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Everything You Want to Know About T1 Lines and How to Buy

A Little Bit of the History

While for some the term T1 may seem new, this technology is well over 50 years old! Before the roll out of the World Wide Web, this technology was brought into place to improve current telephone system signaling for carriers in an age where phone technology was still developing.

Previously, each voice line had to individually be ran from one phone company switch to the other. With the new T-1 technology, 24 voice channels could be run through one circuit creating a super efficient and more easily organized way of managing these voice channels. The AT&T (American Telegraph and Telephone) company introduced the technology in the 60′s, but was never made available for business end users until 1983.

While the year of ’83 finally made T1 technology available to businesses Nationwide, the costs were very prohibitive. Only the largest companies or government organizations could afford a T-1 line for their establishment. These companies and institutions were given the luxury of being able to transfer data from one location to another (point-to-point not Internet) without lugging around and transporting large computer tapes and reels to the locations physically.

While the technology was available, even the most important customer could expect an installation time frame of 6 months to a year. None the less, the data technology was highly sought after and envied among the telecommunications community. Other hurdles included applying the digital technology over old analog telephone lines which was remedied through the use of channel banks between the lines and the central office switch from which the services were deployed from.

With the help of the IEXs (interexchange carriers) such as MCI and Sprint, T1 installations started taking less time allowing for more deployments to more businesses. This ultimately helped feed the demand for the technology as well as supply it. Over time the combination of supply and demand would allow for less costly leasing options finally giving smaller businesses the ability to affordably benefit from T-1 lines.

T1 Line Types

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What is a T1 Internet Line?

A T1 line is a high speed Internet connection capable of transmitting data at 1.544 Mbps (Megabits per second) over fiber optic lines. At one time this may have transmitted at the last mile over twisted pair copper wiring, however fiber optic is quickly becoming the standard to which the telecommunications industry is now adhering to.

What is a T1 Voice Line?

While Internet often is used, just as often voice is transmitted over these lines for business phone service. A T1 voice line is capable of 24 digital voice channels. These voice channels allow for businesses with more than 10 landlines to save money on the cost per local line (local loop). These local landlines can also provide long distance for the company deploying a T-1.

What is an Integrated T1?

An integrated T1 line is where both data and voice run over the circuit. This can be allocated into different increments per function.

What is a Fractional T1 Line?

A fractional line is a product offered to businesses who may have 10 or less phone/Internet lines needed. This line is leased out in smaller fractions and can be split into a half, a quarter, and sometimes less of a full T-1 depending on the needs of that particular business.

What is a Dedicated T1 Line?

This type of circuit offers privacy of a physical nature. The lines are run from one location to another creating secure communications for voice and and Intranet between two or more locations. Other terms include P2P, point-to-point, or private line. There are many configurations including mesh that can be made to accommodate multiple location point-to-point communications.

What is a Bonded T1 Line?

A bonded T-1 is two T1 lines bonded together to create a connection that transmits data at 3.0 Mbps or offers 46 voice channels. This is not the same as having two lines as these lines cannot combine to create the maximum transfer speed without first being bonded. Without the bonding process, two lines will each only transfer at 1.544 Mbps apiece.

What is a Burstable T1 Line?

A bandwidth line labeled as a burstable is a line that offers the full capacity of a T1 with some differences. A burstable T-1 is offered at a lower cost due to the fact you are given a smaller allocation of the full T-1 on a regular day to day basis, but on the occasion congestion increases, you are bumped up to the bandwidth necessary to handle data traffic. You pay an additional fee for every “burst” and the length of it as agreed by the provider.

Additional Information

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Common Worldwide References

There are more than way to express in text a T1. Terms include T-1, DS1, DS-1 within the United States of America and Canada. In Europe the use of the letter T is replaced with an E giving the terms E1 and E-1. In Europe however the total transmission capacity is 2.048 Mbps or 30 voice channel capacity. In Japan, J-1 or J1 is the term used and runs at the same rate as the USA and Canadian version.

The Meaning Behind the Term T1

The term T1 comes from the abbreviation Trunk level 1. A trunk is basically the communication line between two locations where switching systems are put into place. These systems are comprised of equipment housed at the location of the telecommunications carrier and end user leasing the line(s).

What Makes T1 Better Than DSL?

As far as speed goes, many might consider DSL speeds and capacity a far greater asset in terms of file sharing and uploading to servers, etc. The real dilemma isn’t really speed as much as it is the reliability of the connections. A T1 circuit is a commercial grade service, therefore uptime is a QoS issue addressed in a far more aggressive manner. Most carriers guarantee 99.99 % uptime. This equates to mere seconds of downtime if any for a T-1. When DSL goes down it can be hours or days which can lose a business a significant amount of revenue during peak business hours.

What if I need More More Bandwidth or Voice Capacity?

T-1 is merely the beginning of available bandwidths. There are other options that are growing in popularity and are in high use already. The most popular is a T3 which has a capacity of 44.736 Mbps for data or 672 voice channels. Additional bandwidths include Gigabit Ethernet options or SONET which comes in many flavors including OC-3 (155.52 Mbps), OC-12 (622.08 Mbps), OC-24 (1.244 Gbps), OC-48 (2.488 Gbps), OC-192 9.953 (Gbps), and more that can include voice channels as well.

What Type of Businesses Use T1?

Businesses, enterprises, and government agencies Nationwide use this bandwidth circuit for voice and data everyday. This includes grocery stores, retail outlets, real estate agencies, airports, call centers, server centers, coffee shops, insurance agencies, DMV, court houses, lawyer offices, e-commerce sites, welfare buildings, car dealerships, military bases, embassies, schools, universities, hospitals, police stations, and many more types of establishments.

Shopping for T1 Lines

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What is Behind the Price of a T1?

There are a few factors involved in the pricing of a T1 line. Here we will try to notch down some of these factors for you. This will better give you an idea of why you may expect to pay more or less for you business line.

1. Location also known as POP (Point of Placement) is a primary cost decider on what you will be paying for a T-1 or higher bandwidth line. The further you are from the carrier, the more you will pay. This is due to the physical line being provided to your establishment. These fiber optic lines can become costly to set up depending on your location. Places further away from major metropolitan areas tend to pay more.

2. One factor to not be overlooked will be the cost of hardware including routers, PBX boxes, switches, and possibly more depending on your goals. This cost can go into paying for networking this hardware too which may require a professional if you do not have one in-house.

3. An other obvious factor is the type of T1 connection you choose. A burstable or fractional will cost you significantly less than a dedicated P2P line. Of course you will need to be sure of what T-1 type you need before factoring in costs.

4. Length of contracts can be a big deciding factor on what you will pay. You are more likely to pay more on a per month basis for a one year contract than you would on a 3 year. The longer term contract not only can cost less per month, but can help protect against any rate inflation during those service years.

5. Installation fees are something you will have to pay when the carrier connects you to your service. These will vary, and depending on the carrier, can be free on a special promotion.

6. Taxes and fees are added to your leasing price after a carrier has stated pricing usually. This can include federal, state, and FCC fees.

7. How many phone lines and minutes will you be using? This will be added into your price by the minute for long distance and local.

WARNING: What to Watch Out For Before Signing a Contract

1. Watch out for this first and foremost. Low pricing. In today’s age of tight budgets, many will shop for a lease option solely on price. In many cases, a low price can mean you are buying a burstable T-1 over an already heavily trafficked line. Make sure you know where your line is coming from and what you’re really paying for.

2. Be wary of the term “T1 Speed” as a selling point. This can easily be another way of tricking you into paying for a T1 that is not truly a genuine line. Sometimes these fake T-1 solutions can cost just as much as the real one.

3. Always check for uptime guarantees in the contract before signing. If the carrier cannot guarantee the uptime, it probably isn’t a real T-1. Move on and find a real carrier.

4. Always check the contract and find out what cancellation fees may be associated with bailing out of a contract prematurely. This can happen due to their own QoS (Quality of Service), but you can still end up paying on your part anyhow. Look closely into terms and conditions.

5. Make sure you get a line that is fiber optic the last mile. If a carrier cannot guarantee you a fiber optic line for the last mile then you will want to go with another carrier. These days a twisted copper at the last mile is not sufficient for the needs of today’s demanding businesses.

The Safest Way to Shop and Save on a T1

Many might be swayed into believing that shopping from carrier themselves would be the best way to save on the price of a T-1 circuit. There actually is an easier yet cost free way, and that is through a qualified business telecommunications consultant or broker.

A telecom consultant has the ability to save you more on carrier T1 prices than if you went through a carrier yourself. Their ability relies on what is called “purchase power” which enable lower negotiated lease rates and installation costs.

Not only can they save you on overall costs, they can consult you on the best suited options for your business needs, go over contracts with you, advocate on your behalf after contract, as well give you a list of pricing options based on your choice of T-1.

A telecommunications consultant should never charge a fee. Most consultants have years of expertise in the industry and have vast knowledge of carriers and their overall performance to help you make the best decision for your needs. They know how to shop business telecom solutions and are able to analyze every pitfall described above.

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FREE CONSULTATION LINK: Business Phone Service

Here is where you can get linked to savings on business phone service solutions and technologies. Here you can learn more about phone system technologies and how to save on them or visit our quick link area to get fast access to free price and system consultations at no obligation to your company.

TopSavings.Net has been in business for close to a decade offering business phone service products and Internet service to small and medium sized businesses, enterprises, and government agencies. Everyday we help our business clients save on their telecommunication expenses with our free consulting services.

Our list of  telecommunication products include voice T1 line, T3 lines, OC3-OC192, business long distance, business toll free numbers (800, 877, 866, & vanity), VoIP, SIP trunking, and more. Follow our link below to begin saving on business telecommunications today.

Business Phone Service Information and Shopping Tips

1. Business Long Distance Services

Never sign a contract on switched long distance services. In some cases a long distance contract may need to be signed, but this usually is only the case with T1 long distance services. Most reputable long distance providers will not need to lock in a business client on a contract due to the already present quality standards for customer service and voice communications.

Business long distance interlata rates are usually the initial rate you will see to lure you in so be sure to check the intralata rate as well to make sure you won’t be paying too much more for you in-state long distance. This is the main reason many businesses waste money on business long distance. If outbound calls are frequently made within your own state, shopping by intralata rates are very necessary.

The most simple way to save on business long distance is to check the billing increments in which you will be charged. Billing increments can vary in pricing structure so it is very important to check the fine print. As well as increments, there can be call time minimums meaning that a 3 second billing could easily add up to a 60 second billing if your call lasted under a minute.. These minimums can add up for large call volume businesses.

Voice T1 lines are excellent choices for outbound call centers with extreme amounts of long distance calling. A business that exceeds 20,000 minutes a month or more can usually get a rate below one cent per minute or even less. As the same with switched long distance, check all rates and minimums, and review your phone contract carefully before signing. A T1 line usually will require a contract of at least a year, but the best rates are usually locked in with a three year.

Should your business require international long distance, make sure you know all the international dial out fees associated with the account. Many international destinations are rate sensitive to the type of telephone receiving the call. In a number of cases a wireless cell phone number will cost you up to three times the normal international calling rate.

2. 800 Numbers

While you can get 800 services from your long distance service provider, there are other options you may want to consider. You can get toll free services without any previous services or switching current local or long distance providers (stand-alone toll free). Most 800 number providers will charge a monthly maintenance fee along with a setup fee.

Toll free service is billed by the minutes a person has called you and usually is billed at a flat per minute rate. A toll free number can be any one of these prefixes in the United States: 1-800, 1-888, 1-877, and 1-866. There is no need for a separate phone line unless you want your line to ring exclusively for your toll free number. Existing business phone lines will not be affected by a toll free number.

You will need to pay close attention to what billing options are being attached to your toll free service. Any call made from a pay phone will usually have a connection surcharge fee that can go as high as .80 cents per call. Other area calls including cell phones may have additional charges as well so be sure to check and see if there is an option to block these types of numbers.

Because toll free numbers are often billed in increments like business long distance, you will want to find the lowest per second increments possible for your phone service. Be aware that many 800 number services can charge connection fees per call as well as have monthly fees. Should you not get toll free calls too often then the biggest portion of your bill may be the monthly minimum if there is one.

Vanity toll free numbers that end up spelling something to make it easier for customers to remember your number. Vanity numbers usually spell something relative to your industry that are easy to remember. Vanity numbers will typically come at a higher price and almost always come with a monthly fee.

3. Local Business Phone

Depending on the amount of employees that access your phone lines or even Internet, a T1 local loop may be a more affordable option opposed to using POTs (plain old telephone service). T1 local loop lines can greatly reduce the expense per business phone line for a growing business. A telecommunications consultant can help you greatly reduce your phone expenses and instruct you on the proper T1 configuration for your needs.

Businesses often will only go through a tier one carrier for their T1 needs. This request can be made through a qualified telecommunications consultant. Lower pricing can often be disguised as a T1 through other tier providers. This doesn’t mean a second or third tier carrier will necessarily rip you off, but it has been known to happen.

If you plan on having high speed Internet within your building there are new advanced dynamic integrated technologies that can be instantly scalable to your growing or declining needs, as well as integrated T1 solutions. A telecommunications consultant will be the best and easiest way to decide on what you need and save on telecom expenses at the same time.

4. Business VoIP Phone Service

While VoIP is fast becoming the newest standard in voice communications, there are a few requirements for deployment. To utilize hosted PBX solutions with VoIP technology you will need adequate bandwidth to your premise to ensure quality communications. While you may find many different attractive pricing offers for business VoIP, it is recommended you go with a bigger carrier that is known for it’s innovation in the technology as well as it’s staying power.

Be cautious if entering a long term contract with a VoIP company. If you do sign a contract, make sure you have a grace period to cancel should the services not add up to your expectations. It is more important and crucial to be wary of cheap VoIP providers due to the variances in hardware and software technology provided.

What to Look for in a Business Phone Service Provider

Business phone service providers are available in the masses. When choosing a service provider for your business there are some key important aspects to consider before committing to the service, regardless of the term of use. Here we will discuss some of these important factors to be aware of.

1. Contracts – Be wary of contracts. Many business phone service providers that are reputable will offer contracts however a contract can be burdening to the client in particular cases. In some instances  such as with voice T1 lines, you will find a contract is necessary and usually on a term of anywhere from 1 to 3 years. Read the contract carefully before signing and faxing it back. Look for early termination fees but more crucially, the terms of termination in relation to quality of service (QoS). Make sure that if services provided do not add up to the quality agreed upon in the contract that you can bail out unscathed, and perhaps even with a refund. Remember YOU CAN negotiate certain terms of a contract and have it rewritten if you feel the terms are not up to your standards before signing or your broker/consultant can for you.

HINT: Many providers with quality services rarely require contracts with the exception of T1 providers and wireless carriers.

2.  Pricing – Regardless if it is an unlimited or per minute plan, you will want a business phone service comparison to make a decision from. If it is a business long distance plan you are seeking, be sure to check what the intralta (in-state) long distance rates are agreeable with you. Intralata rates quite often will differ from the interlata (state-to-state) rates. A good way to find a multitude of qualified business services side by side is to go through a telecommunications consultant or broker.

3.  Fees – Make sure to always check terms and conditions of the service itself before signing up for any business phone service. You may find there are monthly fees just to keep your service or fees for minimum usage requirements. Make sure these fees are in accordance with your budget. If you are switching services there may be a switching/connection fee.

4. Taxes and Regulatory Fees – Expect there to be additional taxes and fees applicable on the federal and state level. Discuss with the provider or your telecommunications consultant/broker what these fees will be so you can plan them into your estimated monthly usage.

There are many technologies and additional services that require different analysis of your future purchase of business phone services. The best way to handle your telecom needs is to consult with a telecommunications consultant or broker and have them discuss technology and pricing options.

For free consultations and price quotes on business phone service visit us at http://topsavings.net today.

How to Save on Business Long Distance Rates

Business long distance can be one of the more costly expenses in the telecom sector, so when shopping for a solution for your company it always pays to be more apprehensive. When shopping for services make sure you know what you need and want from your long distance provider before going out and shopping. Ask yourself a few questions first and write them down.

Question One: How much long distance does my company use? The minutes you use monthly will help in defining the plan you will be picking later down the road or even change your current services and phone systems. In some cases, companies have found they needed a voice T1 to adequately save on the volume of calling their business made which requires additional PBX equipment as well.

Question Two: What type of long distance does my company use? Do you make a fair amount of accumulated international long distance calls and which country is called the most? How many of your calls are in-state (intralata) long distance? How many of your calls are state-to-state (interlata)?

Question Three: Does my business have adequate bandwidth? You may find you want to switch to a business VoIP solution or SIP and in that particular case, you will need to figure out how many phone lines your business will be using and to what affect that will have on your Internet bill.

With these questions asked you can go on to seek out the business long distance rates you desire for your telecommunications budget. You will need to be careful of many pitfalls such as monthly minimum requirements, unfixed rates, minute increments, intralata rates, taxes, set up fees, special terms and conditions, and many other possibilities.

To avoid going through the headache of understanding all of the terms associated with business long distance phone services and providers, many businesses go through telecommunications consultants, telecom auditors, or telecom brokers. Most all the services offered by these firms are provided free of charge and save their clients money as well as set up services that are more efficient.

To get the best business long distance rates for your company or government agency, visit us at our main page at http://topsavings.net