Telecommunications has come a long way since the days when Alexander Graham Bell introduced his “electrical speech machine” in the late 1800s.
What began as a device to educate the hearing impaired has evolved into one of the greatest and most important communications tools in the last 100 years — the telephone. But as magnificent an invention as it was, the early telephone could only transmit voices.
Today, the world is not limited to voice communication. With fiber optic technology, data can be transmitted over telephone lines at the speed of light.
While advances in telecommunications data technology have simplified life for the business owner, they have also introduced a plethora of technologies from which to choose. Selecting an application depends on the needs of the organization.
Does the company want high-speed connections, but not have a large budget? Does it prefer versatility to speed? Does it need speed and high capacity regardless of cost? Following are solutions for these basic scenarios.
Dial-up service
Dial-up access is the telecommunications application of choice for the majority of small businesses. It relies on dial-up modems that enable users to send and receive data over telephone lines.
While it is inexpensive (about $20 a month), easy to install and universally available, it’s slow, topping out at a speed of 56 Kbps (kilobits per second). Modem technology has increased connection speeds slightly, but the real performance issue lies in the wiring, as there are limits to the amount of information that can be transmitted over an analog telephone line.
ISDN (Integrated Services Digital Network)
ISDN is a viable option for businesses that want to maximize use of their existing telephone lines with the added bonus of increased speed.
Using a digital signal transmitted over a company’s analog telephone line, ISDN provides simultaneous voice, data and video communications, eliminating the need for separate lines for each application. At a cost of $50 to $130 a month, ISDN operates at twice the speed of dial-up modems (128 Kbps), but still relies on POTS (plain old telephone service), which was created for voice communication, not high-speed digital communication.
DSL (Digital Subscriber Line)
DSL service is a relatively recent technology that is rapidly becoming the answer to many small businesses’s telecommunications prayers.
DSL operates on unused higher frequencies on existing telephone wires and upgraded equipment at the telephone company’s central office, resulting in connection speeds of up to 1.5 Mbps (megabits per second), nearly 50 times faster than an ordinary 56 Kbps modem. At a monthly cost of approximately $100 to $300, DSL provides businesses with performance equivalent to a T-1 line, but at a significantly more affordable price.
Another attractive feature is that it’s always on; once a user turns on the computer, the connection is established until the computer is turned off. There are two notable disadvantages to DSL. Installation can be complex and costly, and the user’s site typically must be within three miles of the telephone company’s central office to achieve maximum performance.
Nonetheless, DSL is a solution worth serious consideration by any small business owner shopping for high-speed connectivity and convenience.
T-1
T-1 lines provide guaranteed high-speed Internet connections and quicker repair than DSL, but are out of the price range of most small businesses. A T-1 line can transmit at 1.5 Mpbs at a cost of up to $3,000 per month, not including installation and maintenance.
Installation usually requires costly, complex hardware that the typical small business simply can’t afford, but may want to consider as an option as the business grows.
Frame relay
Frame relay is another high-speed option that offers the added bonus of high capacity. It is also a more expensive option for small companies at a monthly cost of $300 to $3,000.
Frame relay is most appropriate for companies that exchange large amounts of data between remote offices. Because it doesn’t require a lot of bandwidth, a company won’t have to pay for more capacity than it needs, reducing equipment, access and operational costs. A frame relay system is also quicker to repair than other systems, another attractive feature to businesses.
Identifying an adequate and effective telecommunications system is a job best left to a professional. However, understanding the communications needs of the organization is an important first step.
Before making any decisions about what type of service is most adequate, it is a good idea to consult with a telecommunications company experienced in helping the five-person office as well as the 5,000-person corporation. Paul Allen is general manager of Adelphia Business Solutions’ Northeast Ohio office. He has extensive experience in the telecommunications industry, having held senior management and sales positions with MCI WorldCom and British Telecom (London), respectively. He can be reached at (216) 937-2900.
