You want to start your own local telephone company.....?

Question

You want to start your own local telephone company. Do you have to install your own telephone lines to each house and business? Explain.

Answer 1

I have my own international telephone company, and I did it by going into partnership with a major multi national company.

If you would like more details email me.

Answer 2

That's what you used to have to do.  Today it can be different in many areas.  Since nearly all houses today are wired for phones and with the changes in regulations you can have a telephone company that really owns no equipment.

What you do is buy usage of the lines from whatever company is supplying the service on them and then you sell that to your customers.  Since you are buying bulk usage you get a very prefered rate and also for long distance calls.  So you offer local for a set monthly rate and usually a deal for long distance.  Normally you can offer the monthly for less than the regular telco does so you can create a package for your customers.  The bulk is of course how many customers can you sign up in an area (many buy bulk packages of  multiple exchanges in an area code or two) like a city.

So all you do is buy usage of someone elses equipment and lines.  That's what you sell to your customers.  This what the long distance companies are doing.  Now if you want to be the main provider in a new development you could install the lines, equipment etc and then try to get the house buyers to use your services as they used to back before the rules changed.  Today will cell phones being so popular many are not even getting land lines to their houses anymore.

Answer 3

That is a good answer. If you are starting up from the ground up the way to go is with fiber optic lines. With all the fiber optic lines buried under ground today only 50% of them are being used, that is a very low number. So the main carriers, (AT&T) lease the "dark fiber" lines. These lines do not test to the standards they want so they lease them to other companies. Another way to go is to shoot the main line, trink, OS64, multiple DS3'3 by microwave. This is less expensive than tearing up streets and burying fiber lines. Starting a phone company now is hard to do from the ground up. The best way is to look for a small local carrier that is going under, then buy them out. many companies now do this. Look out though, AT&T is doing the same thing right now. They have to be careful so they let small markets go to the public so they do not hit with a monopoly lawsuit. The best bet is for you to look into the providers in the area you are interested in and see what they are doing and who the competition is. Good Luck, it is nice to see cometition to big comanies.