![\"Mobile](\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2015\/09\/Mobile-penetration-in-the-world-300x224.jpg\")
<\/a><\/p>\nPhone providers like AT&T and Verizon have been converting their users to wireless over the last few years so they might not be concerned about the drop-off in landlines, but the landscape is undoubtedly changing. For instance, phone companies are starting to face competition from cable companies, like Time Warner and Comcast, who create value and lure in customers with their internet-based\u00a0communication offerings. Even as their landline subscribers decline, the transitioning phone companies still have to invest billions of dollars a year to maintain the old networks while the newest competitors who only provide the latest technologies (e.g. VoIP) can focus on providing just what the consumer wants. Therefore, companies that fail to adapt quickly will perish in front of new and more focused competitors (e.g. \u00a0FairPoint Communications bankruptcy in 2009). In words of Sarah Briggs, director of public affairs of AT&T: \u201cThe motivation is increased consumer and business demand for wireless and voice over Internet. AT&T has seen a 70 percent decrease in traditional service over copper lines in the last 10 years.\u201d<\/em><\/p>\nEvolution on telecommunication offering is important because consumer behavior is changing very quickly. While some years ago people used to call their friends and family, today they use online chats and videoconference apps like Facetime or Skype to reach to their love ones. This trend is also making phone companies\u2019 unlimited minutes offers irrelevant because what really matters today is data.<\/p>\n
Even for business purposes, landlines no longer represent the best way to get in touch with somebody given the increasing amount of mobility that jobs require (work from home, travel, etc). This is why a growing number of start-ups are skipping the landline altogether, and why a growing number of bigger businesses are going mobile-only.<\/p>\n
<\/p>\n
The future: Data<\/u><\/p>\n
Internet Protocol (IP) telephony, also known as Internet telephony or\u00a0Voice over Internet Protocol (VoIP), is a disruptive technology that\u00a0is rapidly gaining ground against traditional telephone network technologies. In Japan and\u00a0South Korea\u00a0up to 10% of subscribers switched to this type of telephone service as of January 2005, while up to 20% and 40% of U.S. and European households had done the same by the end of 2011.<\/p>\n
IP telephony uses a broadband\u00a0internet service to transmit conversations as data. In addition to replacing the traditional\u00a0land line telephones systems, IP telephony also competes with mobile phone\u00a0networks by offering free or lower cost service via Wi-Fi.<\/p>\n
In order to survive, telecommunication companies will have to constantly evolve to create value for\u00a0customers through these\u00a0kind of technologies. But they have to be careful, because the world changes quickly and new advances\u00a0arrive all the time. Adaptation is the key that will distinguish winners and losers in this new era of digital communication.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
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![\"Landlines](\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2015\/09\/Landlines-vs-Cellphone.jpg\")
<\/a><\/p>\n