PRI Prices are Skyrocketing (up to $1,500/mo). Here’s How to Beat the Shocking Price Hikes

Imagine receiving a notice from your phone carrier that your rate is increasing from $90/month to $1,500 or more – starting next week.

Unfortunately, that’s an all-too-common scenario as carriers continue to decommission traditional analog copper phone lines. Also known as Plain-Old Telephone Service (POTS), these analog lines are the backbone of the PRI and T1 service many businesses rely on.

If your business uses traditional analog lines but hasn’t received a price increase notice yet, you will undoubtedly receive it soon.

The good news is you can beat the shocking price hikes by switching to SIP or a hosted cloud phone system – but you must act fast. Here’s what you need to know:

  • The FCC mandated that all POTS lines in the U.S. be replaced with an alternative service by August 2022

  • In response having to maintain increasingly expensive copper phone lines and telephone pole infrastructure for a dwindling number of customers, major carriers have been dropping support and raising prices dramatically – sometimes doubling or tripling per-line costs – often with very little notice

  • There are two ways to beat the price hikes: upgrade to SIP (to keep your on-premise phone system) or move to a hosted cloud system

  • It’s critical to act now. If you wait too long and your carrier gives little notice, there won’t be enough time to port or keep your phone numbers before the price increase goes into effect

Your Cady technology advisor is on standby to help you beat the price hikes. We’ll work with you to determine the most cost-effective solution for your unique business needs. Get your free consultation today.

Cady Business Technologies is proud to be a Mitel Gold Partner.

Our strong relationship with Mitel over many years allows us to offer the reliability and expertise your Mitel solution requires.

Contact us today to help create a plan that will support your business needs and budget.

The True Cost of E911 Noncompliance: A $40 Million Tragedy

The FCC lists fines for E911 compliance violations, but civil lawsuits can prove far more financially devastating.

How much do you think an E911 compliance violation could cost your organization? $500? $5,000? $50,000?

Try $40 million – or more.

While the FCC outlines fines for E911 violations, the true cost of noncompliance is potential tragedy and a wrongful death judgment that could easily put most companies out of business.

Yet many organizations – including businesses, hospitals, schools, municipalities, and event venues – unknowingly fail to comply with Kari’s Law and RAY BAUM’s Act, the federal regulations that govern E911 for multi-line telephone systems (MLTS). Moreover, some schools are noncompliant with Alyssa’s Law, a relatively new statute adopted by six U.S. states.

Here, we offer an overview of the E911 laws and the true cost of noncompliance, plus explain how to ensure your organization is compliant to prevent devastating outcomes.

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Summary

  • E911 violations can carry fines of up to $10,000 plus $500 per day, per device

  • Wrongful death lawsuits are costlier. Jurors in one case awarded a family more than $40 million. Another case was settled for $8 million

  • Organizations must prioritize compliance with Kari’s Law, RAY BAUM’s Act, and Alyssa’s Law (for schools) to prevent tragedy, reputational damage, expensive fines, and devastating lawsuits

Kari’s Law and RAY BAUM’s Act

The FCC has two major E911 mandates for organizations with multi-line telephone systems: Kari’s Law and RAY BAUM’s Act

Kari’s Law

The law was named after Kari Hunt, who was murdered by her estranged husband in a Texas hotel room in 2013. Kari’s nine-year-old daughter attempted multiple 911 calls but couldn’t get through because she didn’t know the phone system required an access code to reach an outbound line.

Kari’s Law states that multi-line telephone systems must:

  • Support direct dialing 911 (no access codes such as “9”)

  • Notify a central on-site location OR an off-site location where someone is likely to see it

  • Relay a callback number

  • Relay caller location information

RAY BAUM’s Act

RAY BAUM’s Act mandates that all phones send accurate, dispatchable location information to Public Safety Answering Points (PSAPs), including enhanced location identifiers such as building, floor, wing, and room number.

Related: How Telecom Makes Employees Safer

Penalties for Kari’s Law and/or RAY BAUM’s Act Noncompliance

FCC Fines

The Code of Federal Regulations outlines fines of up to $10,000 plus $500 per day, per device, for violating Kari’s Law and/or RAY BAUM’s Act. However, those fines aren’t fixed, and actual penalties could vary on a case-by-case basis. 

Civil Lawsuits

More severe penalties can come in the form of civil lawsuits. In 2018, a jury awarded Kari Hunt’s family $41.55 million in a wrongful death suit that claimed the hotel was negligent for delaying emergency response.

It’s important to understand that this was before the E911 laws were enacted, which means the hotel was technically compliant with existing laws and a jury still found it liable. Now, with E911 laws in effect, it’s not difficult to imagine a jury awarding a greater sum if an organization were found noncompliant.

In July 2022, a six-year-old boy drowned in a pool at a St. Louis County, Missouri summer camp. The county had recently upgraded its phones, but E911 wasn’t provisioned correctly, and the 911 call was routed to a special call center in Colorado, delaying emergency response. The boy’s family filed a $40 million wrongful death suit against the county, and the suit was settled for $8 million in July 2023.

These cases underscore the fact that FCC penalties, while significant, pale in comparison to the financial impact of a wrongful death suit for E911 noncompliance. 

Related: The New 911 Laws: What You Need to Know

Alyssa’s Law

Though it’s not a federal regulation (yet), Alyssa’s Law has been passed in six U.S. states:

  • New Jersey

  • Florida

  • New York

  • Texas

  • Tennessee

  • Utah

Legislation has also been introduced in multiple federal bills and ten additional states:

  • Nebraska

  • Arizona

  • Virginia

  • Oregon

  • Georgia

  • Michigan

  • Massachusetts

  • Pennsylvania

  • Oklahoma

  • Alabama

The exact requirements vary by state, but generally mandate that schools incorporate or consider incorporating the following:

  • Silent panic buttons installed in K-12 schools

  • Panic buttons must instantly notify PSAPs and on-site personnel (such as school administrators and resource officers)

  • In some states, silent panic buttons must be mobile (worn by teachers and staff)

Related: Phone Systems for Education

Penalties for Alyssa’s Law Noncompliance

Like the regulations, penalties vary by state, but could include:

  • Loss of state funding: For example, New Jersey schools must comply with Alyssa’s Law to be eligible for security grants

  • State intervention: States could require schools to develop compliance plans or subject them to additional oversight

In addition to state-issued penalties, precedents set by E911 wrongful death cases suggest that school districts could face similar lawsuits if noncompliance delayed response during an emergency event.

Related: Why Schools Need Silent Panic Buttons

How to Ensure E911 Compliance

E911 compliance is critical for all organizations with multi-line telephone systems, including businesses, schools, municipalities, event venues, and hospitals. These resources can help. 

Provisioning phone systems for compliance can be a complex process, but with the right technologies, you can automate compliance to prevent tragedy, reputational damage, fines, and devastating lawsuits. Speak with a Cady technology advisor for a free compliance assessment today.