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The Evolution of Integrated T1 Service
Friday April 24, 2009, 05:18 am ET

SAULS, Mississippi, Apr. 24 /Ron Franatovich/ -- Business broadband, its price, and who can afford it, are changing. Every day an increasing number of business are finding the new broadband services made available to them by the "new" telecommunications companies that are emerging from the latest round of mergers and acquisitions. Overlapping networks are being consolidated into bigger and leaner footprints, lowering the cost of dynamic integrated digital signal 1 (DS1) service to the price range of about five regular phone lines. Small to medium size business can now afford services once reserved for the Fortune 1000 companies.

One might think that, given the cost - benefit analysis of the integrated T1 value proposition, more businesses would be changing over to the new platform. However, the rate of adaptation is rather slow. Rob Butler, head of the Telecommunications Research Institute, thinks that "phone companies have a problem with trust amongst their user base. For many years, customers have dealt with increasing rates, long hold times, and frustration in general. Now, it appears, the ice is finally starting to melt and customers are opening themselves up to new technology.

"True convergence means that I can finally have just one phone company, without being at the mercy of Ma Bell" added Steven Lankto of Jersey City. "Having a data pipe that is intelligent enough to know when it needs to become a voice pipe, without any input from me, is genius. I'm glad that the technology is here and in the price range of businesses like mine." Mr. Lankto isn't alone; there is now widespread acceptance of integrated voice and data service in the New York metro area and across most larger U.S. cities.

There are two basic "integrated" DS-1 configurations, analog and digital. The 24-line bundle in which they come is termed a "trunk". The main difference between analog and digital trunks is their flexibility. With digital trunks, voice lines not in use can be dynamically reconfigured to carry data traffic, so they don't sit idle. Analog trunks on the other hand can not change their function once configured by the service provider. Data channels remain data channels and the same for voice channels, even if there is no voice traffic.

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. 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.


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