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Dynamic T1 Services Take Root
Friday August 01, 2008,
10:37 am ET
SALT LAKE CITY, Utah, Aug. 01 /Patrick Oborn/ --
The way business connect to the digital universe is changing. More and more enterprises are
discovering the new broadband options made available to them through a series of cost cutting
measures by telecommunication providers. With the recent rush to consolidate, more and more
features are being crammed into the current service offerings, which continue to fall in price
bringing products like integrated T1 service into the price range of the vast majority of
small to medium-size businesses.
"The real benefit I've seen since upgrading to a dynamic integrated T1 from Nuvox
Communications is simplicity" commented Johan Sebastian, a small business owner in
Clearwater, Florida. "My phones work great, my internet is fast, and the best part
is the reliability; I haven't had a single outage since I signed up for the new
service over a year ago. Before when we had DSL and POTS lines, every day was
an adventure."
New York, 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.
At $50 to $75 per month, the average small business telephone customer could expect to pay
up to $750 for just 10 regular phone lines, which come with only a standard set of features
such as Voicemail, Caller ID, and Three-way calling. From 2000 to 2005, the cost of a
dynamic integrated T1 line was well over $800, making it an unattractive option from a
pure cost point of view. However, that paradigm has changed with the introduction of
sub-$400/month price plans and features that make the old POTs lines look pre-historic.
Recent advances in technology, fostered by competition from growing CLECs, is bringing
integrated T1 services to small business everywhere. And the trend doesn't look like
it will change anytime soon. CLECs continue to grow their networks, offering more
advanced services like metro ethernet, MPLS, and more.
Hopefully the CLECs can continue to push the boundaries of innovation and economics.
The only thing that can keep them from the promise land is the gatekeeper of competition:
the Federal Communications Commission, and the huge Bells (AT&T and Verizon - that's you)
who make it a point to spend more money lobbying in Washington DC than Exxon Mobile.
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