as much as 50 percent on your ongoing communications cost by choosing a cloud-based system; what can you do with those savings? You have found the communications partner you’ve been looking for in Decibel. Contact us today, and we will find the best solution for your needs.