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Flexible Products, Lower Prices

Tuesday September 09,2008, 10:44 pm ET


HOWARD, Georgia, Sep. 09 /Kiersten Thomas/ -- The digital universe, and the way people connect to it, is changing. Small businesses, in particular, are discovering new high-speed Internet and telecom options that are now squarely within their budgets. Through a myriad of mergers and acquisitions, telecommunication providers have greatly enhanced their integrated T1 products with features that businesses can't live without, all while dropping the price to about half of what they were just two years ago.

"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.

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.

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.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.



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