Delaware Business Blog

Ethernet vs. T1’s for Internet Access

A More Cost Effective and Flexible Alternative

The Internet is an integral part of doing business – from sending emails to hosting a web site to setting up IP VPNs to interconnect locations. Today, more than ever, organizations require reliable Internet connectivity with increasingly higher speeds to satisfy growing application requirements. They must accomplish all of this while carefully managing their IT costs.

The adoption of new technology can help drive costs out of business operations as well as serve as a path to new revenue generation. For example, by moving applications to hosted or “cloud-based” services, an organization can eliminate the capital expense of the application servers and operational expense of software licenses and support while reducing the burden on their IT support staff.

Organizations require operational agility to quickly adjust to changing business demands

A popular way for organizations to connect to the Internet has been via a T1-based dedicated Internet access (DIA) service. T1 DIA services are typically offered over 1 or 2 T1 circuits so the bandwidth options are limited, inflexible and costly as an organization’s bandwidth and application requirements grow. To be competitive, you need to quickly and cost-effectively adapt your Internet access bandwidth. T1 DIA services are challenged to meet these elastic bandwidth requirements.

There is, however, an alternative cost effective and more flexible option to connect to the Internet using an Ethernet dedicated Internet access service.

Types of Internet Access Services

• T1 Dedicated Internet Access
• Ethernet Dedicated Internet Access

Comparisons:

T1 Dedicated Internet Access
T1 DIA service is delivered over either a single T1 copper circuit (to achieve 1.5Mbps) or two bonded T1 circuits (to achieve 3Mbps). The service requires the purchase or lease of a router with WAN interfaces to operate the service.

The monthly recurring cost (MRC) for the service will depend on whether you purchased the service using 1 or 2 T1 circuits. The cost of a T1 DIA service with 2 T1 circuits can be up to twice the MRC of a T1 DIA service with 1 T1 circuit.

If you need more bandwidth, you need to purchase an upgraded service which may require you to purchase a new T1 router to support the bonding of the two T1 circuits. With a T1 DIA service you purchase bandwidth in T1 (1.5Mbps) increments.

Upgrading a T1 DIA service to a higher bandwidth may take days or possibly weeks

Upgrading to a higher bandwidth may require an additional T1 or a higher speed circuit such as a T3. This will result in a service disruption if you must replace the existing T1 DIA customer premises equipment to support the higher bandwidth connection. If new equipment or circuits are required, it may take days or even weeks to upgrade your Internet connection.

Ethernet Dedicated Internet Access

Ethernet DIA services are typically delivered over a single Ethernet fiber optic connection to achieve any amount of bandwidth between 10Mbps and 10Gbps.

The Ethernet DIA service demarcation device is included with the service and hence no capital expense is required to connect to the service.

An Ethernet DIA service enables you to better manage your IT CapEx and OpEx during varying economic cycles. Cost savings can be achieved in that the cost of 10Mbps Ethernet DIA is approximately the same as 3Mbps of T1 DIA, while giving much greater bandwidth.

Upgrading Ethernet DIA services to a higher bandwidth is accomplished with minimal service disruption

Unlike a T1-based DIA service, Ethernet DIA service bandwidth can be added simply and quickly by your Ethernet DIA service provider who can remotely reconfigure the Ethernet service demarcation device to support the new Ethernet DIA bandwidth you require. Your bandwidth upgrade may even be accomplished transparently to you. Contrast this to a T1 DIA service where new equipment and new, higher speed circuits are required which may take days or even weeks to get implemented.

Summary

Organizations increasingly utilize the Internet as a critical business tool and Ethernet-based DIA services provide many benefits over T1-based DIA services. The most obvious benefit is higher bandwidth. In addition, Ethernet DIA services enable organizations to more quickly and cost-effectively add Internet access bandwidth to balance their business needs. This elastic bandwidth capability of Ethernet DIA services enables organizations to optimally manage their IT costs while they grow their business.

This guest post was contributed by Tom Burke. He is an Enterprise Account Executive for Comcast Enterprise Business Services. You can reach him at 302-367-9795, or thomas_burke_jr@cable.comcast.com.

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