DSL or T1? Why T1 Costs More?

T1 or DSLDSL or T1? Why T1 Costs More?

Let’s assume, you are responsible for providing Internet connectivity for your business. You compare the cost of a providing a dedicated T1 connection Vs. a residential grade DSL Internet service. The standard Broadband DSL Internet service costs well under $100 per month where the T1 Line Cost will be $300 or more even though they operate at the same speed, why the substantial price difference?

DSL – T1 Technologies: You won’t realize that you are trying to compare apples and oranges if you don’t know the difference between the two technologies. Let me explain, a commercial grade T1 connection is a direct dedicated line between your business location and the T1 service providers equipment. In simple terms, it’s your T1 line; no one else shares the bandwidth or has access to it. The T1 provider guarantees a consistent bi-directional speed of 1.544 Mbps. Let’s contrast that with DSL, a DSL connection is a shared with other DSL subscribers and often oversold to keep the DSL costs down. This means that the speed of your DSL connection will fluctuate depending on the number of other DSL users sharing the service.

Versatility Of Service: A T1 line consists of 24 DS-0 56 Kbps digital circuits bundled together for use with voice or data applications. These are high quality lines capable of simultaneously providing multiple telephone connections and high speed data transfers. A DSL line usually just provides ADSL data rates, where more bandwidth is allocated for downloading with less speed available for uploads.

Uptime Guarantees: T1 Connection service agreements include a extremely high, usually 99.99% uptime guarantee. In addition they have specialized technicians that monitoring the network and will be on-site 24/7 to repair any problems, usually within a few hours. However, DSL offers no uptime guarantees. In the event of a DSL outage, you’ll have to discover there’s a problem, and call the customer service line and wait for a unspecified amount of time until they can resolve the problem. This process could take a couple of hours or a couple of days.

Conclusion: If cost is your only concern and your business is not dependent on communications and the Internet, then the Cheaper DSL Service will surface. However, if communication downtime would affect your company’s bottom line or customer relations, then I would recommend installing a dedicated T1, bonded T1 or even possibly a T3 connection. You should consult with an independent telecommunications broker to determine your specific Business Communications needs and get the best price for those services.


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