In an increasingly digital telecommunications world, there continue to be millions of residential and business customers who depend on technology their great-grandparents may have known: POTS (Plain Old Telephone Service) lines that transmit analog signals over copper loops. Aware that such systems are rapidly becoming obsolete, providers such as VirtualPBX are helping businesses make the switch and in the process future-proof their communications. Connect CRE recently spoke with Justin Goodpaster, Sales Manager with VirtualPBX, on what’s at stake in this transition.
Q: Are there cohorts, either business or residential, that still use POTS widely? Are they sizable enough to represent a stumbling block for phasing out landlines altogether?
A: Yes, there are still tens of millions of copper lines in use. Many businesses rely on them for critical systems like elevators and fire alarms, while a sizable group of consumers continues to use them for straight forward telephone service as well. Our focus is primarily on the business side, with our AirDial product providing a solution that’s ideal for property managers and those managing multiple buildings.
Q: From a regulatory standpoint, what are some of the factors behind regional differences in the rate of phasing out POTS?
A: The breakup of AT&T’s Bell System created a patchwork of regional telecom providers, such as CenturyLink, Frontier, and AT&T, each controlling different areas. As a result, the phase-out timeline varies by region. In some areas—like Delaware, Connecticut, and parts of Michigan—providers have given clear deadlines, telling customers they must transition by a certain date because they no longer have the technicians or equipment to maintain the physical lines. Another factor is pricing. Telecom companies are using a carrot-and-stick approach, significantly increasing the cost of POTS lines to encourage migration. I’ve seen nonprofit organizations paying over $1,000 per month for a single POTS line just to connect a fire alarm.
After the FCC deregulated the public switched telephone network in 2023, providers have been eager to exit the POTS business. While modern telecommunications rely on IP-based networks, these companies still maintain aging infrastructure, which is costly to support. Regional differences play a significant role in the phase-out. In states like New Hampshire and Connecticut, I’ve heard from customers who say there’s only one technician responsible for the entire state. If a line goes down, it could take a week to restore service. This makes transitioning to a modern solution critical—not only for cost savings and future-proofing but also for compliance. Fire alarm and elevator lines being down for a week is simply not acceptable and often violates local codes.
Q: Does VirtualPBX work with regulators on moving to digital formats, whether on a one-to-one basis or through industry groups?
A: Yes. Our AirDial product has been endorsed by the FDNY and the California Fire Marshal among others. Fire alarms and elevators are particularly critical since they must meet specific codes. Regulations vary by county and state, covering requirements like backup power duration, the number of lines, and other safety measures. Non-compliance can lead to significant fines—sometimes tens of thousands of dollars—for fire and elevator systems.
Q: Are there specific concerns that regulators bring up as far as making the transition?
A: One of the biggest concerns is ensuring systems meet redundancy and battery backup requirements. Some customers have adopted solutions that lack these features—such as a single-line setup without backup power—only to face fines for non-compliance. Regulators want to ensure that critical systems, like elevator phones and fire alarms, continue functioning during a power outage. If someone is trapped in an elevator, for example, both the phone and alarm must remain operational.
Another concern is network reliability. Over the past year, we’ve seen downtime incidents with AT&T and other wireless carriers. That’s why we provide redundancy through an Internet connection—typically fiber, with 4G as an additional backup. If one network goes down, communication can continue. Relying solely on a 4G SIM card can be risky because if cell towers fail, service is lost. Likewise, traditional POTS lines aren’t foolproof; if a telephone pole is damaged, the line goes down with no redundancy.
Overall, modern solutions improve reliability, but regulators emphasize that battery backup and redundancy are essential for compliance and safety. Many customers come to us after being fined because their initial solution didn’t meet these requirements. We not only meet the requirements, we exceed them with options like customizable notifications that inform stakeholders when emergency calls are made or when their unit switches to use backup battery power.
Q: Let’s skip ahead about five years. What do you anticipate that the telecommunications landscape will look like in 2030?
A: Over the next two to three years, we expect increasing pressure from major providers like AT&T and CenturyLink to phase out legacy copper lines. We’re already seeing this, with AT&T raising prices and introducing alternative solutions to push customers off POTS. While it’s unlikely that the transition will be fully complete within five years, entire regions will be well on their way to shutting down their copper PSTN networks, forcing businesses and property owners to switch to cellular, IP-based solutions, or services like ours.
For property managers and commercial real estate owners, now is the time to prepare. In some areas, businesses are still paying relatively low costs for POTS, but that will change soon—likely within the next two to three years. We’ve already seen full network shutdowns in other countries, including Canada. By 2030, I expect entire regions, if not most of the U.S., to have fully transitioned away from copper-based networks.
