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Flexible Products, Lower Prices

Sunday January 04,2009, 02:40 pm ET


BEDFORD, New Hampshire, Jan. 04 /Don Romburgh/ -- 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.

"The marriage of lower price points and feature-rich T-1 services have made it so that customers can now get more bang for less buck" observed Kent Stallions, telecom expert at PK Communications. "The good old days of the Bells charging people $50/month for regular POTs lines without them having another alternative are over. With the advent of sub-$450 dynamic integrated T1 service, businesses are able to get up to 1.5 Mbps of Internet connectivity and 24 phone lines all in one package, for less than what they pay now for 5 regular phone lines" Stallions continued.

Min Lieu owns a small insurance agency in New Hampshire. 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."

Recent advances in technology, fostered by competition from growing CLECs, is bringing integrated T1 services to small business everywhere. And the trend doesn't look like it will change anytime soon. CLECs continue to grow their networks, offering more advanced services like metro ethernet, MPLS, and more.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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