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CLECs Target SMBs with Dynamic T1Friday September 05,2008, 03:28 pm ET
BRACHT, Kentucky, Sep. 05 /Aaron Bashorun/ -- During the 2000 Internet bubble meltdown, the telecom industry learned the hard way that
wild spending on network infrastructure was not the best approach to attracting new business
and investment. Over the past 7 years the industry, particularly the CLECs (Competitive
Local Exchange Carriers) have been focusing on building products that offer more bang
for the buck in order to compete with the Bells in their own backyards. One product that
has become the flagship offering to small to medium size businesses is the dynamic integrated
T1 line, which combines all the usefulness of 24 regular phone lines into a singe T-1
capable of delivering high-speed broadband on the same connection.
Kentucky 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."
Min Lieu owns a small insurance agency in Kentucky. Five years ago he signed up with
XO Communications for a TDM-based integrated T1 line for $870/month, which did not
include local or long distance calling. Recently, he was offered XO's version of
a dynamic circuit called "XO Flex" for half of the price he was already paying.
"I would have been a fool not to take the deal" stated Mr. Lieu. "I'm able to
add headcount with additional voice lines, without any increase in expense or
degradation in high-speed Internet performance."
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.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.
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