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Flexible Products, Lower PricesThursday November 27,2008, 11:28 pm ET
PAINTERSVILLE, Pennsylvania, Nov. 27 /David Onaindia/ -- Is there a resurgence in the popularity of telecommunications providers that compares with
the late 1990's? The answer may surprise you. Since the crash of the Internet bubble,
struggling telecoms have seen Darwin in action as many companies were forced with the
choice of bankruptcy or forced consolidation. However, some companies chose the road less
traveled: innovation. By offering customers more for less, many small to medium size
business customers are finding that they can upgrade to integrated T1 service for the
same cost of five regular phone lines.
"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."
The old-school integrated T-1 was analog in nature, and came with 24 configurable
channels (called a trunk) which could be configured to carry either voice or data
traffic. The new "dynamic" trunks are all-digital and can change on-the-fly
to carry either data or voice traffic. This comes in handy when none of the voice
lines are in use - all channels can revert to carrying data traffic, giving the
end-use a full 1.5 MBPS of broadband. Each phone call requires only 64K of bandwidth,
so even a small handful of calls only slows down the data connection by a nominal
amount.
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.CLECs are continuing to find new and loyal customers in the small business space, but
for how long will this trend continue? Will the RBOCs ever be able to give them a fight
on a level playing field? Only the FCC knows that answer to that question - all we can
do is be thankful for the past 12 years of progress and hope we never return to the
pre-1996 era of Telecommunications.
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