Why the Telco Transition to VoIP is a Big Deal

Wireline and wireless carriers are undergoing a transition that is as profound as the combined effects of retiring cord-board operators, adopting SS7, and shifting from analog to digital telecommunications.

While the implications are significant for internal telco infrastructure, they are even greater for businesses that will see the TDM/SS7 network phased out within the next seven years. The FCC has assured consumers that most voice equipment will remain interoperable as TDM switches are retired. However, businesses that have not yet transitioned to VoIP or other IP-based communications platforms will eventually be required to do so.

Much of the business case for deploying VoIP as a core telecom service platform is driven by cost reductions in network maintenance, energy consumption, radio spectrum usage (particularly with VoLTE for wireless carriers), and the need for physical central office space. At the same time, telcos are paving the way for a whole new generation of services.

Enterprises already recognize that VoIP provides a strong foundation for the rapid adoption of other real-time communication services, such as video conferencing and collaboration platforms. They have also learned that employees increasingly expect flexibility—choosing between various communication devices (e.g., smartphones, laptops, desk phones) and platforms (e.g., messaging, voice, video).

The IP infrastructure that telcos are building today will enhance their ability to offer cloud-based collaboration and information services over virtual networks in the near future. We look forward to seeing how quickly these services evolve with the development resources that carriers bring to the table.