Monday October 13, 2008,
02:37 pm ET
Huntington, New York, Oct. 13 /Daniel Johannesburg/ --
Business broadband, its price, and who can afford it, are changing. Every day an increasing number
of business are finding the new broadband services made available to them by the "new" telecommunications
companies that are emerging from the latest round of mergers and acquisitions. Overlapping networks
are being consolidated into bigger and leaner footprints, lowering the cost of dynamic integrated
digital signal 1 (DS1) service to the price range of about five regular phone lines. Small to medium
size business can now afford services once reserved for the Fortune 1000 companies.
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.
"The real benefit I've seen since upgrading to a dynamic integrated T1 from Nuvox
Communications is simplicity" commented Johan Sebastian, a small business owner in
Clearwater, Florida. "My phones work great, my internet is fast, and the best part
is the reliability; I haven't had a single outage since I signed up for the new
service over a year ago. Before when we had DSL and POTS lines, every day was
an adventure."
The New York area is one place in particular where the analog to digital
revolution is gaining traction. One business owner we interviewed about
his recent decision to become a digital convert, Peter Anderson, explained
that "my biggest hindrance was my ignorance. Had I known that there was
a solution that would allow me to increase the number of voice lines,
get a full T1 (1.5 MB) of high-speed Internet, all for less than I was paying
for my POTS/DSL configuration, I would have made the move a long time ago."
Many others like Mr. Anderson are coming to the same conclusion.
The same basic economic model described in the book "Blue Ocean Strategies" is now being
applied to telecommunication services being offered to small businesses across the country:
more value for less money. According to many industry watch dogs, hundreds of thousands
of business will dump their POTs lines in favor of dynamic integrated T1 service within
the next 12 to 24 months, saving money in the process. With the introduction
of sub-$475 dynamic integrated T-service, customers are now able to receive up to 1.5 MBPS
of high-speed Internet with 24 digital phone lines all on one line, for less than what they
pay now for 5 regular phone lines" Stallions continued.
"True convergence means that I can finally have just one phone company, without being
at the mercy of Ma Bell" added Steven Lankto of Jersey City. "Having a data pipe that
is intelligent enough to know when it needs to become a voice pipe, without any input
from me, is genius. I'm glad that the technology is here and in the price range
of businesses like mine." Mr. Lankto isn't alone; there is now widespread acceptance
of integrated voice and data service in the New York metro area and across most
larger U.S. cities.
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. 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!
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Courtesy of ShopforT1.com
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 Huntington 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 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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