We’re often asked if there is an alternative to the local phone company and/or how reliable are they? The answer is yes, there are alternatives and some are very reliable.

In the telephone world, what people call the “phone company” (BellSouth/at&t, Embarq/CenturyLink, or Verizon) is referred to as the Incumbent Local Exchange Carrier (ILEC). The ILEC generally owns the local copper and fiber cables that run throughout the city and is regulated by the Public Service Commission of each state they operate in.

Alternative carriers are referred to as Competitive Local Exchange Carriers (CLEC). Many CLECs provide dial-tone to a business via a digital line called a T-1. This line often comes into the business via the ILEC’s cable, which they are required to lease at wholesale rates to CLECs. The T-1 can be broken down into 24 analog telephone lines (23 if using a PRI) via a channel bank. You can also connect a T-1/PRI to most modern telephone systems to take advantage of more advanced calling features such as DID numbers. The same T-1 can also be split to offer Internet service.

Is a T-1 reliable? You bet! And if you have a problem with a T-1, most service providers have a service level agreement that requires the issue be addressed within 4-hours, a much shorter time than traditional POTS lines.

Another alternative to the ILEC is the local Cable TV (CATV) company. Many CATV providers are getting into the phone business. They provide dial-tone via a special Integrated Access Device that connects to the companies coax, eliminating the ILEC wiring altogether. The cable companies have come a long way in providing dial-tone and internet access. They’re gaining market share quickly due to their low prices.

A third alternative is a Internet Telephony Service Provider (ITSP). An ITSP offers dial-tone via voice over IP (VoIP), carried by the internet. The most well known ITSP is Vonage, but there are countless others. Vonage, and many other ITSPs utilize analog terminal adapters to convert their signal to POTS lines that can be used with any standard telephone.

ITSP’s have made some headway into the dial-tone business as well. Remember that they depend on the public internet to deliver their product. When considering using an ITSP, make sure you have a very good internet connection, whether it is DSL, Cable Broadband or a T-1. You also need to make sure your vendor understands the importance of Quality of Service (QOS) settings on your network, to give priority to voice packets.

Some of these alternatives are better than others in price and performance. Should have any questions about these choices, and which would be best for your business, give me a call. We can also recommend some providers that have proven reliable over the years.

Larry Nazworth