Colocation Services Definition and Pricing!
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Colocation Services Providers
Colocation Services Definition Continued.
Colocation centers are usually located at locations where the main bandwidth pipes of major carriers intersect. This allows most colocation facilities to offer the backup redundancy of more than one carrier. As indicated earlier, when compared to on-premise bandwidth, the cost of colocation service is extremely reasonable. For example, the average cost of a t1 circuit which terminates to a business location, is about $250 per megabit per second (mbps). At a colocation facility, however, bandwidth costs an average about $70 per mbps, or less. For high bandwidths at colos, bandwidth can be as low as $20 per mbps. Cost is commonly based on minimum commitment level. The lower the commitment, the higher the cost per mbps. For example, if the customer obligates to a minimum bandwidth commitment is 20 mbps, then the price per mbps could be approximately $60 monthly recurring charge (mrc). If the customer commits to a higher minimum commitment of 90 mbps, then the price per mbps could be much lower, like $25 mrc, per mbps.

Another great advantage of colocation services is that the bandwidth is burstable. A customer who commits to 20 mbps, but might have periodic spikes of business that require more than 20 mbps, will automatically be provided all needed bandwidth to meet their needs. This additional bandwidth usage, above the minimum commitment, will be billed at the minimum commitment rate. In the above example the $70 per mbps will be prorated for only the time period that the minimum was exceeded. Colocation facilities often provide special environmental controls which are designed to protect stored data and prevent circuit outages. Temperatures are strictly controlled to prevent servers from over heating, and backup power supplies are common, to prevent outages. Security is also often offered to prevent unauthorized access. To summarize, included in the many advantages of colocation services is lower cost per mbps, provider redundancy, burstable bandwidth, climate control, backup power supply and added security. If on-premise (at your business location) bandwidth is required, then T1, bonded T1, ethernet, or T3 (DS3) might be more viable alternatives. To obtain a free consultation without obligation to assess if colocation will best meet your needs, please give us a call at the number listed at the top of this page. (Click here to return to top of page)

Integrated T1 Now Includes Unlimited Free Long Distance Service
Writen by: Dennis Green
Too good to be true? Not any more. Some major integrated T1 telecom providers are now including unlimited free long distance service with their integrated T1 plans. With one integrated T1 circuit, your company can now actually have up to 16 voice lines, dynamic bandwidth allocation (full T1 bandwidth when voice lines are not in use), free unlimited local and long distance service to anywhere in the domestic US (even from metered locations), and up to 5000 minutes of free toll free service per month. All of this is provided for about the same cost, or slightly more than the average data (internet) T1 line. It should be noted that to prevent abuse, all providers which offer unlimited long distance actually place a cap on LD usage. Some, place that cap at 50,000 minutes per month, others at 100,000 minutes per month. If the cap is exceeded, then per minute charges apply to usage over the cap. Also, free unlimited LD plans are not provided to call centers or companies which utilize auto dialers. However, for virtually all small to medium sized companies, which are not call centers, 50,000 minutes of month is usually the equivalent of “unlimited”. Most small to medium sized companies never exceed 20,000 to 30,000 minutes of LD usage in a given month. For large companies, and companies which utilize call centers or auto dialers, there are excellent plans available that will provide unlimited long distance (with no cap) for less than a penny a minute, and unlimited toll free service for about 1.2 cents per minute. To check availability and pricing for your business location, please use the pricing tool at the top of this page. It will answer you in real time, it’s easy to use, free, and there is no obligation. (Click here to return to top of page)