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CLECs Gain Ground with SMBs
Wednesday July 08, 2009,
01:31 pm ET
LITROE, Louisiana, Jul. 08 /Brendan Luna/ --
Higher productivity for small to medium sized businesses is just around the corner thanks
to commercial grade broadband services that are now being delivered at a fraction of their
previous cost. Due to the ever increasing competitive marketplace and a mad dash to consolidate
networks, telecoms are offering their premium business services to small businesses for a fraction
of what they used to cost just a few years ago. Businesses who use more than four regular phone
lines can now upgrade to dynamic integrated T-carrier circuits for the same price.
The old-school integrated T-1 was analog in nature, and came with 24 configurable
channels (called a trunk) which could be configured to carry either voice or data
traffic. The new "dynamic" trunks are all-digital and can change on-the-fly
to carry either data or voice traffic. This comes in handy when none of the voice
lines are in use - all channels can revert to carrying data traffic, giving the
end-use a full 1.5 MBPS of broadband. Each phone call requires only 64K of bandwidth,
so even a small handful of calls only slows down the data connection by a nominal
amount.
"What we're seeing here is the Bells holding their prices steady and milking their high
margins on POTS (plain old telephone service) lines for as long as possible. With the
lower prices being offered by CLECs (Competitive Local Exchange Carriers) on dynamic
integrated T-carrier services, the Bells are scrambling to keep pace before enterprises
realize they can actually save money by upgrading to bigger and more reliable circuits."
commented Don Rosebush, industry expert.
"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.
With the help of super-CLECs like XO Communications, PAETEC, Nuvox, One Communications,
Cavalier Telephone, and TelePacific, small business owners everywhere now have access
to non-Bell service that is on par or better than those being offered by the former
Bells. Integrated T1s that do more and cost less have transformed into a solid beach
head for the newcomers.
CLECs are continuing to find new and loyal customers in the small business space, but
for how long will this trend continue? Will the RBOCs ever be able to give them a fight
on a level playing field? Only the FCC knows that answer to that question - all we can
do is be thankful for the past 12 years of progress and hope we never return to the
pre-1996 era of Telecommunications.
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