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$0 per port: Subscriber Pays for Access Device Negating Cost per Port
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Most telecom infrastructure bids are quoted as dollars per port, a holdover from the days of Class 4 and 5 switches where the competition was for switch vendors to offer the lowest price per DS0, which then assisted the
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Downloaded from Digital Engineering Library @ McGraw-Hill (www.digitalengineeringlibrary.com) Copyright 2004 The McGraw-Hill Companies. All rights reserved. Any use is subject to the Terms of Use as given at the website.
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telco in determining their profit per subscriber. Given the rise of broadband and IP handsets and other low-cost media gateways that subscribers are now buying, it is possible that a telco of the not-so-distant future may enjoy a $0 per port assessment in offering voice service. A concept that may emerge in softswitch economics will be cost per busy hour call attempt, as the chief cost components will be softswitch software and the server, not the ports on a switch. When this becomes a reality, TDM service providers will be at a distinct cost disadvantage to VoIP-based service providers. In scenarios where an ISP provides bandwidth and the subscriber obtains voice services from a third party (such as Net2Phone or DialPad VoIP longdistance service providers), VoIP service providers and ISPs are at a distinct advantage in not having to invest in Class 4 switches.
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Corporate interoffice long distance is one of the greatest telecommunications expenses of corporate America. What many chief financial officers, information technology managers, and telecommunications managers probably don t realize is that their firm is paying for two networks: one data and one voice. Furthermore, they probably don t realize that they could be routing their voice traffic over their data network and saving the firm and its shareholders millions annually. Any firm can greatly reduce if not eliminate their corporate interoffice long-distance expenses by installing IP private branch exchanges (PBXs) on their corporate networks (see Tables 11-44 and 11-45). A business can route its interoffice voice traffic (local and long distance) over its existing corporate wide area network (WAN). This potentially eliminates the businesses interoffice long-distance bills.
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When much of a firm s long-distance traffic is to the same local calling areas (extensions 303, 408, 212, 612, and so on), using the off net dialing function of a VoIP gateway switch installed in those local calling areas will enable employees to get a dial tone in those local calling areas or overseas and incur no long-distance charges (see Table 11-46). Table 11-47 provides a
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Downloaded from Digital Engineering Library @ McGraw-Hill (www.digitalengineeringlibrary.com) Copyright 2004 The McGraw-Hill Companies. All rights reserved. Any use is subject to the Terms of Use as given at the website.
Softswitch Economics
Softswitch Economics
worksheet comparing long-distance costs to leasing VoIP gateways in various local access and transport areas (LATAs).
Table 11-44 Worksheet for determining return on investment for IP PBX
Office A monthly interoffice long-distance bill Office B monthly interoffice long-distance bill Office C monthly interoffice long-distance bill Office D monthly interoffice long-distance bill Subtotals Federal, state, and local taxes Totals
$__________
VoIP gear for office A VoIP gear for office B VoIP gear for office C VoIP gear for office D
$__________
$__________
$__________
$__________
$__________
$__________ $__________ $__________ $__________
$__________ $__________ $__________ $__________
Return on Investment the number of months for interoffice long-distance costs to equal cost of IP PBX gear, that is, the number of times column A goes into column B.
Table 11-45 Worksheet comparing interoffice longdistance and leasing an IP PBX
Office A monthly interoffice longdistance bill Office B monthly interoffice longdistance bill Office C monthly interoffice longdistance bill Office D monthly interoffice longdistance bill Subtotals Taxes Totals
$______
$______ $______
Monthly lease payment for VoIP gear for Office A Monthly lease payment for VoIP gear for Office B Monthly lease payment for VoIP gear for Office C Monthly lease payment for VoIP gear for Office D$
$______
Monthly savings at Office A
$______
$______
Monthly savings at Office B
$______
$______
$______
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