Star City, Arkansas, Dec. 10 /Dolf Olviederlag/ -- Higher productivity for small to medium sized businesses is just around the corner thanks to commercial grade broadband services that are now being delivered at a fraction of their previous cost. Due to the ever increasing competitive marketplace and a mad dash to consolidate networks, telecoms are offering their premium business services to small businesses for a fraction of what they used to cost just a few years ago. Businesses who use more than four regular phone lines can now upgrade to dynamic integrated T-carrier circuits for the same price.

"True convergence means that I can finally have just one phone company, without being at the mercy of Ma Bell" added Steven Lankto of Jersey City. "Having a data pipe that is intelligent enough to know when it needs to become a voice pipe, without any input from me, is genius. I'm glad that the technology is here and in the price range of businesses like mine." Mr. Lankto isn't alone; there is now widespread acceptance of integrated voice and data service in the New York metro area and across most larger U.S. cities.

"The average cost of a business phone line from the Local Bell Operating Company (ILEC) has remained constant for the past ten years" noted Edwin Jones, a senior market analyst and telecom industry expert. "At the same time the prices of T-1 lines have declined from near $1000 per month to a staggering $350. Keeping in mind that a T1 connection is the equivalent of 24 regular phone lines all bundled into one, it comes as no surprise that demand for these services in on the rise."

Prior to the advent of the "all digital" integrated T-1 in 2005, customers only had one choice when it came to dedicated service: analog trunks (24 line bundles). Not only where analog trunks expensive - the average cost ranging from $800 to $1500 per month depending on the user's geographic proximity to the LECs point of presence - they could not re-allocate unused voice channels to carry data. Digital trunks, on the other hand, can reclaim voice lines not in use and put them to work carrying high-speed data packets. That means users enjoy the full 1.5 Mbps of broadband when they are not on the phone.

From 1997 to 2007, the average cost of a POTS (plain old telephone service) line from the Bells has hovered in the $50 - $80 per month price range. During this same time period, integrated DS1 (digital signal 1) lines - which is the equivalent of 24 standard lines - have come down in price from $1000 per month to $400. Small to medium size businesses who have more than 5 phone lines can now actually save money by upgrading their service.

"What we're seeing here is the Bells holding their prices steady and milking their high margins on POTS (plain old telephone service) lines for as long as possible. With the lower prices being offered by CLECs (Competitive Local Exchange Carriers) on dynamic integrated T-carrier services, the Bells are scrambling to keep pace before enterprises realize they can actually save money by upgrading to bigger and more reliable circuits." commented Don Rosebush, industry expert.

Will this train of innovation, lower prices, and services that add value to SMB's continue to roll down the tracks of progress? It's all up to our government - and which political party controls the FCC. Without the deregulation act of 1996, we would have never known just how much the CLECs were capable of. Once a forgotten segment of the business telecommunication landscape, small to medium size businesses are finally being serviced with products (like the dynamic integrated T1 line) at prices they can afford. Gone are the days when the Bells can shove TDM services down the collective throats of SMB's at prices that resemble a mortgage rather than a telephone service.

Definition 1. - A high-speed digital connection capable of transmitting data at a rate of approximately 1.5 million bits per second. A T1 line is typically used by small and medium-sized companies with heavy network traffic. It is large enough to send and receive very large text files, graphics, sounds, and databases instantaneously, and is the fastest speed commonly used to connect networks to the Internet. Sometimes referred to as a leased line, a T1 is basically too large and too expensive for individual home use.

Definition 2. - A type of high speed Internet connection that provides a great deal of bandwidth. Many businesses lease T1 lines to connect to the Internet, but because they are expensive and offer more bandwidth than most small businesses and homes need, they are not realistic solutions for small and low-demand Internet users.

Definition 3. - The T1 (or T-1) carrier is the most commonly used digital line in the United States, Canada, and Japan. In these countries, it carries 24 pulse code modulation (PCM) signals using time-division multiplexing (TDM) at an overall rate of 1.544 million bits per second (Mbps). T1 lines use copper wire and span distances within and between major metropolitan areas. A T1 Outstate System has been developed for longer distances between cities.

Definition 4. - The T-carrier system, introduced by the Bell system in the US in the 1960's, was the first successful system that supported digitalised voice transmission. The original transmission rate (1.544 Mbps) in the Star City T1 line is in common use today in ISP (Internet Service Provider) connections to the Internet

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