
Summary Bullets:
• UK PSTN switch-off in December 2025 presents a significant revenue and market share gain opportunity for telecoms service providers.
• BT has started rolling out Digital Voice on a region by region basis and many smaller businesses may not realize how it might affect them.
As mandated by Ofcom and the Government, the UK’s analog network (PSTN) is set to be ‘switched off’ in December 2025, meaning that all fixed connectivity will be carried over IP networks. BT has conducted successful pilots in Salisbury (Wiltshire) and Mildenhall (Suffolk), and now plans to roll the new platform out on a region by region basis, starting with the East Midlands in July 2023, Yorkshire and Humber in August, and other regions going forward until the summer of 2024:
1) Autumn 2023: North West and London
2) Spring 2024: West Midlands, South East; Wales; and East Anglia
3) Summer 2024: North East; Scotland; and South West
The Digital Switch-off also forms part of enabling a ‘full-fiber’ future, and reducing the costs of running networks, which should make the network more efficient, enabling savings both in environmental and staff overhead terms. Openreach has already stopped selling copper-based lines to BT and other service providers as part of the ongoing process.
Within this context, some ‘altnet’ (alternative network) providers to the UK SOHO (small office/home office) and SME (small and medium-sized enterprise) markets have spotted a good market opportunity. Whereas BT’s competitors have often gone head to head with BT selling telephony and other services, this has often proved a hard sell due to market inertia and the fear of anything going wrong with essential telephony, PBX, or email services that are still being delivered over analog lines, including legacy ADSL broadband.
Companies such as Gigabit Networks are urging their sales channel partners to ‘sell connectivity, not telecoms.’ The rationale being that the sale is quicker and easier than transferring telecoms services: 10 to 15 days from order to delivery. Businesses will still want to continue to use their cloud PBXs and so forth, but will need new fiber connectivity to continue to do so. In addition, Gigabit Networks highlights that contract lengths for connectivity are far shorter than traditional telco services contracts, removing another barrier to switching.
The UK’s smaller business community can expect to be inundated with proposals like these in the next year or so as the switch-off is a once in a technology generation opportunity. The likes of Virgin Media O2 Business and CityFibre and reseller partners will also be looking to leverage the opportunity to exploit their fiber networks too. However, it should be noted that BT is also fully aware of this and will fight hard to retain its customer base.
