What Goes Into T1 Line Pricing

T1 Line Pricing

So you have decided you need more bandwidth, perhaps gotten budgets approved and are now in the process of doing some research about T1 lines and other high-speed internet options. Read on, and you will be able to understand yourself, and perhaps explain to a few others as well, the what, how, where, who and why of T1 line pricing. We excluded ‘when’ because it may not be as relevant as the others.

What are determinants T1 line pricing

The fact that a T1 line is provided in a variety of service options, and over different plans is the primary reason for price variation…but we’ll take a closer look at each of the T1 line pricing variables.

• The pipe: It is understood that the T1 line pricing would vary based on the size of the pipe you want to lease. The standard options provided by T1 line service providers are
• Fractional T1: A full T1 pipe is made up of 24 channels that each have a symmetric 64 Kbps upload and download speed. If you hire one or more channels, up to 23 channels, you’re a fractional T1 subscriber. Service providers normally allow sharing of a pipe amongst local businesses so they can offer the service at a much lower rate than when you take up a full-T1 line. So if your business requirements ask for 6 channels, your ISP would give you a price based on the fractional T1 line pricing standards.
• Full T1: As the name suggests, this is all the 24 channels of the T1 pipe dedicated to your business.
• Bonded T1: For customers who require a speed greater than a T1 line but less than a Fractional T3, ISPs combine up to 4 T1 lines to deliver up to 6 Mbps symmetric bandwidth

When you choose your pipe size, make sure you have considered all your requirements but also make sure you are not buying a shotgun to kill a mouse…T1 is expensive, even by the channel.

• The Services: There are different services that can be availed of while choosing a T1 line and each of these affect the T1 line pricing.
• Voice: Voice channels are priced differently from data channels.
• Voice with Delta Channel: For Call Centers that need a more efficient signaling information transmission, a slightly different type of T1 connection is provided, called the T1 - PRI. Here, in addition to the possible 23 voice channels, the 24th channel exclusively carrying signaling information is included. This extra technology obviously comes at a price.
• Integrated: Here, the ISP provides you with both a data-transfer connection, as well as voice lines for your VoIP requirements. Be sure to check the T1 line pricing for different combinations of voice and data lines before you take your call.
• Distance from your local data center: Well, you may have heard that it’s DSL and not T1 that’s affected by distance. It’s true…but not necessarily when it comes to T1 line pricing. After the Local Loop Unbundling rules ensured that the lines are available for whoever wants to lease them, Voice and Data connections could be provided by anyone. However, while some ISPs may not charge you for the last mile or the local loop, which connects your home to the ISP, some do and charge $250 a month or higher, depending on the distance. This would definitely have a significant impact on your T1 line pricing. Choosing an operator who does not charge, or one that’s closer to your home could make a huge difference to your bills.
• The Plan: Most ISPs provide both flat rate as well as “burstable” plans. While a flat rate ensures you would pay a uniform rate, it does not allow for a few spikes in your usage, especially during server back up or any other critical applications. Burstable plans on the other hand bill you on the average bandwidth usage, discounting a certain percentage of spikes in consumption. Depending on your requirement and how you plan to use the bandwidth, you can choose the plan that is best suited for you.

We hope this would have helped you in understanding how T1 line pricing works and what you need to look closely while getting a T1 line pricing from your ISP. If you are looking for a new connection or to migrate from your existing ISP, we would be glad to help you out with some of the best prices, with absolutely no obligations or strings attached. Just fill up this form and you could be on track to getting the best T1 line pricing you possibly could.

The inherent “Always On” nature of a leased line is a blessing for organizations that have the basis their business transactions in one or other form of data transfer, as this assures the agreed quantum of symmetric upstream and downstream bandwidth, irrespective of when or how it is being used. This feature, along with the typical Service Level Agreements offered by service providers gives businesses a secure and reliable connection to their application, information, data and communications infrastructure with a guarantee of availability.

If you are a business owner looking for an internet or network connection, you must consider the following aspects while making your decision, as it can guide you towards making the best decision.

• Is your business dependent on connectivity . . .
• To source/validate/process information like in the case of B2B and B2C e-marketplaces?
• For your CRM applications which are either hosted and provided to you as a Software as a Service (SaaS) or located centrally in your premises, accessed by multiple users within or from multiple locations?
• Do you have multiple locations/facilities that need to be connected at all times or at least during business hours, and need extensive communication between personnel from different facilities?
• Do you have information that needs to be kept strictly confidential and secure, yet available across your stakeholders within your network?
• For your CRM applications which are either hosted and provided to you as a Software as a Service (SaaS) or located centrally in your premises, accessed by multiple users within or from multiple locations?

When you are a home user or a small business user with less than 10 people accessing the internet for activities that include uploading of files or using VoIP, your upload speed doesn’t necessarily come under the radar and T1 speed doesn’t normally figure in discussions about internet connectivity. Same goes for businesses that use the Internet merely for email or perhaps research. However, if you have

• A server that people access via the internet
• A calling system like a toll-free line, or a customer support desk
• A requirement to upload files to remote servers or other locations accessed via the internet

If your answer to one or more of the above is a yes or even a ‘maybe’, then you should think no further, since a leased line will be your best option, be it a 64 kilobit, fractional, full or a bonded T1, depending on your specific requirement.