T1 Service Providers Index
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Dynamic T1 Services Take RootTuesday May 19,2009, 03:57 pm ET
NEW ENGLAND BUSINESS SVC INC, Massachusetts, May. 19 /Chris McMillen/ -- 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.
From 1997 to 2007, the average cost of a POTS (plain old telephone service) line from the
Bells has hovered in the $50 - $80 per month price range. During this same time period,
integrated DS1 (digital signal 1) lines - which is the equivalent of 24 standard lines -
have come down in price from $1000 per month to $400. Small to medium size businesses
who have more than 5 phone lines can now actually save money by upgrading their service.
The early adapters of this new technology have realized a cost savings that helps
them be more competitive in the market space. By saving hundreds of dollars each
month, which equates to thousands of dollars per year, small businesses are able
to do more while spending less on their telecom bill. This savings allows for
hiring of additional staff, upgrading equipment, and other activities that make
the enterprise more productive and profitable. Many in the industry see the
lack of mass adoption of this new technology as just shear ignorance and/or
a lack of trust for telecom sales people.
The only thing that can get in the way of future progress is the law. You know, the one
that requires the RBOCs to lease their local loops to CLECs at a reduced rate so that
the customer can get a dedicated connection between their office and the CLECs' network.
If the FCC decided to lift this requirement, this whole deck of cards could come down
in a hurry, and when it does, you can kiss dynamic integrated T1 service for under $500
good bye!
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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