Major Telecom Carriers Opt For Legacy Services Shutdown
Zacks Investment Research | Aug 30, 2017 09:54PM ET
Discontinuation of legacy voice services and Ethernet services has become a growing trend in the wireline segment of the telecommunication industry. The decision to terminate the services stems from lack of demand. Customers are migrating from these older services toward newer options and latest technologies. Given the low number of subscribers and high costs of support for these services, the shutdown of these services seems appropriate.
Meanwhile, telecom service providers are moving toward IP-based networks as an increasing number of enterprise customers are opting for IP-enabled cloud services.
Accordingly, to shut down any of its services, the respective company/carrier has to seek permission from the U.S. telecom regulator, Federal Communications Commission (FCC), clearly stating the reasons behind the closure of the service.
Let’s have a look at the service discontinuations by different service providers.
U.S. telecom behemoth, Verizon Communications Inc. (NYSE:VZ) is Zacks Investment Research
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