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Prices Continue to Come Down on Integrated ProductsFriday July 18,2008, 02:38 pm ET
GLEN MORGAN, West Virginia, Jul. 18 /Jeff Johnson/ -- For many small to medium size businesses, higher productivity with relation to their broadband
and voice services is just around the corner. Thanks in part to the recent price reduction trend
in the industry, carriers have deemed it necessary to consolidate in order to offer more services
at a lower cost than their rivals. Overlapping networks have been consolidated into leaner, more
feature-rich versions of their previous selves, dramatically lowering the price small businesses
pay for the popular dynamic integrated T-carrier (T-1) lines that combine local voice and
high-speed Internet service into one connection.
Integrated T1s comes in two basic configurations: digital and analog trunks, with a trunk
being a 24-line (or channel) bundle. The newer, digital trunks, however, are able to
run both voice and data over the same channels. By assigning priority to the voice
traffic whenever it is present, a dynamic integrated trunk can provide the end-user
with a full 1.5 MBPS of data throughput if no phone calls are in progress. As more
voice lines are required, less data lines are available. Analog trunks are all
pre-assigned to either voice or data traffic, and do not reconfigure in the event
there is no voice traffic.
West Virginia, 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.
Will this train of innovation, lower prices, and services that add value to SMB's continue
to roll down the tracks of progress? It's all up to our government - and which political
party controls the FCC. Without the deregulation act of 1996, we would have never known
just how much the CLECs were capable of.With the help of super-CLECs like XO Communications, PAETEC, Nuvox, One Communications,
Cavalier Telephone, and TelePacific, small business owners everywhere now have access
to non-Bell service that is on par or better than those being offered by the former
Bells. Integrated T1s that do more and cost less have transformed into a solid beach
head for the newcomers.
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