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Frame relay is many times faster than its predecessors, such as x.25, because frame relay is a streamlined protocol designed for speed. This protocol flourishes because it is designed to compliment modern digital lines which are virtually noise free. With frame relay, data transmission usually originates through the private line of a customer, transfers to a shared network at the nearest frame relay switch, travels the majority of its distance through the shared frame relay network, and then transfers to the private line closest to the receiving customer. Frame relay is normally less expensive than point-to-point lines because many customers use and share the cost of the frame relay network, rather than each paying for a private line for the entire distance their data is transmitted. Private line cost is distance sensitive, so the longer the distance utilized via a shared network, the greater the cost savings experienced by the customer. Another factor which makes frame relay less expensive than point-to-point is that the nearest frame relay node is often much closer to the customer than the provider’s central office. This results in less private line distance being calculated into pricing. An additional benefit is that with frame relay it is often possible to connect to a provider which is hundreds of miles away for close to the same price as connecting to a local provider. For this reason, the number of providers which can be compared is significantly expanded. Frame relay is primarily used for the transmission of intermediate data between LANs, and between end points of a wide area network. Frame relay is at times used for video conferencing, however, point-to-point lines, and MPLS are much better suited for the on-going high rate of bandwidth and signal stability required by video conferencing. As the price of clear channel T1 has dropped significantly during recent years, frame relay is no longer seen as the bargain it once was. Point-to-point and MPLS networks are now runaway choices for most customers who in the past would have benefited from frame relay usage.
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