Tuesday, December 15, 2009

Copper CO Lines are still the most popular Purchase according to Kennedy

CONTACT PERSON: JAY HARPER
OFFICE: 281-894-6606
TOLL FREE: 1-877-891-1911

Fact is that Telcos have 100s of millions of copper twisted pairs all over the US. And they have no idea what to do with them!

According to Michael Kennedy of Fierce Telecom, residential circuit switched voice access line subscriptions are declining at about 10 percent per year and business subscriptions are declining at about half that rate, analog voice is still the most common wireline service. For example, Verizon reports 3.3 million FiOS subscribers in service compared to 19.0 million residential switched access lines. Businesses also use a lot of copper. Total business switched access lines are only a little less than total residential lines. In addition, business T1 and DSL services which are typically delivered over copper are far and away the most common business service offerings. (The very popular IP VPN or MPLS VPN business service has given new life to copper-based T1.)

(Read more: http://www.fiercetelecom.com/story/telcos-struggle-retire-copper/2009-12-14#ixzz0Zm9hbsW5)

Further, the technical barriers to replacing the copper with fiber is both incredibly expensive. To make matters worse, the technology to upgrade line equipment in place to send dial tone is just not available.

All telcos are pleading that case that new high speed data and video can come online with new fiber but this process is going to be slow.

What this means for my business customers is not to worry so much about SIP trunks, VoiP and all of these things to replace copper loops anytime real soon. Not only are the telcos struggling to replace the copper that is still so popular but the phone system hardware office side still leave a lot to be desired.