Tuesday, October 20, 2015

Decomissioning an Old Network Always Faces Some Customer Opposition

Customers who want to keep using obsolete services on networks that a carrier no longer afford to operate are a recurring problem in the telecommunications business.

That applies to customers who want to keep using time division multiplex services when the world is moving to Internet Protocol, all-copper access when fiber connections might make more sense, 2G when 4G mobile is available, or fixed networks when multiple mobile networks are available.

Sprint now has customers who want to remain on WiMAX networks, instead of migrating to services provided by the Long Term Evolution network.

It is a well-known problem in the mobile industry, already has had to shut down its analog network in favor of newer digital networks, and which, in many markets, is preparing to shut down the oldest digital network in favor of newer generations of digital networks.

At some point, an older network becomes unsustainable. Older networks at some point have too few customers to cover costs.

Older networks also typically have an anemic supplier base unwilling to invest in improvements. And there are, by definition, more modern, higher-performance and often lower-cost alternative platforms.

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