How a T1 / T3 works
Why purchase a T1 / T3 when SDSL is cheaper?
Most of us are familiar with a normal business or residential line from the phone company . A normal phone line like this is delivered on a pair of copper wires that transmit your voice as an analog signal. When you use a normal modem on a line like this, it can transmit data at perhaps 30 kilobits per second (30,000 bits per second). The phone company moves nearly all voice traffic as digital rather than analog signals. Your analog line gets converted to a digital signal by sampling it 8,000 times per second at 8-bit resolution (64,000 bits per second). Nearly all digital data now flows over fiber optic lines, and the phone company uses different designations to talk about the capacity of a fiber optic line.
A T1 line can carry about 192,000 bytes per second, roughly 60 times more data than a normal residential modem. It is also extremely reliable -- much more reliable than an analog modem. Depending on what they are doing, a T1 line can generally handle quite a few people. For general browsing, hundreds of users are easily able to share a T1 line comfortably. If they are all downloading MP3 files or video files simultaneously it would be a problem, but that still isn't extremely common.