Thursday September 04, 2008,
12:20 pm ET
Vale, South Dakota, Sep. 04 /Jeff Johnson/ --
The digital universe, and the way people connect to it, is changing. Small businesses, in
particular, are discovering new high-speed Internet and telecom options that are now
squarely within their budgets. Through a myriad of mergers and acquisitions, telecommunication
providers have greatly enhanced their integrated T1 products with features that businesses
can't live without, all while dropping the price to about half of what they were just
two years ago.
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 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.
The South Dakota 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.
Given the fact that many companies still to this day have yet to make the change to digital
SIP-trunking enabled dynamic T1s, one must ask why the delay? The value proposition that
dynamic adds and the economic benefits are there, however, the technology is slow to be
adopted by mainstream corporations. One reason for this lag is the bad reputation that
telecom companies have built for themselves through the meltdown of the industry from
2000 to 2003, when many companies either went out of business, merged with other larger
companies, or just hunkered down and weathered the storm. Now that the industry has made
great strides to stabilize by offering better rates, better products, and better customer
service, small business owners are gradually starting to listen to the presentations being
made by consultants and inside sales agents. With that increase in confidence, and with
the growing number of testimonials being offered by happy customers, businesses are becoming
less reluctant to make the jump.
One might think that, given the cost - benefit analysis of the integrated T1 value
proposition, more businesses would be changing over to the new platform. However,
the rate of adaptation is rather slow. Rob Butler, head of the Telecommunications
Research Institute, thinks that "phone companies have a problem with trust amongst
their user base. For many years, customers have dealt with increasing rates, long
hold times, and frustration in general. Now, it appears, the ice is finally starting
to melt and customers are opening themselves up to new technology.
With the help of super-CLECs like XO Communications, PAETEC, Nuvox, One Communications,
Cavalier Telephone, and TelePacific, small business owners everywhere now have access
to non-Bell service that is on par or better than those being offered by the former
Bells. Integrated T1s that do more and cost less have transformed into a solid beach
head for the newcomers. Expect innovation to continue on its upward spiral as the CLECs continue to expand
their footprints as well as their customer bases. Barring any funny stuff from the FCC,
the CLECs will be here to stay. Sorry Ma Bell.
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Courtesy of ShopforT1.com
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 Vale T1 line is in common use today in ISP (Internet Service Provider) connections to the Internet
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