Monday June 30, 2008, 11:50 pm ET

New Jersey, Jun. 30 /Kiersten Thomas/ -- 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 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."

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.

Given the fact that many companies still to this day have yet to make the change to digital SIP-trunking enabled dynamic T1s, one must ask why the delay? The value proposition that dynamic adds and the economic benefits are there, however, the technology is slow to be adopted by mainstream corporations. One reason for this lag is the bad reputation that telecom companies have built for themselves through the meltdown of the industry from 2000 to 2003, when many companies either went out of business, merged with other larger companies, or just hunkered down and weathered the storm. Now that the industry has made great strides to stabilize by offering better rates, better products, and better customer service, small business owners are gradually starting to listen to the presentations being made by consultants and inside sales agents. With that increase in confidence, and with the growing number of testimonials being offered by happy customers, businesses are becoming less reluctant to make the jump.

Until deregulation allowed smaller, hungrier telecommunications companies the ability to compete, the United States was stuck with technologies that were quickly becoming out of date. Now that the Bells actually have to innovate to keep up with the smaller CLECs, customer everywhere are reaping the benefits. But how much longer will we continue to see improved technology, services, and prices? It's all in the hands of the Federal Communications Commission, as they have the power to sqwash the CLECs by proxy. No wonder AT&T and Verizon are the two biggest lobbying powers in Washington. It makes you wonder what kind of services they would be able to offer had they plowed that money into R&D instead of politics.