Geneva, Iowa, Oct. 03 /Zackary Smith/ -- Small businesses all over the country are discovering a whole new universe of broadband access. As the price of commercial-grade telecommunication services continues to drop, more and more enterprises are starting to drop their plain old telephone service lines in favor of all-digital T1 trunks that deliver voice and data over the same connection. These new enhancements were made possible by the increasing pace of consolidation in the telecommunication industry along with the increasing value bigger phone companies can provide.

One might think that, given the cost - benefit analysis of the integrated T1 value proposition, more businesses would be changing over to the new platform. However, the rate of adaptation is rather slow. Rob Butler, head of the Telecommunications Research Institute, thinks that "phone companies have a problem with trust amongst their user base. For many years, customers have dealt with increasing rates, long hold times, and frustration in general. Now, it appears, the ice is finally starting to melt and customers are opening themselves up to new technology.

Ultimately it all comes down to basic economics. Whenever a technology can offer more features for less money that what businesses are currently paying, it's just a matter of time before the flood gates open up with companies wanting to adapt the new standard. According to the Telecommunications Research Institute, headquartered in Miami, Florida, the mass migration to dynamic integrated service offerings is only being held back by a lack of education and/or the ability of carriers to reach their target market. "Most people are leery of advertising and solicitations by phone company salesman." comment Bill Bradley, analyst.

"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."

Min Lieu owns a small insurance agency in Iowa. Five years ago he signed up with XO Communications for a TDM-based integrated T1 line for $870/month, which did not include local or long distance calling. Recently, he was offered XO's version of a dynamic circuit called "XO Flex" for half of the price he was already paying. "I would have been a fool not to take the deal" stated Mr. Lieu. "I'm able to add headcount with additional voice lines, without any increase in expense or degradation in high-speed Internet performance."

"The marriage of lower price points and feature-rich T-1 services have made it so that customers can now get more bang for less buck" observed Kent Stallions, telecom expert at PK Communications. "The good old days of the Bells charging people $50/month for regular POTs lines without them having another alternative are over. With the advent of sub-$450 dynamic integrated T1 service, businesses are able to get up to 1.5 Mbps of Internet connectivity and 24 phone lines all in one package, for less than what they pay now for 5 regular phone lines" Stallions continued.

With the help of super-CLECs like XO Communications, PAETEC, Nuvox, One Communications, Cavalier Telephone, and TelePacific, small business owners everywhere now have access to non-Bell service that is on par or better than those being offered by the former Bells. Integrated T1s that do more and cost less have transformed into a solid beach head for the newcomers. The only thing that can get in the way of future progress is the law. You know, the one that requires the RBOCs to lease their local loops to CLECs at a reduced rate so that the customer can get a dedicated connection between their office and the CLECs' network. If the FCC decided to lift this requirement, this whole deck of cards could come down in a hurry, and when it does, you can kiss dynamic integrated T1 service for under $500 good bye!

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. - 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 3. - 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 Geneva T1 line is in common use today in ISP (Internet Service Provider) connections to the Internet

Definition 4. - 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.

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