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Why is my business phone bill (POTS & landline) increasing?

Rising Phone Bill CostsIf your business uses POTS, landline, or legacy phone lines for alarms, emergency elevators, or faxes, you might have noticed a sudden bill increase. Legacy lines were once cheap and dependable for critical functions. Now, however, their costs are rising. This leaves many businesses puzzled and searching for solutions.

At TeleCloud, we’ve helped hundreds of businesses across industries find alternatives to rising legacy phone bill costs. This blog aims to offer clear, practical advice. Our goal? To help you cut costs while keeping systems compliant and reliable.

This blog will explain the reasons behind these rising costs. We will also suggest alternatives that keep your operations smooth and your expenses low.

Untitled (10)What Are Traditional Phone Systems (POTS & Landlines), and Why Are They Still in Use?

Traditional phone systems like Plain Old Telephone Service (POTS) and landlines are the old backbone of telecommunications. They were built to manage one call at a time or to handle business calls. Despite being mostly replaced by digital and internet solutions, they remain vital in situations where reliability and simplicity are key:

  • Alarm and Security Systems: Many older alarms still rely on analog connections to transmit signals.
  • Elevator Emergency Communication: Analog lines provide dependable connectivity for emergency call boxes in elevators.
  • Fax Machines and Older Credit Card Terminals: Businesses using older equipment often require analog lines to maintain functionality.
  • Specialty Sensors: Devices like pool overflow monitors or older building management systems may still depend on analog connections.

While these systems helped businesses for decades, rising costs and better telecom tech have made many rethink their reliance on them.

Why Are Phone Bills Increasing?

Several factors are driving up the cost of traditional phone systems. They are mainly, regulatory changes and an aging infrastructure.

1. Deregulation and Legacy Infrastructure

In 2022, major telecom companies, including Verizon, pushed for changes to lessen their duty to maintain old copper phone lines. With advancements like fiber optics and VoIP, the Federal Communications Commission (FCC) agreed.

How does this impact businesses? Without the mandate to maintain these lines, providers gradually raised prices to encourage customers to switch to digital options.

2. Aging Copper Lines and Limited Support

POTS Systems use copper wiring, which is costly to maintain. With deregulation, providers aren't required to keep service standards. They can raise fees without ensuring prompt repairs. Sometimes, they even charge for broken lines, leaving businesses to monitor services.

3. Price Creep Across All Providers

Price hikes aren't just for Verizon. They also affect all providers using copper lines. The cost of wholesale has gone up. So, resellers must raise their prices too. Whether you're with a major provider or a third party, expect to see these increases.

 

Real-World Cost Impact for Businesses

The financial burden of raditional phone lines has increased over time. Where a single line may have cost around $35 monthly, rates are now climbing to $150 per line. For businesses with multiple POTS lines, this can represent a significant monthly expense.

Example Scenarios: Small vs Large Businesses

  • Small Business with One Line: A business with a single alarm line might absorb the higher cost. But, for those using older systems across multiple functions, it adds up quickly.
  • Larger Facilities with Multiple Lines: Consider a facility with five lines supporting alarms, fire safety, and elevators. At $150 per line, this business is now paying $750 a month—double or even triple what they may have paid just a few years ago.

Questions to Ask Yourself: 

  • How many lines is your business currently using?
  • Are these lines supporting essential systems that could benefit from modernization?
  • Are you currently tracking your phone bill expenses to understand how rising costs impact your budget?
  • Could consolidating your needs with modern alternatives help save on operational expenses?

Solutions for Reducing Phone Bill Costs

Businesses facing rising phone bills can take proactive steps to reduce costs while maintaining essential services.

1. Transition to Modern Technology

Many traditional systems now work over digital or wireless networks, removing the need for analog lines:
  • Alarm Systems: Upgrade to LTE transponders for secure, wireless connectivity.
  • Elevator Emergency Lines: Use LTE emergency communication solutions for greater reliability at lower costs.
  • Credit Card Terminals and Faxes: Switch to Ethernet-connected or cloud-based devices to eliminate analog fees.

2. Cost-Benefit of Upgrading

Switching to modern alternatives can bring significant savings. By converting an alarm line from POTS to LTE, businesses can reduce costs by eliminating the high monthly POTS fees.

3. The Full Upgrade: Consolidate Communication Platforms

If your business is ready to completely transition to a newer communication platform, you should consider:

  • Unified Communications as a Service (UCaaS): Combine voice, video, and messaging into a single, scalable platform.
  • VoIP Systems: Replace traditional lines with internet-based calling. It costs less and has advanced features, like call routing and voicemail-to-email.

Alternative Solutions for Multi-Line Setups

For businesses with complex needs or multiple POTS lines, direct replacements may not always work. In such cases, POTS-in-a-box solutions provide a convenient middle ground.

POTS-in-a-Box Solution

This device mimics POTS line functions over the internet, with LTE backup. It's ideal for businesses wanting to keep analog equipment without high POTS fees. Typically, POTS in a Box includes:

  • Internet connection with LTE backup for reliability during outages
  • Battery Backup to comply with emergency code requirements
  • Analog Telephone Adapters (ATAs) for compatibility with existing analog equipment

A facility with five POTS lines could save money by switching to a POTS-in-a-box solution. It would replace a costly analog model with a cheaper, internet-based solution. If you are considering the POTS in a box solution or want to learn more, reach out to us here

Is This a Verizon-only issue?

Verizon is often associated with POTS rate increases due to its significant role in maintaining the copper infrastructure that supports traditional phone lines. As a major provider, Verizon sets the wholesale rates for this infrastructure. Other telecom companies rely on these rates to offer their services. When Verizon adjusts its rates, other providers pass these costs to their customers. However, the rising costs affect the entire industry. All telecom providers face the challenge of maintaining old copper networks. So, POTS rate hikes are a common issue for all businesses.

Take Control of Rising Telecommunication Costs: Practical Steps for Your Business

If you’re feeling the impact of rising telecom costs, you’re not alone. Legacy infrastructure and high maintenance fees are making POTS too expensive for businesses. The good news? Modern, cost-effective alternatives can help you maintain essential services without breaking the bank. Here’s how to start: 

Proactive Solutions for Outdated Systems

  1. Assess Your Current POTS Usage: Take a close look at how many POTS lines you currently use and identify which services rely on them.
  2. Consider Modern Alternatives: Look into LTE transponders and POTS-in-a-box solutions. These can save money without a full system overhaul.
  3. Consult with Telecom Experts: Specialists can recommend the best course of action and personalized solutions.

At TeleCloud, we recognize the burden of telecom costs. Our team offers solutions that integrate smoothly with your existing setup, helping you maintain essential functions while reducing expenses. Reach out today to discuss how our services can help you keep communication costs manageable, reliable, and compliant with current standards.

By assessing your current setup and exploring more affordable options, your business can navigate rising costs with confidence, ensuring that your essential systems remain both functional and cost-effective. Get a Free Telecom Bill Audit with Telecloud. 

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