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Prices Continue to Come Down on Integrated Products
Wednesday June 25, 2008,
12:08 pm ET
CEDAR HILLS, Utah, Jun. 25 /Patrick Oborn/ --
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.
To see how customers are reacting to this new product, we interviewed a series of
small business owners in Virginia 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."
"Like Forrest Gump said, finding the right phone service for your business is
like a box of chocolates - you never know what you're going to get" joked
Elizabeth Forest of Detroit, Michigan. "Before finding Cavalier Telephone
through my Telarus agent, I was mislead into signing up for services that weren't
a good fit for my business. Add to that the billing inaccuracies and the hassle
it was to get everything straightened out. My new integrated T1 works flawlessly,
I am able to get full T1 data speeds when no one is on the phone, and I don't
fear opening the bill when it arrives in the mail each month."
"The marriage of lower price points and feature-rich T-1 services have made it so that
customers can now get more bang for less buck" observed Kent Stallions, telecom expert
at PK Communications. "The good old days of the Bells charging people $50/month for
regular POTs lines without them having another alternative are over. With the advent
of sub-$450 dynamic integrated T1 service, businesses are able to get up to 1.5 Mbps
of Internet connectivity and 24 phone lines all in one package, for less than what they
pay now for 5 regular phone lines" Stallions continued.
The only thing that can get in the way of future progress is the law. You know, the one
that requires the RBOCs to lease their local loops to CLECs at a reduced rate so that
the customer can get a dedicated connection between their office and the CLECs' network.
If the FCC decided to lift this requirement, this whole deck of cards could come down
in a hurry, and when it does, you can kiss dynamic integrated T1 service for under $500
good bye!
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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