The Public Switched Telephone Network (PSTN) is being switched off in 2025, marking a milestone in the advancements in telecommunication technology. Providers are making a digital leap to more advanced networks, but it has left members of the public questioning: What's next?
The PSTN has been the backbone of voice communication for decades, both in Asia and the rest of the world. However, from the beginning of 2025, it is being gradually phased out. This decision is due to a need for more cost-effective and advanced communication solutions with more features that the users need. It is costly to maintain the infrastructure needed for PSTN, and this network is also incompatible with the latest telecommunication developments.
Telecommunication companies are instead investing in modern tech, like Next-Generation Networks (NGN) and Voice over Internet Protocol (VoIP), taking a step into the digital era. Asia is going to be most affected by PSTN retirement, as there are large rural areas that are underserved. The transition is likely to highlight areas where more inclusive communication solutions must be developed.
It is not just the telecoms industry that is seeing a digital revolution. Various sectors have embraced tech advancements, turning online to bolster their offerings. For example, the entertainment industry has significantly grown in the online world, thanks to online games and gambling. The US has seen the biggest shifts, with online gambling revenue exceeding $20 billion. That's because of the convenience of these platforms. Online casinos in Texas, a state where gambling is tightly regulated, allow Texans to gamble online in a state where they can't access brick-and-mortar establishments. These offshore casinos come with the latest games, big bonuses, and advanced security measures.
In addition to the entertainment industry, online shopping, cloud computing, and e-learning systems dominate the modern world. There is clearly a digital shift going on globally, with cloud-based technologies and Internet of Things (IoT) services overshadowing tech from decades ago. PSTN had its limitations and could not be accessed by people living in areas where the infrastructure could not reach, but now there are opportunities to reach these areas, providing social-economic benefits through digital transformation.
However, there are also challenges to the retirement of PSTNs. There are many businesses and operating systems that rely on this technology, and these must be upgraded or overhauled completely to adapt to new technologies. This is most challenging in the security, healthcare, and financial sectors where alarms and medical devices are linked to PSTN infrastructure.
Many Asian companies are also not yet aware of the implications of the PSTN phase-out. There needs to be an effort to educate the community and implement mechanisms to support those who will be most impacted.
As mentioned, the rural areas will also be most impacted. Currently, many regions of Asia rely on PSTN telemetry systems to monitor utility availability. Transitioning from these systems to, for example, IoT sensors that transmit data, may be beneficial in the long run since it deliver up-to-date data and real-time analytics, but the initial deployment can be expensive.
Even in large metropolises, like Singapore and Tokyo, the retirement of PSTN will be challenging. These cities rely on PSTN for emergency communication in elevators and other scenarios and will have to quickly implement new emergency measures.
Although the switch-off is laying the foundation for new telecommunication technologies, the new tech, like 5G networks, NGN, IoT, and VoIP must be immediately implemented to prevent obstructions. The retirement of PSTN in Asia and abroad marks the end of an era but also signals new beginnings as flexible and feature-rich solutions are rolled out.