In response to a Notice of Inquiry released by the FCC to explore how to transition to a purely IP-based communications network, AT&T has declared that it’s time to cut the cord. AT&T told the FCC that the death of landlines is a matter of when , not if, and asked that a firm deadline be set for pulling the plug.

AT&T said in its response to the FCC that “with each passing day, more and more communications services migrate to broadband and IP-based services, leaving the public switched telephone network (“PSTN”) and plain-old telephone service (“POTS”) as relics of a by-gone era.”

It also stated “It makes no sense to require service providers to operate and maintain two distinct networks when technology and consumer preferences have made one of them increasingly obsolete.”

Moving to VoIP

Providers like Vonage have been delivering VoIP (Voice over IP) for consumers over broadband Internet connections for years. I should know, I was one of the charter members. I haven’t had an actual POTS landline for at least five years.

While my local telephone providers wanted to nickel and dime me for “features” like caller ID and voicemail, Vonage has reliably provided all-inclusive service for $24.95 for as long as I can remember.

While Vonage is still a major player in the consumer VoIP market, just about every communications entity has joined in the game now. VoIP phone services are offered as a bundled service along with broadband Internet service, and digital cable TV by major players like Comcast, Verizon, and AT&T itself.

Transition to Mobile

The way wireless phone plans are set up now, it is hard to argue in favor of keeping both a mobile phone and a home phone–even a VoIP line. You can get unlimited minutes of talk time with all of the bells and whistles you can imagine–caller ID, call forwarding, etc. Many plans come with unlimited data, unlimited text messaging, and more. With all of that service in your hip pocket, do you really need a phone attached to your wall?

The number of U.S. households that have ditched the landline entirely in favor of relying solely on mobile phones doubled between 2006 and 2009. A quarter of U.S. households no longer have a landline of any kind, and that number will continue to grow.

No Dial Tone

One of the last remaining reasons for maintaining a standard POTS landline is the fact that in most cases the POTS line maintains a dial tone and the ability to make and receive calls during catastrophes and emergencies.

When Hurricane Ike hit here in the Houston area, there was no power for days, or even weeks in some areas. No power means no broadband Internet, which means VoIP phone services like Vonage don’t work. No power to cell towers means no bars on your cell signal and no wireless service.

Some broadband VoIP providers have solutions to address at least short-term power outages. AT&T provides its UVerse customers with a UPS (uninterruptable power supply) battery back-up that maintains power to the broadband router at least for a while.

Emergency services, and the ability to place 911 calls have also been an issue. With a POTS landline it is easy to match a phone number with a physical address, but with broadband VoIP you could be calling from around the corner or around the world and the 911 operators can’t tell. There are solutions in place for 911 calls via broadband VoIP, but users who drop landlines entirely in favor of wireless phones may have issues getting timely emergency service.

Those are issues that will have to be worked out, though. The future marches on, and it is fair for AT&T and other traditional POTS providers to want to drop the obsolete, unprofitable technology and focus their resources on the universal broadband and IP communications of tomorrow.

“The US Federal Communications Commission (FCC) published a request for public comment (PDF) on an upcoming transition from the decades-old circuit-based Public Switched Telephone Network to a new system run entirely with Voice over Internet Protocol (VoIP) technology. This is perhaps the most serious indication to date that the legacy telephone system will, in the near future, reach the end of its life. This public commenting phase represents a very early stage in what will undoubtedly be a very complex transition that makes this year’s bumpy switch from analog to digital television look relatively easy.”

I.  What is Section 179?
II.  How to Use it to Your Advantage
III.  Example
IV.  One Step Further

WHAT IS SECTION 179?

We’ve all heard of it. Chances are people have tried to explain it multiple times in different ways. We know it is somehow related to a business’ tax liability. But do we really know what Section 179 means and how it can benefit you as a business trying to keep up with technology in these tough times?

First, let’s start with a very clean and clear definition of what the term “Section 179” is referring to. Tax benefits, including the Section 179 provision that aided businesses in acquiring new equipment in 2008 were extended to 2009 when President Obama signed into law the American Recovery and Reinvestment Act (ARRA) on February 17th, 2009.

Under Internal Revenue Code Section 179, businesses are allowed to expense up to $250,000 on most equipment or software placed in service during the tax year 2009. Additionally, you are able to expense up to 50% of the remaining figure under the depreciation bonus provision.

According to the Monitor Daily (www.monitordaily.com), the Associated Equipment Distributors has sponsored a website that explains the provisions in more detail and provides a tax calculator (www.depreciationbonus.org) to illustrate examples of deductions.

AmeriTel, in conjunction with our manufacturers (Tadiran, Iwatsu, Mitel and Active Voice) would like to announce the Telephone Industry’s answer to the “Cash for Clunker” program.  Now through October 31, 2009 when you upgrade to a new telephone system a percentage of the purchase will be rebated to you directly in cash.  Find out more here.