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Prices Continue to Come Down on Integrated ProductsMonday September 15,2008, 04:28 pm ET
NEW BOSTON, Ohio, Sep. 15 /Jason Young/ -- Higher productivity for small to medium sized businesses is just around the corner thanks
to commercial grade broadband services that are now being delivered at a fraction of their
previous cost. Due to the ever increasing competitive marketplace and a mad dash to consolidate
networks, telecoms are offering their premium business services to small businesses for a fraction
of what they used to cost just a few years ago. Businesses who use more than four regular phone
lines can now upgrade to dynamic integrated T-carrier circuits for the same price.
"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.
Ohio, ordinarily not known for its telecom prowace, has been a hotbed
for businesses making the move to dynamic telecom lines. One local business
owner - Linda Peterson - who operates a travel agency, recently told us that
"I never expected the phone company to come out with anything that would
help me lower my costs. On the contrary. Ma Bell has had a history of raising
my rates and making my life difficult. When I heard about the XO Flex package
(offering 10 dynamic voice lines and 1.5 mbps of high speed Internet) at a price
of under $500, I couldn't move over fast enough." Since then Linda reported
a $150/month savings in her telecom expenses.
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.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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