Packet switching and circuit switching are different methods of routing data from one destination to another. The journey the data takes is called the path, and the devices that make up the path (routers, switches, and others) are called nodes. The major difference between the two approaches is that circuit switching relies on physical telephone lines to transmit data, while packet switching uses the internet.

Circuit Switching Pros and Cons

In circuit switching, the path is decided on before the data transmission starts. The system decides which route to follow based on a resource-optimizing algorithm, and the transmission goes according to the path. For the whole length of the communication session, the path is exclusive to both parties, and it’s released only when the session terminates. When you make a PSTN call, you rent the lines. Therefore, if you speak for ten minutes, you pay for ten minutes of a dedicated line. That’s why international calls are expensive. The benefit is that circuit switching is more reliable than packet switching, so you don’t have to worry about dropped calls.

Packet Switching Pros and Cons

The Internet Protocol (IP) breaks data into chunks and wraps the chunks into structures called packets. Each packet contains information about the IP address of the source and the destination nodes along with the data load, sequence numbers, and other control information. A packet can also be called a segment or a datagram. In packet switching, the packets are sent toward the destination irrespective of each other. Each packet has to find its route to the destination. There is no predetermined path. The decision as to which node to hop to in the next step is only taken when a node is reached. Each packet finds its way using the information it carries, such as the source and destination IP addresses. Once the packets reach the destination, the packets are reassembled to make up the original data again.

Which Is Better?

With VoIP, you can use a network node even if other people are using it at the same time. There is no circuit dedication; the cost is shared. The downside is that when you use a circuit that is open for other services, then there is a possibility of congestion, and hence delays or packet loss. This explains the relatively lower quality of VoIP calls compared to PSTN. Fortunately, other protocols have been developed, such as the TCP protocol, that make VoIP connections more reliable.