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For Independent Telephone Companies


Some 1500 certified Independent Telephone Companies (ITCOs) operate today in the U.S.A.  As independently-owned entities, they are not part of the more dominant players like AT&T or Verizon.  Unlike AT&T and Verizon, the future of these ITCOs is much less certain.  Customers are fleeing landlines for cell phones.  Carrier access revenues are down because nobody buys long distance anymore.  “Triple Plays” combining Phone, Internet, and TV are dominated by larger players.  Now through an ingenious repurposing of existing ITCO infrastructure, FailSafe helps build desperately needed new revenue for ITCOs five different ways:

  • increased land line count and retention,
  • increased federal and state subsidies,
  • new carrier access (CABS) revenue,
  • new long distance revenue and,
  • a new, cloud-based vertical line feature

The FailSafe system is re-branded and sold by ITCOs to police, fire, 911, hospitals, call centers, banks, and others, where customer relationships already exist.  During telecommunications disruptions and disasters, the patented FailSafe system duplicates the features of a high-end phone system in the cloud, to restore inbound calls and to maintain command and control.  It can replicate advanced PBX and call routing features.  It can turn wired PBX phones into wireless or satellite phones.  It operates without changing inbound telephone numbers.  There is no need for the end user to call the Phone Company because they manage the system themselves. 

The FailSafe cloud-based service allows telecom providers to repurpose under-utilized assets to an entirely new market in DRaaS.

How ITCOs Can Enter This Market

A participating ITCO simply adds FailSafe as a tariffed disaster recovery service to their customers’ phone lines as a new vertical line feature, and charges a monthly fee.  The customer does not have to be in the ITCO’s service area.  The service can be mandatory or optional.  Once in operation, the ITCO bills the service on the customer’s phone bill and continues to manage the customer relationship.  FailSafe’s Disaster Recovery feature is “always on” and ready.  This means that every time an ITCO end user activates, tests, or overflows to the service, the ITCO makes money for delivering the calls to FailSafe.  ITCO revenue is comprised of the monthly service fees, long distance, and other lawfully-tariffed charges.

Even relatively small end users can generate significant revenue when disasters or routine network congestion events inevitably occur because even local calls may flow through the cloud.  In more widespread disasters, business interruption insurance or federal disaster assistance may further help customers.  The revenue generated to ITCOs is therefore not only dependent on disasters, but also on congestion events which happen thousands of times a day.  FailSafe provides ITCOs new revenue now, combined with a cost effective transition to the cloud.  

“FailSafe is an ingenious system to safeguard e-commerce, improve emergency response, and save lives.  FailSafe will stop the bleeding for hundreds of Independent Telephone Companies operating in small towns, on reservations, in family businesses and in community owned cooperatives.”

Philip N. Diehl
35th Director of the U.S. Mint
Former Director Telephone Regulation
Texas Public Utility Commission