We’re seeing switch vendors ending support for the first generation of soft switches and this is forcing a lot of companies to consider how to continue safely operate their telephone products. Almost all of my clients are seeing an erosion of their voice customer base which makes it hard to justify investments in new switch hardware.
There are alternatives to buying new hardware that should be considered before ponying up for a new switch. Some of the options include:
Migrating to the Cloud. There are numerous options for migrating some or all of your voice services to the cloud.
The simplest migration path is to use a call feature server in the cloud. This is the device that supplies all of the voice features and is the core of a soft switch. A migration to the cloud will eliminate the call feature server hardware and software at the carrier end and replace it with a lease for the capability from a cloud-based vendor like Alianza / Level 3.
At the other extreme you can abandon the whole voice switch and move everything to a cloud-based VoIP service. This eliminates the switching hardware and software, and also eliminates the cost of interconnection and the purchase of things like SS7. There are options between the two extremes and it’s possible to outsource only some switch functions.
Sharing with a Neighbor. I’ve been preaching for years that neighboring carriers ought to partner for voice services. The typical voice switch is capable of processing huge volumes of calls and there can be significant savings when companies share the cost of the core hardware, software, interconnection costs and technician labor associated with a softswitch.
What to Watch Out For. There are possible gotchas to look out for in any switch migration. For example, a carrier that still relies on access charge revenues needs to be careful that a transition doesn’t drastically change access billing. Obviously losing access revenue is a negative, but a migration that drives access charges higher can also be negative and can draw challenges and possibly even bypass by long distance carriers.
Another wrinkle to be aware of is the ability to maintain special switching arrangements like EAS or regional long distance plans that are mandated by regulatory bodies. With good planning such arrangements can be accommodated – but address them up front.
Traditional ILECs also need to be aware of changes in settlements. Switching subsidies and related access charges have largely been phased out, but any change to rate base and access billing is something that should always be run past settlement consultants.
If planned properly and with a little creativity a carrier can save money by outsourcing switching while still meeting all regulatory requirements including network structures like host/remote complexes and even the tandem function. But if done poorly a carrier can put related revenues at risk while possibly messing up the ability of customers to make calls.
I don’t normally use this blog to directly market CCG Consulting services – I know I rarely read marketing blogs from others. But this kind of migration has hidden perils to those who aren’t careful – if you are going to do it, then make sure it’s done perfectly. There are so many moving parts in a switch migration, and often a lot of dollars at stake that you must get it right the first time. The CCG staff has migrating and upgrading switches for decades and we can help you to save money on your switching function while maintaining cash flows and meeting regulatory requirements.