One of the biggest threats to your business’ bottom line might be something you haven’t considered. You might scrutinize labor costs and vendor pricing, but one critical expense often goes unnoticed—your telephone service.
What Are POTS Lines?
POTS is an acronym for “Plain Old Telephone Service,” referring to traditional analog phone lines that have been the backbone of telecommunications for over a century. For decades, businesses relied on POTS for phone systems, fax machines, alarm systems, elevator emergency lines, and even early Internet access.
Historically, every phone line was carried over two 24-gauge copper wires, sometimes stretching miles to reach a business. Many small to medium-sized businesses had PBX (Private Branch Exchange) systems that shared a bank of POTS lines among office staff. However, the era of POTS is coming to an end.
The FCC Phase-Out and Rising Costs
The shift away from copper lines had been underway for years, but Hurricane Sandy in 2012 accelerated the transition. With FCC approval, major carriers began replacing damaged copper infrastructure with fiber optics instead of repairing it. Then, on August 2, 2022, the FCC lifted its mandate requiring carriers to maintain POTS lines, allowing providers to phase them out or charge significantly higher rates.
As a result, some businesses report paying $100-$200 per month for a single POTS line—five to ten times what they paid previously. Many companies are responding by migrating their phone service to the cloud, achieving substantial cost savings.
What About Services That Still Require POTS?
Despite the shift to digital and VoIP (Voice over Internet Protocol), some critical services still rely on analog lines, including:
- Fax Machines (Used in medical, legal, and insurance industries requiring end-to-end data security.)
- Alarm Systems (Many still report to monitoring stations using old-style modems.)
- Credit Card Machines
- Elevator Emergency Call Boxes
- Pool-Side Call Boxes
- Access Control/Gate Box Devices
- Fire Alarms and Medical Alert Systems (Often legally required to remain operational in power outages.)
Many of these services cannot be converted to VoIP without compromising safety or security, especially in the event of a major power outage.
What Are Your Options?
Businesses have several alternatives to avoid high POTS costs while maintaining essential services:
- Cellular-Based Solutions – Many alarm and security companies now offer reporting over cellular networks.
- Internet-Based Credit Card Processing – Most modern credit card machines use Internet-based transactions instead of analog lines.
- Fax Over IP (FoIP) Solutions – Providers like Sangoma offer store-and-forward devices that convert fax calls into encrypted Internet signals.
- VoIP Adapters for Emergency Systems – While emergency call boxes and gate access systems can use VoIP adapters, these must be paired with reliable battery backup to ensure operation during power outages.
- Specialized Life-Safety Solutions – Some companies specialize in maintaining life-safety equipment by providing dedicated connectivity options at a lower monthly cost.
The Bottom Line
Maintaining outdated POTS lines is not just expensive—it’s becoming unsustainable. As aging infrastructure deteriorates, phone companies are not replacing copper lines, meaning reliability will only decline further. Now is the time to explore modern, cost-effective solutions before your business is forced into an emergency transition.
If you’re looking for alternatives to outdated and expensive POTS service, Southern Cross Communications has decades of experience providing innovative, cost-effective solutions. Contact us at 281-924-2135 to discuss the best options for your business.
At Southern Cross Communications, we believe that every business deserves phones that say, “WOW!”