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CLECs Target SMBs with Dynamic T1
Monday January 02, 2012,
08:50 pm ET
BARTLEY, Indiana, Jan. 02 /Daniel Johannesburg/ --
Small businesses all over the country are discovering a whole new universe of broadband access.
As the price of commercial-grade telecommunication services continues to drop, more and more
enterprises are starting to drop their plain old telephone service lines in favor of all-digital
T1 trunks that deliver voice and data over the same connection. These new enhancements were
made possible by the increasing pace of consolidation in the telecommunication industry along
with the increasing value bigger phone companies can provide.
Integrated T1s comes in two basic configurations: digital and analog trunks, with a trunk
being a 24-line (or channel) bundle. The newer, digital trunks, however, are able to
run both voice and data over the same channels. By assigning priority to the voice
traffic whenever it is present, a dynamic integrated trunk can provide the end-user
with a full 1.5 MBPS of data throughput if no phone calls are in progress. As more
voice lines are required, less data lines are available. Analog trunks are all
pre-assigned to either voice or data traffic, and do not reconfigure in the event
there is no voice traffic.
Prior to the advent of the "all digital" integrated T-1 in 2005, customers only had
one choice when it came to dedicated service: analog trunks (24 line bundles).
Not only where analog trunks expensive - the average cost ranging from $800 to
$1500 per month depending on the user's geographic proximity to the LECs point
of presence - they could not re-allocate unused voice channels to carry data.
Digital trunks, on the other hand, can reclaim voice lines not in use and put
them to work carrying high-speed data packets. That means users enjoy the full
1.5 Mbps of broadband when they are not on the phone.
The early adapters of this new technology have realized a cost savings that helps
them be more competitive in the market space. By saving hundreds of dollars each
month, which equates to thousands of dollars per year, small businesses are able
to do more while spending less on their telecom bill. This savings allows for
hiring of additional staff, upgrading equipment, and other activities that make
the enterprise more productive and profitable. Many in the industry see the
lack of mass adoption of this new technology as just shear ignorance and/or
a lack of trust for telecom sales people.
Evolution has lead to a better, cheaper alternative to TDM services that the Bells were
peddling for decades in a vacuum of competition. Now the industry, lead by the innovation
and great business practices of the CLECs, seems to have turned a corner - leaving the
incumbents playing catchup. Obviously, the main benefactor of all of this competition
is the small to medium size business - a segment of the market that was taken for granted
until today.
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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