How ILECs Can Thrive in the VoIP Era
Beginning with the divestiture of AT&T in 1984, passing phone calls between carriers has become increasingly complex, presenting new challenges for telecom’s established systems. While ILECs & RBOCs still control the majority of land-based access lines throughout the United States, the competition that has spawned from federal deregulations and new technology is putting their dominant market share at risk.ILECs were built in a regulated world, where investments in territories, infrastructure, switches, etc. guaranteed continued profitability. However, when the Telecommunications Act of 1996 was passed, it undermined these long-term investments, allowing newcomers to piggyback off their infrastructure to offer competing services to consumers and businesses. This was similar to what the US experienced in the past with the trucking and aviation industries, where federal deregulations overturned route exclusivity, causing companies to lose revenue or die off completely in the face of unforeseen competition. The most significant developments facing ILECs, however, has been the expansion of wireless phones, and newer VoIP technology. With more and more customers going wireless-only, cable companies offering bundled services that include IP voice, the ILECs are experiencing consistent line-loss and a steady erosion of voice revenues.
Taking Back the Competitive EdgeIn order for ILECs to maintain long-term profitability, they need to shift their primary focus away from increasing their total line count and usage minutes—which are being lost to competitors—to more strategic cost-reduction measures and enhanced technology features. This is why thinQ has built a solution that puts the competitive edge back in the ILECs’ hands. Most importantly, it’s a solution that does not affect any of the network infrastructure they worked so hard to build, or nullify the investment in older switch technologies.
The thinQ SolutionIf you are an ILEC with a single SIP gateway, you can use thinQ to handle all the calls your network is not already built for. When you connect with thinQ, You get:
- On-demand access to over 40 top industry carriers
- To preserve your current network infrastructure
- Real-time CDR monitoring and SIP tracing tools
- Wholesale long-distance and wireless rates
- No CAPEX OPEX or minimum commitments