Staying in touch | New VOIP options put a greater emphasis on knowing what you need from a phone system
Vice president, Utility & Telemanagement, New Harbor
Moore's Law, which states that the number of transistors on a chip doubles every 24 months, according to Intel co-founder Gordon Moore, seems to be alive and well in the telecommunications marketplace today. Technology is changing and improving on a regular basis, leading to more and better service options all the time. Often, however, having too many choices can confuse the decision-making process. A telecommunications platform should last for a number of years, so start with a basic needs assessment for your organization.
There are a number of factors to consider. What is the size of your business, number of employees and what type of communications systems do they need? Do you have more than one location? Do you anticipate growth over the next five to 10 years? When my company performs a needs assessment, we interview appropriate staff, from the receptionist to the CEO, to gather as much information as possible to create a bid.
Whenever we proceed with a project, the subject of Voice Over Internet Protocol invariably comes up. In the past year or so, there have been significant improvements in and additional choices for a VOIP solution.
With VOIP, a voice conversation is digitized and broken down into âpackets,â which are âaddressedâ at both the front and rear of the packet. These packets are sent out individually over the Internet cloud and reassembled at the receiving end in the proper order. Instead of running over a traditional telephone line, VOIP utilizes a high-speed Internet circuit to transmit voice conversations. In companies where the voice and data run over a single network, it is critical to have a router with a âquality of serviceâ function. The QoS function serves to prioritize the voice packet to make sure it doesn't get lost during its journey from sender to receiver.
The most important aspect of a successful VOIP installation is the adequacy and robustness of the Internet infrastructure. Since voice conversations are two-way, it is critical to pay attention to the upload speed of the network. A slow upload speed will be the Achilles' heel of a VOIP network. We always recommend that the voice and data networks be independent of each other. There are exceptions with some small businesses where operating funds are an issue and the voice and data need to be shared. In those cases, a QoS router ensures that the voice packet has priority over the data packet for an uninterrupted conversation.
The next step is to determine which VOIP service suits your organization best. That decision depends upon a number of factors. Since there is no one-size-fits-all solution, a careful assessment is critical.
The in-house solution consists of the direct purchase of all the necessary telecommunications equipment to provide VOIP service without relying on any outside vendor assistance or support. This requires a significant capital investment. For budgeting purposes, figure between $750 and $1,000 per telephone set purchased. There are a number of advantages to this solution, including lower operating costs for the long term and the availability of enhanced features for multi-location operations and mobile users. The company is responsible for all calling charges.
Another major choice in VOIP technology is referred to as the hosted PBX, or private bank exchange, solution. In this situation, an outside vendor provides the guts of the telephone system at their location offsite. In many cases, the customer is required to purchase telephone handsets that are compatible with the vendor telephone system. This does require a capital investment, but usually much smaller than the in-house solution. These systems also offer rich features that can be purchased from a menu, according to your company's needs. Monthly billing in the hosted PBX scenario is usually done on a âper-seatâ basis, with the cost dependant on the number and type of features chosen, and is generally higher than the in-house solution.
A number of companies provide a hybrid type of hosted VOIP service. Cable companies fall into this category. Billing, again, is on a per-seat or per-line basis. Cable phone providers generally do not require the purchase of telephone equipment, allowing the company to use their existing equipment. Other hybrid providers may require telephone set rental or purchase.
If you dig deep enough, you can find more than 200 companies providing VOIP services in one form or another in Maine. Many of them target the residential market and are not appropriate for businesses. Others offer attractive rates and services for small businesses. Considering the available options and the number of VOIP providers, businesses may find it advantageous to hire a consultant to assist them.
A final thought: Most businesses have published telephone numbers, historically delivered by the local telephone company. Integrating telephone numbers into a VOIP service is critical to maintain businesses' accessibility. VOIP is delivered over the Internet, and if the Internet goes down, you will have no telephone service. We always recommend that companies maintain a few traditional phone lines in case of Internet failure.
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