Last update:

07/08/2006

Do I need a T1 line?

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What is a T1 Line?

A T1 can easily be thought of as 24 lines brought into your building or telephone system on 2 pairs of wires (4 wires). Each line on a T1 is called a DS-0 or a channel. These 24 lines can be configured in many ways. A T1 can handle only data, only voice calls or a combination of both. For example, you may need 15 lines to handle your telephones calls you could use the remaining lines for your Internet connection.

Can a T1 be used for both in and out bound calls?

This depends on the carrier. In most cases yes.

Can a T1 Save My Business Money?

This depends on a number of factors. You will typically save on your long distance bill when using a dedicated T1. However there is additional cost to bring the T1 into your building. This is called the “Local Loop” – the T1 between your building and the Inter Xchange Carrier (IXC). This cost will vary based on the distance between you and the IXC and your building and even the area of the country you are in.

There may be also the one time charge to install additional hardware into your telephone system. Most modern telephone systems have the ability to handle a T1 by simply having your telephone vendor program and install a card.

If you consider the following example, the following shows a monthly savings of $490. This typical customer has 15 phone lines and one Internet connection. By switching to a dedicated T1 with 15 voice channel and 9 internet channels, this customer saved $5880 per year.

Current Setup	Dedicated T1
15 Phones Lines @ $35 Each	Local Loop @ $445
1 DSL Line @ $230	High Speed Internet @ $0
Long Distance Bill @ $300	LD Bill @ $120
Total Monthly Cost: $1055	Total Monlyly Cost: $565

What Additional Hardware Will be Required for My Telephone System?

This depends on your telephone system. In most cases you will need a T1 card and a CSU. You may also be required to have a T1 cable run from the D-Marc to your telephone equipment room.

In many cases, depending on the contract you sign, you may be able to negotiate to have the carrier reimburse you for the cost.

Are there down sides to having a T1?

Yes. If you've ever had one of your local analog lines go dead you may have experienced some dificulty with calls having trouble going or worse yet, complaints of calls not being answered coming in. Now consider what happens if a T1 goes down. That is 24 lines now dead instead of 1. Your customers may think you've gone out of business. The good news is, your carrier is usually a little faster in getting a T1 repaired.

Most companies will keep a small number of analog lines for backup and in the event of a failure the carrier may be able to route inbound calls to them.

Conclusion

Your exact cost/savings must be looked at individually. The benefits will change depending on your scenario and on the area of the country you live in.

If you would like personal assistance please email me at info@LDFacts.com

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