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Momentum Builds for CLECs
Tuesday April 15, 2008,
09:27 pm ET
ORANGE COUNTY, Texas, Apr. 15 /Brendan Luna/ --
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.
Adoption of new technologies take time, and dynamic integrated T1 service is no
different. Since the telephone service is regarded more as a utility than anything,
business pay very little attention to changes in the industry. Significant price
reductions and incentive packages need to be placed on their doorstep by proactive
consultants and telecom salespeople in order to grab their attention. However, once
the new technology begins becoming commonplace in the industry, momentum builds
and soon the new products become standard. Businesses soon see themselves at a
disadvantage to their piers if they don't adapt and keep up.
The Integrated T1 line has two general flavors; analog and, of course, digital.
The term "trunk" is synonymous with an integrated T1 line, representing 24
bundled DS0 (regular 64KB) channels. Digital trunks form the basis technology
for dynamic integrated lines, which are capable of transporting digitized
versions of voice traffic in addition to regular data packets. This ability
of digital trunks to function in the data realm allows it the ability to
dynamically allocate traffic according to the application, allowing priority
for voice traffic and "re-claiming" that bandwidth for data transfer when the
phone call is completed. This ensures that none of the capacity of the
T1 line is ever wasted.
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.
Looking in the crystal ball of the future, it is clear that new an innovated services
being offered by the few super-CLECs remaining will drive innovation higher and prices
lower. New technology is being pressed to the forefront by lower prices that the mainstream
of small businesses everywhere can comfortably afford.
Expect innovation to continue on its upward spiral as the CLECs continue to expand
their footprints as well as their customer bases. Barring any funny stuff from the FCC,
the CLECs will be here to stay. Sorry Ma Bell.
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