The PSTN migration

Looking at Germany’s PSTN migration and how we in the UK could avoid making the same mistakes?

Germany’s Deutsche Telecom, (DTAG) kicked off the country’s migration from PSTN and ISDN to IP telephony in 2014.

Broadly speaking it went off swimmingly but there were notable car crashes on the German data autobahn, especially within the country’s pharmaceutical supply sector and for customers migrating their fax machines.

So what lessons did DTAG learn from their foreign operations?

DTAG ran operations in a number of Eastern European countries, notably Slovakia and Croatia, and being reflective sort of folk, made deliverate efforts to learn from these country’s migration experiences.

In Slovakia, for example, DTAG completed a 100% migration by mid- December 2015. In Croatia, they achieved an impressive 97% migration of from PSTN to IP.

DTAG learnt that ‘significant cost reductions’ were possible after the migration, albeit in much smaller territories than Germany.

Taking these lessons learnt DTAG achieved a tripling of customers using IP voice. The percentage of customers using IP voice rose from 25% in 2014 to 77% by last count in 2018. DTAG hopes to complete the countries’ PSTN migration by the time you read this blog.

So Germany is now fully IP voice enabled?

Well not exactly..

Vodaphone Kable plans to complete its roll out of IP migration by 2022. Today every mobile operator offer voice over IP through their 4G offering.

So what did the Germans do right?

From the off DTAG worked closely with their national telecoms regulator, the Bundesnetzagentur (BNetzA), which is broadly comparable to the UK’s Ofcom, although BNetzA has a much broader regulatory remit.

The BNetzA and DTAG engaged in regular quarterly meetings and engaged other stakeholders including user groups.

With one eye on smoothing the path to well established customers DTAG offered PSTN emulation to customers who used analogue voice telephony lines. And yet, even with the best will in the world this was not always technically possible.

Fax are fax and will not disappear..

In their PSTN migration DTAG encountered persistent problems with their customer’s fax machines. Neither the company or the regulator had an clear view of how many customers were affected.

Also fire and security running down the PSTN line proved to be a irksome problem to solve.

And so the relevance to the UK?

Although Germany with a population of 88m at one third more populous than the UK, the proportion with fixed broadband connections is roughly the same, so it is reasonable to expect the technical challenges that IP providers are facing to be broadly similar.

Germany calling and the lessons that could be learnt from across the North Sea?

1. While broadly speaking the migration was carried off efficiently this was enabled by a close and conciliatory relationship with the telecoms regulator BNetzA.

2. DTAG most likely took their eye off the ball when it came to rolling out the more specialised offerings, such as to providers of security alarms.

3. Customers still use those lumps of plastic in the corner call fax machines.

One company’s mistake is another company’s opportunity. How could your telecoms provider profit from Germany’s mistakes.

The business opportunities that could arise from the UK’s current PSTN migration are likely to arise those telecoms service providers serving specialised services – think old peoples’ homes, fire alarm services.

These services are often bespoke and tailored to the specific client need, which the more nimble telecoms provider could meet.

With over 20 years of experience, Serviceteam IT design and deliver sophisticated connectivity, communication, continuity, and cloud services, for organisations that need to stay connected 24/7. We take the time to fully understand your current challenges, and provide a solution that gives you a clear understanding of what you are purchasing and the benefits it will bring you.

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