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The Evolution of Integrated T1 Service

Monday August 18,2008, 03:13 pm ET


MORVILLE, Louisiana, Aug. 18 /Kim Mankaryous/ -- 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.

Min Lieu owns a small insurance agency in Louisiana. 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."

"The real benefit I've seen since upgrading to a dynamic integrated T1 from Nuvox Communications is simplicity" commented Johan Sebastian, a small business owner in Clearwater, Florida. "My phones work great, my internet is fast, and the best part is the reliability; I haven't had a single outage since I signed up for the new service over a year ago. Before when we had DSL and POTS lines, every day was an adventure."

With the help of super-CLECs like XO Communications, PAETEC, Nuvox, One Communications, Cavalier Telephone, and TelePacific, small business owners everywhere now have access to non-Bell service that is on par or better than those being offered by the former Bells. Integrated T1s that do more and cost less have transformed into a solid beach head for the newcomers.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.



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