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CLECs Target SMBs with Dynamic T1

Friday October 03,2008, 09:04 pm ET


MILLRIFT, Pennsylvania, Oct. 03 /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.

"What we're seeing here is the Bells holding their prices steady and milking their high margins on POTS (plain old telephone service) lines for as long as possible. With the lower prices being offered by CLECs (Competitive Local Exchange Carriers) on dynamic integrated T-carrier services, the Bells are scrambling to keep pace before enterprises realize they can actually save money by upgrading to bigger and more reliable circuits." commented Don Rosebush, industry expert.

The irony of the new small business communications revolution is that it took so long to gain traction. The whole idea of reclaiming inactive voice channels for data applications is not new, and was introduced by many CLEC operators over five years ago. So why did it take so long for SMB's to adopt the technology and make the change? One might argue that the Internet bubble burst in 2000 shook many people's confidence in telecommunications, one of the hardest hit industries. With so many telecoms going out of business, or merging with other small players just to stay solvent, many customers took the "wait and see" approach before making the decision to entrust their communications with a company not associated with Ma Bell. Now that economic Darwinism has taken hold, the remaining companies are attracting new customers who see the benefits of the new technology without the downside risk of loosing service or not being able to get through to customer service in the pinch.

Looking in the crystal ball of the future, it is clear that new an innovated services being offered by the few super-CLECs remaining will drive innovation higher and prices lower. New technology is being pressed to the forefront by lower prices that the mainstream of small businesses everywhere can comfortably afford.The recent progress made by CLECs leaves us thinking in hypotheticals. "What if the Clinton administration wouldn't have passed the Telecommunications Act of 1996, requiring RBOCs to lease their lines at reduces rates to the CLECs?" "Will the FCC continue to enforce this law, or will it be overturned by the powerful AT&T and Verizon lobbyists?" It is impossible to know either way, but for the time being we can just be grateful that the industry has evolved to the point were small businesses can actually benefit from telecommunications at an affordable rate.



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