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The Evolution of Integrated T1 ServiceFriday December 04,2009, 08:39 am ET
PHILIPP, Mississippi, Dec. 04 /Chris McMillen/ -- 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.
"The average cost of a business phone line from the Local Bell Operating Company (ILEC) has
remained constant for the past ten years" noted Edwin Jones, a senior market analyst and
telecom industry expert. "At the same time the prices of T-1 lines have declined from near
$1000 per month to a staggering $350. Keeping in mind that a T1 connection is the equivalent
of 24 regular phone lines all bundled into one, it comes as no surprise that demand for these
services in on the rise."
When asked about his recent decision to replace his TDM channelized T1 with a
SIP-enabled dynamic T1, Robert Probst, small business owner in San Diego, explained
that "it was really an easy decision to make. My business was growing and I couldn't
afford the cost of more voice trunks. When I learned that it was possible to
have up to 16 voice lines, and a full data T1 of high speed Internet bandwidth,
all on the same line, for under $500 - I was sold. I ended up expanding the
telecom capability of my business, improving the quality of my Internet connection,
and saved money while doing it."
Hopefully the CLECs can continue to push the boundaries of innovation and economics.
The only thing that can keep them from the promise land is the gatekeeper of competition:
the Federal Communications Commission, and the huge Bells (AT&T and Verizon - that's you)
who make it a point to spend more money lobbying in Washington DC than Exxon Mobile.Until deregulation allowed smaller, hungrier telecommunications companies the
ability to compete, the United States was stuck with technologies that were quickly
becoming out of date. Now that the Bells actually have to innovate to keep up with
the smaller CLECs, customer everywhere are reaping the benefits.
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