While many people predicted the end of price erosion for a T1 internet connection it continues to fall. Service providers are up against stiffer competition and are desperate for new customers to fill their pipes and turn a profit. Are you ready to negotiate for a rock bottom price? Before you do, consider a few of the reasons for the drop in price on T1 bandwith.

T1 bandwidth pricing had reduces as companies have gone out of business and the large number of telecommunications companies are fighting for a place in a smaller market. While many service providers did have room to lose margin, many have come dangerously close to the edge of selling circuits at a loss and many have gone beyond this point. It seems that in the race to the bottom many providers failed to learn the lesson that selling at a loss does not create a long lasting and healthy company no matter how many circuits or widgets you sell. Many companies selling at a loss have already been in bankruptcy and look like they will repeat this exercise as they did not learn from their first go around. So, solvency of the T1 internet service provider should be a consideration when looking at great bargains.

Another consideration in bargain shopping for T1 service is the fact that all T1's are not created equal. Many providers are convinced (and rightly so) that customers are focused on price and are not concerned with quality of service. Many providers are now oversubscribing T1 service connections as though they were DSL connections. This means you may not get the bandwidth you thought you would get. Make sure when you look for that bargain price you also reveiw the SLA (Service Level Agreement) and make sure the contract protects you and guarantees you will get the bandwidth to which they committed. Remember, when bargain hunting for T1 service you'll most likely get what you pay for.

The t1 line rates is a digital transmission service that can be used for carrying voice and/or data. A T1 connection is sometimes referred to as a "dedicated service" as the service is delivered to and from the customer premise from the CO (Central Office) without combining it with other traffic. A T1 connections is established by providing a "loop" or wire from the users premesis to the CO where the service provider has equipment. Part of the cost of a T1 is the "loop charge" or the monthly rental fee for the wire that is rented from the local phone company. Once the connection reaches the CO it can access the carriers network and reach any destination.

T-1 provides high speed, point-to-point digital transmission line (up to 1.544 Mbps). This can be used as a single high-speed data channel or it can be split into 24 channels and allocated to either voice or data applications. It is widely deployed and readily available in most regions and although the service is not deminished by distance from the CO, the price is sensitive to distance. This is due to the rental of the loop from the LEC (Local Exchante Carrier). T1 is currently the most common way that large companies connect their LAN to the rest of the world.

Are you ready for T1 service? You may be ready if you have critcal services that need a reliable connection to the internet. If you run ASP services, host e-mail servers or web servers, have over 20 people accessing the internet or use video on demand you should consider T1 access. While more expensive that DSL, T1 access is made to support the above applications. Also remember that when you begin shopping for T1 service you should partner with someone who will act as your agent and represent your best interests. Consider using a broker or agent to help you with your search and cut through some of the industry lingo to help you get exactly what you need.