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CLECs Target SMBs with Dynamic T1

Wednesday June 03,2009, 04:47 am ET


GRANT COUNTY, Minnesota, Jun. 03 /Chris McMillen/ -- The digital universe, and the way people connect to it, is changing. Small businesses, in particular, are discovering new high-speed Internet and telecom options that are now squarely within their budgets. Through a myriad of mergers and acquisitions, telecommunication providers have greatly enhanced their integrated T1 products with features that businesses can't live without, all while dropping the price to about half of what they were just two years ago.

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

"True convergence means that I can finally have just one phone company, without being at the mercy of Ma Bell" added Steven Lankto of Jersey City. "Having a data pipe that is intelligent enough to know when it needs to become a voice pipe, without any input from me, is genius. I'm glad that the technology is here and in the price range of businesses like mine." Mr. Lankto isn't alone; there is now widespread acceptance of integrated voice and data service in the New York metro area and across most larger U.S. cities.

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.Once a forgotten segment of the business telecommunication landscape, small to medium size businesses are finally being serviced with products (like the dynamic integrated T1 line) at prices they can afford. Gone are the days when the Bells can shove TDM services down the collective throats of SMB's at prices that resemble a mortgage rather than a telephone service.



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