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The Real Reason AT&T Is Raising Their Prices for Analog Lines

Posted by Randy Kremlacek on Mar 14, 2013 11:09:00 AM

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Real Reason AT&T Price Increases

Have You Checked Your Phone Bill Lately?

You may have heard about how AT&T is raising prices on their analog lines for businesses

This is very typical phone company behavior, and it goes something like this:

Analog lines are old. They're not digital. They're a legacy platform that's increasingly expensive to maintain, inefficient and based on old technology that's going away anyway. 

So...let's raise prices, force people out of the old technology and make lots of money while we're doing it. 

Is Raising Prices the Only Way to Get People to Move to Digital? 

While it is true that it costs AT&T more to maintain the legacy network for a decreasing number of users, is this really the best way to get people to migrate to SIP?

Yes, they have the right to increase prices to help offset their rising costs, but I have to wonder how much the public realizes that even with internal costs rising to maintain their older networks, AT&T still benefits from very high margins on these services.

So what's really happening is that AT&T is trying to milk every penny of profit from their poor customers who don't know any better. 

AT&T realizes that in just a few years this cash-cow is going away anyway. So they are, in fact, being unnecessarily greedy about increasing prices simply to protect their very high margins until the well runs dry.

The real reason is not that they're being forced to raise prices at all. They're simply utilizing existing laws to their advantage, in an effort to milk very high margins on these services for as long as they can and for as long as their customers are naïve enough to keep paying.

Let's not forget that it's not just AT&T. Any CLEC reseller like Telepacific, CBeyond and XO will be forced to raise prices on their current analog network customers as well.

So if you're a customer of one of these companies...check your next phone bill. Price increases of up to 50% are coming from the CLECs...guaranteed. 

Ignorance is Bliss for AT&T

Analog phone line technology is outdated and going away anyway. And now with these ridiculous price increases, it doesn’t pay for any customer to keep it. The only reason customers haven't changed yet is ignorance and apathy. 

And AT&T likes it that way. 

People should know that AT&T is not trying to prevent what's happening; they just trying to profit from its demise in a way that’s unfair to customers who don't know any better.

 


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About the Author

Randy Kremlacek

President | Head Chef

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Randy Kremlacek is president and Head Chef of TeleDynamic Communications and is a Digium Select Partner and 2013 Pinnacle Award winner. TeleDynamic Communications provides turnkey premises-based PBX and hosted PBX, SIP Trunking and Unified Communications. Randy Kremlacek prides himself on knowing the telecommunications industry as well as he knows his way around his own kitchen. READ MORE

 

 

Randy Kremlacek 

Topics: Administration