Piney Creek, North Carolina, Jun. 18 /Richard Anderson/ -- 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.

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.

"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."

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.

North Carolina, ordinarily not known for its telecom prowace, has been a hotbed for businesses making the move to dynamic telecom lines. One local business owner - Linda Peterson - who operates a travel agency, recently told us that "I never expected the phone company to come out with anything that would help me lower my costs. On the contrary. Ma Bell has had a history of raising my rates and making my life difficult. When I heard about the XO Flex package (offering 10 dynamic voice lines and 1.5 mbps of high speed Internet) at a price of under $500, I couldn't move over fast enough." Since then Linda reported a $150/month savings in her telecom expenses.

The adoption of any new telecommunications platform is never instantaneous. Many technologies, like VoIP for example, have been in the works for years without gaining much traction. Enterprises see communications as their life blood. Even though many are becoming aware of newer, cheaper mediums by which they can conduct business, the risk still outweighs the rewards in their minds. Couple the 'if it isn't broken, why fix it?' mind set with the telecom meltdown of the early 2000's and it isn't surprising that widespread adoption of new telecom services has lagged. However, the new technologies of IP-based voice systems are finally starting to gain an audience, and the chorus of satisfied customers continues to grow. As this momentum pushes forward, so does general acceptance of it viability.

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. Until deregulation allowed smaller, hungrier telecommunications companies the ability to compete, the United States was stuck with technologies that were quickly becoming out of date. Now that the Bells actually have to innovate to keep up with the smaller CLECs, customer everywhere are reaping the benefits.

Definition 1. - 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 2. - 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 Piney Creek T1 line is in common use today in ISP (Internet Service Provider) connections to the Internet

Definition 3. - 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 4. - 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.

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