Cost of T1 Bandwidth Vs DSL - Why the Difference?

There are a few very basic facts about T1 bandwidth and DSL that you must consider to understand why there is a price difference between the two for your business. Once you understand them you'll be able to make the best decision on what is the right solution for your voice/data network needs.

First, a T1 connection usually has a very stringent SLA (Service Level Agreement), one that cable and DSL does not. This means that your business has a guarantee of a specific "uptime" performance with T1 bandwidth. With DSL .... you won't get that guarantee. If something goes wrong with DSL you just have to put up with it and wait. Maybe for days. With a T1 line if something goes wrong it gets priority action with fast resolution .... usually within 4 hours.

Now ask yourself this .... which of the above is the best situation for your business? Can you afford to have all of your voice and/or data communications go down for an undetermined time? Or do you need a resolution fast so you don't lose business? Your answers will help explain part of the impact on cost differences for those situations .... the question than becomes which one can22you live with. With either you "get what you pay for".

Also, DSL and cable are shared services. Bandwidth is shared in the neighborhoods, and is often oversold. Thus many customers are paying for a limited resource, and the low retail price is the result. Even the facility into your location is shared: cable shares the TV connection, and DSL rides on an analog voice grade line. This means speed and performance will likely be affected.

On the other hand T1 is a dedicated service. It's yours and no one elses. Speed and performance are consistent. The T1 circuit is engineered as a digital circuit. Special repeaters might be required if you're far from the central office, and you don't share your bandwidth with other subscribers. Regardless you will have a reliable backbone for your network.

Relative to pricing trends, there really are two markets for T1 services: inside or outside of certain carriers' footprints. If you're within those service areas, then you can get obscenely inexpensive internet T1s, sometimes less than $300/month. If you're outside their service areas, then you'll be paying around $4-500/month. Particularly in rural areas.

So the bottom line is don't simply shop on price alone. Determine what type of network performance you must have and pay accordingly. Paying less for something that doesn't work the way you need it to will cost you MUCH more in the long run. But if you can live with that ... go for it. However, it is much more cost effective to pay a reasonable negotiated price for something that does everything you need. It also makes better business sense.

If you need help in finding the best T1 bandwidth based solution for your business voice/data network .... I strongly recommend the free support available via DS3-Bandwidth.com.

Michael is the owner of FreedomFire Communications....including DS3-Bandwidth.com. Michael also authors Broadband Nation where you're always welcome to drop in and catch up on the latest BroadBand news, tips, insights, and ramblings for the masses.

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Describing DS3 Bandwidth in "Non-Technical" Terms

Given that DSL is now commonplace in many homes... higher bandwidth concepts such as DS3 bandwidth are much easier to discuss with those with no or limited technical background. Particularly businesses without their own IT shop.

With that thought in mind... here's a non-technical description of DS3 Bandwidth and the different types of DS3 lines a business needing a voice and/or data network solution could opt for:

1. Full DS3 - simply stated, this is a 45 Mbps connection. This is about 90x faster than the average speed that is subscribed by a DSL customer. Thus, 90 people can easily and simultaneously access the internet or some other application... and receive excellent response time, just like you do at home.

DS3 is capable of running over 20 times faster than a T1 connection... Ideal for companies with the need for high speed data transfer between sites and offices specifically fast enough for transmitting full-motion, real-time video and very large databases.

2. Fractional DS3 - this is a speed that is less than DS3. It can be almost any speed that you choose that is below 45Mbps. It also costs less than a full DS3 obviously.

Fractional DS3 bandwidth gives you only a slice of the cake (sort of speak) which allows you to pay for only the bandwidth you need.

3. Burstable DS3 - This typically means that your average speed is much less than 45Mbps. However, there may be periods in the day when you need a little bit of extra speed. With burstable DS3, you will be able to get a temporary boost to a limit of 45Mbps. You pay for these boosts only if they exceed a pre-determined periodicity.

Burstable DS3 is on similar lines to Fractional DS3, again the user(s) only pays for what they need. You will receive a minimum 4 Mbps internet connection with a maximum of 45 Mbps on a DS3 Service depending on overhead, cost etc. Burstable will allow you to be billed in 1Mbp increments after the first 4Mbps. This is ideal if the bandwidth you use on a monthly basis is inconsistent.

4. Point-to-point DS3 - A full DS3 circuit (usually). Think of it as one postal address is connected to another postal address. Only these two addresses can share files, email, etc. Unlike the internet where anyone can talk with anyone. Best for networks where security and control of information exchange is important.

DS3 Service can be deployed for a wide variety of applications. The most common uses are DS3 point-to-point, DS3 Internet, DS3 Frame Relay, DS3 Voice and DS3 VPN. Choosing which Service best meets your needs would again be down to cost, the carrier (service provider) and the application for which the connection is being used. DS3 Point-to-Point is mainly used for secure data over a private line connection that belongs to the user only. This service is perfect for companies that send sensitive data over the internet.

For help deciding what type of DS3 bandwidth package best fits your specific business network application(s)... I recommend that you take advantage of the free assistance offered via DS3 Bandwidth Solutions.

Michael is the owner of FreedomFire Communications... including DS3 Bandwidth Solutions. Michael also authors Broadband Nation where you're always welcome to drop in and catch up on the latest BroadBand news, tips, insights, and ramblings for the masses.

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