Goodbye Landline, We Knew Ye Well — Too Well
Happy New Year, it is hard to believe it’s ALREADY 2010. I think I dated something 2005 the other day when I was filling out a form…
So with 2009 in the rearview mirror and the future ahead of us, what do we have to look forward to regarding the telecom industry? Well to start out with, the FCC has placed a request for comments on how transitioning from the current circuit-switched network to become a soley IP-based network. The circuit switched network, according to Wikipedia “In telecommunications, a circuit switching network is one that establishes a circuit (or channel) between nodes and terminals before the users may communicate, as if the nodes were physically connected with an electrical circuit.” and an IP network (a very basic definition) is a network that supports the devices using the Internet Protocol – or the language of the internet if you will. Regardless, this is a huge move for the industry as a whole.
Alright, you’re asking yourself what does all that really mean? Well, the traditional system we have all known and loved is essentially is started to show its age. Not only have the demands of technology stressed service providers to do more for its customers, the limitation of the older networking is starting to hamper the future of what we could be seeing from the the telecom and IT industries in general. Real time portable video phones, augmented reality showing data queries instantly would not be possible with the limitations of networks that really have been designed for the limited purpose of ONLY carrying voice traffic.
Enter AT&T who has has publicly stated that they DO NOT want to be in the landline business any more. POTS (Plain Old Telephone Service), the legacy phone service has become a boat anchor for the telecos to maintain. In fact, AT&T has written the FCC supporting the transition from a legacy network to a broadband and IP-based infrastructure, this would allow them to not have to support their old network and be able to focus and concentrate on building the network of the future.
According to a recent survey, fully 20% of US households use mobile phones exclusively. This could be a telling sign that consumer acceptance of relying on a strictly landline service is changing and that supporting an old circuit-switched network may in fact be money out the window
Switching won’t happen overnight, and there are a lot of small items to consider that are tangled into the old environments, but we we can see is that in the coming years, look to see massive changes to the telecom world. This will effect everything from service level guarantees, future services involving communication services and of course – your phone bill.
For the most part, we’re watching the industry pretty tightly now. Whenever changes are made, it is the opportune time for companies to come in, make money and take advantage of confusion when it doesn’t have to be. Be sure to come back frequently, we’ll update you on any changes we seeing coming down the pike , we’ll warn you to keep your eyes peeled people – it’s only going to be more fun!
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Benny Carreon is the President and CEO of GrayBear Resources Group. GBR is a next-generation telecommunications consulting firm. We aren't a telephone company's vendor disguising itself as a consultant. We don't sell carrier products that would conflict with out mission - our goal is to work for our clients by reducing costs, streamlining services, eliminating waste and fraud while providing the least disruption to your business.
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Benny, thanks for the update, keep me posted. This is about where I saw the industry heading.
[...] the next 10 years consumers may do away with having wired services at home altogether and in a previous article I wrote, AT&T wants out of the “traditional” telephone business because it has [...]