In recent years, the numbering industry has seen shifts toward increased regulatory compliance, growth of emergency services communication and enhanced numbering ordering processes, all taking place against the backdrop of enhanced digitalization that’s driving changes for all major players in data and connectivity space. Central to this transformation is the evolving role of phone numbers — no longer just contact points, but now integral identifiers in our digital lives. They serve as keys to personal and business communications, and gateways to a multitude of services. Let's explore five trends with the potential to impact not only carriers but also the individual daily user.
#1: STIR/SHAKEN: Enforcing Call Authenticity
Americans may have noticed a dip in robocalls during December 2023, with reports indicating robocalls had hit their lowest volume since February 2022, but unfortunately, the year-over-year data wasn’t as favorable. With more than 55 billion robocalls placed to Americans in 2023 as a whole - a 9% increase over 2022 - scammers trying to get at us through our phones isn’t a trend that’s going anywhere.
The battle against robocalls has seen significant improvement since March 2020 with the implementation of STIR (Secure Telephone Identity Revisited) and SHAKEN (Signature-based Handling of Asserted information using toKENs), the framework for identifying fraudulent callers. GSMA reports a decrease in unwanted robocall traffic from major Tier-1 carriers, down from 8% to 2% within a year, showcasing the effectiveness of these protocols. However, the challenge is far from over, with VoIP networks remaining as primary targets, accounting for 70% of unwanted traffic.
Despite FCC rules dictating the complete adoption of STIR/SHAKEN, some carriers are still not capable of using the framework, according to the FCC, which explains the steady rate of robocalls.
The onslaught of unwanted robocalls has eroded trust in voice calling to the point where 68% of Americans now refuse to answer calls from an unknown number. As the FCC cracks down on the adoption and implementation of this framework, the near future will see enhanced collaboration between carriers, technology providers, and regulators to strengthen these frameworks, integrating AI for better detection and efficient robocall blocking.
In March 2023, the FCC rolled out its latest set of rules aimed at combatting illegal robocalls, which also enhanced and expanded providers’ obligations to implement STIR/SHAKEN. The rules call for greater call authentication to aid FCC efforts to identify and block illegal robocalls, and expand upon robocall mitigation requirements, lest they face hefty fines.
Expect to hear more about the latest rule implementation well into 2024 as the FCC and carriers work to move the needle on those pesky and potentially harmful robocalls.
#2: IPES Migration: The Evolution of the Telecom Service Provider Landscape
The transition to IP Enabled Service Providers (IPES) away from old-school telephony or traditional Public Switched Telephone Network (PSTN) systems is a crucial step in modernization. This dynamic, internet-centric framework bundles diverse services like Voice over IP (VoIP), digital streaming, and cloud-based applications all under one roof.
The driving force behind this shift? It's all about scalability, flexibility, and efficiency in communication. And let's not forget the ever-growing demand for high-quality, uninterrupted communication, especially with the rise of smart devices and the Internet of Things (IoT). These developments need companies that know how to deliver services that can handle massive data volumes for a range of digital services.
The adaptability of IP technology is key here. It's what allows for quick development and rollout of new services, keeping pace with rapid changes in customer expectations and tech trends. This positions IPES as a central figure in the telecom sector’s journey towards more integrated, high-performance digital solutions. With IPES, there's a streamlined infrastructure that leverages existing network capabilities that doesn't just simplify things; it also cuts down on operational costs. This is a big win for both providers and consumers.
#3: Canadian Pool Block Ordering: Efficient Resource Management
In Canada, the telecommunications landscape is on the cusp of a major shift with the proposed introduction of a Canadian Pool Block Ordering system. This concept, while still in the pipeline, has the potential to revolutionize number allocation in the region.
This dynamic allocation system allows for a more responsive and flexible management of number resources, reducing instances of number block hoarding and underutilization. In the U.S. a similar system with widespread implementation has shown a reduction in dormant numbers with the more optimized allocation process.
In addition to these improvements, the Canadian Pool Block Ordering system could also cut operational costs for telecom companies. It's all about reducing the need for frequent number reallocations and minimizing waste, which is a big plus for service providers looking to increase number availability and sell where the consumer demand is greatest. With technologies like VoIP and IoT growing rapidly, and the demand for unique numbers on the rise, use of Number Pool Blocks will be a game-changer in managing number resources to ensure numbers are available for customers when they need them.
#4: TDM to SIP Migration: A Leap into Modern Communications
The migration from Time-Division Multiplexing (TDM) to Session Initiation Protocol (SIP) is a critical shift in the telecom industry. SIP, a signaling protocol used for initiating, maintaining, and terminating real-time sessions offers enhanced flexibility and scalability.
As copper gets phased out and we see POTS (plain-old-telephony-service) going away with the recent FCC order the transition will require significant investment in infrastructure and expertise, as well as careful management of legacy systems during the transition period. The benefits, however, are substantial, including enhanced voice quality, improved scalability, and the integration of multimedia services. According to a report by TransNexus, the global adoption of SIP is on the rise and will continue to do so due to proven return on investment.
As the industry continues to move towards SIP, service providers must focus on ensuring seamless integration between old and new systems, minimizing disruption, and maximizing the potential of IP-based communications.
#5: Telecom's Downsizing: The Challenge of Doing More with Less
The trend of downsizing in the telecom sector is more than just a response to economic pressures; it represents a fundamental shift in how telecom companies are rethinking their operational strategies. Companies are required to deliver high-quality services while managing with fewer resources. A study by Deloitte highlights that telecom companies are focusing on streamlining operations and adopting technologies such as automation and AI to maintain service quality while managing costs.
This trend is likely to continue in 2024, with an emphasis on innovative solutions that maximize efficiency without compromising on service quality. Telecom companies are exploring ways to leverage advanced technologies to optimize network management, customer service, and even decision-making processes.
The challenge lies in balancing cost reduction with the need to invest in new technologies and infrastructure to stay competitive. As automation and AI take on more operational tasks, the focus shifts to reskilling and upskilling employees to manage and work alongside these advanced technologies effectively.
Looking ahead, the telecommunications industry faces transformative changes with the continued push toward full STIR/SHAKEN implementation, the shift to IP-based systems, and improved resource management. These advancements, while bringing challenges, also open doors to vast opportunities for carriers who welcome the transformations. Embracing these changes with innovation and collaboration will be key to building a secure and inclusive digital future. This year is more than a milestone; it's a testament to the industry's dynamic evolution and its enduring goal of connecting the world more seamlessly.
