Average T1 Rates for Business

What is T1 service?

T1 Internet lines are common in businesses. This service has been providing high-speed Internet connections in many companies for more than 20 years now. However, the T1 Internet lines industry has become more competitive in the last decade. With this, prices began dropping to more desirable levels. Now, even smaller businesses are able to take advantage of the service's countless benefits.

Businesses choose T1 Internet service providers according to their price. However, there are still some company owners and managers who are unaware of what T1 rates for businesses should be. The most important factor affecting T1 line rates is the location. This determines the availability of T1 providers in a particular area. Typically, more T1 providers means lower rates. If the business' location is close to a large metropolitan area where there are a lot of providers, they can expect cheaper prices. Unfortunately, T1 costs tend to get higher as the consumer's location moves further away from the city.

Rates According to Business Location

  • Major City
  • In major cities, T1 rates are at the lowest. These areas have the greatest number of Internet providers that compete with each other. They usually charge $200 to $250 per month.

  • Mid-Sized Cities
  • Mid-sized cities may have a number of competing T1 line providers. They usually offer T1 services at $250 to $300 a month.

  • Small Cities
  • Small cities usually have a few T1 service providers and some telecommunications companies. With this, the T1 line costs in these areas usually range from $300 to $400.

  • Rural Areas
  • There are only a few T1 providers that can serve businesses in rural areas. T1 companies consider locations that are 50 miles from a mid-sized city to be rural areas. In these places, the usual T1 line rates are $350 to $450 per month.

    Rates According to the Type of T1 Line

  • Full T1 Line
  • Businesses that need a full T1 line can expect to pay at least $400 per month, but it could also be more than $1,000. This is especially true if the business needs a long connection to the local telecommunications company and the T1 provider's network. In addition, full T1 lines offer high-internet access at 1.5 megabits per second. It can support both VoIP calls and telephone lines. With this, businesses are able to accommodate from one to 75 users. A full T1 line is a common option for offices with five to 50 employees.

  • Fractional T1 Line
  • The fractional T1 version typically carries half of what a full T1 line can. However, businesses opting for this may only save 5 to 15 percent off the full T1's cost. This type of T1 line can fully support telephone calls but may not work efficiently with Internet use. Many businesses find it less cost-effective than getting the full T1. If a full T1 offers 24 channels and a 1.54 Mbps circuit, this service only offers 12 channels to provide 768k. Depending on the provider, fractional sizes can range from 64k to 128k, 256k, 384k, 512k and 1.1 Mbps.

  • Integrated T1 Line
  • Integrated T1 usually costs from $400 to $500 per month, but the service comes with a lot of features. With this, businesses are able to take advantage of long distance calls, local telephone service and bandwidth all in one. They no longer have to purchase each service from different providers. This means it is more cost-effective and convenient. Typical integrated T1 line services includes six phone lines, eight channels and 100 minutes of free long distance every month for every telephone line. However, not all T1 providers offer integrated T1 lines.

  • Voice T1 Line
  • Voice T1 lines are the best choice for call center businesses that require multiple phone lines and a high quantity of phone calls. This type of T1 line utilizes both analog and digital transmissions. It comes with 24 phone lines that offer excellent reception. Voice T1 line rates usually range from $50 to $300 per month. This pricing makes it less expensive than opting for plain old telephone service lines.

  • PRI T1
  • Primary Rate Interface offers more advanced features than voice T1. The service comes with 23 B Channels and one D channel. This means it is capable of providing Internet connection straight from the broadband network's backbone. Normally, service providers charge $300 to $900 every month for these. With a PRI T1, businesses are able to provide 23 digital phone lines to 30 or 40 employees.