Internet Access Buyer's Guide

These days, most business require either DSL or T1 Internet access. We'll help you determine which is right for you.

Internet access introduction

With the Internet such a vital part of everyday business, the speed and reliability of your Internet access is more important than ever. Solutions such as T1 lines and business-grade DSL provide always-on broadband connections, giving your employees the ability to consistently communicate and exchange data with co-workers, customers, and vendors at speeds much faster than standard dial-up.

In addition to providing seamless access to the Internet and faster downloads of large files, a high-speed connection lets you access a wide range of applications - web hosting, streaming video, voice over IP (VoIP), video conferencing and virtual private networking (VPN). And the good news is that prices have dropped, making broadband more affordable than ever.

This BuyerZone.com Internet Access Buyer's Guide is designed to explore the various Internet access options available to you, how to choose an Internet access vendor, and the costs of getting your company up and running.

High speed internet access options

You have multiple options for setting up high-speed Internet access for your company. The one you select will likely be based on your company size, data requirements, budget, and proximity to the central office of the Internet Service Provider (ISP). Here are the most common solutions:

DSL: An inexpensive and distance-sensitive solution that provides Internet and telephone access on the same lines. While a standard dial-up connection transmits data at speeds up to 56,000 bits per second (56 Kbps), DSL speeds range from 384 Kbps to 1,500 Kbps. This is one of the more popular options for small businesses, supporting up to 20 employees who need only basic Internet applications like web surfing or e-mail. (See "DSL service for business" for more details)

T1: A service that supports data connections up to 30 times as fast as a 56 Kbps dial-up modem with digitized voice capabilities over the same lines. This is the most popular option for small-to-medium-sized businesses with up to 50 employees, and can support all basic Internet functions as well as large file downloads and uploads. (See "T1 internet service" for more details)

T3: A T3 line offers the combined bandwidth of 28 T1 lines - up to 43 megabits per second (1 Mbps=1000 Kbps). It's a good option for mid-sized to-large businesses with 100 or more employees. T3 lines run on fiber optic cable and can support 30,000 times the traffic of standard copper phone wires. While T3 is available in fractional increments like T1, it is more expensive than having multiple T1 lines bonded together to produce the same speed.

Frame Relay: An alternate solution for customers who can't get DSL or cable service. Frame relay is fast and flexible and sends digital information between one or several destinations at T1 speeds. While the service is inexpensive, the equipment and setup can be quite pricy. It's not a recommended option for small-to-medium businesses.

Cable: A high-speed option that uses the same connection as cable television. It offers data transfer speeds around 1.5 Mbps, but is not really considered a business-quality service. Because many people in your area share a cable network, performance dramatically decreases as multiple users go online at the same time. Also, many high-tech applications of broadband - VoIP and streaming video, for example - do not work well over cable.

Satellite: Internet access using a satellite dish. This technology can be deterred by bad weather and the speeds can't handle large applications such as web site hosting, video conferencing or multiple file downloads. This is only a worthwhile option for very remote locations such as boats at sea.

DSL service for business

A digital subscriber line (DSL) is an inexpensive digital solution that transports high-speed data from your phone company's central office to your company's network. The data is transmitted over the same copper wires used by most phone systems.

DSL is very distance-sensitive. The closer your company is to the phone company's central office - where phone lines connect to switching equipment - the faster your connection. It is generally recommended that your office be located within 2-3 miles of the central office for faster, more affordable service. Beyond 3 miles, you would only qualify for low-speed DSL service - if any at all.

You can find out if you are within range for DSL by calling your local ISP, or looking up your location online. There are many Internet sites that allow you to check if your area can get DSL and how fast a connection you qualify for.

Types of DSL There are various types of DSL (referred to as xDSL). The two most common are Symmetrical DSL (SDSL) and Asymmetrical DSL (ADSL).

ADSL uses your existing copper phone lines to transmit data, but limits upload speeds to as little as one quarter of download speeds. SDSL is a more robust (and more costly) version of DSL that supports equivalent upload and download speeds. This is good for companies that regularly upload large files, but requires dedicated wiring.

The downsides of business DSL Reliability is the primary concern with DSL. On average, the uptime for DSL isn't as good as it is with a T1 connection. Service level agreements (SLAs) that ensure your connection will always be running are often not offered with DSL service. And while a DSL connection can support many simultaneous users for sending e-mail and surfing the web, it's not optimal for applications requiring a lot of bandwidth such as large file downloads or streaming video.

DSL also runs into the problem of slow connections due to oversubscription - the act of selling more bandwidth than is actually available. DSL providers will sign up more subscribers than they have bandwidth for, with the expectation that not all users will be online at the same time. While you'll get faster connection rates - up to 2 Mbps - when there aren't a lot users online, your connection will lag when more customers connect. This can be highly frustrating, to say the least.

In the end, the savings you may gain from using DSL can be offset by how much you compromise critical business applications like internally maintained e-mail server or web servers.

Necessary equipment
Most business DSL customers use a router to connect their local area network (LAN) to the Internet. While more expensive than a standard DSL modem, a router provides data security and data filtering services, which are valuable in business environments. If you have fewer than 10 computers to connect, you can opt for a less expensive DSL modem, although you will still need to purchase firewall software to secure your network. Your DSL provider will lease or sell you the appropriate hardware.

T1 internet service

A T1 connection is the most popular method for Internet access among businesses. It is fast and reliable - most providers can guarantee 99.99% uptime - and features increased security. Like DSL, T1 connections are "always on," meaning that as long as your computer is turned on, you will be connected to the Internet.

T1 is symmetrical connection, allowing for downloads and uploads of up to 1.5 Mbps, which is about 30 times as fast as dial-up. The quality of a T1 line is much better than analog phone lines, which translates into a clearer signal and faster connections to websites and quicker downloads.

Since T1 lines are dedicated, you will always have access to the full amount of bandwidth you are entitled to. However the actual performance you experience at an individual level will drop depending on how many users are online at that time. A single T1 connection can support dozens to hundreds of users, but the speed and efficiency will drop as more people use it simultaneously.

Levels of T1 service
There are multiple flavors of T1 lines. At its most basic, a T1 line can be used to handle either your voice or data needs.

An integrated T1 line provides voice and data on the same digital circuit. With this service, you can decide how many of the T1 connection's 24 channels will be reserved for voice calls, and what's left is used for data.

You can also purchase a fractional T1 line, which provides only a portion of the total bandwidth. However, with prices of T1s as low as they have ever been, many companies are selecting full T1s because the price difference is almost negligible.

Another option to consider is burstable T1 - a type of "pay as you go" service where you pay for a specific amount of bandwidth you intend to use. If you exceed that amount, you can still tap into the ISP's total available bandwidth and pay a premium above your standard rates. Think of it as going over your allotted minutes on your cell phone plan. Pricing can be very expensive but could be worthwhile for companies that know their data traffic patterns and have highly seasonal activity. Consider investing in a full T1 - or multiple T1s - before looking into burstable options.

For even better speed and performance, ISPs offer bonded T1 lines. Bonded T1s allow you to use the full bandwidth of multiple T1 lines at once. For example, two bonded T1 lines can provide up to 3 Mbps of data transfer in a single connection. By combining the speeds of individual T1s into a single pipeline, you allow for more bandwidth than two separate T1 lines.

Downside of T1
The most obvious drawback of a T1 connection is the cost. You will pay far more for T1 access to the Internet than for DSL. In fact, actual connection speeds of T1 and DSL are very similar. However, T1 provides a much more reliable connection and you are paying for that guaranteed uptime. For businesses that rely heavily on employee and customer access to data and applications, T1 is likely the best option.

Choosing an internet access provider

Signing up for high-speed Internet can be as easy as calling an ISP directly or working through a vendor. If you're able to evaluate the customer service, pricing, and technology of multiple providers and choose the best one yourself, you can call that provider directly. If you want expert help in comparing the various ISP offerings without having to contact each one, a broker can do all the legwork for you.

Internet access brokers
As a middleman, Internet access vendor will consult several ISPs to find the best combination of price and services for your needs. This service is conducted at no charge to you -- instead, the Internet service provider pays the commissions.

Have your broker furnish you with three to five quotes from various providers. Reliable brokers should have no problem doing that for you. When reviewing recommendations, find out how long the broker has worked with each ISP. If they have worked with the provider for a long time, you can be more assured of a reliable setup since the recommendations are driven by firsthand experience.

Definitely ask for a broker's references before doing business with them. A reliable broker will provide you with this information and allow their previous work to speak for itself. Contact at least a couple of references and ask questions such as:

• Were they readily available to answer any questions you had?
• How quickly did they resolve problems?
• Did they clearly detail everything written in the contract?
• Did they try to sell you additional equipment that you didn't need?

You can also gauge the level of service you'll get from an Internet access vendor by how much attention they pay you. If they follow up with you and ask good questions rather than simply throwing quotes out, it is a positive sign that they care about your satisfaction above their bottom line.

Brokers continue to work with you after the contract is signed. You should demand - and a broker should offer - an ISP that provides 24/7 live person customer support. Once you're connected, the vendor will continue to monitor your setup remotely. They will install any patches and keep system upgrades configured.

They should also provide e-mail contacts and be proactive when it comes to letting you know when there is a network problem and your Internet access is slow or down altogether. If something isn't working right, the vendor should work with the ISP to get your network up and running.

Service Level Agreements
Reliability is probably the most important factor in choosing an ISP. While it is impossible to maintain 100% availability, most service providers aim for the lofty standard of "four nines" - 99.99% uptime over the course of a year. Service level agreements (SLAs) protect businesses by making access providers pay penalties to the customer for downtime that exceeds a specified total.

Until a few years ago, SLAs were not widely offered by Internet access providers. Now, they have become a standard for quality high-speed Internet access like T1 connections. In fact, SLAs are one of the main reasons T1 lines are the most popular choice for Internet access among businesses.

It is difficult to get an SLA on DSL access. The reason is that DSL's sensitivity to the distance between the company and ISP's central office, coupled with the often-low quality of the wiring, makes it difficult to maintain a sufficient level of guaranteed uptime. Even so, some vendors do provide SLAs for DSL, but it is uncommon.

To ensure your provider is abiding by this 99.99% performance level, request monitoring reports that track downtime. Most providers will make this information available to you upon request.

Broadband internet access contracts

It definitely pays to read the fine print when it comes time to sign a contract for Internet access. The contract you sign should be comprehensive, with no unwanted surprises or hidden fees - detailing all costs, length of service, and the SLA. (see "Service Level Agreements" in Choosing an Internet access provider for more details)

The standard contract length for Internet access is three years. In most cases, this will include all setup fees (including the wiring for your phone connection to the phone company's central office, known as "local loop" charges), installation costs, and equipment rental. Shorter-term contracts may require you to pay additional fees. We don't recommend signing contracts longer than three years because prices could fall, leaving you locked into paying a higher price for the duration.

Also keep in mind that there are severe penalties for breaking a contract before it expires - it can cost your company anywhere from several hundred dollars to the entire balance of the contract left on the contract.

Find out how long an ISP has been in business before you sign any binding contract. Companies new to the business may not have the experience to deliver the quality of services you need. Also, make sure that the ISP you use is financially sound. The last thing you want is to find your Internet access - and ultimately, your business - was compromised because a provider was in fiscal trouble.

Getting set up
Once you sign a contract, the vendor will arrange an installation time. A telecommunications contractor will come to your office to set up and test the necessary circuits. Then, the broker will install the routers and connect your LAN. They also configure your IP addresses and firewall security, as well as any other equipment noted on the contract.

Once the broker works out the best deal for you, it takes the service provider 30-45 days from the day the client signed the contract to setup up your office for access. Plan accordingly.

Business ISP pricing

DSL prices vary depending on how close your business is to the provider's central offices. Prices, which are higher than residential DSL rates due to lower limits on subscribers per line, range from $30 to $250 for both initial setup and monthly service fees according to the bandwidth you choose. In addition to these flat rates, expect to pay additional charges for "bursting" -using more than your allotted bandwidth.

Standard T1 Internet prices include the phone company's local loop charge - typically $150 and up - the phone circuit that connects your location to the ISP's point of presence (POP), and the Internet bandwidth access port. All in, monthly T1 prices range from $250 to $1,000 - expect to pay that much for initial setup as well. Pricing varies according to whether you select data, voice, or integrated service, and how many channels you wish to activate.

Fractional T1s can be obtained for as little as $100-$200 per month. Bonded T1s are typically priced at a multiple of a regular T1 line; 3 bonded T1 lines, for example, would cost $750 to $3,000 monthly.

As mentioned earlier, the typical contract length is three years. Most vendors will either provide the equipment - routers, T1 pipes, Ethernet cables - for free, or tie them into the monthly pricing. Certain setup fees - including local loop charges and installation - may also be waived based on the length of a contract.

Internet access tips

Plan ahead. It is always best to purchase more bandwidth than you need so your company is adequately prepared for increases in employee size and bandwidth requirements.

Hidden agenda? Keep in mind that brokers who sell products like computers and routers in addition to Internet access may steer you to ISPs that don't provide them as part of their service.

Lease, don't buy. If possible, do not purchase equipment for your company's Internet access. Make it part of the deal and let the company own and maintain them so they can fix problems when they arise.

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