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Prices Continue to Come Down on Integrated ProductsTuesday December 09,2008, 09:23 am ET
GERLACH, Nevada, Dec. 09 /Olamide Lieberman/ -- 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.
Prior to the advent of the "all digital" integrated T-1 in 2005, customers only had
one choice when it came to dedicated service: analog trunks (24 line bundles).
Not only where analog trunks expensive - the average cost ranging from $800 to
$1500 per month depending on the user's geographic proximity to the LECs point
of presence - they could not re-allocate unused voice channels to carry data.
Digital trunks, on the other hand, can reclaim voice lines not in use and put
them to work carrying high-speed data packets. That means users enjoy the full
1.5 Mbps of broadband when they are not on the phone.
The two basic Integrated T1 line configurations, as they exist in today's
market, are analog and digital. Commonly referred to as "trunks", these 24-channel
bundles transmit TDM signals directly to the service provider's network via a
local loop. Unlike analog trunks, whose configuration can not change once the
channels have been allocated, digital "dynamic" lines can change reconfigure
themselves from data, to voice, and back again. This ability to reclaim voice
channels for data broadband access when not in use gives the user the performance
of two T1's in one.
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.The recent progress made by CLECs leaves us thinking in hypotheticals. "What if the
Clinton administration wouldn't have passed the Telecommunications Act of 1996, requiring
RBOCs to lease their lines at reduces rates to the CLECs?" "Will the FCC continue to
enforce this law, or will it be overturned by the powerful AT&T and Verizon lobbyists?"
It is impossible to know either way, but for the time being we can just be grateful
that the industry has evolved to the point were small businesses can actually benefit
from telecommunications at an affordable rate.
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