- Ribbon is helping MGW Telephone transition from TDM to IP
- One would have thought that all telcos had made this transition by now, but that’s not the case
- Large incumbent carriers are dragging their feet to facilitate this transition for smaller telcos
Ribbon Communications, a vendor that does IP routing, is working with MGW Telephone, a third-generation ILEC serving communities across Virginia, to help it transition from legacy TDM infrastructure to an all-IP environment. MGW is using Ribbon's Circuit Emulation Services and NPT platform.
The transition MGW is undergoing is something that other telcos are trying to do, as well. And while one might think that transitioning from legacy TDM networks to all-IP infrastructure is a no-brainer and should have happened by now, that is not the case.
Joni Roberts, SVP and chief marketing officer of Ribbon, told Fierce, “For many carriers, the challenge is not simply deploying IP technology; it's maintaining service continuity while modernizing networks that have been in place for decades. Most operators need to support existing services and customers throughout the transition. That's why many providers adopt approaches that allow legacy TDM services and modern IP networks to coexist during the migration process.”
Transitioning from TDM is a problem for many telcos
The U.S. has scores of telcos still operating at least partial TDM networks. And there are some very concerning issues for smaller telcos, many of whom provide both wireless and broadband services.
In order to complete calls for their customers to and from some rural areas, these telcos must interconnect with a large incumbent carrier at a designated location in a Local Access and Transport Area (LATA) that involves TDM tandems. But according to a group of telecom executives who spoke at the Competitive Carriers Association (CCA) convention in April, the large incumbent carriers are price-gouging the smaller carriers by refusing to interconnect in IP even where both parties can.
Instead, they’re charging excessive fees for TDM interconnection. These large ILECs include AT&T, Verizon, Lumen Technologies and others. The price of a T1 interconnection has sometimes risen from $600 per month to over $10,000 per month!
Most small carriers are ready, willing and able to switch from TDM to IP. But they say the large ILECs are making so much money from the legacy TDM interconnections that they don’t want to cooperate.
Fierce asked Roberts if large ILECs were price gouging smaller telcos for TDM connections.
She said, “We would not characterize the situation that way. The industry is in the midst of a significant transition from legacy TDM networks to IP-based interconnection, and there are a range of technical, commercial and regulatory questions being worked through across the ecosystem. Different stakeholders have different perspectives on how that transition should occur.”
She added, “We have not publicly discussed any specific interconnection arrangements involving MGW and other carriers.”
One thing that small telcos are especially frustrated with is the fact that it can be difficult for them to even find the right people at an ILEC to talk to about the issue, and they don’t have any other options.
Alexandra Mays, assistant general counsel and director of Regulatory Affairs at CCA, said, “Some of our members have reported that where a practical IP interconnection option is not available, carriers must continue relying on incumbent-controlled TDM tandem facilities to exchange voice traffic. As a result, they continue purchasing legacy TDM transport and related services, even after investing in IP-based networks.”
Fierce asked if some telcos have considered discontinuing their TDM services, simply because of the exorbitant costs.
Mays said that’s not a practical option because it could prevent some people from making calls, including calls to access emergency services.
What’s a nice telco to do?
Brian Hough, director of Plant Operations at PTCI, who was on the CCA panel in April, said, “My hope is that the FCC takes suggestions and ideas from all carriers and involved parties to provide a fair solution for both large Tier 1 operators as well as small rural operators.”
He added, “The general idea that the competitive marketplace will sort itself out with cost is not a viable solution. Small carriers exist to provide service with state and federal funding programs because Tier 1's have found that our serving areas are not profitable. This underlying fact makes creating policy that applies equally to a publicly-traded company and a small regional co-op very difficult to manage.”
Roberts said different stakeholders have different perspectives on how the transition from TDM to IP should occur. “What is clear is that the industry is moving toward all-IP interconnection, and conversations around interconnection models, points of interconnection and network modernization will remain important as that transition continues,” she said.