How Will the FCC Deregulation Order Affect Your T1-Based Communication Services?

T1 Lines have been the industry standard for the provisioning of various communication services for decades. A T1 line uses twisted copper wire that transfers voice and data via digital signals from one location to another. While copper networks served their purpose well — providing reliability and functionality— they have become outdated. 

If you’re one of the millions of companies using copper-based communication services (also known as T1 lines) for voice and data, you might be concerned about how the FCC’s deregulation order will affect your business. One of the concerns is ongoing rate increases on T1-based communication services expected beginning in July 2022. 

So, what does this mean for your business and how can Allstream help you through these changes? 

In light of anticipated rate increases due to the FCC deregulation, prices for T1 lines are expected to skyrocket. 

It is important to note that the FCC didn’t mandate the retirement of T1 lines, however with the deregulation of pricing coupled with incumbent telecom providers’ plans to retire their copper networks over time, it is expected that T1 lines will be phased out in favor of next-generation services in the years to come.  

While there’s no need to panic—after all, T1 lines aren’t going to disappear overnight—it’s a good time to start thinking about making the move to next generation technologies. You’ll avoid significant price increases to your T1-based services, and there are other benefits, too—particularly when it comes to modernizing your data and voice services. 

With high-speed internet access as well as VoIP solutions and cloud-based communication platforms, you can support remote and hybrid workforces with increased speed and reduced latency. Your employees will be able to do anything from send text messages to host video calls anywhere in the world, on a flexible, secure, reliable platform. 

Allstream can help you understand what options are available for you to make the transition to technologies that deliver an improved experience with enhanced capabilities. 

Here are a few commonly asked questions: 

How will these regulatory changes affect my services from Allstream? 

The FCC deregulated the pricing of certain T1 lines that Allstream uses for the provisioning of various communication services. Allstream’s underlying providers have already increased the rates for certain services, and the rates of other services will increase in the coming months and years. This means that Allstream is, and will continue to be, subject to increasing cost, and we will have to pass through the additional cost on to our customers. 

Will I be impacted by the FCC deregulation? 

If you have a T1-based service with Allstream in the US, then you’ll see rate increases on your invoice, as those are imposed on Allstream by its underlying providers. We will provide advance notice of any upcoming cost increase pass-through. 

Are T1 lines going away? 

The FCC did not mandate the retirement or termination of T1 lines. However, since T1 lines are copper-based services, they will be subject to copper and switch retirements by incumbent telecom providers, but this will not happen all at once. 

Will I be notified of the anticipated rate increase? 

Yes, all our impacted customers will receive advance notice from Allstream, outlining their impacted services and the third-party rate increase pass through. Our team will be available to work with you to discuss any affected services and your options to upgrade to next generation,  cost effective solutions. 

Why is the rate increase required? 

The FCC has deregulated the wholesale underlying services we purchase to provide various services to customers. Allstream’s underlying providers for the impacted services are expected to increase their rates. As a result, Allstream costs to provide these services will increase, and Allstream will need to pass-through the increased third-party cost to its customers. 

Allstream is happy to advise you on alternative next-generation solutions that will allow for a better user experience at competitive rates. If you’re not sure where to start, Allstream can help you understand your options to make the transition to next-gen technologies for an improved experience and enhanced capabilities. Speak with your sales representative or account consultant or contact Customer Service to discuss your options. 

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