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CLECs Gain Ground with SMBs

Friday June 19,2009, 06:16 am ET


REEDVILLE, Arkansas, Jun. 19 /Olamide Lieberman/ -- Small businesses all over the country are discovering a whole new universe of broadband access. As the price of commercial-grade telecommunication services continues to drop, more and more enterprises are starting to drop their plain old telephone service lines in favor of all-digital T1 trunks that deliver voice and data over the same connection. These new enhancements were made possible by the increasing pace of consolidation in the telecommunication industry along with the increasing value bigger phone companies can provide.

The Integrated T1 line has two general flavors; analog and, of course, digital. The term "trunk" is synonymous with an integrated T1 line, representing 24 bundled DS0 (regular 64KB) channels. Digital trunks form the basis technology for dynamic integrated lines, which are capable of transporting digitized versions of voice traffic in addition to regular data packets. This ability of digital trunks to function in the data realm allows it the ability to dynamically allocate traffic according to the application, allowing priority for voice traffic and "re-claiming" that bandwidth for data transfer when the phone call is completed. This ensures that none of the capacity of the T1 line is ever wasted.

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.

Looking in the crystal ball of the future, it is clear that new an innovated services being offered by the few super-CLECs remaining will drive innovation higher and prices lower. New technology is being pressed to the forefront by lower prices that the mainstream of small businesses everywhere can comfortably afford.Expect innovation to continue on its upward spiral as the CLECs continue to expand their footprints as well as their customer bases. Barring any funny stuff from the FCC, the CLECs will be here to stay. Sorry Ma Bell.



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