Crexendo and TELCLOUD Change the Economics of POTS Replacement

Rhea-AI Summary

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.

Positive

• 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

Negative

• Dependent on rapid migration of legacy systems within tight timeframes
• Success relies on maintaining high oversubscription rates without compromising service quality

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

FAQ

What is Crexendo's CXDO strategy for POTS line replacement?

Crexendo leverages its NetSapiens platform to provide cloud-based POTS replacement solutions with high oversubscription rates (up to 200:1), enabling service providers to efficiently migrate legacy copper lines to modern cloud communications.

How many POTS lines need to be replaced in the US market by 2029?

There are approximately 35 million active POTS lines in the US that need migration, requiring about 7 million lines to be replaced annually to meet AT&T's 2029 copper retirement deadline.

What is the oversubscription rate for Crexendo's CXDO NetSapiens platform?

Crexendo's NetSapiens platform achieves an average oversubscription rate of 40:1 across its 6 million users, with rates reaching up to 200:1 specifically in POTS replacement applications.

Why are businesses required to replace their POTS lines?

Businesses must replace POTS lines due to AT&T's planned retirement of copper-based services by 2029. Non-compliance can result in daily fines or facility closure for failing to maintain emergency connectivity.

What systems are affected by POTS line replacement?

POTS replacement affects critical business systems including life safety systems, alarms, and elevators that traditionally rely on copper telephone lines.