STIR/SHAKEN Compliance is Impacting Small Service Providers

STIR/SHAKEN (Secure Telephone Identity Revisited/Signature-based Handling of Asserted Information Using toKENs) protocols were introduced to combat the rising tide of robocalls and phone scams. While these standards are vital for restoring trust in phone communications, their implementation has posed significant challenges for small service providers. Let’s explore how STIR/SHAKEN compliance is impacting these smaller entities.

The Necessity of STIR/SHAKEN

STIR/SHAKEN protocols ensure that calls are authenticated and verified, reducing the prevalence of spoofed calls that deceive recipients. By attaching a digital signature to each call, these standards confirm the caller’s identity and the legitimacy of the call. This helps in rebuilding consumer trust and curbing fraudulent activities.

Challenges for Small Service Providers

Despite the benefits of STIR/SHAKEN, small service providers face numerous hurdles in achieving FCC compliance:

  1. High Implementation Costs:
    Implementing STIR/SHAKEN requires significant investment in infrastructure upgrades and new technology. Smaller providers often operate on tight budgets and may lack the financial resources to afford these costly upgrades. The expense includes purchasing new equipment, software licenses, and ongoing maintenance.
  2. Complex Technical Requirements:
    STIR/SHAKEN implementation involves complex technical processes that may require specialized expertise. Small providers might not have the in-house technical staff needed to manage these requirements, leading to additional costs for hiring consultants or specialized technicians.
  3. Regulatory Pressure and Deadlines:
    The regulatory landscape for STIR/SHAKEN compliance includes strict deadlines and requirements. Small providers, with their limited resources, often struggle to meet these deadlines, risking penalties and potential loss of customers who may seek compliant providers.
  4. Interoperability Issues:
    Ensuring interoperability with other networks is crucial for the success of STIR/SHAKEN. Small providers might encounter challenges in integrating their systems with larger networks, leading to potential service disruptions and increased operational complexity.
  5. Competitive Disadvantage:
    Large telecom companies can more easily absorb the costs and complexities associated with STIR/SHAKEN compliance, giving them a competitive edge. Small providers, on the other hand, may find it difficult to compete, potentially leading to consolidation in the industry as they are either acquired by larger companies or forced out of business.

Potential Solutions and Support

To mitigate these challenges, several measures can be considered:

  1. Financial Assistance and Grants:
    Government programs and industry associations could offer financial assistance or grants to help small service providers cover the costs of STIR/SHAKEN implementation. This support could alleviate the financial burden and facilitate smoother compliance.
  2. Collaborative Efforts:
    Small providers can band together to form consortia or cooperatives, sharing resources and expertise to achieve FCC compliance more efficiently. Collaborative efforts can help spread the costs and technical challenges across multiple entities.
  3. Simplified Compliance Programs:
    Regulators could introduce simplified compliance programs tailored to the needs of small providers. These programs could offer more flexible deadlines, reduced requirements, and technical support to ease the compliance process.
  4. Technical Assistance and Training:
    Providing access to technical training and assistance can help small service providers build the necessary expertise in-house. Workshops, webinars, and online resources could be made available to guide them through the implementation process.

Conclusion

While STIR/SHAKEN protocols are essential for enhancing the security and trustworthiness of phone communications, their implementation presents significant challenges for small service providers. The high implementation costs, complex technical requirements, and regulatory pressures create a daunting landscape for these smaller entities. However, with appropriate support, collaborative efforts, and targeted assistance, small service providers can overcome these obstacles and continue to play a vital role in the telecommunications industry. Contact us to start a conversation on how Telonium can assist you in this process with minimal financial impact on your existing operations. Addressing these challenges is crucial for maintaining a diverse and competitive market that benefits consumers and businesses alike.

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