T1 Internet Service Prices and Rates Quotes in Newport

CLECs Target SMBs with Dynamic T1

Friday February 10, 2012, 09:05 am ET

CEDAR HILLS, Utah, Feb. 10 /Patrick Oborn/ -- 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.

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.

According to a recent study conducted by PK Communications Telecom Brokers Inc., the average cost of a POTS (plain old telephone service) line serviced by the Bells (AT&T, Verizon, and Qwest) have changed very little over the 10 year span from 1996, the year the Clinton Administration signed into law the Telecommunications Act, to 2006. The real change in the industry came in the T-carrier class of products, where customers can get up to 1.5 Mbps of bandwidth and 24 digital phone lines all in one package. Some CLECs like XO, TelePacific, Nuvox, One Communications, and even Covad are now offering rates well below the $550/month level, making the change seem like a no-brainer to thousands of customers.

Min Lieu owns a small insurance agency in Kentucky. Five years ago he signed up with XO Communications for a TDM-based integrated T1 line for $870/month, which did not include local or long distance calling. Recently, he was offered XO's version of a dynamic circuit called "XO Flex" for half of the price he was already paying. "I would have been a fool not to take the deal" stated Mr. Lieu. "I'm able to add headcount with additional voice lines, without any increase in expense or degradation in high-speed Internet performance."

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. 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.