T1 Internet Service Prices and Rates Quotes in Borculo

CLECs Gain Ground with SMBs

Thursday May 28, 2009, 12:28 pm ET

CEDAR HILLS, Utah, May. 28 /Patrick Oborn/ -- Is there a resurgence in the popularity of telecommunications providers that compares with the late 1990's? The answer may surprise you. Since the crash of the Internet bubble, struggling telecoms have seen Darwin in action as many companies were forced with the choice of bankruptcy or forced consolidation. However, some companies chose the road less traveled: innovation. By offering customers more for less, many small to medium size business customers are finding that they can upgrade to integrated T1 service for the same cost of five regular phone lines.

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.

To see how customers are reacting to this new product, we interviewed a series of small business owners in Michigan who are currently using the service. One such individual shared with us his enthusiasm for the enhanced capabilities dynamic service offers. "When I was first contacted about the dynamic integrated T1, I was deeply skeptical of what I was hearing. Over the course of my brief dealings with telephone companies, all I got was less service with more cost. Now I am happy to say that I am getting more for less, which makes for one very happy customer."

"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."

Once a forgotten segment of the business telecommunication landscape, small to medium size businesses are finally being serviced with products (like the dynamic integrated T1 line) at prices they can afford. Gone are the days when the Bells can shove TDM services down the collective throats of SMB's at prices that resemble a mortgage rather than a telephone service. The only thing that can get in the way of future progress is the law. You know, the one that requires the RBOCs to lease their local loops to CLECs at a reduced rate so that the customer can get a dedicated connection between their office and the CLECs' network. If the FCC decided to lift this requirement, this whole deck of cards could come down in a hurry, and when it does, you can kiss dynamic integrated T1 service for under $500 good bye!