Posted on: 4th February 2025, by Magrathea
As a wholesale voice specialist, it is no surprise that we are big fans of voice calls. Of course, we all know that the volume of calls overall has declined with the popularity of messaging and video increasing, but declining does not equal disappearing.
As we wrote about here, we firmly believe that human nature means plenty of people around the world will continue wanting to speak to other people for a long while yet. The specific technologies that make that happen will of course change, as they have done in the past, but the use of voice to communicate is definitely not, in our opinion, a passing phase.
The imminent PSTN switch off has really brought this topic to the fore, that along with comprehensive mobile coverage, means we are saying goodbye to the days when the vast majority of the UK population hooked up a BT line by default when moving into a house or office. Even since BT got some competition it’s fair to say they have retained a huge market share due to their history, coverage and loyalty to the brand. Like it or not, particularly in a residential environment, a ‘BT Line’ has long since been synonymous with a home phone service.
But things are changing. Openreach, the installer of the ‘lines’ for BT (and others) will no longer offer a voice service as part of the new fibre offerings. This has left BT to create an over the top ‘digital voice’ offering for their customers, but more importantly it opens up the market for all ‘over the top’ (OTT) providers to compete.
OTT has been available for the last twenty years but with lines and calls bundled for so many users, it has not really been necessary or financially worthwhile to switch providers. This new regime though will make the option to split broadband and calls much more attractive for some so this is the time for all of the smaller service providers with innovative and agile solutions to get their foot in the door of the consumer who is wondering what to do next.
This time of transition is most apparent when you talk to the ‘alternative’ network providers, of which there are many now building out their fibre networks all over the country.
Some altnets have taken the decision to steer clear of offering a packaged voice solution, sticking to what they know by installing fibre with broadband only. This is a business model that works for some, leaving their subscriber to choose any additional OTT services that they want from the abundance of providers out there. By avoiding the voice offering they restrict their regulatory obligations somewhat and can focus on increasing their footprint rather than managing a telephony business.
However, some altnets are discovering that a voice service is actually really quite valuable to their customers and if they don’t provide one this is a real sticking point, especially when moving away from a BT package that they consider trusted and safe. A typical residential customer for example has become used to the comfort of a ‘home phone’ but will want only one provider so will stick with the incumbent if voice is not an option with the whizzy new fibre provider targeting their street.
So, the altnets have a couple of options. They can develop their own voice solution, manage it fully in house and benefit from the full profit margin. Alternatively, they can resell a third-party solution, either a bespoke solution developed specifically for their customer base, or white label an off the shelf offering. Whichever route they take they can help remove one of the barriers for the user to switch to their fibre service whilst also providing an extra revenue stream.
Another alternative is to establish a referral relationship with an existing OTT provider, this can help plug the gap for the customer whilst removing the need to provide support, billing and so on directly.
If they do go down the path of offering a voice service though, there are a number of key extra areas that any provider needs to be aware, including:
Number Portability: A considerable number of users who want to keep a voice service also really want to keep their telephone number. This tends to be of great value to business and residential users alike. The regulations require providers to be able to support porting when an end user requests it so it should be straight forward to support this common function.
Battery Backup: One of the greatest barriers, particularly in the residential market, for moving away from a copper line is the loss of power. For decades the UK public have come to rely on a low power feed into their phone to ensure they can make calls in the event of a power failure. This is not an option on the fibre network and so resilience has to be built in elsewhere. The best way to do this is to offer a battery backup solution for the broadband router and any phone handset. This becomes even more critical when the user has no viable alternative such as a good mobile connection. NB. Providers must offer a battery backup or emergency mobile free of charge to vulnerable users!
Billing: Most users will want an itemised bill for any calls made, unless you offer a ‘free calls’ package perhaps. Providers need to be sure that their solution enables them to split out call data by users and comply with the associated Ofcom General Conditions around the format and content of information delivered.
Compatibility: Another barrier to migration, perhaps even more so in the business space, is the challenge of ensuring all other services previously relying on the copper line will continue to work. This can range from internal wiring (e.g. extensions), personal alarms, lift alarms, fax machines, building alarms, monitoring systems, payment systems etc. The market for adapters and updated devices has moved on considerably but it can still take a bit of thought, planning and testing – not to mention cost – to get a good solution in place.
Competition: It is well understood that competition is good for consumers and this is strong and healthy currently in the voice sector. There are many OTT providers to choose from meaning the consumer can select the best package for them. However, it’s not always so simple with the underlying connectivity. Although regulation has been designed to make it easier to switch between providers, that doesn’t help where you are committed to the piece of fibre running into your house that is owned by the ISP.
Altnets providing a packaged voice service need to be cognisant of this potential barrier in particular – as until such a time that fibre networks offer shared access, it will be important to give users the confidence that they can split away their voice solution from their broadband if they wish to in the future perhaps by having a choice of packages that do not penalise the customer for choosing not to use your voice solution.
Of course, we can’t speak about voice offerings without mentioning that the right carrier to support you is important too! Magrathea have helped manage numbering, porting and calls for all types of providers for over 20 years so if you need a carrier to back up your voice package, or just want to talk through some of the points mentioned in this article, please do get in touch with our team. We always welcome a voice call!