The End of the Beginning of the IP Transition

Much has been written over the 12 months that have passed since AT&T filed its request for the Federal Communications Commission to oversee trials to facilitate the industry’s continued transition from aging communication platforms and services to new services based fully on Internet Protocol (“IP”). One important highlight in all that has been written is the vast number of customers, both business and residential, that already have made the transition. But to paraphrase Sir Winston Churchill, this is not the end of the transition, it is not even the beginning of the end of the transition, but it is, perhaps, the end of the beginning of the transition.

We have been very clear about our efforts to transform our network to one that is all Internet Protocol (IP). The first step of that plan is to align the commitments we make to our customers with the goal of transitioning to an all-IP network. That is why today we have taken a step to make sure that multi-year commitments we enter into for aging TDM-based services reflect the on-going transition to IP and do not extend beyond the expected completion of our transition in 2020. Taking this step ensures we keep the commitments we enter into with our customers. In industry jargon, we are “grandfathering” these longer term plans for TDM-based services (i.e., allow those that have it to keep it but not enter in to new long term plans for these services). The tariff changes will grandfather DS1 and DS3 term plans greater than 36 months, including ones that have term periods as long as seven years. These changes are scheduled to become effective on December 10, 2013. Other tariffed term plans of shorter durations will continue to be available to all customers. Importantly, customers also will continue to have the opportunity to negotiate individualized contracts with AT&T to obtain these services.