Friday June 27, 2008,
02:33 am ET
Howard County, Maryland, Jun. 27 /Kim Mankaryous/ --
Is there a resurgence in the popularity of telecommunications providers that compares with
the late 1990's? The answer may surprise you. Since the crash of the Internet bubble,
struggling telecoms have seen Darwin in action as many companies were forced with the
choice of bankruptcy or forced consolidation. However, some companies chose the road less
traveled: innovation. By offering customers more for less, many small to medium size
business customers are finding that they can upgrade to integrated T1 service for the
same cost of five regular phone lines.
The irony of the new small business communications revolution is that it took so long
to gain traction. The whole idea of reclaiming inactive voice channels for data applications
is not new, and was introduced by many CLEC operators over five years ago. So why did
it take so long for SMB's to adopt the technology and make the change? One might argue
that the Internet bubble burst in 2000 shook many people's confidence in telecommunications,
one of the hardest hit industries. With so many telecoms going out of business, or merging
with other small players just to stay solvent, many customers took the "wait and see"
approach before making the decision to entrust their communications with a company not
associated with Ma Bell. Now that economic Darwinism has taken hold, the remaining companies
are attracting new customers who see the benefits of the new technology without the downside
risk of loosing service or not being able to get through to customer service in the pinch.
Is the era of the analog trunk, or bundle of 24 DS-0 (64 kbps) channels,
officially over? Possibly, thanks to the two-for-the-price-of-one features
of a dynamic integrated T1, which can function exactly like a pure 1.5 mbps
data T1 when no one is one the phone, and allocate required bandwidth
for voice traffic when a user initiates a phone call. Likewise, as soon
as the client terminates the voice session, the 64 KB is re-assigned back
to the digital universe. This switch-hitting capability provides all
of the feel and function of a data T1 and voice T1, for a fraction of the price.
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.
Dynamic integrated T1s are a fairly new phenomenon. Unlike their analog
counterparts that can never deviate from their initial set up configurations,
dynamic T1s are able to convert voice phone calls into data packets and
them prioritize their delivery through an all-digital trunk. The ability
to break everything down into the lowest common denominator (digital)
allows the system to change on-the-fly to reclaim phone lines for high
speed Internet the second the phone call is terminated. An integrated T1 essentially
provides the end user the same service as one data T1 line and one
voice T1 line, for half the cost.
"Commercial telecommunication providers were never on my Christmas card list"
commented Jake Chang, a small business owner in Denver, Colorado. "Dealing with them
meant erroneous bills, long wait times when trying to reach customer service, and
taxes I could never understand. Now that we migrated to a dynamic integrated
T1, my phone lines and high speed internet are bundled into one line with super
reliability. Not to mention the fact that XO Communications, a CLEC, treats me
like they actually want my business - not like I'm a pain in the you-know-what."
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. Expect innovation to continue on its upward spiral as the CLECs continue to expand
their footprints as well as their customer bases. Barring any funny stuff from the FCC,
the CLECs will be here to stay. Sorry Ma Bell.
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Courtesy of ShopforT1.com
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 T1 line is in common use today in ISP (Internet Service Provider) connections to the Internet
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.
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.
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.
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