| What does the future hold for "landline" phone | | | | landline or mobile will be the norm in the next 2-3 years. |
| companies?? | | | | As for the landline itself, it represents a significant |
| It depends on their ability to adapt to the changing | | | | investment in infrastructure, one which has, in most |
| market. Some will adopt or hedge against new | | | | cases, already paid for itself, so the net return is high |
| technologies or find other services that can be | | | | and warmly welcome. Its future rests with its ability to |
| delivered over their legacy (invest in new) | | | | deliver competitive broadband services, and with |
| infrastructure that will add margin to their accounts. | | | | VDSL2 can deliver around 50Mbs. This is enough (so |
| The residential market has been deflationary for years. | | | | far) to deliver IP telephony, some IPTV and reasonable |
| Carriers have seen price erosion due to competition, | | | | broadband services with QoS. |
| competiting technologies (cell phones, email, VoIP). | | | | There is the belief that Mobile services will overtake |
| Verizon for example has found a new market to | | | | the humble landline, but the technology is not yet fully |
| compete in, offerring television services as well as | | | | developed and there is the constant problem of lack |
| voice and internet, assumably increasing revenue per | | | | of available spectrum. (not to mention those who think |
| customer and margins (once the fiber is paid off). | | | | we will all end up glowing in the dark). For these |
| Sprint has more than offset huge landline losses with | | | | reasons, as well as the additional cost of delivering |
| wireless sales | | | | data over radio, most telcos are busily running fibre |
| The SMB and Enterprise markets have seen similar | | | | services as quickly as they can. |
| deflationary forces for years. They have seen new | | | | Meantime, at least for the next 10 years, landlines |
| technologies like email and cell phones as well as VoIP, | | | | (copper) will remain the cheapest and easiest means |
| WAN technologies, etc, lower the average revenue | | | | of delivering reasonable speed broadband services. |
| per customer significantly as we all as decrease | | | | Fixed-line telephony companies - at least some of |
| margins. However, you see many respond by adding | | | | them - will be around for a very long time to come. |
| professional services, managed services and other | | | | Yes, consumers and business now have a vast array |
| high margin, value-added services to their portfolios. | | | | of choices for their telecommunications needs. |
| Some carriers will not respond appropriately to the | | | | Disruptive technologies like VoIP and Wireless are |
| changes in the marketplace, and will be acquired for | | | | changing the markets forever. Call and access prices |
| their customer bases, network or geographic | | | | on these services are dropping rapidly while hard lines |
| presence. | | | | remains somewhat expensive. |
| Additionally, technologies need to evolve and become | | | | And yet... |
| more stable before land lines can disappear. For | | | | There is an unimaginable amount of copper in the |
| example, land lines are still preferred for faxing, alarms | | | | ground, all over the world, which represents a massive |
| and inexpensive redundancy as technology still limits | | | | infrastructure investment. And it generally works really |
| alternative means. | | | | well. We can be certain that those who own the |
| Ten years might be a little too aggressive a timeframe | | | | copper will find ways of ensuring it continues to |
| to expect to see them disappear, but you may not | | | | generate revenue for them. Just dropping call costs |
| recognize the companies that are selling them | | | | enough would do it, as will the advent of new services |
| compared to the way they look today. | | | | which could be delivered over existing landline |
| By now most telcos have come to the conclusion that | | | | connections. |
| telephony is evolving and IP telephony, whether over | | | | However ... what really happens next is anones guess. |