T1 Internet Service Prices and Rates Quotes in Estherwood

CLECs Gain Ground with SMBs

Friday May 15, 2009, 01:32 am ET

DRAPER, Utah, May. 15 /Patrick Oborn/ -- During the 2000 Internet bubble meltdown, the telecom industry learned the hard way that wild spending on network infrastructure was not the best approach to attracting new business and investment. Over the past 7 years the industry, particularly the CLECs (Competitive Local Exchange Carriers) have been focusing on building products that offer more bang for the buck in order to compete with the Bells in their own backyards. One product that has become the flagship offering to small to medium size businesses is the dynamic integrated T1 line, which combines all the usefulness of 24 regular phone lines into a singe T-1 capable of delivering high-speed broadband on the same connection.

The old-school integrated T-1 was analog in nature, and came with 24 configurable channels (called a trunk) which could be configured to carry either voice or data traffic. The new "dynamic" trunks are all-digital and can change on-the-fly to carry either data or voice traffic. This comes in handy when none of the voice lines are in use - all channels can revert to carrying data traffic, giving the end-use a full 1.5 MBPS of broadband. Each phone call requires only 64K of bandwidth, so even a small handful of calls only slows down the data connection by a nominal amount.

"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.

When asked about his recent decision to replace his TDM channelized T1 with a SIP-enabled dynamic T1, Robert Probst, small business owner in San Diego, explained that "it was really an easy decision to make. My business was growing and I couldn't afford the cost of more voice trunks. When I learned that it was possible to have up to 16 voice lines, and a full data T1 of high speed Internet bandwidth, all on the same line, for under $500 - I was sold. I ended up expanding the telecom capability of my business, improving the quality of my Internet connection, and saved money while doing it."

The recent progress made by CLECs leaves us thinking in hypotheticals. "What if the Clinton administration wouldn't have passed the Telecommunications Act of 1996, requiring RBOCs to lease their lines at reduces rates to the CLECs?" "Will the FCC continue to enforce this law, or will it be overturned by the powerful AT&T and Verizon lobbyists?" It is impossible to know either way, but for the time being we can just be grateful that the industry has evolved to the point were small businesses can actually benefit from telecommunications at an affordable rate. 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.