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A T1 Line is a dedicated phone connection supporting data rates of 1.544 Mbits per second. A T-1 line consists of 24 individual channels, each of which supports 64K bits per second.
Each 64Kbit/second channel can be configured to carry voice or data traffic. Telecom companies allow you to buy just some of these individual channels, known as fractional T-1 access.
Carriers price T1 lines in many different ways. However, most boil down to two simple components:
1- The local loop, or the cost the local incumbent charges to transport the signal from the end user's central office (CO) to the point of presence of the carrier (POP).
2- The port, or the cost to access the Internet through the carrier's network. Typically, the port price is based upon access speed and yearly commitment level while the loop is based on geography. The further the CO and POP, the more the loop cost.
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