BT has announced a delay to the switch-off of the PSTN network in the UK, moving it from the end of 2025 to early 2027. This delay brings with it implications for companies who have yet to transition or move from the copper network as part of their digital transformation plans for business communications.

Here, Jamie Snaddon, 8x8’s MD for EMEA and Ritchie Butters, 8x8’s EMEA Business Development Director, reveal what it means for businesses, the communications industry, and the channel.

Breathing space for tight budgets

Jamie Snaddon, EMEA MD at 8x8, believes that while the delay brings breathing space to many organisations and their constrained budgets, there’s still a need for awareness around the new deadline and for companies to act as soon as they can.

He notes, “a lot of organisations will be delighted at the news of the PSTN delay. Many organisations, from local authorities, housing associations, and health trusts to small micro-businesses—told us that they weren’t ready to switch over.

“Now, you would think that 18 months or so would be plenty of time for most organisations to make a switch, but the reality is that time wasn’t the main factor here. It was cost. A lot of UK businesses and organisations are struggling in the current economic climate, and having to find funding for a major digital transformation project like this was an issue that many didn’t have the capacity to deal with.

“Economic forecasts suggest that the UK will be in a slightly better place by 2026, which is when the revised switch-off date will need to be budgeted for if BT sticks to the 2027 deadline. That may give companies a chance to budget appropriately instead of rushing into a solution.”

Will everyone know about the switch-off by 2027?

One area that gives Snaddon cause for pause is that awareness rates were incredibly low around the switch-off across many verticals and sections of UK business, and he believes that needs to change quickly.

“Study after study, as well as from what I hear on the ground, show that around 30% of most businesses were completely unaware of the December 2025 cut-off date,” says Snaddon. “With this new deadline, the industry, Ofcom, and the Government—whomever that is post-election—need to work together to make this seamless and easy. The comms industry was trying hard, and you had seen many of them come together for the Fit to Switch campaign. It’s not enough, though. We will need both Ofcom and the Government to be more involved.”

Who will pay for the delay and what’s the true cost of maintaining legacy tech?

Snaddon accepts that the delay will give companies a chance to save money, but it doesn’t mean that there’s not a potential short-term cost, too.

He notes, “there’s a question from the announcement of the switch-off delay. Who is going to foot the bill for the running costs of this legacy technology? The delay may not be the blessing that it seems, because there is going to be a cost here.

“For companies that can switch over earlier than 2027, it may make sense to do so as legacy technology only gets more expensive as time goes on. We’ve seen businesses save up to £500,000 over three-year periods when moving from legacy to cloud communications. Sometimes, it is more expensive to do nothing and wait.

“The other element worth remembering is that incidents involving the PSTN network are on the rise. The latest report from Ofcom points out that last year saw a double digit increase in incidents and hours lost for those on PSTN. Do businesses want to take that risk? Can they afford to?”

What the PSTN Switch-off means for channel companies and the opportunity it provides

Ritchie Butters, Business Director EMEA at 8x8, believes the switch-off delay can give channel companies a long-term opportunity. “The delay of the PSTN switch-off gives the channel a considerable opportunity to reach out and boost revenues in the long term,” notes Butters.

“Reports indicate that while channel companies were aware of what was coming, more than 30 - 50% of businesses—depending on the sector you’re looking at—had little idea of what was coming and how it was going to impact them, which is frightening on a number of fronts.

“Firstly, these companies could have woken up one day to their telecoms being switched off, which is a horrific thought. Secondly, there would have been a lot of companies who became aware of the switch-off at the last minute and rushed into a business solution. By rushing it, they may pick something that isn’t the best fit for them. We saw a lot of this during the pandemic years.

“Now, channel companies have the ability to go out there and talk to customers, learn their pain points and their needs, and find the right solution for them in terms of product offering and pricing. Pricing will play a considerable part in this because when we have been talking to a number of companies of late, they had no idea where they were going to find the budget to carry out a move to the cloud. Hopefully by 2026 or 2027, economic circumstances will be better.

“Having said that, the wiser partners and channel companies will be ensuring that their customers and potential customers are transitioning sooner, rather than leaving it to the last minute. Ultimately, this means that the PSTN switch-off could be helping to deliver a revenue boost for a number of years instead of just the next 12 to 18 months.”

Talk to our team and learn how to avoid problems with the PSTN switch-off. Find out more here.