Friday April 04, 2008,
07:42 am ET
Massachusetts, Apr. 04 /Kiersten Thomas/ --
Higher productivity for small to medium sized businesses is just around the corner thanks
to commercial grade broadband services that are now being delivered at a fraction of their
previous cost. Due to the ever increasing competitive marketplace and a mad dash to consolidate
networks, telecoms are offering their premium business services to small businesses for a fraction
of what they used to cost just a few years ago. Businesses who use more than four regular phone
lines can now upgrade to dynamic integrated T-carrier circuits for the same price.
There are two basic "integrated" DS-1 configurations, analog and digital. The 24-line
bundle in which they come is termed a "trunk". The main difference between analog and
digital trunks is their flexibility. With digital trunks, voice lines not in use
can be dynamically reconfigured to carry data traffic, so they don't sit idle.
Analog trunks on the other hand can not change their function once configured
by the service provider. Data channels remain data channels and the same for
voice channels, even if there is no voice traffic.
"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.
According to a recent study conducted by PK Communications Telecom Brokers Inc., the average
cost of a POTS (plain old telephone service) line serviced by the Bells (AT&T, Verizon,
and Qwest) have changed very little over the 10 year span from 1996, the year the
Clinton Administration signed into law the Telecommunications Act, to 2006. The real
change in the industry came in the T-carrier class of products, where customers can
get up to 1.5 Mbps of bandwidth and 24 digital phone lines all in one package. Some
CLECs like XO, TelePacific, Nuvox, One Communications, and even Covad are now offering
rates well below the $550/month level, making the change seem like a no-brainer to
thousands of customers.
"The marriage of lower price points and feature-rich T-1 services have made it so that
customers can now get more bang for less buck" observed Kent Stallions, telecom expert
at PK Communications. "The good old days of the Bells charging people $50/month for
regular POTs lines without them having another alternative are over. With the advent
of sub-$450 dynamic integrated T1 service, businesses are able to get up to 1.5 Mbps
of Internet connectivity and 24 phone lines all in one package, for less than what they
pay now for 5 regular phone lines" Stallions continued.
"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 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.
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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 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 3. -
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 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 T1 line is in common use today in ISP (Internet Service Provider) connections to the Internet
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