Can You Save 50% On Telecom Costs?

Here we are in the midst of an intractable economic recession and you may still be paying twice as much for your business telecom services as you could be. Need a quick and painless way to cut the budget without having to let people go or cut necessary services? OK, then stop paying so much.

If you are anxious to start saving, get a cost savings evaluation right now and then come back to finish reading the rest of this article. I’m going to explain why a 50% savings is well within the realm of possibility for your company.

First, let’s see where the savings are. Nearly every business buys two principal telecom services. These are telephone and broadband Internet. Larger companies, those with multiple locations, or companies in certain fields will also buy point to point or multi-point bandwidth to link two or more locations. Do you have telephone? Do you use the Internet? Do you have a private link to another location? If so, you have a cost savings opportunity.

Now let’s see why these cost savings are available. First, the telephone and networking industry has become more competitive, especially since federal deregulation of telecom services. There are a lot more players than there used to be and they’re all hungry to expand their customer base. That alone accounts for a major slide in long distance telephone rates and digital bandwidth prices. Did the price of a garden variety T1 line drop by half over the last few years? You bet it did.

This is part of the secret to cutting your telecom bill in half. Business telecom services, like T1, DS3, & OC3, are sold on a contractual basis for one, two or three years. You get the lowest prices with the longest contracts, so the three year contract is often the most attractive. You may or may not be contacted to sign another contract when that one expires. If not, your service doesn’t generally just switch off. You go on a month to month basis for as long as you keep paying your bill. Some companies have been paying the same rate for years and years and have given no attention to comparison shopping.

One reason is that when you bought your original service, there was only one game in town and that was the local telephone company. What you don’t realize is that during that time other competitive carriers have started serving your area, likely with lower prices. Unless one of their sales team happens to call, you probably won’t even know they’ve come to town. More service providers means more offerings and better pricing, but you have to know how to get in touch with them.

The is the first way to get a dramatic cost savings. Do some comparison shopping. You still have to know where to find these carriers, who may or may not have an office in your location. You can try the Yellow Pages, but you’ll have to put in some time and effort to make the calls and compare the offers. Chances are, you’ll probably still miss some good opportunities.

The easier and faster way is to engage a telecom services broker who represents dozens of carriers. You pay the same rates you would if you hunted down the service provider yourself, but you don’t have to put forth the time and effort for comparison shopping. You’ll find that you get fast and friendly service from Telarus, Inc. for competitive telecom pricing. Just be prepared for a shock when you see the offers you’ve been missing.

The other reason that major cost savings are available for the asking is that new types of services have proliferated in the last few years. Ethernet over Copper is now a major competitor with T1 lines. You can generally get twice the bandwidth for the same amount of money if this service is available for your location. If you have a T1 line but are only lightly using it for credit card verification, email and Web access, you can probably save half the monthly cost with 3G fixed wireless broadband. This service is available nationwide and, unlike T1, is practical for temporary business locations like holiday stores, construction sites and conventions.

On the telephone side, that T1 line of yours could be doing double duty. SIP trunking and Integrated T1 combine business phone service and broadband Internet access on the same line. Unlike do it yourself VoIP, this is a carefully engineered solution that assures the quality of your telephone conversations regardless of what is happening on the computers or Internet.

Another recent telephone innovation is hosted PBX. Forget paying for all that telephone equipment and incoming lines. All of that is now handled in the cloud. You pay by the seat per month and your system is always functional and up to date with latest features. All you need in-house are IP telephones and a connection to your cloud provider.

For business applications that need to link several locations or more across the country, MPLS networks can’t be beat. You’ll easily save that 50% cost if you’ve grown your network gradually by simply adding point to point lines as you need them.

Got a few minutes? Want to save a bundle on your monthly telecom bills? Then just enter some basic contact information through T1 Rex and explain what you need. A friendly Telarus agent will be in touch at your convenience and send you a complete range of resources that meet your requirements, along with pricing. It doesn’t get easier and it’s hard to save more.

Rural Broadband Stimulus Hopes To One-Up Dial-up

Just before the 4th of July holiday, the long-anticipated rural broadband stimulus funding was launched with release of the official government "Notice of Funds Availability (NOFA) and solicitation of applications."

If you want to get in on the action, you best get a move on. Applications are only being accepted between July 14 and August 14 of this year, 2009.

As a potential user rather than a provider of broadband services, you'll have to wait awhile longer before you can expect a nearby on-ramp to drive your buggy onto the information superhighway. Yes, buggy not sports car. If you've been eagerly anticipating FTTF (Fiber to the Farmstead), you may find the definition of broadband a bit disheartening. The bar has been set at a breathtaking speed of 768 Kbps download and 200 Kbps upload to meet the criteria of "broadband" Internet service.

Why such a poky broadband standard when AT&T and Verizon are slugging it out to see who can deliver 50 & 100 Mbps to the most residential users where their U-verse and FiOS services, respectively, are in a feverish construction phase? Simply because some people way-out-there are lucky to get 56 Kbps dial-up modem service on their telephone line. The idea is to get universal digital service in the same way that we've finally gotten universal telephone service and rural electrification.

The one difference is that electricity and telephone service standards are the same everywhere. There isn't one set of standards for city dwellers and another for those in the boonies. But broadband is a different animal. It's always been tiered service, with those who live in denser populated areas and willing to pay more getting to go first class.

Perhaps this is the natural difference between mandated universal service and the workings of the competitive marketplace. I've argued before that broadband should be treated like a utility. Even more than that, it should be considered a strategic infrastructure for the country. Broadband is a lot more than the amusement value of YouTube and Twitter. It's about the commercial value of online shopping, working remotely, and creating value with new Web services. It's about the educational importance of having an immense library at your fingertips that would have stunned Andrew Carnegie, as valuable as the bricks and mortar libraries he donated were to earlier generations. It's about the democracy of collaboration to advocate for a cause or support a political candidate on the other side of the state or the country.

The commercial marketplace will never be all-inclusive. It's profit driven. Where the numbers look good, the infrastructure will be built and the head-to-head competition will be brutal. Areas where the population is too thin to recover capital costs in a timely manner are simply passed over. You can see this today even with cellular phone service. In the city there may be a carrier branded cell phone store on nearly every corner. But drive out where the highway turns into a cow path and you'll find gaping holes in the service footprint. No bars in these places unless they're country taverns.

The opportunity that may be missed here is the chance to lift the entire population to a new plateau. That may sound a bit fanciful, but consider the downward slope we've been on as a society from our post-WWII productivity and world dominance high. The national debt is through the roof. The auto industry nearly died this summer. The banking system had to be brought back from death's door this spring. Anyone looking to "upgrade" their house or job this year? Hanging-on is the new moving up.

We've been told repeatedly by industry and government officials that we're competing in a new world marketplace. Just what tools do we have to compete with? If this is the long anticipated information age, many of us are going to miss it. We going to miss the knowledge jobs. We're going to miss the massive productivity multiplier that instantaneous collaboration offers. We're going to miss the opportunity to live where it's beautiful and still participate in the 21st century economy. We're going to miss the next leg up in technological progress that will be based on video instead of text. We're going to miss it because 768 Kbps is a pittance, not a stimulus.

Hopefully, the minimum will not become the standard and the builders of the rural broadband initiative will exceed expectations, giving us something of real value for our $7.2 billion. Perhaps your company will be one of those that wins a grant to trench fiber or put up a WiMAX tower. If so, I hope you'll think big and set the performance standard high. As a society on the edge, we truly need the best you can possibly do.

Your Right to Competitive T1 Prices Protected

This afternoon the Federal Communications Commission (FCC) reaffirmed your right to benefit from the intense competition in wireline based telecommunication services. In a 5-0 decision, the Commission rejected a petition by the Verizon Telephone Companies to "forbear" or let them out of regulations that mandate they provide competitive access to their lines in six major cities in the Northeast.

The forbearance provision of the Telecommunications Act of 1996 was put in place to level the playing field between incumbent phone companies, the legacy of the Bell System monopoly, and newer competitors. The incumbents enjoyed a 100 year reign free from competition. They were protected as a government monopoly to ensure that telephone service would flourish and become universally available. That goal has long since been accomplished. One result is that every copper phone line to every home and business was installed and is owned by the local telephone company. That includes not only analog voice lines, but those used to provide last mile connectivity for T1 digital line service.

T1 lines are the mainstay of small and medium businesses who need regulated, reliable voice and data trunk lines for their PBX telephone, point to point connections, and dedicated Internet access. Basic T1 service is provided using two pair of conventional telephone line twisted pair. That's wiring that is already installed to every business nationwide. By bonding T1 lines together, higher bandwidths can be provided to offer fractional DS3 and the newer Ethernet over Copper services.

So why don't competitive carriers just get their own last mile connectivity and bypass the incumbent telcos completely? That's actually starting to happen. XO Communications runs fiber optic lines from its POPs or Points of Presence to nearby office buildings in major cities. They also offer wireless access using early versions of the new WiMAX radio service.

The problem is that building out new facilities, either wired or wireless, is a major undertaking requiring huge capital investments in a highly competitive environment. It will take many years before competitive paths are available with the kind of coverage now in place for the incumbent telephone companies. Consequently, it's not unreasonable to ask that the incumbent facilities put in place under monopoly protection be shared with competing carriers at least until equivalent connectivity can be installed.

It should be noted that the competitive carriers I'm talking about already have their own regional or national fiber optic backbones and network operations centers in place. If you are willing to colocate your equipment at one of their colo facilities or a neutral "carrier hotel," you'll get the best prices on bandwidth possible. It's only within cities where pulling new copper or fiber cable is pricey, or out in the boonies where the cost per mile for new lines is usually unreasonable, that competitive carriers need access to installed telco lines. For that, they pay the local phone company a fair price for the "local loop."

Is this all really important to you as a business owner? You bet it is. One of Verizon's assertions in asking for relief is that competitive carriers are cutting into their wireline business. There's a reason for that. Competitive means competitive pricing, the kind of pricing that has it made it possible for thousands of businesses to establish digital voice and data connections and others to expand their bandwidth at rates they can afford. If we go back to an era of telephone company monopoly, we'll go back to monopoly pricing too.

If you haven't checked the competitive prices for T1, DS3 and Ethernet services lately, you may be in for a shock. The expansion of voice and data network options that's been fostered in a free market environment is nothing short of astounding. Prices of once staid line services have plunged in just the last couple of years. Pull out your current contract and compare it to the results you get from an instant online T1 line service quote. You'll see.