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Integrated T1 Progress Report
Thursday December 08, 2011,
05:19 pm ET
CEDAR HILLS, Utah, Dec. 08 /Patrick Oborn/ --
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.
According to a recent study conducted by PK Communications Telecom Brokers Inc., the average
cost of a POTS (plain old telephone service) line serviced by the Bells (AT&T, Verizon,
and Qwest) have changed very little over the 10 year span from 1996, the year the
Clinton Administration signed into law the Telecommunications Act, to 2006. The real
change in the industry came in the T-carrier class of products, where customers can
get up to 1.5 Mbps of bandwidth and 24 digital phone lines all in one package. Some
CLECs like XO, TelePacific, Nuvox, One Communications, and even Covad are now offering
rates well below the $550/month level, making the change seem like a no-brainer to
thousands of customers.
To see how customers are reacting to this new product, we interviewed a series of
small business owners in Indiana who are currently using the service. One such
individual shared with us his enthusiasm for the enhanced capabilities dynamic
service offers. "When I was first contacted about the dynamic integrated T1,
I was deeply skeptical of what I was hearing. Over the course of my brief
dealings with telephone companies, all I got was less service with more cost.
Now I am happy to say that I am getting more for less, which makes for one
very happy customer."
"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."
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.
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.
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