Consider Telecom Costs Before Moving Make a move without considering the cost and availability of telecom services and you may be in for a big sticker shock
By: John Shepler
If you are in the process of relocating your business or starting up a new venture, you’ll be in the market for new telecommunications services. That could be telephone, data, video streaming or some combination of these. You’re probably aware that the lease price for professional telecom services is not a standard price, but varies with your business location. So it stands to reason that you should pick your business location to minimize telecom expenses.
What? Nobody chooses their business address based on what bandwidth services cost... do they?
How Location Affects Telecom Line Service Pricing
Well, if they don’t they should. Of course, other considerations such as the amount of drive by and foot traffic are probably more important to a retail location than how much the Internet connection costs. But even the price of a simple T1 line can more than double if you decide to locate in some picturesque locale that has no infrastructure.
If we’re only talking few hundred dollars a month, line lease costs will probably take a back seat to other factors. But, still, if you have a couple of suitable locations in mind and are looking for some tie-breaker to help you choose, why not price out your telecom services and see if the difference is significant?
The Higher The Bandwidth, The More Important The Location
Where you really get into the big bucks is when you are going to lease major amounts of bandwidth. Perhaps you are building a new data center or developing content for motion picture companies. You can easily be looking as DS3 (45 Mbps), OC3 (155 Mbps), or even Gigabit Ethernet (1000 Mbps). These are pricey bandwidth services that may cost as much as your monthly rent... or more. It’s definitely worth the trouble of comparing costs for each address you are considering.
Beware Out Of The Way Locations
Even more importantly, you may find that many out-of-the-way locations are really bandwidth limited. You can likely get T1 service (1.5 Mbps) at any business location. You may even be able to bond T1 lines to double or triple that. But if you are looking for 10, 45, 100 or more Mbps, where you are located may well determine if you can even get service.
The higher bandwidths require fiber optic connections, which are common in major metropolitan areas and less available as you leave the suburbs. Even in the city, you want to be in or near a building that is already lit for fiber. If not, you may have to budget some serious construction costs to have the fiber cable trenched into your location. Downtown, you may be lucky enough to get EoC or Ethernet over Copper if you are near a carrier office. That can get you up to 45 Mbps without fiber construction costs.
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