And how are you going to assign an IP address to an analog device?Is assigning ip address that much hard? We just need an unique MAC for each of the phones in line...
It is like replacing the Handle and Blade of an old Knife.What's the design and production cost if at all one wanna design and manufacture his own IP phone or want to convert an old phone to an IP phone.

The ATA is the correct method of making connection to a VoIP system using an analog set. The contents of the single line ATA are not very large and could be made compact enough to fit in a typical DM2500 desk set—but why bother? Running the ATA outside the phone is easy enough.Certainly "Y" is correct about ADAPTERS that can connect an analog technology phone. But that is quite different from CONVERTING a phone into something that it is not! THAT requires the internal addition of all the required stuff.
I can connect my old analog phone to a ham transceiver and talk all over the globe without using any infrastructure, (when conditions are right.) But that is not converting the phone. Likewise, adding a string of modules is not "converting the phone.
So at this point it certainly does get down to "how are you going to assign an IP address to an analog device?"
Do you even understand what it means to have an IP address or what it means to be an analog device?
Of course, "Everything is simple when you don't understand how things work. "
You are going to try to make a VoIP telephone with an RPi Pico?Ordering the below:
Raspberry Pi Pico W (Latest & original) buy online at Low Price in India - ElectronicsComp.com
LM386 Audio Amplifier Module buy online at Low Price in India - ElectronicsComp.com
Please suggest me an affordable microphone and Speaker for my project. No audio clarity required as it will not be the same at the end of the project. (I will replace with High-End Microphone and Speakers later)
YesYou are going to try to make a VoIP telephone with an RPi Pico?