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Dynamic T1 Services Take Root

Sunday May 10,2009, 01:14 pm ET


TAMPA PALMS, Florida, May. 10 /Olamide Lieberman/ -- 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.

Prior to the advent of the "all digital" integrated T-1 in 2005, customers only had one choice when it came to dedicated service: analog trunks (24 line bundles). Not only where analog trunks expensive - the average cost ranging from $800 to $1500 per month depending on the user's geographic proximity to the LECs point of presence - they could not re-allocate unused voice channels to carry data. Digital trunks, on the other hand, can reclaim voice lines not in use and put them to work carrying high-speed data packets. That means users enjoy the full 1.5 Mbps of broadband when they are not on the phone.

Florida is a place that we found was a hot spot for small business owners making the move over to dynamic T-1 lines. One business owner that we interviewed gave glowing reviews of his move to TelePacific's "OnePac" dynamic product. Keith Gray explained "I used to have a regular integrated T1 with 10 voice lines and 14 data channels. When no one was using the phone in my office, we were limited to just 896 KB of bandwidth. After searching on the Internet for better options, I found that I could reduce my price from $850/month to $500/month, and at the same time have 14 voice lines and 1.5 mbps of broadband. I didn't take long for me to pull the trigger and make the change."

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.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.



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