FCC Announces End Date for DS0, DS1, DS3 Loop Maintenance Requirements: Here’s What That Means for Businesses That Rely on Traditional PRI
Local exchange carriers (LECs) will no longer be obligated to maintain DS0, DS1 and DS3 loops in the near future, according to a Federal Communications Commission (FCC) Report and Order. If your company currently relies on traditional PRI, here’s what you should know about these changes in regulations and what the modified FCC rules mean for your business.
Why did the FCC issue this Report and Order?
The Report and Order updates the unbundling and resales requirements specified in the Telecommunications Act of 1996 (a.k.a., the 1996 Act). When that law was enacted, LECs dominated local telephone service markets. Congress intended to break up monopolies with the 1996 Act by mandating that LECs extend unbundled network elements (UNEs) to competitors in addition to reselling telecom services at a discount, according to the FCC.
Over the years, however, the landscape of the fixed voice marketplace has transformed and now includes not only LECs but also over-the-top VoIP suppliers, cable companies offering VoIP services, and wireless providers. The enterprise market now features high levels of competition. On top of that, in the realm of enterprise services, many carriers are swapping out last-mile copper for new technologies like fiber and fixed wireless.
In light of these dramatic changes in the communications market, the FCC decided to modernize unbundling obligations in areas where evidence proves these requirements are no longer needed to facilitate the entry of “efficient competitors” into the marketplace, as the Report and Order states. The FCC has also noted that permanent unbundling obligations can discourage the development of next-gen networks. Along with eliminating the unbundling rules in circumstances where they aren’t necessary for adequate competition, the FCC is also allowing carriers to stop maintaining traditional technologies such as DS0, DS1 and DS3 loops.
How long do carriers need to maintain DS0, DS1 and DS3 loops?
The Small Entity Compliance Guide for the FCC Report and Order (WC Docket No. 19-308) states the following concerning maintenance requirements for UNEs.
- Effective Feb. 8, 2021, incumbent LECs must offer a 48-month transition period for clients with broadband-capable DS0 copper loops (ISDN-BRI) and their associated copper subloops. New orders are allowed during the first 24 months of that interval. After Feb. 10, 2025, incumbent LECs don’t have to maintain existing DS0 loops in urban areas. Note: During the final 12 months of the transition period, carriers can increase rates by as much as 25 percent.
- Effective Feb. 8, 2021, incumbent LECs must offer a 42-month transition interval for DS1 loops (ISDN-PRI). New orders will still be allowed during the initial 24 months of this period. After Aug. 8, 2024, carriers won’t be required to maintain existing DS1 loops.
- Effective Feb. 8, 2021, incumbent LECs must offer a 36-month transition period for DS3 loops (T3). There will be no additional time for placing new orders during that interval. After Feb. 8, 2024, carriers don’t have to maintain existing DS3 loops.
What does this mean for businesses that utilize traditional PRI?
Once carriers are no longer obligated to maintain these traditional technologies, you could potentially run into problems due to a decrease in the number of techs with expert knowledge of these services and the ability to fix them. You could also experience more frequent failures of service, as carriers won’t be motivated to repair these loops.
What should I do to avoid any issues with my telecom services in the future?
To avoid any issues, you can migrate to a cloud phone system – a.k.a., Unified Communications as a Service (UCaaS). Particularly in today’s work-from-anywhere era, many companies have switched to UCaaS for greater accessibility, flexibility and scalability (in addition to cost containment).
Alternately, if you’d like to keep your on-premises phone system, we can implement fiber with SIP and install an on-prem router or gateway to convert SIP to traditional PRI to emulate the PRI handoff to your PBX. If fiber isn’t already present in your building, you’ll need to invest time and money in deployment. Additionally, you will need to increase bandwidth to accommodate your voice services. Increasing bandwidth could also necessitate the installation of a new firewall.
If you want a true SIP connection, we can SIP-enable your PBX, a process that will involve upgrade and SIP SBC costs. It’s important to consider the fact that true SIP failover won’t work without direct SIP (remote call failover would be your only option).
Our team of telephony experts is available to assist you and answer any questions you might have about your business communication solutions and the best course of action for your organization going forward. Get in touch with us today by calling 877-598-3999 or emailing sales@convergedsystems.com.
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