VoIP vs PSTN

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Studies suggest close to 79% of business calls will originate from VoIP versus Public Switched Telephone Networks (PSTN) in 2013 and in recent reports the FCC confirmed VoIP access is up and switched access is down.

The difference between calls originating over VoIP networks versus PSTNs fundamental deals with methodologies of establishing dial tone and call routing. Placing a phone call using landlines over the PSTN is known as circuit-switched telephony whereas calls over VoIP networks are what's known as packet-switched telephony.

PSTN circuit-switched telephony

Circuit-switched telephony functions by establishing a dedicated circuit (or channel) between two points on the PSTN for the duration of the call.  Circuit-switched systems carry analog voice (calls) and data (DSL) over dedicated circuits on a copper wire system.

VoIP packet-switched telephony

Packet-switched telephony is based on digital technology and delivers digitized information (voice from phone call) in the form of network packets over the internet. Packet-switched systems rely on compression technologies and and encoding schemes to both reduce the size of data being transferred and optimize assembling of data for improved call clarity.

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