Is switching over late holding your small business back?

Latest BT research found that almost one in five small businesses still rely on analogue technology. But with the PSTN switch off less than two years away, time is ticking to move to digital Internet Protocol (IP) systems. Here, Kristian Torode, director and co-founder of business comms and PSTN switch off specialist Crystaline, explains the risks of delaying the switch and why small businesses should act now…

Originating with the invention of the telephone in the late 19^th century, the PSTN has a long history of connecting people and businesses. Today, however, its capabilities are too limited to meet the demands of our increasingly digital world, leading BT to schedule an official switch-off of the network for early 2027.

Despite years of warnings and planning windows, many companies are still holding out on making the move to more modern systems. Even the Office for National Statistics has delayed its own switchover due to budget restraints. But for SMEs in particular, postponing the transition could end up being far more expensive and disruptive in the long run. Here are five reasons delaying the switch is a risk no small business can afford to take.

 

Compromised performance

Legacy networks were not built for the demands placed on them today. PSTN lines now carry far more than voice calls — they support everything from alarms and payment systems to broadband connections.

Highlighting the impact of this extra strain, Ofcom reported a 45 per cent increase in incidents on the PSTN in 2024, with outages and service degradation becoming more and more common. By holding on to PSTN-enabled legacy systems, you’re accepting poorer performance that could impact both internal operations and customer service.

 

Higher costs

Waiting until the eleventh hour is likely to result in a rushed and therefore more expensive switch. SMEs that act too late might end up accepting higher costs simply to ensure continuity. Instead, making the switch now gives you time to plan properly, compare providers and implement systems that truly meet your needs to avoid unnecessary costs later.

 

Risking downtime

As the switch-off deadline nears, service providers will be managing a surge in last-minute migrations, increasing the likelihood of delays and resource bottlenecks. Waiting too long risks outages that could be detrimental for business relying on phones for daily operations.

 

Falling behind

 

Those who have already made the switch are reaping the benefits of faster, more flexible digital systems. According to BT, 80 per cent of businesses that upgraded to IP-based systems felt the move gave them a competitive advantage. For the one in five still on analogue, sticking with legacy systems isn’t just standing still, it’s falling behind.

 

Outdated defences

Relying on centuries-old infrastructure, legacy systems weren’t built with modern security threats in mind. Many lack the encryption, access controls and monitoring features that come standard with digital systems.

However, cybersecurity is particularly important for SMEs as they are disproportionately impacted by cyberattacks. Vodafone recently reported that UK SMEs collectively lose £3.4 billion each year due to insufficient cyber threat protection. Therefore, moving to an all-IP setup should be a priority for security purposes alone.

 

The case for switching now

Putting off the PSTN switch might feel like a way to buy more time but, in reality, it creates more risk than reward. Every day spent on legacy systems increases the risk of outages, drives up costs and leaves businesses vulnerable to threats they’re not equipped to handle.

Additionally, switching to all-IP is a means of future-proofing your operations. From supporting video calling and unified communications (UC) platforms to remote device management and cloud-based tools, digital infrastructure opens the door to new capabilities. These tools make it easier to deliver high-quality customer service, collaborate across locations and manage and scale operations more efficiently.

2027 might feel a way off but the sooner you switch, the more your business stands to gain. For SMEs in particular, acting early is the best way to manage the transition smoothly, affordably and without panic. And with modern IP infrastructure in place, you’re better positioned to meet the demands of today’s digital-first economy.

Crystaline has helped many SMEs navigate the PSTN switch off and unlock the benefits of digital systems. To find out how we can support your journey, get in touch for a free consultation.