T1 Provider Options Grow, Prices Drop

Although many predicted the end of price erosion for a T1 internet connection, it continues to fall. Popularity of these reserved lines has allowed T1 usage to grow at an alarming pace over the past few years, and the trend doesn’t look like it is going to stop anytime soon. However, with all these customers, there are sure to be many new providers vying for your business.

T1 bandwidth prices dropped as some 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. So, solvency of the T1 internet service provider should be a consideration when looking for service.

It is also important to remember that not all T1 providers actually deliver the same product. Some of these providers have “overbooked” T1 lines, which should be reserved for one customer only. This has resulted in lower bandwidth rates than agreed upon at the outset. Be sure to properly research your potential T1 provider and thoroughly read the service agreement.