Just curious...has there ever been a device available
to anyone's
knowledge that functions like an analog phone line and allows
transmission via TCPIP?
Yes and no. I've seen such devices in the form of cards that plug into
computers; with a little software, this adds up to what you describe.
They tend to have a fairly small market - generally people working on
telephony development of one sort or another - but they do exist.
(They tend to be somewhat expensive, in part because they're
complicated and in part because they're a low-volume item.)
You might also look at PBX systems; it may be easier to "forge" a T1 or
whatever into a PBX than individual POTS lines. (That is, I'm
suggesting a small PBX and a computer, with a (vary short) link between
them, so the PBX thinks the computer is its upstream CO.)
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