When Voice Becomes Data

Time-division Multiplexing (TDM)-based circuit networks have seemingly always been about transferring voice. However, once IP and virtualization became prevalent in the data center everything changed.

We are now seeing customers make technology shifts, the result of which means voice is data. Many are moving to cloud-based UCaaS (Unified Communication as a Service), and that appears to be where the industry is heading. Using UCaaS, companies can easily and cost-effectively get leading edge communications capabilities and increase or decrease data and voice streams without needing the capital investment that TDM required.

Most customers who have implemented cloud-based UCaaS note that it is faster, more flexible and  a better alternative to traditional services. This has solved many of their issues around faster connections and more bandwidth when needed.

So that’s the good news. The  gotcha is that UCaaS allows carriers to decrease overhead and increase revenue, but that doesn’t mean they pass the savings along to their customers. This is where our advisory team at Network Control is brought in to handle the contract negotiations and ensure we can maximize savings for our customers.

Over the past few years we have seen Telecom Prices increasing and that Traditional TDM Services are becoming less affordable for end users.  This is because the legacy types of voice connectivity are declining. The underlying technology and equipment is aging and maintenance has become expensive. As wireline business shrinks we have seen carriers raise rates to offset the growing financial burden of these services. We are being asked more and more to help aide and assist with technology migration road maps to stop the bleeding.

We have mentioned a few times about how there are FCC and PUC agendas to move customers off of old copper networks by 2018 by all carriers. In the meantime, what you see the carriers doing is trying to discourage customers by applying multiple rate hikes, even as often as every six months, forcing customers out of the legacy services.

Another gotcha is that carrier reps no longer have any incentive to sell or manage these services going forward. This means lack of account management in turn that spins customers “out of contract” without them even realizing it. This typically means very expensive rate hikes and leaves most folks scratching their heads on what to do next.

Having a TEM company managing your ongoing book of business is almost essential as we see this happening more and more. Customers often times do not have the resources to hunt down where the problems occurred and how to best fix them without expert advice based on current market assessments.

It is tricky business to navigate a changing telecom landscape so it is important to find and a TEM partner who can see where the industry is heading, to best position your enterprise with the right technology and services at the best prices. Please contact us for more information.