Massachusetts Local Telephone Service, Inc.

Brief History 

Since 1997, MassLocal has progressed from reselling basic, incumbent-provided voice and early data services to becoming a provider of integrated, cloud-based Unified Communications as a Service (UCaaS) and managed IT services, presently. This evolution was driven by major shifts in technology and regulations: 

Initial Phase (1997 - Early 2000s)

• Service Offerings: Masslocal was established in 1997 as a provider of prepaid residential telephone services under a resale agreement with Bell Atlantic, now Verizon Communications, Inc. Primarily, the business resold voice communication services (local and long-distance) using the incumbent local exchange carrier’s network. This involved using traditional analog telephone lines and TDM (time-division multiplexing) trunks. The residential telephone service became the company’s primary product, and Masslocal steadily expanded over the course of several years, increasing in size and capacity.

• Early Acquisition: As a small company with an innovative prepaid product, Masslocal had difficulty reaching the entire potential market. Therefore, for the purpose of accelerating market access, Masslocal acquired another reseller that operated in nearby Quincy, MA in 2002 in an all-cash deal. As a result, operating-profit margins increased by an average of 2.5 percentage points more than those at peer companies during the same period. By 2004, the company had over 5,000 residential telephone customers in the metropolitan Boston area.

• Regulatory Environment: Operations were heavily influenced by the Telecommunications Act of 1996, which mandated that incumbents offer network elements and retail services for resale at wholesale rates to encourage competition. 

• Infrastructure: Reliance on legacy copper and coaxial cable infrastructure owned by larger carriers such as Verizon and AT&T.  

Transitional Phase (Mid-2000s - Early 2010s)

• Technology Shift: The emergence and maturation of Internet Protocol (IP) networks led to the adoption of Voice over Internet Protocol (VoIP) and SIP (Session Initiation Protocol) trunks.

• Service Expansion: Masslocal began offering data services alongside voice, moving toward providing bundled solutions. The focus shifted from pure "dial tone" resale to more sophisticated network services.

• Competition: Increased competition led to margin pressure, prompting the need for differentiation beyond price. 

• Unbundled Network Elements (UNE-P): In 2006, Masslocal extended its wholesale agreement with Verizon under new, commercially negotiated terms. The new agreement with Verizon included what is known as UNE-P telecom services. UNE-P allowed Masslocal to offer broadband, inside wire services, voicemail and sophisticated blocking services. The commercial agreement solidified Masslocal’s position in the telecommunications reselling industry and strengthened its commitment to increasing utilization of the Verizon network to our customers.  Under the agreement, Masslocal’s servers could directly interact with Verizon’s systems to automate transactions, resulting in faster and more accurate ordering and trouble reports. These efficiencies were passed on to our customers by way of cost savings, faster activations, and more accurate trouble reporting, which expedited service restorations.  

Modern Phase (Mid-2010s - Present)

• Digital Transformation: The business model transformed from reselling basic copper-based connectivity minutes only, to offering more complex, higher-margin managed and professional services.

• Cloud Adoption: A major transition to offering scalable, cloud-based solutions, including UCaaS platforms that integrate voice, video, messaging, and collaboration features.

• Strategic Shift: Masslocal moved from a pure resale model to an approach focusing on customer relationships, integrated solutions, and ongoing service management.

• Focus Areas: Currently, key Masslocal opportunities and growth areas include leveraging advanced technologies like 5G, artificial intelligence (AI), and automation for enhanced customer service and network management. Essentially, Masslocal now focuses on becoming a trusted IT advisor to its clients, providing comprehensive communication solutions.