Industry Insights

POTS Line Sunset: What FCC Changes Mean for Enterprise Fax

FCC rules are increasing POTS line costs dramatically. Learn the timeline, impact on fax operations, and migration strategies before prices spike.

Farjad Fani
Farjad Fani
Enterprise Fax Consultant
October 25, 2024
8 min read
POTS lines FCC regulations telecom analog fax migration
POTS Line Sunset: What FCC Changes Mean for Enterprise Fax

The FCC’s decision to allow carriers to retire legacy copper networks is creating urgency for enterprises still running analog fax. If your organization relies on POTS (Plain Old Telephone Service) lines for fax, the economics are about to change dramatically.

The POTS Line Reality

What’s Happening

The FCC has progressively relaxed regulations requiring carriers to maintain legacy copper infrastructure. Key developments:

  • 2019: FCC allows carriers to discontinue legacy services with notice
  • 2022: Carriers begin accelerating copper retirement
  • 2024: Major carriers announcing market-by-market POTS discontinuation
  • 2025+: Widespread copper network retirement expected

Impact on Pricing

As carriers reduce investment in copper infrastructure:

YearTypical POTS Line CostTrend
2020$35-50/monthStable
2022$50-75/monthRising
2024$75-150/monthSteep increase
2026$150-300/month (projected)Accelerating

Some enterprises report receiving POTS line price increase notices of 200-400% as carriers try to accelerate migration off legacy networks.

Service Availability

Beyond price, availability is declining:

  • New POTS line provisioning increasingly difficult
  • Repair response times extending
  • Some areas already without POTS option
  • Quality degradation as investment decreases

Who’s Affected

High-Impact Organizations

Healthcare

  • Medical offices with dedicated fax lines
  • Hospitals with high-volume fax operations
  • Clinics in older buildings with analog infrastructure

Financial Services

  • Bank branches with fax machines
  • Mortgage companies with document-heavy workflows
  • Insurance offices with claims processing

Legal

  • Law firms with court filing requirements
  • Courts themselves (especially rural)
  • Government agencies with fax dependencies

Manufacturing/Logistics

  • EDI backup via fax
  • Supply chain document exchange
  • Quality documentation transmission

The Common Scenario

Organization has:

  • 10-50 POTS lines for fax
  • Annual cost: $6,000-30,000
  • Legacy fax machines or servers
  • No immediate migration plan

Projected scenario:

  • Lines jump to $150-300 each
  • Annual cost: $18,000-180,000
  • Plus increasing reliability issues
  • Forcing reactive migration under pressure

Migration Options

Complete migration to cloud fax platform.

How it works:

  • Port existing fax numbers to cloud provider
  • Users send/receive via email, web, or API
  • No physical lines required
  • Integration with existing systems

Advantages:

  • Eliminates POTS dependency entirely
  • Modern features (encryption, audit trails)
  • Predictable per-user or per-page pricing
  • Remote access capability

Timeline: 4-12 weeks typical

Option 2: SIP/VoIP Fax

Migrate analog fax to SIP trunking.

How it works:

  • Replace POTS lines with SIP trunks
  • May require ATA (Analog Telephone Adapter)
  • Fax machines/servers continue operating
  • IP-based transmission

Advantages:

  • Preserves existing fax infrastructure
  • Lower cost than POTS
  • Can be intermediate step to cloud

Challenges:

  • Fax over IP can be unreliable
  • T.38 protocol support varies
  • Not all SIP providers support fax well
  • Doesn’t address other infrastructure limitations

Timeline: 2-8 weeks typical

Option 3: Hybrid Approach

Combination of cloud and SIP.

How it works:

  • High-volume operations to cloud fax
  • Low-volume standalone machines to SIP
  • Gradual migration path

Advantages:

  • Phased transition reduces risk
  • Addresses highest-cost lines first
  • Time to plan full migration

Timeline: Varies by scope

Migration Planning

Step 1: Inventory (Week 1-2)

Document current state:

  • List all POTS lines used for fax
  • Note current costs
  • Identify associated equipment
  • Map to business processes
  • Document integration requirements

Step 2: Assessment (Week 2-4)

Evaluate options:

  • Get quotes from cloud fax providers
  • Assess SIP provider fax capabilities
  • Calculate TCO for each option
  • Evaluate integration requirements
  • Consider timeline constraints

Step 3: Selection (Week 4-6)

Make migration decision:

  • Compare solutions against requirements
  • Negotiate contracts
  • Plan implementation approach
  • Secure stakeholder approval
  • Allocate resources

Step 4: Implementation (Week 6-16)

Execute migration:

  • Configure new solution
  • Build integrations
  • Port fax numbers
  • Train users
  • Validate operation
  • Decommission POTS lines

ROI Analysis

Example: 20 POTS Lines

Current State:

  • 20 POTS lines at $75/month = $18,000/year
  • Projected 2026: $200/month = $48,000/year

Cloud Fax Alternative:

  • Implementation: $10,000 (one-time)
  • Annual service: $12,000
  • Total Year 1: $22,000
  • Annual ongoing: $12,000

Savings:

  • vs. current POTS: $6,000/year
  • vs. projected 2026 POTS: $36,000/year

Break-even: 20 months at current rates; 4 months at projected rates

Additional Value

Beyond direct cost savings:

  • Elimination of hardware maintenance
  • Remote work capability
  • Modern security features
  • Integration possibilities
  • Reduced IT support burden

Urgency Assessment

Act Now If:

  • Receiving POTS price increase notices
  • In market where carriers are retiring copper
  • Have many POTS lines for fax
  • Current fax infrastructure aging
  • Compliance requirements increasing

Can Wait If:

  • Few POTS lines (1-2)
  • Recently signed long-term telecom contract
  • Major system changes planned anyway
  • Cloud fax already in implementation

Common Mistakes to Avoid

Mistake 1: Waiting Too Long

Organizations that wait until POTS service degrades or prices spike face:

  • Rushed migration with higher risk
  • Less negotiating leverage
  • Potential service disruption
  • Reactive rather than strategic approach

Mistake 2: Assuming SIP Solves Everything

SIP can help, but:

  • Fax over IP can be unreliable
  • Quality varies significantly by provider
  • May just delay inevitable cloud migration
  • Doesn’t address other fax limitations

Mistake 3: Ignoring Integration Requirements

Migration planning must include:

  • ERP/EHR integration needs
  • Workflow dependencies
  • Number porting requirements
  • User training needs

Mistake 4: Underestimating Change Management

Even straightforward migrations require:

  • User communication
  • Training on new processes
  • Updated documentation
  • Support during transition

The Bottom Line

POTS line pricing changes aren’t speculation—they’re happening now. Organizations relying on analog fax lines face a choice: migrate proactively under favorable conditions, or react under pressure when costs spike or service degrades.

The window for strategic, planned migration is narrowing. Organizations acting now have more options, better pricing, and lower risk than those forced to react later.


Concerned about POTS line costs for your fax operations? Let’s discuss your migration options.

Farjad Fani

About the Author

Farjad Fani is an enterprise fax consultant with 25+ years of experience. He built onlinefaxes.com and sold over 100,000 customers to eFax. Today, he helps healthcare, finance, and government organizations modernize their fax infrastructure while maintaining compliance.

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