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CLECs Target SMBs with Dynamic T1

Friday June 05,2009, 11:41 pm ET


TALLULA, Illinois, Jun. 05 /Jeff Johnson/ -- For many small to medium size businesses, higher productivity with relation to their broadband and voice services is just around the corner. Thanks in part to the recent price reduction trend in the industry, carriers have deemed it necessary to consolidate in order to offer more services at a lower cost than their rivals. Overlapping networks have been consolidated into leaner, more feature-rich versions of their previous selves, dramatically lowering the price small businesses pay for the popular dynamic integrated T-carrier (T-1) lines that combine local voice and high-speed Internet service into one connection.

"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.

Illinois 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."

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.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.



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