Is T1 Right For Your Business?

The t1 line is a digital transmission service that can bepeople accessing the internet or use video on
used for carrying voice and/or data. A T1 connectiondemand you should consider T1 access. While it is
is sometimes referred to as a "dedicated service" asmore expensive that DSL, T1 access is made to
the service is delivered to and from the customersupport the above applications.
premise from the CO (Central Office) withoutWhile many people predicted the end of price erosion
combining it with other traffic. A T1 connection isfor a T1 internet connection it continues to fall.
established by providing a "loop" or wire from theService providers are up against stiffer competition
users premises to the CO where the service providerand are desperate for new customers to fill their
has equipment. Part of the cost of a T1 is the "looppipes and turn a profit. Are you ready to negotiate
charge" or the monthly rental fee for the wire that isfor a rock bottom price? Before you do, consider a
rented from the local phone company. Once thefew of the reasons for the drop in price on T1
connection reaches the CO it can access the carriersbandwidth.
network and reach any destination.T1 bandwidth pricing has come down as companies
T-1 provides high speed, point-to-point digitalhave gone out of business and the remaining large
transmission line (up to 1.544 Mbps). This can be usednumber of telecommunications companies have
as a single high-speed data channel or it can be splitbegun fighting for a place in an ever smaller market.
into 24 channels and allocated to either voice or dataWhile many service providers did have room to lose
applications. It is widely deployed and readily availablemargin, many have come dangerously close to the
in most regions and although the service is notedge of selling circuits at a loss and many have gone
diminished by distance from the CO, the price isbeyond this point. It seems that in the race to the
sensitive to distance. This is due to the rental of thebottom many providers failed to learn the lesson that
loop from the LEC (Local Exchange Carrier). T1 isselling at a loss does not create a long lasting and
currently the most common way that largehealthy company no matter how many circuits or
companies connect their LAN to the rest of thewidgets you sell. Many companies selling at a loss
world.have already been in bankruptcy and look like they
Are you ready for T1 service? You may be ready ifwill repeat this exercise as they did not learn from
you have critical services that need a reliabletheir first go around. So, solvency of the T1 internet
connection to the internet. If you run ASP services,service provider should be a consideration when
host e-mail servers or web servers, have over 20looking at great bargains.