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Preparing Your SME for the UK’s Digital Phone Switchover by 2027

12 June 2025

The UK is transitioning from traditional landline services to a fully digital phone network by January 2027. This shift, known as the Digital Phone Switchover, will impact all businesses, including SMEs. It’s crucial to understand what this means for your operations and take proactive steps to ensure a smooth transition.

 

What Is the Digital Phone Switchover?

The Digital Phone Switchover marks the end of the Public Switched Telephone Network (PSTN) and Integrated Services Digital Network (ISDN), which are being replaced by Voice over Internet Protocol (VoIP) services. This change is necessary as the current infrastructure becomes increasingly outdated and costly to maintain. By 2027, all phone services will be delivered over digital broadband connections.

Why SMEs Need to Act Now

Delaying the transition could lead to significant disruptions. Analogue systems are becoming more prone to faults, Ofcom, the independent telecommunications regulator, reported that 2024 saw a 45% increase in the number of PSTN incidents reported. In 2024/25 there were over 2,600 major incidents on the PSTN

Who and What Is Affected?

The switchover impacts more than just voice calls. Any equipment relying on PSTN or ISDN, such as alarms, EPOS systems, CCTV, door entry systems, and fax machines, will cease to function unless upgraded to digital alternatives. Additionally, businesses without broadband may require interim solutions until full digital services are available.

Steps SMEs Should Take

  • Audit Your Systems: Identify all devices and services connected to PSTN or ISDN lines.
  • Upgrade to IP Solutions: Consider transitioning to Voice over IP (VoIP) services, cloud-based phone systems, or Session Initiation Protocol (SIP) trunking to ensure compatibility with the new digital network.
  • Test Equipment Compatibility: Utilise resources like BT’s R&D test centre to verify that your equipment can function on the new network.
  • Plan for Broadband Upgrades: Ensure your broadband infrastructure supports digital communication needs.
  • Consult with Experts: Engage with providers who can guide you through the transition process and offer tailored solutions for your business.

Global Perspective

The move towards digital communication is a global trend. Countries like Estonia and the Netherlands have already completed their PSTN switch-offs, while others, including Germany, Japan, and Sweden, are ahead in the process. This underscores the importance of adapting to modern communication standards.

The Digital Phone Switchover is an opportunity for SMEs to modernise their communication infrastructure, leading to enhanced efficiency and reliability. By taking proactive steps now, you can ensure a smooth transition and continued business operations in the digital age.

For more information and guidance, visit For Businesses – Digital Phone Switchover

Photo by Julian Hochgesang on Unsplash