According to the Federal Communications Commission, the number of landline customers in Michigan dropped from 6.7 million in 2000 to 2.6 million in 2012. Meanwhile, the number of wireless customers jumped from 3.5 million in 2000 to 9.3 million in 2012.
In other words, there were in 2012 only 39 percent of fixed lines in service; the rest were fallow. By definition, that means the remaining customers have to cover the fixed costs of the whole network.
No doubt, there are reasons some customers prefer to keep their legacy "plain old telephone service" lines. At some point, it will not be financially possible to keep the old network operating, whatever the public service value of doing so.
That doesn't mean fixed networks will not provide voice; they will. But it will be IP-based voice, not TDM. Like it or not, we are approaching a time when the legacy network has to be shut down, as it will not be possible to pay for its operation.
Monday, November 18, 2013
At Some Point, Legacy Networks are Too Expensive to Operate
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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