Telecoms for Competitive Advantage

2. High-speed Connections

Digital connections allow you to transmit and receive every kind of telecommunications signal faster, and without errors or distortion.

For some types of business, this can lead to a breakthrough in productivity.

2.1 ADSL or broadband has superseded ISDN connections (see 2.2 and 2.3) as the fastest and most cost-effective way of communicating.

• The connections are always on - there is no need to dial. Voice calls can be carried through the same line simultaneously.
• Charges are fixed, usually on a monthly basis, although you can make make a saving by paying up-front annually.
• Service availability can be restricted by your proximity to the local telephone exchange and whether the exchange has been modified to accept broadband connections.
• A range of data transfer speeds - with different pricing - options are available.
• ADSL capability is shared across a number of users, measured as a 'contention ratio'. The lower the contention ratio, the higher the speed will be.

2.2 ISDN2 is a high-quality digital link, using the existing phone wires. It effectively gives you two high-capacity digital lines.

• The larger, more powerful ISDN30 will probably be more economical if you need more than, say, eight lines.

2.3 BT Highway is a digital connection that gives you the power and capacity of an ISDN line, while still letting you plug in your analogue (non-digital) phones and faxes.

• No recabling is needed. The digital signal travels down your existing phone line.

2.4 Leased lines are permanently open, dedicated digital connections, used only by your business.

• A leased line provides the best connection if you need a permanent link between two offices, or if your business is a very heavy Internet user. For example, if you need a round-the-clock link so that 'live' information from a database can be fed to your website.
• Leased lines are used by travel agents, who are constantly checking flights and fares with the airline reservation systems. Similarly, you might need to constantly check prices or stock levels.
• The breakeven point for leased lines may come at between two and three hours continuous use per day. But an automated system making two-second data checking calls every few minutes may also save money with a leased line.