Original article Total Telecom:Read More
Contributed Article
by James Lilley, Director of All-IP at Openreach
The UK is gearing up for a historic moment – the final full-scale infrastructure transition of our lifetimes. The Public Switched Telephone Network will be switched off on 31st January 2027 in favour of internet-based (All-IP) networks. Even though this deadline is fast approaching, many businesses are still resistant to the move. Switch-overs are continuing to happen, but the progress is slower than expected, considering the finality of the deadline. By 2027, most people in the UK will need to have a digital phone line, or risk being left behind.
Why aren’t businesses moving?
Many businesses are avoiding the switch due to the perceived difficulty of switching. Continuing with current systems seems like an easier option. The classic idea of ‘If it ain’t broke, don’t fix it’ echoes with businesses happy to stick to their current trusted systems. Many organisations will have only ever used their current networks and are satisfied with the way they run.
However, as the world becomes increasingly digital, PSTN simply can no longer keep up. Legacy PSTN networks already have far more service disruptions and outages than all-IP systems, and in 2024 alone the number of PSTN incidents reported to Ofcom increased by 45%.
Many businesses aren’t fully aware that though the PSTN switch-off is scheduled for January 2027, the practical deadline for businesses to act is December 2025. After that, support for legacy services will diminish, and businesses could be exposed to operational risks. The reason being, that Openreach has formally notified Communication Providers (CPs) that the current Wholesale Line Rental (WLR) contracts will terminate on 31 December 2025. After this date, any remaining WLR assets i.e. services not yet migrated or cancelled, will be subject to new contract terms. Under the revised terms, Openreach reserves the right to terminate any remaining WLR services with just 90 days notice. After that, services may continue only at Openreach’s discretion, and with reduced service guarantees. This could mean businesses facing things like slower repair times and reduced service response guarantees.
So, while ‘it ain’t broke’ currently, delaying the switch will only create bigger problems for businesses in the near future as well as further down the line
There are common misconceptions about the difficulty of switching over from PSTN to all-IP. The switch over is simple and for many can be completed in just a number of days. By resisting the transition, businesses may actually be costing themselves more money and time. Legacy infrastructure is expensive to maintain. Reliance on copper materials and outdated hardware means that maintenance and replacement parts are costly and difficult to source. This not only drives up maintenance costs but also leads to longer repair times, meaning that delaying the switch ultimately results in greater disruption and downtime for businesses
Alongside technological improvements, an all-IP network is actually cheaper to run and maintain than the current legacy network. Streamlined all-IP systems use less hardware than legacy networks. With fewer pieces of hardware involved, there’s less that can break, and if something does go wrong, repairs are faster and more affordable.
A final reason that businesses may be delaying is due to assumptions that the deadline may move but there are several reasons why the January 2027 deadline is non-negotiable. Since September 2023, Openreach has enforced a “stop sell” on PSTN and ISDN services. This means no new analogue lines can be activated and existing ones can’t be expanded which means the infrastructure is already being phased out, not just planned for future removal. The January 2027 extension was granted to allow more time to safely migrate vulnerable customers, especially those using telecare devices like personal alarms. Around 2.3 million people rely on these services, and some devices failed during early migrations. Since then, more safeguards have successfully been brought in to protect those deemed vulnerable. This was more of a one-time reset than a rolling extension. In addition, industry-wide migration is well underway with providers already migrating tens of thousands of customers weekly.
The role of CSPs in helping businesses transition NOW
Customer Service Providers (CSPs) are crucial to this switch-off. To begin the transition, businesses should reach out to their communications providers (CPs), who can guide them through the process. The deadline is the same across the UK, but some CSPs will require businesses to move ahead of the switch-off. Transferring to the all-IP and VoIP system will bring different benefits across the various service providers so businesses should check for any extra benefits. With some CSPs, calls over the internet may be cheaper than analogue phone lines or even mobile, particularly if you’re calling someone abroad, and some providers will be offering add-ons and enhanced services made available by the digital system.
Improvements for businesses using all-IP networks
Even without the extra benefits provided by CSPs, all-IP networks will bring significant improvements for businesses. All-IP networks are purpose-built to meet the demands of modern businesses that operate in the digital world.
- Reliability – They are more reliable than traditional networks, as fibre is more resistant to environmental damage. This means reduced downtime for businesses whose critical services run on connectivity.
- Scalability – Running services over the internet means new lines and services can be added easily, without needing to adjust physical infrastructure, to scale with business needs.
- Bandwidth – Fibre technology can handle massive amounts of data at the same time. This makes it possible for technologies such as IoT that demand high bandwidth to be more performant. As more business operations become digital, we need the infrastructure to keep up.
Moving to all-IP allows businesses to gain the network performance required to keep pace with today’s digital demands.
New revenue opportunities
All-IP can also create new revenue streams unavailable on the legacy network. All-IP networks will allow businesses to harness more modern technologies, including cloud-based communication systems such as Zoom or Teams, more efficiently. These advanced communication platforms can play an essential role in opening new revenue streams. For example, chat functions between businesses and customers can be better supported by an all-IP network. An all-IP network enhances chat functions by handling all communication types – text, voice, and video—as data packets over a single, unified infrastructure. This can help create upselling opportunities that were difficult or impossible to achieve over legacy networks. Many businesses are already reaping the rewards of the all-IP network and PSTN connections are now only 27% of residential landline connections.
With the 2027 deadline rapidly approaching, the reasons for businesses’ hesitance to switch must be addressed. The deadline will not move again, and holding back from switching means a delay to the benefits of an all-IP system. The increased capabilities of an all-IP network will allow for digital transformation for businesses previously reliant on outdated hardware, so while business can wait until the end of 2026 to switch, the benefits of switching earlier are clear.
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