Pricing a T1 Line
When it comes to creating a high
speed computer network for a business one would look at buying a T1 line. A T1
line offers some of the highest speed internet browsing for multiple computers
to share bandwidth from. This is essential to getting any business going and so
the pricing can vary. In this article we will look at what determines the
pricing of a T1 line and who gets the better deals.
The first and main thing that
determines the cost when pricing a T1 line is the location! It is no different
than grocery stores in the middle of nowhere or in the city. The harder it is
to get the proper material and equipment to the locations that need them, the
higher the prices to cope with these lines will be. If you live in a rural
farming country and are setting shop up, you can expect nothing but highly
inflated prices.
Corresponding
to location, the current number of subscribers matters. This is simple economics at this point.
Supply and demand is what runs the world. If there is a low demand the prices
will be higher to compensate the cost of running the network (no one is willing
to lose money when pricing a T1 line). At the same time if there is a lot of
demand for a T1 line in say a city then there is more money to make profit and take
some dollars off the consumer is pockets. This can drive new consumers in at
the same time so the companies do not really care at this point.
Once again intertwined with
location and subscriber number is the cost of the infrastructure needed to
maintain the entire system. How much does the network cost to run, how much are
the home servers, how much are the employees being paid? All of this matters.
In the end the company is trying to make a profit, not just breakeven but a
huge surplus in income for the executives and higher ups. This translates to
pricing. Smaller companies tend to be pricing a T1 line cheaper as they have
less people to pay and can focus most of their revenue on system
infrastructure. This is obviously different than bigger companies for the
reasons outlined above.
Concluding we see that pricing a
T1 line is really dependent on three criteria that are all intertwined
together: location, current subscribers, and infrastructure needed to maintain
the company and network. All of these together create a synergistic effect on
the overall pricing.
