The research, conducted by M247, a leading global cloud and connectivity provider, reveals that an overwhelming majority (93%) of retail and wholesale businesses still rely on the Public Switched Telephone Network (PSTN) for critical services such as analogue phone lines, broadband, CCTV cameras, and PDQ card payment devices.
Despite the impending PSTN stop-sell in September, which will prohibit businesses from placing new orders for PSTN services or making significant changes to existing services, the reliance on PSTN remains unchanged.
This situation will be further exacerbated by the full deactivation of the network scheduled for 31 December 2025.
The potential impact of the PSTN stop-sell in September is particularly concerning for ill-prepared retailers as it coincides with the crucial ‘Golden Quarter’, a peak trading period. The disconnection of landlines during this time could severely impact customer experience and ultimately lead to a decline in sales.
Moreover, the disruption caused by the PSTN stop-sell extends beyond landlines, as many retailers continue to rely on PSTN landlines for card payment machines and other systems like store alarms.
The PSTN, a network of copper wires that has connected the UK since the 1800s, will be switched off by its owner, Openreach, due to maintenance difficulties associated with the aging infrastructure and changing communication trends.
All businesses currently using older analogue phone lines, broadband connections, lift lines, EPOS systems, and CCTV cameras need to migrate to digital services before the switch-off in order to avoid operational disruptions.
Despite the understanding that migrating away from PSTN can take up to six months, the research indicates that little to no action has been taken among UK retailers and wholesalers, despite high awareness of the upcoming switch-off within the sector.
The majority (60%) continue to rely on PSTN for broadband, while 53% still rely on analogue phones, both of which are essential for managing customer queries, orders, complaints, and more.
Liz Hawke, the product manager of UC&C at M247, emphasizes the urgency for retailers to act promptly by adopting the appropriate IP technology for their needs to mitigate security risks and future disruptions. Access to the latest connectivity services has become vital for businesses striving to remain competitive in today’s digital age.
