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CLECs Target SMBs with Dynamic T1

Thursday August 28,2008, 06:59 pm ET


MVILLE, Georgia, Aug. 28 /Daniel Johannesburg/ -- 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.

The same basic economic model described in the book "Blue Ocean Strategies" is now being applied to telecommunication services being offered to small businesses across the country: more value for less money. According to many industry watch dogs, hundreds of thousands of business will dump their POTs lines in favor of dynamic integrated T1 service within the next 12 to 24 months, saving money in the process. With the introduction of sub-$475 dynamic integrated T-service, customers are now able to receive up to 1.5 MBPS of high-speed Internet with 24 digital phone lines all on one line, for less than what they pay now for 5 regular phone lines" Stallions continued.

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.

As the competitive local exchange carriers continue to compete by introducing new and exciting products at prices most small businesses can afford, they are coming up against increasing resistance from the RBOCs who are forces to lease their own copper lines to these CLECs at reduced rates. This reality has the CLECs rushing to deploy their own networks and fiber routes, but the FCC may ultimately relax the mandate - leaving all of us wondering how long the party is going to last.The golden age of telecommunications may be upon us, based upon our research and recent uptick in customer satisfaction. Although the industry has years of bad blood to overcome, recent innovations such as the dynamically configuring T1 line are proof that progress is indeed being made.



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