The Missing Link

Posted on September 20, 2009

Something that has always bothered me and many of my potential customers is the “mising link”.  The “missing link” I believe in our industry is the data offering that is between a DSL connection and a data T-1.  There are many areas around this country where a business only qualifies for a 1.5 Mb high speed Internet or DSL connection and nothing else.  A 1.5 Mb business DSL connection is priced in the < $100 range, but an Internet T-1 starts with most carriers starts around $400-500.  For most companies even though a T-1 is available, making the jump from the $60 DSL connection to a $400 T-1 is daunting and not in the budget.  Regretfully a larger bandwidth DSL or Cable connection is not available because they are too far away from their LEC (Local Exchange Carrier) central office.  Although Cable companies like Comcast offer great bandwidth options - their coverage areas are extremely limited unless you’re office is downtown in a football city.

Kevin Walsh covers the topic (or lack) of broadband penetration well in his GIGAOM blog.  If you could imagine climbing up a ladder then realizing that one of the rungs is missing you’ll understand how many business owners feel when they realize they either can’t get a high speed connection at their new office, or can only get something resembling 256Kb.  What options does a business owner have at this point?  They are some what limited, but companies like Integra have begun to lower their price points on their data T’s to bridge this gap.  You can now get a data T-1 from Integra for $299.00.  Although still painful for a small business owner to make the $240/month jump from the DSL to a comercial grade offering – it’s more bearable.

Wireless Internet was an interesting option for an international corporate financier that had no other options.  I believe that wireless options have to be considered to fill the “missing link”,  but from what I’ve seen it doesn’t have the same throughput that you get with a land based offering. 

My suggestion for any business owner looking for new digs is to check with their “carrier person” to find out what addresses would be best for large bandwidth considerations.  In this day and age having a high bandwidth Internet connection is critical to excelling in business.  Although you would think that a commercial realestate group would negotiate with the carriers to insure their properties are covered by a variety of providers, this is not always the case.  Many find themselves in the “missing link” with no options or very limited options for bandwidth.  Get with a carrier agnostic agency in your town to determine where you should position your office for maximum bandwidth.

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