Gloucester, New Jersey, Aug. 01 /Craig Docken/ -- 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.

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 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.

Adoption of new technologies take time, and dynamic integrated T1 service is no different. Since the telephone service is regarded more as a utility than anything, business pay very little attention to changes in the industry. Significant price reductions and incentive packages need to be placed on their doorstep by proactive consultants and telecom salespeople in order to grab their attention. However, once the new technology begins becoming commonplace in the industry, momentum builds and soon the new products become standard. Businesses soon see themselves at a disadvantage to their piers if they don't adapt and keep up.

The two basic Integrated T1 line configurations, as they exist in today's market, are analog and digital. Commonly referred to as "trunks", these 24-channel bundles transmit TDM signals directly to the service provider's network via a local loop. Unlike analog trunks, whose configuration can not change once the channels have been allocated, digital "dynamic" lines can change reconfigure themselves from data, to voice, and back again. This ability to reclaim voice channels for data broadband access when not in use gives the user the performance of two T1's in one.

To see how customers are reacting to this new product, we interviewed a series of small business owners in New Jersey who are currently using the service. One such individual shared with us his enthusiasm for the enhanced capabilities dynamic service offers. "When I was first contacted about the dynamic integrated T1, I was deeply skeptical of what I was hearing. Over the course of my brief dealings with telephone companies, all I got was less service with more cost. Now I am happy to say that I am getting more for less, which makes for one very happy customer."

The golden age of telecommunications may be upon us, based upon our research and recent uptick in customer satisfaction. Although the industry has years of bad blood to overcome, recent innovations such as the dynamically configuring T1 line are proof that progress is indeed being made. CLECs are continuing to find new and loyal customers in the small business space, but for how long will this trend continue? Will the RBOCs ever be able to give them a fight on a level playing field? Only the FCC knows that answer to that question - all we can do is be thankful for the past 12 years of progress and hope we never return to the pre-1996 era of Telecommunications.

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 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 Gloucester T1 line is in common use today in ISP (Internet Service Provider) connections to the Internet

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. - 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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