Coosada, Alabama, Oct. 31 /Daniel Johannesburg/ -- 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.

Alabama, 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.

With any new advancement in technology there is usually a lag in the time it take users known as "early adapters" to try out and begin using the new services themselves. Although dynamic T1 service has been available in many US markets since 2005, it's just now that we have observed people beginning to embrace the new technology. One such business that recently changed from a voice PRI and data T1 line on to one, dynamic T1 line is Jason Oliver, a small business owner in Los Angeles, California. "When I found out that I could replace my two T1's with one single dynamic integrated circuit (offered by TelePacific Communications), I had two thoughts: 1- where do I sign, and 2- why didn't someone tell me about this sooner!"

The question remains, if this new technology is so progressive, why did it take over five years to gain broad appeal to SMB's across the country? One industry analyst from the Telecommunications Research Institute observed that many customers who consume commercial-grade phone service became very untrusting of telecom providers after the Internet bubble burst in 2000 and the MCI bankruptcy proceedings full of allegations of fraud and embezzlement. After all, no customer wants to come to work one day just to find out that their connection to the outside world has been shut down due to financially unstable service providers not being able to run a profitable or ethical business. Now, due to a series of acquisitions and mergers, the "survivors" are offering great products at rates that SMB's can't continue to ignore. The CLEC's and Bells are quickly gaining traction with the very important demographic.

"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."

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.

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. As the competitive local exchange carriers continue to compete by introducing new and exciting products at prices most small businesses can afford, they are coming up against increasing resistance from the RBOCs who are forces to lease their own copper lines to these CLECs at reduced rates. This reality has the CLECs rushing to deploy their own networks and fiber routes, but the FCC may ultimately relax the mandate - leaving all of us wondering how long the party is going to last.

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 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 3. - 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 Coosada T1 line is in common use today in ISP (Internet Service Provider) connections to the Internet

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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