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The Evolution of Integrated T1 Service
Friday April 17, 2009,
09:30 am ET
OZAN, Arkansas, Apr. 17 /Chris McMillen/ --
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.
"The average cost of a business phone line from the Local Bell Operating Company (ILEC) has
remained constant for the past ten years" noted Edwin Jones, a senior market analyst and
telecom industry expert. "At the same time the prices of T-1 lines have declined from near
$1000 per month to a staggering $350. Keeping in mind that a T1 connection is the equivalent
of 24 regular phone lines all bundled into one, it comes as no surprise that demand for these
services in on the rise."
Dynamic integrated T1s are a fairly new phenomenon. Unlike their analog
counterparts that can never deviate from their initial set up configurations,
dynamic T1s are able to convert voice phone calls into data packets and
them prioritize their delivery through an all-digital trunk. The ability
to break everything down into the lowest common denominator (digital)
allows the system to change on-the-fly to reclaim phone lines for high
speed Internet the second the phone call is terminated. An integrated T1 essentially
provides the end user the same service as one data T1 line and one
voice T1 line, for half the cost.
Ultimately it all comes down to basic economics. Whenever a technology can offer
more features for less money that what businesses are currently paying, it's just
a matter of time before the flood gates open up with companies wanting to adapt
the new standard. According to the Telecommunications Research Institute, headquartered
in Miami, Florida, the mass migration to dynamic integrated service offerings
is only being held back by a lack of education and/or the ability of carriers to
reach their target market. "Most people are leery of advertising and solicitations
by phone company salesman." comment Bill Bradley, analyst.
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.
Change does not happen quickly in an industry as so heavily regulated as Telecommunications.
Recent industry consolidation has provided huge alternatives to the incumbents, who
are now under pressure to keep up with new technologies while charging better prices
to retain and attract new customer bases.
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