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Why VoIP is Booming!

|  3 min
In this article

The adoption of VoIP has skyrocketed over the past few years and shows no signs of slowing down. Individuals as well as businesses continue to abandon PSTN lines in favour of VoIP. It has already overtaken the traditional network in many countries and it surely won’t be long until VoIP becomes the standard default for voice communication.
The VoIP industry is still young and, due to the fact that the market is not yet saturated and the barriers to entry are not insurmountable, new providers are entering the market on a regular basis.

Phenomenal growth in VoIP numbers

There are no VoIP segments/markets where growth has stagnated over the past year. Existing providers are having to expand their infrastructure at a significant rate in order to satisfy huge customer demand. It is reported that by the end of 2017, there were in excess of 1 billion people (almost 15 percent of the planet) using VoIP. Considering this technology was almost unheard of a decade ago, this is quite a staggering achievement. Very few technologies have achieved such dominance in such a short space of time.

The astonishing growth in VoIP adoption has been accelerated due to a number of different factors. Several carriers including BT have already announced a date after which they will be switching off their PSTN network. This means that organisations are having to look to different providers to fulfil their communication needs. VoIP is now becoming a necessity for organisations to compete in the global marketplace.
A large number of users worldwide thus use VoIP for voice calling (even if they do not realise it). This quantity is only going to increase over the next few years.

Consolidation of multiple communication channels

VoIP is often seen as the foundation for organisations that are seeking to build and implement a reliable, up-to-date, and unified communication suite. In the past, many firms were happy with using and maintaining multiple networks – each with its own single purpose. Nowadays, nearly all organisations prefer a single overarching infrastructure covering voice, video, data and more. As a result, they are simplifying and consolidating their overall communication system. This means that users/employees no longer have to deal with different workflows for voice calling, video conferencing or instant messaging. Thanks to VoIP, employees can now do all of these from any connected device that is within reach.

Even more savings

It is well-known that VoIP calls are considerably cheaper than their traditional PSTN counterparts. Many businesses already take advantage of the fact that VoIP calls between employees (no matter where they are located) are free or close to free. Prices for VoIP calls have been falling for a while, mainly as a result of increased competition and savings continue to increase. New features are emerging all the time and billing plans are being streamlined. It is estimated that the average organisation sees savings of between 50 and 75 percent after switching to VoIP, with even a small business saving as much as 45 percent.

Voice quality improvement continues

Initially, VoIP was lagging behind when it came to voice quality, but it has matched and exceeded the quality of PSTN for quite a few years now. The aim for providers is now to increase the quality even further. Businesses are much more reliant on real-time voice communication than households or individuals and voice quality is a vital part of internal as well as external calls. Continued advances in technology are leading to constant voice quality improvements.

The proliferation of high-speed data networks is responsible for a significant proportion of the improvement in call and connection quality. Some countries were initially slow in updating their infrastructure and expanding broadband coverage but are now beginning to realise the benefits and are investing accordingly. Additionally, some carriers are now testing the newest advancements in LTE technology.

Any reasons to stay with PSTN?

As recently as four years ago, VoIP was disadvantaged by the lack of several crucial features, notably emergency calling and the requirement for a power backup. Today, nearly all VoIP operators offer trackable access to emergency services – indeed in many countries, they are required by law to do so. Data networks have become so crucial that power backups are now seen as part and parcel of the overall infrastructure, meaning that they are not only needed for VoIP purposes.

Wholesale VoIP termination rates

There are a myriad of options when it comes to VoIP, so why not get in touch with us to discuss what is best for you? We provide wholesale and retail VoIP services and have over 25 years of experience in telecoms. To see more about the what we offer please visit our products page.

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