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Flexible Products, Lower PricesTuesday May 19,2009, 12:05 am ET
GEORGE WASHINGTON, Virginia, May. 19 /Chris McMillen/ -- The digital universe, and the way people connect to it, is changing. Small businesses, in
particular, are discovering new high-speed Internet and telecom options that are now
squarely within their budgets. Through a myriad of mergers and acquisitions, telecommunication
providers have greatly enhanced their integrated T1 products with features that businesses
can't live without, all while dropping the price to about half of what they were just
two years ago.
The same basic economic model described in the book "Blue Ocean Strategies" is now being
applied to telecommunication services being offered to small businesses across the country:
more value for less money. According to many industry watch dogs, hundreds of thousands
of business will dump their POTs lines in favor of dynamic integrated T1 service within
the next 12 to 24 months, saving money in the process. With the introduction
of sub-$475 dynamic integrated T-service, customers are now able to receive up to 1.5 MBPS
of high-speed Internet with 24 digital phone lines all on one line, for less than what they
pay now for 5 regular phone lines" Stallions continued.
The two basic Integrated T1 line configurations, as they exist in today's
market, are analog and digital. Commonly referred to as "trunks", these 24-channel
bundles transmit TDM signals directly to the service provider's network via a
local loop. Unlike analog trunks, whose configuration can not change once the
channels have been allocated, digital "dynamic" lines can change reconfigure
themselves from data, to voice, and back again. This ability to reclaim voice
channels for data broadband access when not in use gives the user the performance
of two T1's in one.
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.Evolution has lead to a better, cheaper alternative to TDM services that the Bells were
peddling for decades in a vacuum of competition. Now the industry, lead by the innovation
and great business practices of the CLECs, seems to have turned a corner - leaving the
incumbents playing catchup. Obviously, the main benefactor of all of this competition
is the small to medium size business - a segment of the market that was taken for granted
until today.
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