Mayfield, Ohio, Oct. 07 /Kiersten Thomas/ -- 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.

"The average cost of a business phone line from the Local Bell Operating Company (ILEC) has remained constant for the past ten years" noted Edwin Jones, a senior market analyst and telecom industry expert. "At the same time the prices of T-1 lines have declined from near $1000 per month to a staggering $350. Keeping in mind that a T1 connection is the equivalent of 24 regular phone lines all bundled into one, it comes as no surprise that demand for these services in on the rise."

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 early adapters of this new technology have realized a cost savings that helps them be more competitive in the market space. By saving hundreds of dollars each month, which equates to thousands of dollars per year, small businesses are able to do more while spending less on their telecom bill. This savings allows for hiring of additional staff, upgrading equipment, and other activities that make the enterprise more productive and profitable. Many in the industry see the lack of mass adoption of this new technology as just shear ignorance and/or a lack of trust for telecom sales people.

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.

"What we're seeing here is the Bells holding their prices steady and milking their high margins on POTS (plain old telephone service) lines for as long as possible. With the lower prices being offered by CLECs (Competitive Local Exchange Carriers) on dynamic integrated T-carrier services, the Bells are scrambling to keep pace before enterprises realize they can actually save money by upgrading to bigger and more reliable circuits." commented Don Rosebush, industry expert.

But how much longer will we continue to see improved technology, services, and prices? It's all in the hands of the Federal Communications Commission, as they have the power to sqwash the CLECs by proxy. No wonder AT&T and Verizon are the two biggest lobbying powers in Washington. It makes you wonder what kind of services they would be able to offer had they plowed that money into R&D instead of politics. Evolution has lead to a better, cheaper alternative to TDM services that the Bells were peddling for decades in a vacuum of competition. Now the industry, lead by the innovation and great business practices of the CLECs, seems to have turned a corner - leaving the incumbents playing catchup. Obviously, the main benefactor of all of this competition is the small to medium size business - a segment of the market that was taken for granted until today.

Definition 1. - 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 2. - 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 3. - 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 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 Mayfield T1 line is in common use today in ISP (Internet Service Provider) connections to the Internet

Mayfield ShoreTel Dealers | Mayfield Nortel Dealers | Mayfield NEC Dealers | Mayfield Mitel Dealers | Mayfield Cisco Dealers | Mayfield IP PBX Phone System | Mayfield Avaya Dealers