Thursday August 07, 2008,
06:35 am ET
Bailey, Michigan, Aug. 07 /Zackary Smith/ --
For many small to medium size businesses, higher productivity with relation to their broadband
and voice services is just around the corner. Thanks in part to the recent price reduction trend
in the industry, carriers have deemed it necessary to consolidate in order to offer more services
at a lower cost than their rivals. Overlapping networks have been consolidated into leaner, more
feature-rich versions of their previous selves, dramatically lowering the price small businesses
pay for the popular dynamic integrated T-carrier (T-1) lines that combine local voice and
high-speed Internet service into one connection.
"Like Forrest Gump said, finding the right phone service for your business is
like a box of chocolates - you never know what you're going to get" joked
Elizabeth Forest of Detroit, Michigan. "Before finding Cavalier Telephone
through my Telarus agent, I was mislead into signing up for services that weren't
a good fit for my business. Add to that the billing inaccuracies and the hassle
it was to get everything straightened out. My new integrated T1 works flawlessly,
I am able to get full T1 data speeds when no one is on the phone, and I don't
fear opening the bill when it arrives in the mail each month."
At $50 to $75 per month, the average small business telephone customer could expect to pay
up to $750 for just 10 regular phone lines, which come with only a standard set of features
such as Voicemail, Caller ID, and Three-way calling. From 2000 to 2005, the cost of a
dynamic integrated T1 line was well over $800, making it an unattractive option from a
pure cost point of view. However, that paradigm has changed with the introduction of
sub-$400/month price plans and features that make the old POTs lines look pre-historic.
When asked about his recent decision to replace his TDM channelized T1 with a
SIP-enabled dynamic T1, Robert Probst, small business owner in San Diego, explained
that "it was really an easy decision to make. My business was growing and I couldn't
afford the cost of more voice trunks. When I learned that it was possible to
have up to 16 voice lines, and a full data T1 of high speed Internet bandwidth,
all on the same line, for under $500 - I was sold. I ended up expanding the
telecom capability of my business, improving the quality of my Internet connection,
and saved money while doing it."
The question remains, if this new technology is so progressive, why did it take over five
years to gain broad appeal to SMB's across the country? One industry analyst from the
Telecommunications Research Institute observed that many customers who consume commercial-grade
phone service became very untrusting of telecom providers after the Internet bubble burst
in 2000 and the MCI bankruptcy proceedings full of allegations of fraud and embezzlement.
After all, no customer wants to come to work one day just to find out that their connection
to the outside world has been shut down due to financially unstable service providers not
being able to run a profitable or ethical business. Now, due to a series of acquisitions
and mergers, the "survivors" are offering great products at rates that SMB's can't continue
to ignore. The CLEC's and Bells are quickly gaining traction with the very important
demographic.
With any new advancement in technology there is usually a lag in the time it take
users known as "early adapters" to try out and begin using the new services themselves.
Although dynamic T1 service has been available in many US markets since 2005, it's
just now that we have observed people beginning to embrace the new technology. One
such business that recently changed from a voice PRI and data T1 line on to one,
dynamic T1 line is Jason Oliver, a small business owner in Los Angeles, California.
"When I found out that I could replace my two T1's with one single dynamic integrated
circuit (offered by TelePacific Communications), I had two thoughts: 1- where do I
sign, and 2- why didn't someone tell me about this sooner!"
Looking in the crystal ball of the future, it is clear that new an innovated services
being offered by the few super-CLECs remaining will drive innovation higher and prices
lower. New technology is being pressed to the forefront by lower prices that the mainstream
of small businesses everywhere can comfortably afford. Hopefully the CLECs can continue to push the boundaries of innovation and economics.
The only thing that can keep them from the promise land is the gatekeeper of competition:
the Federal Communications Commission, and the huge Bells (AT&T and Verizon - that's you)
who make it a point to spend more money lobbying in Washington DC than Exxon Mobile.
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Courtesy of ShopforT1.com
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 Bailey T1 line is in common use today in ISP (Internet Service Provider) connections to the Internet
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