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Cheap T1s? It's a jungle out there! T1 costs will vary by a number of factors, including location, state tariffs, mileage, competition, existing volume discount structures, and available capacity. The best conditions for a cheap T1 would include a short loop, heavy competition, ample capacity (among the competitors), a healthy resale market, and existing volume purchase agreements with carriers. T1 lines will cost more if they are associated with a T1-based service (Internet access as an example). Though the cost to the carrier to provide T1 access from location A to carrier B is roughly the same as them providing T1 access from location A to their own suite of services, carriers will sometimes discount services since they are bundling rate elements together. The idea is for carriers to get "all they can" in terms of services and revenue from every customer, so if you purchase more than one element, the sum of two separate elements is likely more than bundling them together under one invoice. For basic discount T1 access, expect prices to start at $250 for a "zero-mile" T1 and escalate to over $1500 for a T1 access line running a couple of hundred miles. The cheapest T1s will be considered "zero-mile" meaning there is very little copper loop involved with installing and supporting the circuit. Sources for Pricing. Every carrier that provides cheap T1s will be happy to quote a price. Whether the price is competitive to other carriers, or considered cheap by your Accountant is debatable. Be prepared to offer the location name, address, suite number, contact information, etc for an accurate quote. If you're looking to use an online source that will "shop" the retail rates for you, consider a source such as Don't expect an immediate response, however. An inquiry will alert a salesperson that will work with you on the cheapest price he/she can find for your location from the list of carriers that they represent. If you do have existing carrier agreements, consult your local account team for the best discounts they can offer. If not, go to the carrier's main website to be contacted by a representative for an "off-retail" quote. Volume discounts are commonplace in the telecommunications pricing structure. If your lease covers only a single T1, your volume discount structure would be based upon this revenue level only. However, if this T1 is part of the overall company's voice and data expenditures, significantly larger discounts can apply. Customers who sign term agreements will also benefit from discounts, but beware: It is not suggested that companies enter into agreements longer than 2 years, and never commit at the revenue level, only the duration of the agreement. As prices may continue to fall, you may have locked yourself in to a pre-set spending minimum, so tread carefully on revenue commitments to carriers. T1 Pricing Explained. T1 pricing consists of several components and is based upon rates that have been approved by the FCC and are documented in Tariffs. Tariffs are public documents submitted by carriers that describe services and rates offered to one or more customers. The main components of T1 line costs include the following:
Access T1s are rated based upon the serving wire center's proximity to the customer site, "as a crow flies." The term "as a crow flies" refers to a direct line from point A to point B. Most carriers' networks are setup in rings, so even though it may be exactly 1 mile "as a crow flies", it may take 5 "network miles" of cable or fiber to actually provision a T1 line. This practice, fortunately, was put in place so as to not penalize customers for how telcos engineered and built their networks. It also played well with pricing programs that were (and still are) based upon differential latitude and longitude calculations. |
Cheap T1
