In an interesting filing to the FCC [
pdf, 100KB], AT&T; said that the public switched telephone network (“PSTN”) and plain-old telephone service (“POTS”) are relics of a by-gone era.
Revenues from POTS are plummeting as customers cut their landlines in favor of the convenience and advanced features of wireless and VoIP services. At the same time, due to the high fixed costs of providing POTS, every customer who abandons this service raises the average cost-per-line to serve the remaining customers. With an outdated product, falling revenues, and rising costs, the POTS business is unsustainable for the long run. Yet a web of federal and state regulations has the cumulative effect of prolonging, unnecessarily, the life of POTS and the PSTN.
The CRTC has been told to examine whether its regulation distorts the business case for facilities upgrades in the context of wholesale services.
The CRTC proceeding does not have a sufficiently broad scope to examine the issues raised by AT&T; in its FCC filing. At what point will Canada formally launch the development of a national digital strategy?
This issue and many more will be discussed at The 2010 Canadian Telecom Summit in June. Among other sessions, ADM Helen McDonald of Industry Canada will be moderating a panel examining “Building Digital Canada.”
Early Bird rates are in effect until the end of February. Have you registered yet?