The PSTN Switch-Off: Why it’s a £1.83 Billion Opportunity for Channel Partners

BT Wholesale’s Gavin Jones explains how the UK’s delayed PSTN switch-off, paired with rising demand for integrated cloud voice, Teams, and AI, is creating a compressed opportunity for channel partners.

4
The PSTN Switch-Off: A £1.83 Billion Opportunity for Channel Partners
Unified Communications & CollaborationInterview

Published: February 26, 2026

Kristian McCann

The UK UC market is experiencing a period of significant transformation. The looming Public Switched Telephone Network (PSTN) switch-off in January 2027 has created urgency across the business landscape toward cloud-based voice solutions. However, its slower switch-off timeline compared to some European peers, alongside a delayed deadline, has meant demand has been building against a backdrop of evolving work patterns.

Digital transformation initiatives and changing customer expectations are now also reshaping how businesses think about communication technology. For channel partners selling unified voice solutions, this represents a crucial time to capture new customers on the cusp of this wave.

Yet understanding what customers want may be crucial to taking advantage of this influx. To find out what these interests are, we spoke with Gavin Jones, Director of Wholesale Partners at BT Wholesale.

Infrastructure Crisis Meets Market Opportunity

Unlike European markets where cloud migration was forced to happen earlier, the UK has maintained legacy systems longer. Before the extension from 2025 to 2027, data from UK telco Zen Internet found that only 18% of small businesses and 26% of large businesses had a post-PSTN solution fully in place. This has created compressed demand for modernization.

Jones puts this mass scale into numbers. “For example, over 2 million new Operator Connect users are forecast to be deployed in the UK market over the next five years, creating a direct annual revenue opportunity of more than £12 million for partners,” he explains. The UK’s position, alongside its strong digital infrastructure, is set to see the market exceed £1.83 billion by 2028.

These impressive figures are believed to be possible because that demand can be catered for. Markets that adopted cloud communications earlier may have already captured much of their available growth, while the UK’s later start means concentrated deployment in a shorter timeframe.

While businesses may have been slower to migrate voice services to the cloud, the underlying network capabilities exist to support rapid adoption once organizations commit. This combination of pent-up demand and capable infrastructure could enable the UK to leapfrog markets that are further along but moving more slowly.

Evolving Buyer Expectations and Priorities

Market evolution, although driven by infrastructure deadlines, is not the only reason channel partners stand to get new business. Customer expectations and buying patterns are shifting in ways that favor integrated voice solutions, creating organic demand beyond regulatory compliance.

Jones highlights the behavioral shifts he is observing: “The increasing prevalence of remote work, focus on digital transformation initiatives, and emphasis on enhancing customer experience have accelerated the need for integrated communications. Businesses expect seamless collaboration across voice, video, and messaging.”

The pandemic permanently altered workplace norms, and employees now expect to communicate effectively regardless of location. Voice can no longer be isolated to desk phones; it needs to flow seamlessly across devices and integrate with video conferencing, messaging, and collaboration platforms.

The evolution of IT providers’ roles is equally significant. Organizations that once simply maintained infrastructure are now expected to deliver comprehensive communication solutions.

“This evolution in customer buying behavior is accompanied by a growing will to adopt new technology, with 80% of IT decision makers believing upgraded technology will help employees do their job better. 75% say they want to invest in new technology in the immediate future,” Jones explains.

“It is imperative that partners offer cloud-based voice solutions to take advantage of this momentum.”

Yet as UK organizations actively search for PSTN alternatives, they have certain requirements they bring with them. Understanding these priorities helps explain which solutions will succeed in the market.

According to Jones, several characteristics top the list: “Many organizations are actively seeking IP voice solutions that deliver scalability, reliability, and seamless integration with tools like Microsoft Teams.”

Integration capabilities matter because businesses want to reduce, not increase, the number of applications employees must navigate. Jones points to data that shows 75% of IT decision makers agree businesses need fewer applications, while 72% want simplified collaboration. This drives demand for solutions that consolidate voice, video, and messaging into unified platforms.

For Jones, this plays well to partners dealing with the Microsoft ecosystem. “With millions of users leveraging Microsoft Teams within the UK, offering Operator Connect for Teams through Microsoft’s online store, AppSource, allows partners to deliver more value-added services faster.”

AI is also rapidly becoming a standard expectation rather than a differentiator. With 61% of IT decision makers planning AI investments and 59% of employees requesting such capabilities, solutions offering AI-driven features like intelligent call routing, real-time analytics, and automated insights are gaining traction. The market is moving from viewing AI as experimental to considering it essential.

Scalability and reliability remain fundamental. Organizations want assurance that their voice infrastructure will not require replacement as they grow. Cloud-based solutions that offer elastic capacity and geographic redundancy address both concerns.

The Road Ahead: Milestones and Market Maturity

Looking forward, several indicators will reveal how quickly the UK market evolves and whether it achieves the projected growth.

Jones identifies the key metrics worth watching: “The key milestones to watch will be Operator Connect adoption rates and the market’s progress toward the forecast two million UK users. AI in the market will also be important to consider – specifically, the uptake of AI-integrated solutions.”

The two million user forecast provides a clear target for measuring market momentum for integrated voice solutions, and AI adoption serves as an indication that companies are thinking strategically about unified communications rather than simply replacing legacy systems with cloud equivalents.

For organizations and partners alike, the UK unified communications market presents both opportunity and complexity. The compressed timeline created by the PSTN switch-off means decisions that might typically unfold over years must happen in months.

Jones emphasizes the importance of adaptability in this environment:

“Partners must stay agile to seize new opportunities and deliver greater value to customers.”

For partners who position themselves now, understand what customers actually want, build the right expertise, and stay agile as the market evolves, the rewards will be significant. Those who wait risk missing the wave entirely.

CCaaSChannelLegacy PBX Retirement​UCaaSUCaaS & CCaaS Convergence​VoIPVoIP Providers
Featured

Share This Post