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Dynamic T1 Services Take Root

Monday December 01,2008, 04:36 pm ET


OLIVET, South Dakota, Dec. 01 /Jason Young/ -- During the 2000 Internet bubble meltdown, the telecom industry learned the hard way that wild spending on network infrastructure was not the best approach to attracting new business and investment. Over the past 7 years the industry, particularly the CLECs (Competitive Local Exchange Carriers) have been focusing on building products that offer more bang for the buck in order to compete with the Bells in their own backyards. One product that has become the flagship offering to small to medium size businesses is the dynamic integrated T1 line, which combines all the usefulness of 24 regular phone lines into a singe T-1 capable of delivering high-speed broadband on the same connection.

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.

"I am very satisfied with my new XO dynamic T1" added Mike McLoude, a small business owner in Santa Monica, California. "The flexible nature of the system allows me to conduct business with the same efficiency as many of my bigger competitors, for less than what they pay." Mr. McLoude is not alone - many Californians are seeing the technology light and taking the leap of faith away from traditional TDM.

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.The golden age of telecommunications may be upon us, based upon our research and recent uptick in customer satisfaction. Although the industry has years of bad blood to overcome, recent innovations such as the dynamically configuring T1 line are proof that progress is indeed being made.



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