Why BT Urges UK Businesses to Embrace Digital Phone Networks

BT Group, the UK's largest telecommunications company, is calling on businesses still using analogue landlines to transition to digital alternatives by the end of 2025 – as the country's ageing copper telephone network approaches retirement.

According to research commissioned by BT, 22% of small businesses continue to identify themselves as “analogue” operations, relying on traditional technologies such as physical filing systems, paper contracts and fax machines.

As a result, The Public Switched Telephone Network (PSTN), the infrastructure that has supported UK landline communications for decades, is scheduled for full retirement by the end of January 2027.

BT warns that organisations failing to migrate sooner face increasing vulnerability to service disruptions.

BT PSTN retirement affects wider business technology ecosystem

Data from Ofcom, the UK communications regulator, indicates that incidents on the PSTN increased by 45% during 2024, highlighting the network's growing instability.

This means that the transition away from copper networks will impact more than just telephone services.

Now, business equipment connected to the PSTN, including payment terminals, security alarms and monitoring systems, will require reconfiguration to operate on digital networks.

BT reports that it migrated almost 300,000 legacy business lines in 2024 as part of the industry-wide programme endorsed by both Ofcom and the UK Government.

Now, new service registrations for analogue connections are no longer available and BT cautions that from 31 December 2025, existing PSTN-connected services may undergo alterations in preparation for the full network shutdown.

Executives highlight urgency of digital transition timeline

The urgency of the transition has intensified as the copper network becomes increasingly unstable – so BT is emphasising the need for businesses to act well before the final retirement date to maintain operational continuity.

Kerry Small, Chief Operating Officer of Business at BT, says: “The UK's analogue copper telephone network has a proud history, but it's no longer up to the task for businesses.

“It's simply too risky to build the economy on a shaky foundation and we're calling on all businesses to move before the end of 2025 – well ahead of the switch-off.”

Additionally, Small Business Britain, an organisation representing the interests of the UK's 5.5 million small and medium-sized enterprises, is supporting BT's call for digital transition.

Michelle Ovens CBE, Founder of Small Business Britain, says: “Small businesses are the engine of the UK economy, but to reach their full growth potential entrepreneurs need to embrace digital opportunities as much as possible.

“We see a huge appetite among UK business owners to embrace technology and build digital skills – particularly since the pandemic when growing this capability helped many to adapt and survive.”

Digital migration provides competitive advantages for businesses

While the BT survey identified hesitancy among some businesses to embrace digital technologies, it also highlighted the benefits reported by those who have made the transition.

The research found that 80% of small businesses that invested in new technology believe it has provided them with a competitive advantage, while 79% report it has helped them acquire new customers.

It also revealed historical patterns of technology adoption resistance, with 14% of small business leaders admitting they were initially sceptical about establishing an online presence during the internet's expansion in the 1990s.

Similarly, 18% reported reluctance towards adopting social media a decade later.

Today, digital connectivity has become fundamental to business operations, with 73% of business owners stating they could not operate without reliable broadband and mobile services.

BT suggests that organisations delaying migration to digital networks risk missing opportunities to implement productivity-enhancing technologies such as AI and augmented reality (AR), which require high-bandwidth, low-latency connections.

Kerry says: “Analogue companies making the move now can benefit from rock-solid digital connectivity to help keep them in business for years to come.

“We're supporting customers small and large through the move, so no business is left behind. Whether you're a tech start-up or a family firm passed down through generations, when it comes to going digital – BT's got your back.”

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