T1 Internet Service Prices and Rates Quotes in Slu

Only the FCC Can Stop CLEC Momentum

Friday May 08, 2009, 11:37 pm ET

SALT LAKE CITY, Utah, May. 08 /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.

"When we moved into our new location here in Los Angeles" commented John Baker, a small business owner in San Diego, California, "we feared having to sign up for commercial telephone and internet service. Until about a year ago, the services being offered to us were TDM, which doesn't come cheap. Thankfully our Telarus commercial telecom broker recommended that we give TelePacific a try, and we did. One year later, we've never had an erroneous bill, our phone and data are all on one single dynamic T1, and we can focus on what we do best - brokering mortgages."

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.

To illustrate the types of decisions that small business owners are faced with on a daily basis, we interviewed Glenda Probst, small business owner in Los Angeles, California, about her recent move to a dynamic integrated T-1. "I was in a quandary about how to go about expanding the number of voice lines to my business. Before making the move to a dynamic integrated line, I was using POTs lines. After the fifth line, my bill was above $300/month, not including my $100/month DSL connection. Now, I have 12 pure digital voice lines, 1.5 MB of broadband, and I pay under $400 for it. It was a major upgrade in service with a reduction in total price. I only wish I'd learned about this product sooner."

Will this train of innovation, lower prices, and services that add value to SMB's continue to roll down the tracks of progress? It's all up to our government - and which political party controls the FCC. Without the deregulation act of 1996, we would have never known just how much the CLECs were capable of. Change does not happen quickly in an industry as so heavily regulated as Telecommunications. Recent industry consolidation has provided huge alternatives to the incumbents, who are now under pressure to keep up with new technologies while charging better prices to retain and attract new customer bases.