Dialogic Blog

Telecommunications in the Cloud – Class 5/Residential Services (2 of 3)

by Elhum Vahdat

Sep 16, 2016 6:00:00 PM

Class 5/Residential Services

In my first of three blogs on Telecommunications in the Cloud, I discussed how the growth and importance of telecommunications combined with the continually growing reliability, security, and cost-efficiency of the hosted model (in the cloud) has created enterprise and residential services that can’t be ignored.  Specifically, I discussed Hosted IP PBX for enterprises, a Communications-as-a-Service (CaaS) that is a win-win for both the network operator to offer and the enterprise to subscribe to.

In this second blog, I would like to discuss how telecommunications in the cloud can benefit residential customers (including small office/home office) with high-quality, feature rich calling services, while once again being a profitable opportunity for network operators.

Today’s residential customer has higher expectations when it comes to their telecommunications requirements, largely due to the influence of the smartphone.  They are interested in much more than a simple answering machine for their home; they are looking for features such as conferencing, voicemail, video calling, do-not-disturb, along with the standard caller ID and call hold/transfer/forward/wait.  Much like their enterprise counterparts, they too are interested in a self-service component, where user configuration and control is provided via a standard web-based portal to make services like conference calling and call forwarding easier to manage and new services simpler to deploy.  

For the network operator (a.k.a. service provider), offering Class 5/Residential Services can also be lucrative, but it is a number’s game based on the quantity of residential subscribers.  What I mean is that network operators, like almost any other business, charge enterprises more for services than they do their residential customers, but they have less of them.  However, the overall revenue difference can be minimized because the number of residential subscribers is generally more than enterprises.

At this point you may be asking yourself two questions…

1. What about all those residential customers who are dumping their landlines and only using their mobile phones?

2. Don’t residential customers need IP at home if they are going to subscribe to services in the cloud?

Two good questions.  There is no denying that there has been a trend now for many years where residential customers are dumping their landlines.  In fact, according to a study released by the National Center of Health Statistics (NHIS) in December of 2015, “Nearly one-half of American homes (47.4%) had only wireless telephones (also known as cellular telephones, cell phones, or mobile phones) during the first half of 2015—an increase of 3.4 percentage points since the first half of 2014.”

percentage only with wireless telephone

However, the beauty of telecommunications in the cloud is that you don’t need your landline.  By using an Analog Telephone Adapter (ATA), you can connect your traditional analog telephone to the VoIP network (your internet) and start benefiting from all of the services offered in the cloud…pretty simple.

In my third and final blog on Telecommunication in the Cloud, I will discuss SIP Trunking, which is another service network operators should consider for revenue growth.

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Topics: NFV/SDN & Cloud, Communications Application Development