Crexendo and TELCLOUD Change the Economics of POTS Replacement
Crexendo (NASDAQ:CXDO) is revolutionizing the POTS (Plain Old Telephone System) replacement market through its NetSapiens® platform's exceptional oversubscription capabilities. With AT&T planning to retire copper-based services by 2029, approximately 35 million active POTS lines in the US require migration at a rate of 7 million lines annually.
The company's platform achieves an average oversubscription rate of 40:1 across its 6 million users, with rates reaching up to 200:1 in POTS replacement applications. This efficiency enables service providers like TELCLOUD to deliver cloud-based solutions for critical business systems such as life safety systems, alarms, and elevators at significantly reduced operational costs.
Crexendo (NASDAQ:CXDO) sta rivoluzionando il mercato della sostituzione del POTS (Plain Old Telephone System) grazie alle eccezionali capacità di oversubscription della sua piattaforma NetSapiens®. Con AT&T che prevede di dismettere i servizi basati su rame entro il 2029, circa 35 milioni di linee POTS attive negli Stati Uniti devono essere migrate a un ritmo di 7 milioni di linee all'anno.
La piattaforma dell'azienda raggiunge un tasso medio di oversubscription di 40:1 tra i suoi 6 milioni di utenti, con valori che arrivano fino a 200:1 nelle applicazioni di sostituzione POTS. Questa efficienza permette a fornitori di servizi come TELCLOUD di offrire soluzioni cloud per sistemi aziendali critici come sistemi di sicurezza, allarmi e ascensori, riducendo significativamente i costi operativi.
Crexendo (NASDAQ:CXDO) está revolucionando el mercado de reemplazo del POTS (Plain Old Telephone System) gracias a las excepcionales capacidades de sobresuscripción de su plataforma NetSapiens®. Con AT&T planeando retirar los servicios basados en cobre para 2029, aproximadamente 35 millones de líneas POTS activas en EE.UU. necesitan ser migradas a un ritmo de 7 millones de líneas anuales.
La plataforma de la compañía alcanza una tasa media de sobresuscripción de 40:1 entre sus 6 millones de usuarios, llegando hasta 200:1 en aplicaciones de reemplazo de POTS. Esta eficiencia permite a proveedores como TELCLOUD ofrecer soluciones en la nube para sistemas críticos empresariales como sistemas de seguridad, alarmas y ascensores, reduciendo significativamente los costos operativos.
Crexendo (NASDAQ:CXDO)는 NetSapiens® 플랫폼의 뛰어난 과다구독 기능을 통해 POTS(구식 전화 시스템) 교체 시장에 혁신을 일으키고 있습니다. AT&T가 2029년까지 구리 기반 서비스를 종료할 계획인 가운데, 미국 내 약 3500만 개의 활성 POTS 회선이 연간 700만 회선의 속도로 마이그레이션이 필요합니다.
회사의 플랫폼은 600만 사용자 전체에서 평균 과다구독 비율 40:1을 달성하며, POTS 교체 용도에서는 최대 200:1에 이릅니다. 이러한 효율성 덕분에 TELCLOUD와 같은 서비스 제공업체는 생명 안전 시스템, 경보, 엘리베이터 등 중요한 비즈니스 시스템을 위한 클라우드 기반 솔루션을 훨씬 낮은 운영 비용으로 제공할 수 있습니다.
Crexendo (NASDAQ:CXDO) révolutionne le marché du remplacement du POTS (Plain Old Telephone System) grâce aux capacités exceptionnelles de sursouscription de sa plateforme NetSapiens®. Avec AT&T qui prévoit de retirer les services basés sur le cuivre d'ici 2029, environ 35 millions de lignes POTS actives aux États-Unis doivent être migrées à un rythme de 7 millions de lignes par an.
La plateforme de l'entreprise atteint un taux moyen de sursouscription de 40:1 parmi ses 6 millions d'utilisateurs, avec des taux allant jusqu'à 200:1 dans les applications de remplacement du POTS. Cette efficacité permet à des fournisseurs comme TELCLOUD de proposer des solutions cloud pour des systèmes d'entreprise critiques tels que les systèmes de sécurité, les alarmes et les ascenseurs, tout en réduisant considérablement les coûts opérationnels.
Crexendo (NASDAQ:CXDO) revolutioniert den Markt für den Ersatz von POTS (Plain Old Telephone System) durch die außergewöhnlichen Überbuchungsfähigkeiten seiner NetSapiens®-Plattform. Da AT&T plant, kupferbasierte Dienste bis 2029 einzustellen, müssen etwa 35 Millionen aktive POTS-Leitungen in den USA mit einer Rate von 7 Millionen Leitungen pro Jahr migriert werden.
Die Plattform des Unternehmens erreicht eine durchschnittliche Überbuchungsrate von 40:1 bei 6 Millionen Nutzern, wobei die Rate bei POTS-Ersatzanwendungen bis zu 200:1 beträgt. Diese Effizienz ermöglicht es Dienstleistern wie TELCLOUD, cloudbasierte Lösungen für kritische Geschäftssysteme wie Sicherheitssysteme, Alarmanlagen und Aufzüge zu deutlich reduzierten Betriebskosten anzubieten.
- Platform serves 6 million users with high oversubscription rates (40:1 average, up to 200:1 for POTS)
- Massive market opportunity with 35 million POTS lines needing migration by 2029
- Strategic positioning in a regulatory-driven market with urgent customer needs
- Partnership with TELCLOUD demonstrates successful market implementation
- Dependent on rapid migration of legacy systems within tight timeframes
- Success relies on maintaining high oversubscription rates without compromising service quality
Insights
Crexendo positioned to capitalize on massive POTS migration opportunity with superior economics through NetSapiens platform oversubscription capabilities.
This announcement highlights a significant market opportunity for Crexendo in the POTS replacement sector. With AT&T committing to retire copper-based services by 2029, the market faces urgency to migrate approximately 7 million lines annually from the estimated 35 million active POTS lines in the US. This represents a substantial addressable market for Crexendo's NetSapiens platform.
The technological advantage revealed here is Crexendo's ability to achieve extraordinary oversubscription rates in the POTS replacement market – reaching up to 200:1 compared to the average 40:1 across their general user base. This is a critical competitive differentiator that directly impacts service provider economics. For context, oversubscription in telecommunications allows providers to serve more customers with less infrastructure based on usage patterns, similar to how airlines overbook flights knowing not all passengers will show up.
From a business perspective, this capability enables Crexendo's partners to deliver replacement solutions with dramatically improved unit economics. The regulatory pressures forcing businesses to maintain emergency connectivity for life safety systems, alarms, and elevators create urgency and strong customer motivation to adopt these solutions. The partnership with TELCLOUD demonstrated in the release shows real-world implementation of this strategy.
The market timing is particularly advantageous as legacy providers are accelerating copper retirement schedules. Crexendo is positioning its platform not merely as a technical replacement but as an economic enabler for service providers to capture this migration wave with superior margins. This opportunity aligns perfectly with Crexendo's core business as a cloud communication platform provider and could drive significant growth if they can continue scaling their partner network to address this market efficiently.
PHOENIX, ARIZONA / ACCESS Newswire / May 13, 2025 / Crexendo®, Inc. (NASDAQ:CXDO), an award-winning software technology company that is a premier provider of cloud communication platform software and unified communication as a service (UCaaS) offerings, including voice, video, contact center, and managed IT services tailored to businesses of all sizes, today revealed how oversubscription on the NetSapiens® platform is delivering transformative economic benefits for service providers, especially in the booming POTS replacement space.
The traditional Plain Old Telephone System (POTS) copper lines, essential for critical business systems such as life safety systems, alarms, and elevators, is vanishing at an accelerating pace. In December 2024, AT&T committed to retiring copper-based services across the majority of its footprint by the end of 2029. This means in the US, where an estimated 35 million POTS lines are still active, there are over 7 million lines that need to be migrated every year. The urgency for businesses to replace these lines is real - noncompliance can result in daily fines or even closure of facilities for failing to maintain emergency connectivity.
Crexendo's NetSapiens® platform is uniquely positioned to help service providers capitalize on this massive shift. Across our 6 million users, partners are achieving an average oversubscription rate of 40:1 - but in the POTS replacement market, we're seeing extraordinary rates reaching 200:1, unlocking even greater economic efficiency and profitability.
"Oversubscription isn't just about doing more with less - it's about outpacing your competition," said Jeff Korn, CEO and Chairman of Crexendo. "Our NetSapiens platform turns real-world usage patterns into real-world economic dominance. In critical verticals like POTS replacement, our partners are seizing the moment to establish themselves as market leaders - and TELCLOUD is a perfect example of a provider leveraging this opportunity to drive rapid growth and deliver real value to their customers."
"Crexendo's platform has empowered us to disrupt an entire category," said Jake Jacoby, CEO of TELCLOUD. "The flexibility and efficiency we've gained through session-based oversubscription has allowed us to redefine what's possible in POTS replacement. We're not reacting to disruption - we're causing it."
As legacy networks shut down and the regulatory pressure on businesses to modernize escalates, the opportunity for service providers to deliver reliable, compliant, cloud-based solutions - at a fraction of the operational cost - has never been greater. Crexendo's NetSapiens platform not only empowers service providers to meet urgent customer needs - it enables them to do so with a business model built for scalability, sustainability, and market-leading profitability.
For more information, visit www.crexendo.com.
About Crexendo®
Crexendo, Inc. is an award-winning software technology company that is a premier provider of cloud communication platform software and unified communications as a service (UCaaS) offerings, including voice, video, contact center, and managed IT services tailored to businesses of all sizes. Our cloud communications software solutions currently support over six million end users globally, through an extensive network of over 235 cloud communication platform software subscribers and our direct retail offering. For more information, visit www.crexendo.com.
About TELCLOUD
TELCLOUD is a Communication Platform as a Service (CPaaS) for large Telecommunication Providers. Our platform enables white-labelled POTS Line Replacement and Wireless Services. Direct Netsapiens integration allows your organization to offer the best POTS Replacement Solution in the market. For more info call (833) 900-POTS (7687), or visit www.telcloud.com
Safe Harbor Statement
This press release contains forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor'' for such forward-looking statements. The words, "believe,'' "expect,'' "anticipate,'' "estimate," "will'' and other similar statements of expectation identify forward-looking statements. Specific forward-looking statements in this press release include (i) Crexendo and its partners outpacing competition; (ii) believing the NetSapiens platform turns real-world usage patterns into real-world economic dominance and (iii) believing that in critical verticals like POTS replacement, its partners are seizing the moment to establish themselves as market leaders - and TELCLOUD is a perfect example of a provider leveraging this opportunity to drive rapid growth and deliver real value to their customers.
For a more detailed discussion of risk factors that may affect Crexendo's operations and results, please refer to the company's Form 10-K for the year ended December 31, 2024, and Form 10-Qs as filed with the SEC. These forward-looking statements speak only as of the date on which such statements are made, and the company undertakes no obligation to update such forward-looking statements, except as required by law.
Contact Information
Doug Gaylor
President and Chief Operating Officer
dgaylor@crexendo.com
602-732-7990
SOURCE: Crexendo, Inc.
View the original press release on ACCESS Newswire
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