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Crexendo® Reaches 3 Million End Users Utilizing Their Award-Winning Platform.
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LANDLINE PHONE PRICES ARE SKYROCKETING — WHAT ARE YOUR OPTIONS?

 * April 7, 2023
 * Crexendo®

The cost of a landline phone is rising at an alarming rate with no sign of
slowing down, and businesses face a choice. Landline customers are experiencing
drastic price hikes and service decommissions due to incumbent local exchange
carriers (ILECs) transitioning away from copper-based plain old telephone
service (POTS) and time division multiplexing (TDM). POTS and TDM rates have
risen severely, with some businesses now facing monthly fees of over $1,000 for
their landline phone service. So business landline customers must decide whether
to stay with their existing service and pay high prices or switch to another
provider.


THE CAUSE: REGULATORY CHANGES 

These price increases stem from the Federal Communications Commission (FCC)
permitting carriers to adopt market-based pricing for copper services. In August
2019, the FCC granted ILECs forbearance from obligations restricting their
copper policies since 1996. The forbearance memorandum lifted price caps,
enabling carriers to develop new and improved services. 

Although the Commission set a deadline of August 2022 for carriers to switch
their analog services to alternative options, this did not entail the immediate
decommissioning of all POTS lines. However, some carriers are not waiting, and
AT&T has been switching off 700,000 POTS lines monthly. The new regulations
signaled that costs for landline phones would soon rise, and with carriers
moving away from POTS now and in the future, the phrase “landline costs are
going up” is becoming a significant understatement. 


COPPER WIRES, CUSTOMER WOES 

With pricing forbearance, carriers can now charge the actual cost of landline
phone service. As more businesses abandon POTS, fewer users bear the cost of
maintaining, repairing, and supporting copper wire technology. Consequently,
some POTS customers face enormous increases in their telecom expenses. 

As landline phone costs surge, support for the technology dwindles. Customer
service representatives and technicians familiar with copper wire are migrating
to other technologies, and replacement parts and equipment are becoming scarce.
Some customers experience long waiting times for phone support and struggle to
secure service appointments, with scheduling delays extending from days to weeks
in some instances. 

Given these challenges, what alternatives are businesses exploring to replace
their landline phones? 


LANDLINE PHONE ALTERNATIVES: EMBRACE THE CLOUD 

Businesses seeking alternatives to landline phone service are increasingly
turning to cloud-based business communications, with most considering Voice over
Internet Protocol (VoIP), Unified Communications as a Service (UCaaS), or
Contact Center as a Service (CCaaS). 

VoIP: Voice over Internet Protocol is phone service hosted by a third-party
provider that allows users to make phone calls over the Internet, bypassing
traditional phone lines. 

UCaaS: Unified Communications as a Service is a cloud-based communication
solution that integrates various, such as voice, video, messaging, and
collaboration tools, into a single platform. 

CCaaS: Contact Center as a Service is a cloud-based customer support solution
that streamlines contact center operations with advanced features and
sophisticated reporting. 


THE CLOUD ADVANTAGE

Cloud-based business communication solutions, including VoIP, UCaaS, and CCaaS,
offer numerous business advantages. These benefits include: 

 1. Cost Savings: Cloud-based communication solutions typically have lower setup
    and operational costs than traditional landlines. VoIP, for example, enables
    cost-effective calls via the Internet, reducing the need for expensive
    hardware and phone lines.

 2. Scalability: Cloud communication systems, such as UCaaS, allow businesses to
    easily scale up or down based on their needs, adding or removing users and
    features without significant costs or complications.

 3. Improved Collaboration: UCaaS platforms integrate various communication
    tools, like voice, video, messaging, file sharing, and more, into a single
    platform. This facilitates seamless collaboration among team members,
    increasing productivity and efficiency.

 4. Enhanced Mobility: With cloud-based communication services, employees can
    access their work tools from any location using their preferred devices.
    This flexibility enables remote work and supports a modern, mobile
    workforce.

 5. Advanced Features: VoIP, UCaaS, and CCaaS offer advanced features, such as
    call routing, call recording, video conferencing, and analytics, which help
    businesses optimize their communication processes.

 6. Streamlined Customer Support: CCaaS solutions centralize customer support
    operations and provide tools to improve customer interactions, such as
    intelligent call routing, integrated customer data, and real-time analytics.

 7. Easy Integration: Cloud-based communication systems can be easily integrated
    with other business applications, such as CRM and ERP software, enhancing
    the efficiency and effectiveness of various business processes.

 8. Business Continuity: Cloud communication solutions have built-in redundancy
    and disaster recovery features, ensuring businesses can maintain
    communication during unexpected events or downtime.

 9. Simplified Maintenance: With cloud-based communication solutions, the
    service provider handles system maintenance, upgrades, and troubleshooting,
    reducing the burden on in-house IT staff.

 10. Enhanced Security: VoIP, UCaaS, and CCaaS providers invest in robust
     security measures, such as encryption and strong access controls, to
     protect business communications from unauthorized access and potential
     threats.

Cloud-based business communication solutions like VoIP, UCaaS, and CCaaS offer
cost savings, scalability, improved collaboration, enhanced mobility, advanced
features, streamlined customer support, easy integration, business continuity,
simplified maintenance, and enhanced security, making them an attractive choice
for modern businesses to replace their landline phones. 


THERE’S NO TIME LIKE THE PRESENT 

Although POTS customers will eventually need to replace their landline phone
service, the increasing costs and declining support for copper wire are
prompting many to explore the advantages of cloud-based UCaaS and CCaaS
solutions. Switching to cloud communications sooner rather than later is proving
to be a wise business decision for many. 

While switching from landline phone service immediately is not mandatory, POTS
prices are expected to keep rising. Transitioning from landline phones to a
cloud-based solution is a practical option for many business customers. 


GOODBYE LANDLINE PHONE — HELLO PRODUCTIVITY AND COST SAVINGS

If you’re considering replacing your landline with a cloud-based solution that
enhances efficiency, productivity, and collaboration while reducing your
communications spending by up to 55%, give the Crexendo® VIP™ UCaaS and CCaaS
cloud platform for business communications a test drive. Schedule your free VIP
demo today!


SCHEDULE A FREE DEMO


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Notice: We are currently working on updating our PDF files on our website. You
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Notice: We are currently working on updating our PDF files on our website. You
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