The Death of the Landline and Its Effect on Telephony Entry Intercom Systems

Articles

The rapid shift from traditional landlines to mobile and VoIP services is creating a significant transformation in the telecommunications industry, presenting both challenges and opportunities for security system dealers, gate installers, and other businesses that rely on telephone lines for intercom systems and access control. While the days of analog telephone lines are dwindling, this evolution represents a lucrative opportunity for those ready to adapt to the new landscape.

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

For decades, telephone lines have been the backbone of voice communication and access control systems. However, the growth of the Internet and mobile technology is rendering traditional landlines increasingly obsolete. In fact, U.S. households using landlines dropped from 95% in the early 2000s to just 40% by 2011, according to analysis by the U.S. Telecom Association. The decline continued throughout 2012, fueled by the widespread adoption of mobile phones and Voice over IP (VoIP) services.

Telecom giants like AT&T have acknowledged the inevitable end of traditional telephone lines, labeling them as "dying technology." As more consumers transition to mobile and VoIP services, the cost of maintaining landline infrastructure for the dwindling number of remaining customers is becoming unsustainable. Even the Federal Communications Commission (FCC) has taken note, holding workshops to explore the transition from the public switched telephone network (PSTN) to newer technologies. The FCC's Technical Advisory Council has even recommended setting a deadline for ending the PSTN to avoid a slow and uncertain phase-out.

The Centers for Disease Control (CDC) further supports this trend, reporting that by late 2011, one in three U.S. households had completely cut the cord, relying solely on wireless phones. This figure is expected to continue rising as the convenience and capabilities of mobile and VoIP services grow.

Industry Disruption: Survey Insights

A "Wholesale Voice Buyer Survey" sponsored by inetwork highlights the disruptive factors impacting the telecommunications industry. Key findings include:

The Death of Landline/Desk Phones: 74% of respondents identified this as the most disruptive factor, with businesses increasingly shifting to mobile solutions.
VoIP Over Long-Term Evolution (LTE): 72% of respondents cited this trend, where wireless carriers and VoIP service providers are becoming indistinguishable.
The Decline of Plain Old Telephone Service (POTS): 70% of respondents recognized this as a major disruption, as legacy phone services give way to IP-based platforms with enhanced features.

One notable trend emerging from the survey is the growing preference for application programming interfaces (APIs) to access communication services. Rather than dialing a phone number directly, users are increasingly turning to smartphone apps or softphone applications to make VoIP calls over Wi-Fi and the Internet. This trend reflects the broader shift from hardware-based to software-driven communication solutions.

The Rise of Mobile and VoIP: Why Landlines Are Disappearing

The decline of landlines can be attributed to two major factors: the widespread adoption of mobile phones, especially smartphones, and the rise of VoIP services. Smartphones, in particular, are driving the shift away from landlines. A Nielsen survey found that 55% of consumers who purchased a new phone in early 2012 chose a smartphone over a basic feature phone, up from just 34% a year earlier. By mid-2012, nearly half of all U.S. mobile phone users were using smartphones, according to comScore, with no signs of slowing down.

VoIP services are also playing a significant role in the decline of landlines. As more consumers and businesses switch to Internet-based communication, traditional phone lines are becoming less relevant. However, the continued rise of smartphones may even impact the use of wired broadband Internet and non-wireless VoIP services. According to Pew Research, 25% of Americans now do most of their Internet browsing on their phones rather than a computer, and a third of these "cell-mostly" users lack high-speed home broadband access.

Looking ahead, International Data Corporation (IDC) predicts that by 2015, more U.S. Internet users will access the web through mobile devices than through PCs or other wired devices. As mobile technology continues to advance, the reliance on traditional landlines and even wired broadband may decline further.

The Impact on Telephone Entry Systems

The shift away from landlines has significant implications for telephone entry and intercom systems. For years, these systems have relied on analog phone lines for communication. Now, with landlines disappearing, businesses must explore alternatives to meet their clients' needs.

For clients who still want to keep their current telephone intercom systems and have broadband Internet, VoIP services like Vonage or magicJack PLUS offer a viable solution. These services allow clients to continue using their existing intercom systems by connecting them to the Internet through a VoIP adapter. While there may be a small monthly or yearly fee, this approach enables clients to maintain their current phone number and system functionality.

For clients without broadband Internet or those who prefer not to use VoIP, wireless solutions are another option. Wireless intercom systems can connect to base station intercoms or handheld radios without requiring a telephone network connection. These systems are particularly useful for locations where wired connections are impractical or unnecessary.

If the ability to call out to telephones is still essential, cell-based intercom systems provide a cellular alternative. These systems use cell phone networks like AT&T and T-Mobile to make calls to clients' cell phones or landlines, no matter where they are. GSM intercoms also offer advanced features, such as the ability to:

Program phone numbers for automatic access (e.g., for delivery personnel).
Use text messaging to open or close gates and check their status.
Call multiple phones when the intercom button is pressed.
Remotely program the intercom via text messaging.

Opportunity for Increased Sales and Profits

As the telecommunications landscape shifts, businesses that provide intercom and access control solutions have a significant opportunity to capitalize on these changes. Whether it's through new service calls, hardware upgrades, or installation fees, the decline of traditional landlines presents a growing market for modern communication systems. Embracing these new technologies will not only help meet clients' needs but also boost profitability in an increasingly digital world.

By staying ahead of the curve and offering innovative solutions, companies can turn this transition into a powerful revenue-generating opportunity. The key is to be proactive, explore the latest technologies, and educate clients on the benefits of upgrading their outdated systems.