FCC Order 19-72A1 and the Future of Plain Old Telephony Service (POTS)

The Federal Communications Commission's (FCC) Order 19-72A1 has ignited significant discussion and speculation within the telecommunications industry. The order, which came into effect on August 2, 2022, has led many to believe that plain-old-telephony-service (POTS) lines will disappear entirely. However, this blog post aims to clarify the actual implications of the order and shed light on the changes carriers are making in response.

Understanding FCC Order 19-72A1

Contrary to popular belief, FCC Order 19-72A1 is not a mandate to eliminate POTS lines. Rather, it allows carriers to discontinue offering discounted rates to competitors for POTS line resale and other copper services. Prior to this order, incumbent local exchange carriers (ILECs) were obligated by the Telecommunications Act of 1996 to provide POTS products at a discount to competitive local exchange carriers (CLECs). This facilitated competition and allowed CLECs to offer POTS products in the market without building their own infrastructure. However, the FCC's recent order has removed this requirement, leading to significant changes in the telecom landscape.

Impact on Incumbent Local Exchange Carriers (ILECs)

For years, ILECs have supported an aging copper network due to the 1996 Telecommunications Act. This has resulted in the burden of maintaining this infrastructure as experienced technicians retire, replacement parts become scarce and expensive, and copper cables fail due to age. Additionally, the shift in consumer preferences towards wireless services and internet-based communication has led to a decline in the demand for traditional POTS lines. The FCC order acknowledges these challenges and states that the public interest is better served by transitioning to next-generation networks and services.

Short-term and Long-term Implications for End Users

In the short term, end users may not notice any immediate changes in their services. However, in the long term, the implications of the FCC order may become more apparent. Carriers are already making significant changes to their service offerings, increasing prices, and sunsetting certain services. For instance, AT&T has announced its plan to decommission 50% of its legacy copper network by 2025, offering fiber-based services as a replacement.

Increased rates are also a part of carriers' strategies to incentivize customers to move away from POTS. Some organizations have reported price increases of up to $750-1,300 per POTS line, and primary rate interface (PRI) rates doubling. However, customers with existing contract rates might not be impacted immediately. Public sector organizations, for instance, may not have experienced any changes in their services.

Alternative Solutions for POTS Lines

Recognizing the significance of POTS lines in safety, security, and essential services, it is crucial to explore suitable alternative solutions. Several options are available, such as VoIP adapters (both wired and wireless), VoIP adapter/wireless router with integrated ATA (known as "POTS in a box"), and wireless alarm devices. These solutions can replicate the functionalities of POTS lines while utilizing modern technology.

However, the transition to alternative solutions must be done carefully and in consultation with end-users and emergency services authorities to ensure safety and compliance. Different vendors are developing various devices to address the challenges of POTS decommissioning, but it is essential to assess individual needs and choose the most suitable solution.

The FCC Order 19-72A1 has caused a stir in the telecom industry, leading many to wonder about the future of POTS lines. Contrary to some beliefs, the order does not mandate the complete elimination of POTS but allows carriers to discontinue offering discounted rates for POTS line resale. Carriers are making substantial changes in response to the order, with many investing in faster fiber-based networks and sunsetting legacy services.

For end-users, the short-term impact may be negligible, but looking ahead, the changes in service offerings and pricing are noteworthy. It is essential for organizations to stay informed about the evolving telecom landscape and consider suitable alternative solutions for POTS lines to ensure a smooth transition towards modern and efficient communication technologies.