FAQs

The price of an Internet T1 is generally made up of two components: the local T1 loop price and the port price. The local T1 loop is what connects your location to the carrier's POP (Point of Presence). Local T1 loops are priced according to the distance from your location to the carrier's POP and are priced differently by all carriers. If you are looking for T1 prices it is best that you receive quotes from multiple T1 carriers to insure that you get the best deal available. As a rule you can expect an Internet T1, including local loop, to cost between $400 and $1,300 a month, depending on the installation location and the desired speed of the T1 service.

Just because a carrier says that they are providing a T1 to the Internet; do not assume that all carriers are providing the same T1 service. Every carrier uses different technology and design in transmitting data from your location to the Internet. Large carriers like AT&T, Qwest, Sprint and WorldCom use fiber optic backbones that they own and operate. These networks are highly sophisticated and redundant and can move data at speeds up to OC-192. When you buy access from one of these providers - or from a rebiller of their T1 service - you are getting the highest quality available. Some smaller providers will buy access from a large Tier One provider then resell the T1 service to a large number of subscribers, resulting in poor quality. If you have questions about what network a T1 provider is using, we would be happy to provide you with the answers that you need.

The primary difference between DSL and a T1 is in the level of over subscription that occurs before the service reaches the end user. When you purchase a full T1 of Internet access, what you are generally getting is access to 1.544 Mbps of transmission on the carrier's network, regardless of what other customers are transmitting and receiving. To better illustrate this, let's assume that a carrier has capacity for 150 Mbps at any given time. This means that the at the most, they would sell is 100 T1s; Tier One carrier networks are seldom oversubscribed. For every megabyte of capacity, they can sell one megabyte access to a customer.

DSL works differently then T1 lines - and costs less - because of over subscription. When you use a DSL connection your service runs through a piece of equipment called a DSLAM, as opposed to running directly into the Internet. The DSLAM acts as a point of aggregation between the DSL subscribers and the direct connection to the Internet (normally a T1 or DS-3). Typical DSL over subscription rates run from 4:1 to 25:1. Or in other words, for every one megabyte of demand coming into the DSLAM, a fraction of that is available. The benefit to this design is that a DSL provider can provide a 2 Mbps connection for a fraction of the T1 price. The disadvantage is that when the DSLAM gets busy, your connection speed will slow considerably.

When a carrier gives you the option of purchasing a full T1, you can get the full 1.544Mbps circuit unchannelized direct into the Internet (or Frame Network, or Point-to-Point); also known as a clear channel T1. A Fractional T1 is a channelized T1 with only some of the channels turned on. Fractionals are normally priced in terms of Kbps. For example you can get 384kbps, 512kbps or 768kbps from most carriers. However, given the cost of provisioning, you may be better off paying a couple hundred dollars extra for the full line.

Because T1s can be broken out into channels, voice and data can run side by side on the same circuit. They require a device to convert the signaling from that used on the T1 into signaling that can be used by the phone, the equipment, or router. The technical name for this process is multiplexing and the equipment required is called a multiplexer; but it is known more commonly as a channel bank, CSU/DSU or T1 card. In the case of an intergrated one, the service can be run from the phone company's jack into the channel bank where the voice service is terminated and a jack for the data service is located. The benefits of using an intergrated version include lower rates for long distance, additional lines for long distance and toll free calling and the ability to bundle your data and phone costs on the same bill and same circuit. Nearly all providers are capable of offering intergrated voice and data products, some can even bundle local, long distance and data all on the same circuit. If you are looking for more information on Intergrated T1s or need to price service for your location, fill out our quote form and Business T1, T3 & DSL Line will provide you with prices from multiple providers within two business days.

Are Frame Relay, VPN, Dedicated Internet and T1 the same?

Frame Relay, VPN and Dedicated Internet Access all use T1 connections to make the respective service possible, but they are not the same. By itself, Trunk Level 1 service is nearly useless. It takes a standard or protocol like Frame Relay or VPN to provide data transport over a Wide Area Network.

The four most common uses of a T1 line include:

• From one point to another, this is often referred to a Private Line;
• From one point into a secure carrier network as with Frame Relay;
• From one point into the public Internet;
• From one point into a carrier's voice network.

Many T1 carriers offer bundled and managed T1 service. Bundled T1 service usually incorporates the T1 line charge and the router purchase/lease charge into one monthly fee that can be paid directly to the carrier. Typical routers that are bundled with T1 service include the Cisco 1720, Cisco 1600 series router, and Netopia brand routers. Routers can be leased for a number of years with a $1 buyout at the end of term or they can be purchased upfront for a flat fee. For an extra monthly fee many carriers will "manage" the router on the customer's behalf. This service normally includes maintenance, equipment warranty, software upgrades and router programming. Some T1 carriers include these services for all T1 circuits and others offer the service for an additional fee which ranges from $10-$100 per month. The competitiveness of these bundled packages varies greatly, so it is best to price the T1 service with and without bundled equipment.

Most routers capable of providing protocol switching for T1 service can be used for Frame Relay. Frame Relay works by encapsulating the data to be delivered into a packet, sending it through the network and breaking it apart once it arrives at the destination location. The process of encapsulating and breaking apart data is often referred to as protocol switching and can be handled by most modern routers. VPN on the other hand may require additional hardware, such as a VPN firewall or VPN hardware box; this equipment is responsible for the encryption and tunneling of VPN data.

In order for VoIP to work properly the voice packets must have the highest priority to avoid latency. The equipment responsible for insuring the QoS (Quality of Service) of the voice packets is normally referred to as a VoIP gateway. It is important to note that some of the newest integrated products for T1 service have bundled the functions of multiple devices into one. These products are often capable of routing, prioritizing and converting protocols all through one device.

As many telecommunications companies have fallen on hard times, the number of telecom bankruptcies has increased, resulting in shuttered networks and stranded customers. T1 connections are often central to daily operations and considered extremely important. For this reason it is crucial that the chosen T1 provider be stable and competent in providing the contracted services. Bandwidth Resource is committed to offering T1 services from providers that are stable, our compensation and our future is dependent on it. It is important to note that telecom companies in bankruptcy are often capable of providing high quality service and strong customer support, but that is not always the case. Another important element in the decision making process is the coverage that a carrier is capable of providing. AT&T, for example, has more POPs nationwide then any other carrier. This means that on average, customer locations are closer to AT&T's network then the networks of other carriers. Network proximity has an impact on cost because of the mileage sensitive nature of T1 lines and T1 local loops. The final consideration that we believe is important in selecting a T1, Frame Relay or Internet provider is their capability to provide provisioning, billing and technical support. T1 products are by their very nature, complicated and require a good deal of support from the company providing them. Unfortunately, size is a poor predictor of customer support; many Tier 2 and 3 carriers provide better support to small customers then their larger competitors.

Most telecom carriers offer T1 services through two main channels. Customers can purchase T1 services directly from the carrier via a direct sales representative or indirectly through an agent or partner. Bandwidth Resource is an agent for over thirty carriers and will present prices and services from multiple T1 providers, allowing the customer one point of contact for T1, voice and data services. While agents are not direct employees of any one carrier, they have access to the same products and prices that direct representatives do. In fact, due the competitive nature of the telecommunications business, agents can often offer more competitive prices then direct representatives. Agents normally assist with, but are not responsible for, customer service, technical support and provisioning. Agents don't provide or bill for services, but rather insure that customers receive the support and T1 service that they deserve.

In most cases the installation of the T1 service is handled by the ILEC (Incumbent Local Exchange Carrier) such as Verizon or SBC. These companies are responsible for the last mile of service from the POP (Point-of-presence) to the customer's location. For example, with T1 service the ILEC will come to the customer's location and install the smart jack (RJ-45) and test the circuit through to the T1 carrier. The provider pays the ILEC for the installation of the line and may or may not pass these charges through to the customer. It is uncommon for a representative of a T1 carrier to visit the customer location and be directly involved with the T1 installation.

An integrated T1 can be configured in over a dozen different ways, but every configuration must include a T1 local loop for the services to run over. The T1 loop can cost from $150 to $800 a month depending on the carrier and the customer's proximity to the carrier's network. Other monthly charges could include Internet access port charges, long distance per minute charges, Frame Relay port charges and point-to-point port charges. Integrated T1s MRC (Monthly Reoccurring Cost) ranges from $500-$3,000 per month depending on the number of services that are utilized.

Unlike regular T1 service, integrated connections require sophisticated equipment on the carrier's side to split the 24 channels into diverse services. Typically, Tier 1 providers are capable of providing integrated services for Frame Relay, VPN, Internet and dedicated voice service. Examples of these providers include AT&T, WorldCom, Sprint, Qwest, Broadwing and Cable and Wireless.

Integrated ones are capable of running multiple services over the same loop; however these services are typically hard-coded into the circuit during provisioning, and can't be changed dynamically. As IP (Internet Protocol) and T1 technology advances it is likely that it will be possible to dynamically configure a T1 circuit, reallocating channels as needed.

Integrated ones are the most common integrated service, but other access types are capable of similar configurations. Some new DSL products offer local, long distance and Internet service bundled on the same circuit. T3 (also known as DS3) is also capable of supporting multiple services on the same circuit, usually long distance, Internet and WAN (Wide Area Network) services.

In order to access multiple services that are delivered over the same T1 circuit, it is necessary that the customer have equipment capable of separating the individual channels. For example if the line was carrying dedicated long distance on channels 1-12 and dedicated Internet on channels 13-24, the router or channel bank would need to split the dedicated voice and Internet apart so that it could be routed to the end device. Most new T1 channel banks are capable of separating voice and data that is delivered on the same line; the same is true for newer T1 routers.

Voice T1 lines are priced by distance from the carrier's POP (Point-of-Presence) to the central office that the customer is served out of. These T1 lines range from $100 to $500 per month depending on location and proximity to the carrier's network. A full long distance T1 is not the same as an Internet T1 line and is used only for long distance voice communications. However, if you do not require a full T1 (24 voice channels) for long distance or a full Internet T1 line (1.544Mbps) it is possible to split it into two parts. This is commonly referred to as integrated service. Typical T1 configurations normally include a set number channels for Internet and a set number of channels for Internet service.

Voice T1s can be terminated in a number of fashions but additional equipment is almost always required. If a PBX (Private Branch Exchange) phone system is being used, a T1 line card can be purchased to integrate it into the phone system. If a system is not being used, a T1 channel bank will split out the 24 channels so that they can be used like traditional phone lines. Voice T1 lines are normally delivered via a jack provided by the local phone company; this jack is normally a RJ-45.

For the most part any long distance carrier who provides switched long distance service can provide dedicated long distance via a T1 or T3 line. Examples of these companies include AT&T, MCI WorldCom, Sprint and Qwest. Choosing a company to provide dedicated T1 or T3 long distance service normally involves a review of their prices and per minute rates, which vary greatly from provider to provider.

For companies considering the many alternatives for long distance service, there are two main formats commonly used to transmit long distance voice traffic. The most ubiquitous form of long distance calling is the switched call. These calls originate from regular POTS (Plain Old Telephone Service) lines and are routed through the local telephone company's central switch. Dedicated long distance is transmitted over a digital T1 line from the customer's location through the local telephone company's central office - but not through the switch - where it connects directly to the carrier's voice network. This direct connection to the carrier allows for considerably lower per minute rates but because the carrier charges a monthly fee for the T1 line, the volume of calls must be great enough to produce a savings.