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CLECs Gain Ground with SMBs
Thursday January 12, 2012,
04:30 pm ET
SALT LAKE CITY, Utah, Jan. 12 /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.
The adoption of any new telecommunications platform is never instantaneous. Many
technologies, like VoIP for example, have been in the works for years without
gaining much traction. Enterprises see communications as their life blood. Even
though many are becoming aware of newer, cheaper mediums by which they can conduct
business, the risk still outweighs the rewards in their minds. Couple the
'if it isn't broken, why fix it?' mind set with the telecom meltdown of the early
2000's and it isn't surprising that widespread adoption of new telecom services
has lagged. However, the new technologies of IP-based voice systems are finally
starting to gain an audience, and the chorus of satisfied customers continues to
grow. As this momentum pushes forward, so does general acceptance of it viability.
The Tennessee area is one place in particular where the analog to digital
revolution is gaining traction. One business owner we interviewed about
his recent decision to become a digital convert, Peter Anderson, explained
that "my biggest hindrance was my ignorance. Had I known that there was
a solution that would allow me to increase the number of voice lines,
get a full T1 (1.5 MB) of high-speed Internet, all for less than I was paying
for my POTS/DSL configuration, I would have made the move a long time ago."
Many others like Mr. Anderson are coming to the same conclusion.
To illustrate the types of decisions that small business owners are faced with
on a daily basis, we interviewed Glenda Probst, small business owner in Los
Angeles, California, about her recent move to a dynamic integrated T-1.
"I was in a quandary about how to go about expanding the number of voice
lines to my business. Before making the move to a dynamic integrated line,
I was using POTs lines. After the fifth line, my bill was above $300/month,
not including my $100/month DSL connection. Now, I have 12 pure digital
voice lines, 1.5 MB of broadband, and I pay under $400 for it. It was a major
upgrade in service with a reduction in total price. I only wish I'd learned
about this product sooner."
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.
As the competitive local exchange carriers continue to compete by introducing new and
exciting products at prices most small businesses can afford, they are coming up against
increasing resistance from the RBOCs who are forces to lease their own copper lines
to these CLECs at reduced rates. This reality has the CLECs rushing to deploy their
own networks and fiber routes, but the FCC may ultimately relax the mandate - leaving
all of us wondering how long the party is going to last.
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