Embracing the Future: How the Decline of Landlines is Driving Innovation and Opportunity in Security and Access Control Systems

The telecommunications industry is undergoing a major transformation as the transition from landlines to mobile and VoIP services creates both challenges and opportunities for security system dealers and gate installers who depend on telephone lines for their intercom systems and access control solutions. The decline of analog telephone lines opens profitable opportunities for businesses that can adjust to the changing telecommunications environment.

The Decline of Landlines: A Trend That Can't Be Ignored

Telephone lines have served as the essential infrastructure for voice communication and access control systems for many years. The expansion of both Internet connectivity and mobile technology continues to push traditional landlines into obsolescence. The U.S. Telecom Association analysis revealed that landline usage in American households decreased from 95% during the early 2000s to 40% by 2011. The downward trend persisted during 2012 because mobile phones and Voice over IP (VoIP) services became widely used.

Major telephone companies such as AT&T recognize traditional telephone lines as obsolete technology facing extinction. Maintaining landline infrastructure is financially unsustainable because more consumers shift toward mobile and VoIP services which leads to fewer remaining landline customers. The Federal Communications Commission (FCC) has recognized this technological shift and hosted workshops to study PSTN's replacement with modern communication methods. The FCC's Technical Advisory Council proposed establishing a phase-out deadline for the PSTN to prevent its prolonged and ambiguous discontinuation.

By late 2011 the Centers for Disease Control (CDC) reported that wireless phone dependence had reached one third of U.S. households which had fully transitioned away from landlines. The percentage of people dropping traditional phone services will grow further because mobile devices and VoIP technologies advance in functionality and user convenience.

Industry Disruption: Survey Insights

According to the "Wholesale Voice Buyer Survey" from inetwork disruptive influences on the telecommunications sector became evident. Key findings include:

1. The Death of Landline/Desk Phones: A total of 74% of survey participants named this trend as the primary disruptive force while businesses continue moving towards mobile solutions.
2. VoIP Over Long-Term Evolution (LTE): Seventy-two percent of survey participants reported that wireless carriers and VoIP service providers are becoming difficult to differentiate.
3. The Decline of Plain Old Telephone Service (POTS): Legacy phone services face major disruption according to 70% of respondents because they are being replaced by IP-based platforms which offer enhanced features.

The survey results reveal an increasing preference among users to access communication services through application programming interfaces (APIs). Mobile users now prefer to use smartphone applications or softphone solutions to make VoIP calls through Wi-Fi and internet connections instead of traditional phone number dialing. The pattern indicates a broader transition from hardware-based systems to software-based communication solutions.

The Rise of Mobile and VoIP: Why Landlines Are Disappearing

The decline of landlines can be attributed to two major factors: The transition from landlines to wireless communication systems has been propelled by two key developments: the rapid increase in smartphone ownership and the growing popularity of VoIP services. The transition away from landlines is largely driven by the popularity of smartphones. According to a Nielsen survey 55% of new phone buyers selected smartphones instead of basic feature phones during early 2012 which increased from the previous year when only 34% made the same choice. According to comScore data released in mid-2012, smartphone usage among U.S. mobile phone users reached nearly 50% and displayed no indications of decreasing.

Internet-based VoIP services contribute significantly to the reduction of traditional landline usage. Traditional phone lines lose their significance as both consumers and businesses increasingly adopt Internet-based communication methods. The ongoing expansion of smartphones could potentially influence both wired broadband Internet utilization and non-wireless VoIP service usage. Pew Research data reveals that one-fourth of Americans primarily use their phones for Internet browsing instead of computers while one-third of these mobile dependent users lack high-speed broadband at home.

International Data Corporation (IDC) forecasts that by 2015 U.S. Internet users will access the web more frequently through mobile devices compared to PCs and other wired devices. The advancement of mobile technology could lead to a further reduction in dependence on traditional landlines and wired broadband services.

The Impact on Telephone Entry Systems

The transition away from landline telephones creates major effects for telephone entry and intercom systems. These communication systems have depended on analog phone lines for many years. Businesses need to identify new approaches to satisfy their clients as traditional landlines become obsolete.

Clients who desire to maintain their existing telephone intercom systems while having broadband Internet access can utilize VoIP services such as Vonage or magicJack PLUS for a practical solution. Users can keep their current intercom systems operational by connecting them to the Internet with the help of a VoIP adapter. Clients face a small monthly or yearly charge but can preserve both their phone number and system functionality through this method.

Clients who lack broadband Internet access or who choose to avoid VoIP services can instead utilize wireless solutions. Wireless intercom systems function independently from telephone networks when connecting base station intercoms or handheld radios. These systems provide optimal solutions for areas where wired connections cannot be installed or are not needed.

Cell-based intercom systems offer a cellular solution when it remains necessary to make phone calls. These systems connect to AT&T and T-Mobile networks to reach clients' cell phones and landlines irrespective of their location. Advanced functionalities of GSM intercoms include the capability to:

• Users can program intercom systems with phone numbers to facilitate automatic entry options for individuals like delivery workers.
• Text messaging functions allow users to operate gates and determine their operational state.
• Multiple phones will receive a call if the intercom button gets pressed.
• Remotely program the intercom via text messaging.

Opportunity for Increased Sales and Profits

Businesses offering intercom and access control solutions stand to gain from significant opportunities presented by changes in the telecommunications landscape. The fading presence of traditional landline systems generates new market possibilities through installation fees and hardware upgrades alongside service calls. Companies that adopt new technologies will satisfy client requirements and strengthen their profits throughout the digital age.

Firms that lead market trends and present innovative solutions can transform this transition phase into a substantial source of revenue generation. Businesses must take a proactive approach to investigate new technologies and demonstrate to clients how system upgrades can benefit them.

Author: David Onslow