Internet T1 vs. DSL
Not long ago, high-speed Internet connections were not only expensive, but difficult to come by. Thankfully that is no longer the case, as there are a number of broadband access options for even the most remote businesses.
The traditional high-speed Internet connection for businesses is the Internet T1 line. An Internet T1 line is an always-on, dedicated connection that offers symmetrical speeds (same upload and download) of 1.5Mb. T1 lines are typically purchased for a 1, 2 or 3 year lease and come with Service Level Agreements (SLAs) that guarantee bandwidth, service uptime, and additional parameters such as latency and jitter.
DSL, on the other hand, is a shared bandwidth service that is most often used by small or at-home offices. Unlike a T1 line, DSL offers asymmetrical speeds – with download speeds higher than upload speeds – that vary depending upon the provider you choose. While DSL does not offer SLAs, its biggest selling point is its relatively inexpensive price.
One of the largest differences between an Internet T1 line and DSL service is their classification. A T1 connection is a dedicated service, meaning the bandwidth you purchase is dedicated solely to you and your business. Today, T1 connections are virtually ubiquitous, even the most remote locations. DSL, conversely, is considered an information service. Due to the fact that information services are regulated differently than telecommunications services, DSL is offered on an as-available basis.
Another big difference between a T1 line and DSL service is that DSL does not provide SLAs, so there is no guarantee as to availability or repair time in the event of an outage. Moreover, DSL is frequently over-subscribed by providers in an effort to keep costs low. Providers assume that only a certain number of customers will be online at any given time and therefore sell more connections than they have bandwidth to support. Essentially it’s the same as airlines overbooking flights. The upside is that it allows DSL providers to offer their services at rates much lower than T1 lines; however these connections slow down significantly during peak hours when the majority of subscribers are online, so even when your connection is working, your bandwidth will fluctuate.
If you’re still unsure as to what connection is best for your business, give us a call today. We’ll work with you to determine the ideal service that fits your business’s unique needs and budget.
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No Comments »Voice T1 Advantages
On a normal telephone line, your voice is transmitted from one location to the next as an analog signal through copper wires at a speed of about 30 kilobits per second. This works just fine when you’re at home and only one person has to use the phone at a time. But in a business setting with many employees making various calls at the same time to different sites, this would not work as well.
A T1 Line is comprised of 24 digitized voice channels and transfers data from one person to another at a speed of 1.54 megabits per second (much, much faster than your home line) through fiber optics. This allows for quick and clear connections and great, flawless sound. The T1 handles both incoming and outgoing calls, and assigns the next call made to the next available line. This is an efficient process, maximizing free lines for usage. For any business that relies on telephone communications, whether for meetings, employees making sales, or anything else, Voice T1 offers 24 different channels so all of these tasks can be completed at the same time.
With 24 open channels, associates, clients, contacts, dealers and anyone else will be able to call and reach your business. As long as all the lines are not in use, customers will never have to hear a busy signal and will be able to reach the person they wish to talk to quickly and easily. For direct contact to certain employees, businesses can purchase direct inward dial (DID). With DID, companies can assign different telephones in the office different numbers so customers and clients can reach certain personal directly by dialing that number. Staff, personal and employees will never have to sit around and wait for an open line, allowing them to reach maximum productivity. And if 24 lines are not enough for your business, all you have to do is acquire another T1 circuit, which gives you additional channels for voice communications.
Usually, one T1 is good for about 75 people, but varies by business depending on phone usage, importance of calls and many other factors. T1 engineers can be consulted to help provide the best T1 solution as well as test and report if you are utilizing your T1 channels. Also T1 circuits are built in at your specific location. They are very reliable but, if any rare problems do occur, it is on location and can be fixed quickly in order to get your business up and running as usual. Customer Service Units are always available during normal business hours to fix the mistake as quickly as possible.
For any company that requires extensive phone usage, Voice T1 is a great solution.
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Integrated T1
Integrated T1 service, sometimes referred to as Dynamic T1 service, allows small and mid-sized businesses to receive reliable, high-quality Internet and phone service via a single T1 line.
When used exclusively for voice service, just one T1 connection can provide up to 24 separate telephone lines. Because the average SMB typically requires between 3 and 12 lines, by employing an Integrated T1 service, the remaining capacity can be utilized for broadband Internet access rather than remaining idle. For example, if 12 channels are used for your phone lines, the other 12 channels would be allocated to your broadband service, giving you 768Kbps.
This is accomplished with the use of an Integrated Access Device (IAD) installed at both the customer’s and the provider’s locations. The IAD manages your T1 line to ensure each phone call has the necessary bandwidth needed for full voice quality. When there are no calls being made, the full T1 (1.5Mb) is used for broadband Internet access. Even with active calls in progress, the Internet speeds provided by an Integrated T1 are faster than shared connection services, such as DSL or Cable, that are shared with hundreds to thousands of other customers and slow to a crawl during peak hours – despite the advertized speeds. To learn more about how T1 lines compare to Cable and DSL, click here.
One of the biggest factors that makes Integrated T1 service so attractive to SMBs is convenience that comes with receiving one monthly bill for both phone and Internet service. This reliable, high-quality, easy-to-use service allows even the smallest companies to keep up with competitors. Moreover, Integrated T1s also help businesses cut costs. As you may or may not know, the local loop charge is a significant portion of the cost involved in provisioning a full T1 line. Because an Integrated T1 line allows for both data and voice, you only need to pay one loop charge.
It is important to note that Integrated T1 service should not be confused with Fractional T1 service. As its name suggests, with Fractional T1 service, a fraction of the data-carrying capacity of a full T1 line is leased to the customer for a fraction of the price.
Integrated T1 has become popular with businesses due to its cost-efficiency and flexibility. If you’re interested in learning more about what an Integrated T1 service, Internet T1 services and Ethernet service can do for your business, contact us today!
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Telecom Service Level Agreements
The Internet can be a double-edged sword for businesses. On one hand, it provides an easy and effective way to connect your office with partners, clients, branch offices, vendors, etc., use critical business applications, and even make local and long distance phone calls via VoIP.
On the other hand, especially when you are employing a Cable or DSL service, the other edge of the sword is reliability (or lack thereof). There are a number of issues that come with Cable and DSL services; arguably the biggest being that they are not regulated telecom services, but rather “information services.” Moreover, they are also considered “best effort” services. This means that, in the event of a service affecting issue, your provider has promised to make its best effort with available resources to reach a resolution as soon as possible. That being said, don’t be fooled into thinking it is any sort of a guarantee for bandwidth, availability or level of service, as it most assuredly is not.
Those of us who are familiar with technology know good and well that Murphy’s Law will undoubtedly appear just in time to make a mockery of your downloads, order entries, updates, and/or your meticulously planned service installations and upgrades. Occasionally it’ll only be for a few frustrating minutes. Other times, however, your service could be down for hours or even days – with no resolution in site. When such interruptions occur repair efforts are often slow moving, causing businesses to suffer – that is unless their provider has specific contractual obligations. While it’s true that no connection provides 100% availability 24/7/365, dedicated services, such as an Internet T1 or Internet T3 line, guarantees greater reliability. This is because the majority of dedicated connections offer a Service Level Agreement.
A Service Level Agreement, or SLA, is a contract between you and your service provider. SLAs cover everything from bandwidth and availability (most providers aim for 99.99% uptime) to compensation for outages. It is important to note that not all provider SLAs are the same, and the degree to which more stringent terms can be negotiated is often dependent on the size of the customer.
Don’t fall victim to a supposedly inexpensive broadband connection. If your business’s Internet connection equates to not only a flow of bits per minute but also dollars, you need a dedicated connection with a powerful SLA. At T1Everywhere, we partner with today’s leading Tier 1 providers, allowing us to provide you with industry-leading service, SLAs and support. Contact us today!
Broadband Internet Services
From little mom-and-pop shops to large corporations, it seems as though almost every business is connected to the Internet these days. Whether you’re looking for a new service, or perhaps looking to upgrade your current solution, there are a number of broadband Internet service options available.
To start, broadband Internet services are generally broken down into two categories: shared connections and dedicated connections. Shared connections are much like residential broadband Internet services, in that your connection is divided among a large number of other users. While this helps to keep costs low, there is a drawback – providers often overprovision their services, meaning that during peak hours where many other customers are likely to be using the service, your connection will slow down significantly. In addition, providers often advertize their connection speeds as “up to” a certain amount of Megabits per second (Mbps). For example, your cable provider might say you’re getting “up to 3Mbps,” but it is not guaranteed. At any time you could be getting the full amount, or just a fraction of it – it all depends on how many other customers are using the connection at that time. Share bandwidth services include DSL, Cable, two-way satellite Internet and 3G and 4G wireless.
A dedicated connection, on the other hand, allocates a set amount of bandwidth solely to you and your business 24/7, and will not fluctuate during peak hours. The majority of dedicated connections also come with Service Level Agreements (SLAs). SLAs are essentially an agreement between the provider and the customer covering uptime, jitter, latency, etc. that spells out what happens in the event that your service is interrupted and covers how you’ll be compensated. While it is not a hard and fast guarantee that your service will never go down (no service is up 100% of the time, but most providers aim for 99.999% availability), it will guarantee a fast response in the event of any issue. Dedicated bandwidth services include Dedicated Internet Access (DIA), Internet T1, Internet T3, OC3, Ethernet over Copper (EoC), 100Mb Fast Ethernet, Ethernet over Fiber (EoF), 1Gb Gig-E, 10Gb Gig-E, etc.
Are you looking for a broadband Internet service for your business? Give us a call today! We partner with today’s leading providers of telecommunications services, including high-speed Internet and data, voice, and conferencing services, and can work with you to customize a solution that meets your unique requirements and budget.
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MegaPath Secure to the Core Network
The MegaPath Secure to the Core network offers core security, private networking and compliance options all on a nationwide MPLS network
MegaPath provides one of the most inclusive nationwide networks covering data, managed security, and voice services. With more than 4000 COs (central offices) and over 20000 in extended areas, MegaPath provides high-quality service nationwide. As MegaPath privately manages their inclusive nationwide network, security and reliability are guaranteed.
On their Multi-protocol Label Switching (MPLS) network, MegaPath offers among the nations most substantial managed, facilities-based services offering data, voice, and security services in all states. With the assistance of labels, MPLS mechanisms direct and carry data from network node to network node prioritizing Internet, video, and voice traffic. In an effort to enable savings, MegaPath’s MPLS services allow IT supervisors to manage bandwidth costs through prioritization of data applications.
Security offers a variety of advantages and adds real value to your network. MegaPath provides core security offering thorough UTM (Unified Threat Management) delivering Anti-virus protection, Anti-spam, Advanced Firewall, Intrusion Prevention, Web Filtering, Data Loss prevention, and Web Application Control. MegaPath offers configuration options to implement Unified Threat Management at the customer’s home base, in the cloud, or a cross between the two to provide seemingly unheard of security. MegaPath also offers Enterprise clients performance-monitoring options enabling 24/7 tracking 365 days a year. In order meet various regulations, MegaPath offers compliance services to resolve problems of security information, vulnerability, and log management.
MegaPath’s extensive nationwide coverage offers a series of network advantages:
- Disaster Recovery provides network managers flexibility to route traffic avoiding bottlenecks, congestion, and link failures.
- Real Speed: Packets are forwarded faster as routers only examine short labels.
- VPNs and Connectionless Service: Simplified service eliminating the need for encryption and tunnels while still offering optimal network privacy.
- Improved Performance: A supreme solution for IP voice, video, and streaming media as MegaPath’s nationwide network minimizes latency, jitter, and packet loss.
- QoS (Quality of Service): Eight layers of Quality of Service manage streams.
- NAT (Network Address Translation): Since private addresses are translated to public addresses, NAT is not necessary. Avoiding Network Address Translation simplifies networking, as it’s typically a major inconvenience.
- Flexibility in Addressing Support: Ideal flexibility comes from support of any type of customer IP addressing.
- Smooth Layer Transition: Allows transitions from a Layer 2 network to a Multi-protocol Label Switching based IP VPN without large-scale changes in addressing or equipment.
MegaPath utilizes their three-layered nationwide network providing security and performance your organization needs. With the Physical Layer, Data Layer, and IP Layer, network reliability and security are unprecedented.
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Business Internet T1 Service
Today, access to the Internet is essential to the operation of nearly all businesses. Your connection’s speed and reliability can not only dictate the rate at which daily operations are conducted, but can also mean the difference between inactive employees and productive ones.
An Internet T1 connection is one of the most commonly employed services among modern businesses – and for good reason. Liberated by the geographical restrictions that are frequently associated with other means of Internet access, a single Internet T1 line delivers 1.5Mbps of reliable, high-speed internet access. That’s 60 times faster than dial up!
T1 lines can also scale to meet your business’s unique requirements. For example, if your business does not demand all 24 channels that a full T1 line has to offer, you can opt for a fractional T1. As its name implies, with a fractional T1 service you essentially rent and pay for a fraction/specific number of channels on a T1 line. This is a great option for new or smaller businesses because it provides the same speed and reliability for less cost. Likewise, if your business requires more bandwidth than a single T1 can offer, consider a bonded T1. A bonded T1 is simply two or more T1 lines bonded together to increase the amount of available bandwidth. While a single T1 line provides 1.5Mbps, a 2xbonded T1 provides 3Mbps, 4xbonded T1 provides 4.5Mbps, etc.
When compared to alternative Internet access methods, such as DSL or Cable, Internet T1 service offers a more reliable connection due to the fact that it is a dedicated only to you and your business. DSL and Cable are shared connections, meaning you share your Internet connection with as few as 10 or as many as thousands of your neighbors; as a result, speeds can slow down significantly during peak hours. A T1 connection, on the other hand, is used solely by your business, eliminating the hassle of peak hour slowdowns and giving you a consistently reliable, powerful connection 24/7.
Additional Information
If you’re searching for the ideal telecommunications service for your business, give us a call today!
Our experienced staff and sales partners provide unbiased, carrier neutral advice on services from the industry’s finest providers of Local, Long Distance, Toll Free, International, High Speed Internet and Data services, Ethernet solution in order to negotiate the best solution for your unique business. Moreover, because of our strategic partnerships with today’s leading service providers, we are able to offer you the ideal service that meets your needs at the best available price.
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Small Business Internet T1
While a cable or DSL connection may be adequate for a home office or a business with fewer than five workers, anything bigger than that will demand a more reliable, more powerful, connection to the Internet, such as an Internet T1 connection.
Internet T1 connections are a great option for small businesses because of the scalability, affordability and security they offer. For example, if your business does not require the bandwidth and power of a full T1 line, but you still want to take advantage of the speed, precision, and security that it offers, consider a fractional T1 connection. This would allow you to use and pay for a set number of the 24 available channels on a T1 line. On the same note, if your business demands more than what a full Internet T1 line can offer, consider a bonded T1 line. As its name suggests, bonded T1 connections bond multiple T1 lines into a single pipe for a higher amount of T1 bandwidth.
Aside from speed, the biggest difference between an Internet T1 line and cable or DSL, is that an Internet T1 connection is dedicated solely to you and your business, giving you the same speed and reliability 24/7. Cable and DSL, on the other hand, are considered a shared bandwidth agreement. This means that your connection is transmitted via a pool that services many other subscribers in your area, and as a result, can slow to a crawl during peak hours where many users are online.
The increasing number of competitive T1 service providers in today’s market has significantly driven down the cost of Internet T1 lines, making them increasingly more affordable to a greater number of customers. However, at the end of the day, the price of your bonded, full, or fractional T1 line will depend greatly upon your businesses’ location and its closeness to your provider’s Central Office (CO). The greater the distance between you and the CO, the more expensive your connection will be. Having said that, the provider you choose might offer a package deal or bundle that includes routers, cables, and additional equipment as well as the T1 line, for a fixed monthly cost.
Additional Information
T1 lines and Ethernet connections provide greater consistency and reliability, making them better suited for not only mission-critical tasks, but also the deployment of data, voice and video transmissions, such as VoIP (Voice over Internet Protocol). If you’re interested in finding the ideal Internet T1 connection for your business, contact us today!
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Managed MPLS Service
Managed MPLS services are perfect for Small, Medium and Enterprise sized customers. It allows the customer to connect all of their different locations over a secure, seamless and fast service. MPLS, or Multi-Protocol Labeling System has become the standard for any company that is looking to use a Wide Area Network (WAN). Carriers connect different offices and locations with varying levels of quality of service. With these varying levels of quality of service also comes the ability to customize your network to meet your exact needs.
MPLS networks are 100% secure, seamless and private. Customers are able to relax knowing that any information sent over their network is 100% secure and guaranteed to be private from anyone else on the network. Additional features on MPLS include Fail over options, Internet Access options, VPN options and firewall settings. With failover options you can ensure that even if your network experiences an outage, your service will be guaranteed to continue to work. It would be as simple as turning on or off a light switch. We will work together with the customer and carrier to create the right network design. Once this is completed we will visually create a map of what your network system and settings will run like.
To ensure the highest speeds possible, Gig backbones provide the connection in between each of your locations. This will not only provide a timely service, but will ensure that the information being transferred between each location is safe. Additionally different access methods can be provided. Customers can choose between Ethernet, Fiber, T1, DS3, DSL and Bonded T1 solutions for their network. Depending on each location carriers can often use a blend of Ethernet services, or T1 services to meet your exact needs.
Once you decide on which carrier you would like to use for your network you are given a service install engineer that walks with you through each step of the process. In doing so, the services and installation dates are met with ease. The service engineer acts as a single point of contact and advice throughout the MPLS installation process. Every Carrier has different methods as to the way MPLS services are installed, but one point of design from each is the seamless and effective use of great communication. Find out how Fastblue Communications can help you reach your network goals through our unique carrier relationships and options.
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When a T1 Line Just Won’t Cut it
Is your Internet T1 Connection dragging you down?
Not long ago, an Internet T1 Connection was considered top of the line for the majority of small and mid-sized businesses. Network admins appreciated the reliability of T1 lines, and employees enjoyed surfing the web at speeds that seemed to be infinitely faster than traditional 56k dial-up connections. Coffee shops and Internet cafes would advertise their T1 connections to draw in more customers. In this context, an Internet T1 connection was presented as the be-all-end-all Internet circuit.
It is rumored that Bill Gates once said a 512k connection is all the bandwidth anyone would ever need. Oh how times have changed! Due to advancements in technology and business applications, it is crystal clear that is no longer the case. The same revolution of data communications that the T1 line assisted in launching has caused it, paradoxically, to be out-shined.
Today’s businesses rely on high-speed Internet access for mission-critical applications, including marketing, sales, customer service, and customer relationship management applications. Add to that the use of audio, web and video conferencing and it is easy to see why even smaller businesses are requiring more T1 bandwidth.
So what are your next options?
Bonded T1 – Just as its names implies, a bonded T1 provides dedicated service using two or more T1s that are tied together to effectively give a higher capacity line. For example, two bonded T1 lines can provide up to 3 Mbps of data transfer in a single connection; three bonded T1 lines provide 4.5 Mbps, etc., however once you pass 12 Mbps, you’re likely better off with an alternative connection. This bonding is done within Customer Premises Equipment (CPE) that the service provider installs.
Ethernet over Copper (EoC) – Quickly becoming a popular alternative to T1 and bonded T1 lines, EoC uses the same twisted pair telco wiring that provides your T1 lines, but different terminal equipment at your location and at the far end installed in the telco central office (CO). While EoC offers more bandwidth for less cost than other legacy services, it is distance sensitive, and requires users to be within a specific amount of feet from a provider’s CO.
Fractional T3 – Businesses that require more bandwidth than a T1 line can offer, but do not require the full 45 Mbps a full T3/DS3 provides will likely benefit from a fractional T3. The allure of the fractional option is the lower cost and, most importantly, the ease of upgrading.
Full T3 – If your business demands a great deal more bandwidth than a T1 line can offer, a T3 line might be the right solution for you. Also known as a DS3, a single T3 line delivers speeds of up to 45 Mbps. And just like a T1 line, a T3 line can be channelized to deliver voice as well as data.
Additional Information
If you are interested in finding the ideal Internet access solution for your business, give one of our professional account managers a call today!
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XO Communications Launches New Cloud Services – Concentric Cloud Solutions
The new XO Communications is looking better and better
XO Communications is one of the nation’s largest communications service providers. Since becoming a private company in the fall of last year, XO has undergone a company-wide makeover that includes a new logo, a stronger emphasis on customer experience, greater efficiencies via specialized product types, new quoting tools and improved CLEC self-service tools.
On May 1st of this year, XO announced the launch of its new cloud-based virtualization, content acceleration, and interactive contact center solutions for businesses – Concentric Cloud Solutions. A business unit of XO Communications, Concentric Cloud Solutions, LLC, offers interactive voice solutions, content acceleration and advanced cloud-based IT infrastructure for businesses.
Building on the cloud services XO rolled out early last year, Concentric Cloud Solutions leverages its own cloud-based technology in addition to technology from partners such as VCE, LiveOps, Limelight Networks, and the XO nationwide network. Moreover, Concentric Cloud Solutions will include a unified user interface through which they can provision and manage their services.
Concentric contact center services allow for inbound and outbound communications for customer contact center needs, and include conferencing, intelligent call routing, interactive voice response and more. Using Limelight Network’s technology via the XO network, Concentric content acceleration services enable companies to speed up the delivery of mobile and web-based apps, online content and digital media. Finally, the Concentric cloud computing services include cloud-based data back-up and shared hosting, cloud storage, managed dedicated servers as well as Enterprise Cloud on-demand computing and storage.
And in other XO news
After signing a five-year agreement with Transmode, sources close to the company say XO Communications will increase its metropolitan capacity across its nationwide network. While XO has been relatively quiet with public announcements since becoming a privately held company in 2011, Transmode CEO Karl Thedéen has stated that his company is looking “forward to supporting XO Communications in their ambitious to drive down network costs and adding new service capabilities.”
About Transmode
Transmode is a worldwide provider of packet optical networking solutions that are designed to increase the functionality, flexibility and capacity of optical metro core and metro access networks.
Additional Information
If you’re searching for the ideal DSL, Ethernet, Integrated access, Internet T1, Bonded Internet T1, Internet T3, Internet DS3, Long Distance T1, MPLS, Voice T1, Voice PRI, or VoIP solution for your business, visit us at T1Evereywhere.com for an instant pricing, no obligation quote; or if you’d like to speak with one of our professional account managers, simply call 888-972-2583. Not only do we have a proven track record of negotiating the best solutions and pricing for our customers, but we also offer an unbiased alternative to the traditional sales organizations of the telecommunication providers.
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tw telecom In the News
First quarter profits and revenues are up
In the first quarter of this year, Colorado-based internet service provider tw telecom saw both profit and revenue growth.
The managed services provider – recently ranked third on Vertical Systems Group’s business Ethernet market leader board – has grown its revenues for several years now, increasing just fewer than 8% to almost $359 million, largely as a result of expansion in the enterprise business sector. Meanwhile, tw telecom’s net income rose more than 50% to $19.3 million, while earnings per share increased $0.05 to $0.13.
In a recent statement, Larissa Herda, tw telecom’s CEO explained that the provider posted its “30th consecutive quarter of sequential revenue growth, delivered strong margins, and grew both net income and levered free cash flow, while [continuing] to advance the business with new products and capabilities.”
Also in tw telecom news
Customers now have access to real-time network performance information
Not long ago, tw telecom announced the first phase of its Intelligent Network portfolio – Enhanced Management service. The Enhanced Management service was launched nationwide, and provides Converged, Ethernet and Internet Protocol Virtual Private Networking (IP VPN) customers with real-time network performance management information, such as jitter, latency, packet loss, Class-of-Service (CoS) utilization and bandwidth utilization.
Previously, tw telecom carried out a limited release of Enhanced Management for both its Converged and IP VPN customers. The new rollout now includes Business Ethernet customers and its expected to be complete by summer of this year.
Forthcoming phases of the provider’s Intelligent Network consist of App Aware Networking and Dynamic Capacity. Currently tw telecom’s MyPortal interface allows customers to access their account team contact information, track orders and change requests, submit/track trouble tickets, view and pay invoices, etc. With the rollout of Dynamic Capacity, enterprise customers can immediately scale their Ethernet bandwidth across their network without interrupting their service.
About tw telecom
For almost 20 years, tw telecom has provided the most sophisticated telecommunications solutions on the market to a broad range of businesses and organizations across the United States. Serving over 27,000 customers and built on a legacy of success via exceptional customer care, remarkable products and powerful networks, tw telecom is able to deliver scalable solutions that will help you improve your business metrics.
For more information on business-class services offered by tw telecom and other leading providers in your area, give one of our professional account managers a call today!
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Demand for T1 Bandwidth Grows as Budgets Shrink
Worldwide Internet traffic is projected to grow over 30% per year until 2015. Back in 2010, an average of 46 terabits per second traveled across the Internet; that number is expected to exceed almost 200 terabits per second in 2015. However as IP traffic is seeing exponential growth, the budget for network equipment is increasing at less than 10%.
The International Data Corporation (IDC), a premier global provider of advisory services, market intelligence, and events for the IT, telecommunications and consumer technology markets, forecasts that Ethernet equipment spending will grow approximately 8% every year until 2014. This poses a significant challenge to the industry: finding a way to supply over 30% more traffic per year with just 8% more revenue.
This week, we will cover three of the biggest factors that are contributing to T1 bandwidth growth:
- User base expansion: As the ease of connection grows and the associated costs decline, the number of Internet users grows at a rapid pace – both demographically and geographically. Consistent with the Visual Networking Index, by 2015 the number of Internet users will reach more than 2.1 billion (a growth rate of roughly 5% per year since 2010).
- Upsurge of smartphones and similar devices: According to the IDC, in 2012 over 1 billion smart devices – roughly half of them being smartphones – will be shipped around the globe. Because smart devices make the Internet more accessible than ever before, more users will be online in more locations for a greater amount of time. So much so, in fact, that the number of smart devices that will be in use by 2014 is expected to reach 3 billion.
- Video: Streaming video to smart smartphones, tablets, televisions, etc. have been a large part of Internet traffic growth. Compared to the early days of short, grainy, low-quality videos that were streamed mainly to PCs, today billions of people are watching longer, clearer, higher-quality videos on multiple devices. This combination of longer, higher-quality videos on multiple devices has created exponential traffic growth.
Additional Information
If you are searching for the ideal bandwidth solution for your business, give one of our professional account managers a call today. Our experienced staff and sales partners follow a strict process of assessment, analysis and recommendations to provide our customers the greatest possible savings and ROI from their voice and data communications infrastructure across multiple vendors product lines.
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AT&T and IBEW Reach an Agreement
There is now a small beam of light at the end of the tunnel for AT&T wireline employees.
Sources are reporting that significant progress has been made between the provider and a number of its key landline employees. According to a recent report put out by the Dow Jones Newswire, the International Brotherhood of Electrical Workers (IBEW) – covering roughly 7,000 workers in northwestern Indiana and Illinois – have managed to reach a deal with AT&T- leading internet t1 service provider.
The contract that was set to expire on June 23rd will now be extended for one year. As a result, all employees will receive a 1% bump in their salary along with a $500 bonus for those making less than $50k/year, and a $300 for those making more than $50k/year.
However, while this progress is good news for some, there is a lot more work left to do. Although they were unable to reach an agreement with AT&T before their contracts expired in April, negotiations for the nearly 40,000 wireline workers represented by the Communications Workers of America (CWA) and the IBEW in other areas of the country are still on-going. In the meantime, workers have managed to stay off the picket lines, and are still covered under the terms of their now-expired contract.
Wireline workers across the U.S. have been hit hard lately. Major carriers, including Verizon and AT&T, want to impose a number of pension cuts and increased health-care premiums for employees, alleging they are necessary in order to remain competitive and keep costs in check in the weakening wireline industry. According to AT&T, “wireline CWA employees currently pay about 60% less for health care than union employees in other areas of our business, AT&T managers, and the national average.”
The unions, however, believe that corporate greed is the true driving force behind the cuts. A recent updated noted that the “fight” will no longer be limited to the workplace; the union vows that it will go public, and will make it known that, “AT&T, one of the most profitable companies in America, is taking the LOW road and trying to destroy middle class jobs.”
In their case with Verizon, the CWA is quick to call attention to the fact that within the last five years Verizon raked in almost $20 billion in profits, and paid out more than $250 million to its top five executives.
Mobile VoIP Is On the Rise
Most of today’s business leaders are at least familiar with the term Voice over Internet Protocol, or VoIP. Most of us know VoIP as the service that allows you to make calls via the Internet; however, In addition to a wireline network, you can also make VoIP calls via a cellular data or wireless network. This is otherwise known as mobile VoIP.
Mobile VoIP allows you to make and receive calls through the use of a mobile phone’s connection to the Internet. This differs from a traditional cell phone call wherein you utilize your carrier’s voice network and are therefore subjected to their long distance charges and penalty fees if you go over your contracted number of minutes.
Mobile VoIP, just like VoIP, relies on Session Initiation Protocol (SIP). SIP is the standard that is employed by most VoIP services. Currently, it is being implemented on smartphones, mobile handsets and a growing number of cordless phones.
A number of studies now show that the number of mobile VoIP users is expected to skyrocket within the next 4 years.
As the number of smartphone users continues to grow, mobile VoIP solutions are gaining popularity. So much so, that research firm In-Stat predicted the number of mobile VoIP service subscribers to reach 29 million by the end of this year. According to In-Stat, smartphone penetration is the driving force behind the surge in demand, as many providers now offer services that grant access to mobile VoIP on some level.
In-Stat’s senior analyst, Amy Cravens, explained that, “While VoIP is a well-defined market, mobile VoIP is still in its infancy,” and because of that, there are considerable opportunities for businesses to develop the market. Cravens also noted that – just like with any new and booming market – there are many uncertainties that providers must overcome.
Juniper Research, a firm specializing in the identification and appraisal of high growth opportunities across the mobile telecommunications, content, and applications sectors, has predicted the number of mobile VoIP customers will reach a whopping 640 million by 2016. Their findings indicate that growing user awareness, more intuitive interfaces and improved technology all account for the rising ascendancy of the application download model for mobile VoIP.
In addition, Juniper Research added that, due to technological improvements and the launch of mobile video calling by leading providers, the number of mobile video calling users will surpass 130 million within the next 4 years.