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How T1 Carriers Price T1 Lines
T1 line carriers price T1 lines in many different ways. Most T1 providers break pricing down in to two components. The first component is the local loop. This is the cost the local phone company or incumbent LEC charges to transport the T1 signal from the end user's central office, otherwise known as a CO, to the point of presence, otherwise known as a POP, of the T1 line carrier. Then there is the port, which is simply the cost to access the telephone network or the Internet through the carrier's T1 network. Typically, the port price for T1 Lines are based upon bandwidth, access speed, and yearly commitment or contract level, while the loop is based on geography. The further the CO and POP from the location where you need T1 service, the more the T1 loop is going to cost.

The T1 loop price has several components built into it; mileage calculation and the telco piece. Each local exchange carrier- Verizon, AT&T, and Qwest to name a few- charge T1 carriers different prices per mileage rates. This means that T1 price calculation has two distance steps: geomapping and the determination of local loop price arrangements.

For voice T1 lines, the cost calculations are mostly the same, except that the port is replaced by LDU (Long Distance Usage). Once the price of the Voice T1 loop is determined, only voice-related charges are added to the total. In short, the total voice T1 price = loop + LDU x minutes used.
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