emand for traditional wireline voice services continues to plummet. Wireless and VoIP substitution is accelerating to where less than 6.5% of households use wireline phones exclusively,
according to a 2017 National Health Interview Survey. Meanwhile, competition from text, instant
messaging, real-time video and social media platforms keeps increasing. With pending changes
to intercarrier compensation, LECs are clearly facing a difficult path to success.
Despite these challenges, some LECs are thriving. A key characteristic of successful LECs is focus on
new services, built on high-speed IP-based networks. To concentrate on the future, they find it essential
to eliminate, simplify and reduce costs in their legacy network. One clear trend is emerging—the elimination of TDM access to the PSTN.
Given the revenue erosion of switched access—combined with the significant cost of maintaining
switching equipment, SS7 links and Interconnection Agreement (ICA)/Local Interconnection Service
(LIS) trunks—the PSTN interconnection infrastructure is an obvious source of complexity and cost. PSTN
traffic comprises three bidirectional call flows: Long Distance, Local Transit and Local ICA/LIS. Long
Distance includes inbound and outbound access calls to the LEC. Outbound calling for these services
has been optimized by the addition of least cost routing for termination of calls; however, inbound calls
have been harder to address. The default architecture for most providers is to interconnect with RBOC
Tandems to receive inbound Long Distance, Local ICA/LIS and Local Transit calls. Unfortunately, RBOC
interconnections remain limited to TDM—and TDM costs have failed to decline in proportion to other
industry costs. Even worse, these costs multiply in relation to the size of the service area making growth
and expansion costly.
Some service providers now offer alternatives
that enable PSTN access entirely via direct SIP
If a carrier acquires VoIP Numbering Authority from the FCC they may expand nationally, with minimal
cost, in just a few weeks as opposed to the months or years it would take using a TDM solution. Best of
all these solutions provide usage based pricing instead of fixed costs for capacity. Thus, carriers pay only
for what they use.
In the past, if an ILEC wanted to expand its’ traditional boundary into a new market, whether immediately adjacent or across the country, they would have been required to deploy transport and trunking
for each new Tandem. However, with the Inteliquent Local Connect service, they can use an IP-based
infrastructure to obtain number resources, route local and long distance calls, utilize existing interconnection agreements and never need to deploy additional transport or trunking to the LEC again.
Regardless of the
abundant benefits, this
type of transition is a
significant change for
the typical LEC. It
requires a substantial
shift in culture and a
willingness to out-source elements that
were previously seen as
essential to own. To make a change like this successful, it is pivotal to find a partner, like Inteliquent,
who understands the importance of your business and shares your priorities in addition to having an
unimpeachable, industry-leading network and proven track record in providing this type of solution.
This applies to the quality of the network, but also the processes required to manage a seamless transition.
Customers expect the same class of service their LEC had provided and will not tolerate interruptions.
The greatest benefit of this type of transition is to allow carriers to turn their attention to offering
new services and gaining new customers without the distractions of maintaining infrastructure. Once
providers stop spending resources on undifferentiated networks that provide identical benefits as other
carriers, they can accelerate new service development and deepen customer relationships by focusing
on innovations that set them apart. l
Complete Solution: Access Homing Tandem, LTS, LD and Local Connect
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CLASS 5 CLASS 4
RATE CEN TER
Traditional Carrier (All TDM): Local (ICA and Transit) and LD
(LOCAL ICA & TRANSIT)
LONG DIS TANCE
10300 6th Ave N
Plymouth, MN 55441