In 2014 the FCC granted traditional telecom providers (ILECs and others ) the go-ahead to begin testing data circuit-based phone services, such as Voice over Internet Protocol (VoIP) and Session Initiation Protocol (SIP), intended to replace existing copper-line phone networks. The intent was to deliver SIP that became the newest method of transmitting a voice communication over a data network. Inside a company a VoIP call is an example of a SIP session. On outgoing calls SIP ‘lines’ (or call paths) are virtual because an organization’s phone system can now be connected to a service provider through an internet connection.
Since 2015 the majority of telephone line providers around the country have devised strategies to eliminate maintenance intensive copper wire/line services. Companies such as AT&T, Verizon and Lumen have been divesting themselves of these capabilities (e.g., Verizon began selling off assets in California, Texas and Florida.)
Major providers are committed to migrating toward VoIP and SIP services and are finding ways to incentivize business clients to migrate. Today, organizations who continue to use traditional 1MB, T1 or PRI trunks or have not been able to migrate to newer technologies are finding their monthly costs per circuit skyrocketing. Some clients report over a 400% rate increase in the past few years.
