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Prices Continue to Come Down on Integrated Products

Friday August 29,2008, 05:53 am ET


KIRTLAND, Ohio, Aug. 29 /Ron Franatovich/ -- Business broadband, its price, and who can afford it, are changing. Every day an increasing number of business are finding the new broadband services made available to them by the "new" telecommunications companies that are emerging from the latest round of mergers and acquisitions. Overlapping networks are being consolidated into bigger and leaner footprints, lowering the cost of dynamic integrated digital signal 1 (DS1) service to the price range of about five regular phone lines. Small to medium size business can now afford services once reserved for the Fortune 1000 companies.

"Even though we have been witnessing the re-consolidation of AT&T, we will never go back to the dark ages of telecom where customers were stuck with bad customer service and high prices" commented Troy Karlson, telecom analyst for e-STAR. "The competitive local exchange carriers (CLECs), all whom own their own networks and compete directly with the Bells, have created products such as dynamic T1 service that enables its customers to connect to the Internet at 1.5 MBPS and have up to 24 regular voice lines, packed with a feature-rich suite of add-ons, all for under what it costs to have 6 regular phone lines from Qwest/AT&T/Verizon.

"I think the telecom industry in general has turned a corner" opined Jerry Gold of Boston, Massachusetts. "They have finally developed products that are understandable by the industry outsider and, thanks to competition, priced these services in a range that most small businesses can afford. For over 20 years I dreaded dealing with 'the phone company'. But now that I've switched over to One Communications, my integrated T1 is doing everything I need it to, for under $450/month. One actually answers their customer service calls and makes me feel like I'm part of their family. It was a long time coming, but I'm finally able to end the fight with the phone company so I can focus on my sports memorabilia store."

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.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.



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