When do I need a T1?
If you're a business owner, you've probably heard of the term "T1" even if you don't want to get involved in your company's telecommunications. Many of my clients ask me if they need a T1. The answer is different today than even five years ago.
First let me explain what a T1 is...A T1 is a digital line that was traditionally for EITHER voice OR data. A voice T1 has the equivalent of 23 or 24 lines (called "channels") in contrast to standard analog voice lines (which are referred to in the industry by the highly technical acronym "POTS" -- Plain Old Telephone lines!). A data T1 is a high-speed dedicated Internet connection that delivers 1.54 MB of bandwidth.
In years past, voice T1s were reserved for companies needing 15 or more standard lines. At that point, it cost less to bring in a T1 than to pay for 15 lines individually. For your phone system to accept the T1, it requires a piece of hardware called a T1 interface card. Data T1s were also for larger companies who need dedicated Internet access versus shared access that a DSL or cable line offers.
You can still purchase a voice T1 and a data T1 separately (and it makes sense to do so if you have and or need 15 to 20 voice lines). However, within the lasts few years, a new product called an "Integrated T1" is now offered to smaller companies and it is very cost-effective. An "Integrated T1" is a digital line that offers BOTH voice and data service. It comes to your business through a box in the phone room (supplied by the carrier) that converts some of this digital circuit to plain old voice lines which plug right into your phone system (no interface card for your phone system required).
You'll see the term "dynamic bandwidth allocation" associated with this product. This means that the circuit carries both voice and data in increments dictated by the business at any given time. One traditional phone line takes up 64k (uncompressed). So if you have 4 phone lines in use, you are utilizing 256k (4 x 64 = 256k) of a 1.54MB circuit. The difference between the two numbers is what's left to use for data. For example, as voice lines become available, the remaining bandwidth is used for the Internet. New technology allows for compression so with some carriers a phone call may take up only 32k (32 x 4 = 128k), leaving even more bandwidth for data.
The bottom line is that now smaller businesses can use a T1! And it's often more cost-effective than paying for four analog voice lines plus features like Caller ID, plus long distance usage, plus local calling usage, plus a high-speed DSL. Carriers offer included calling features and unlimited calling packages using an Integrated T1. They can do this because it costs them less to bring in one digital line than it would separate services. So now when clients ask me if they need a T1, I use these guidelines:
1) Do you have or need at least 4 voice lines?
2) Do you require high usage calling plans?
3) Do you have high-intensity applications that could benefit from high-speed dedicated Internet access?
If the answer is Yes, then we look at an Integrated T1. Not always, but surprisingly often, an Integrated T1 is a less expensive option than purchasing separate voice and data services.
