T1 Internet Service Prices and Rates Quotes in Campo

CLECs Target SMBs with Dynamic T1

Thursday December 15, 2011, 01:26 pm ET

CEDAR HILLS, Utah, Dec. 15 /Patrick Oborn/ -- Is there a resurgence in the popularity of telecommunications providers that compares with the late 1990's? The answer may surprise you. Since the crash of the Internet bubble, struggling telecoms have seen Darwin in action as many companies were forced with the choice of bankruptcy or forced consolidation. However, some companies chose the road less traveled: innovation. By offering customers more for less, many small to medium size business customers are finding that they can upgrade to integrated T1 service for the same cost of five regular phone lines.

California, ordinarily not known for its telecom prowace, has been a hotbed for businesses making the move to dynamic telecom lines. One local business owner - Linda Peterson - who operates a travel agency, recently told us that "I never expected the phone company to come out with anything that would help me lower my costs. On the contrary. Ma Bell has had a history of raising my rates and making my life difficult. When I heard about the XO Flex package (offering 10 dynamic voice lines and 1.5 mbps of high speed Internet) at a price of under $500, I couldn't move over fast enough." Since then Linda reported a $150/month savings in her telecom expenses.

"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.

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 recent progress made by CLECs leaves us thinking in hypotheticals. "What if the Clinton administration wouldn't have passed the Telecommunications Act of 1996, requiring RBOCs to lease their lines at reduces rates to the CLECs?" "Will the FCC continue to enforce this law, or will it be overturned by the powerful AT&T and Verizon lobbyists?" It is impossible to know either way, but for the time being we can just be grateful that the industry has evolved to the point were small businesses can actually benefit from telecommunications at an affordable rate. Change does not happen quickly in an industry as so heavily regulated as Telecommunications. Recent industry consolidation has provided huge alternatives to the incumbents, who are now under pressure to keep up with new technologies while charging better prices to retain and attract new customer bases.