The VoIP solution

I designed a VoIP network that provided a dedicated access line between the  two main locations. These sites were seven miles apart but  in different coun- ties  and  therefore different LATAs. We put  in digital subscriber line (DSL) access at the  other nine locations.

DSL was a no-brainer because these sites already had  at least two access lines.  Because local ordinances require that all businesses have  at least one POTS line for emergencies and  fire control, we used one of the existing POTS lines  for that requirement with no additional cost. Also, because DSL requires that you to have  an existing POTS line in operation, it was simply  a matter of having  the  LEC upgrade one POTS line at each location to include broadband DSL service.

We selected one carrier for all local and  toll-related carrier services. (You could almost hear the  sigh of gratitude just  for eliminating all the different monthly bills.)  Before VoIP, their combined monthly recurring access and usage charges averaged more  than $17,000. In the  first month of operation under VoIP, these charges dropped to just  over $2100. Most of this  savings resulted from reduced intralata costs and the  elimination of access lines.

The dedicated T1 line enabled us to provide a high-bandwidth private-access link that bridged the  intralata boundary between their two main sites. The private line made the  two intralata areas one.

Calls originating from any of the  sites in the  city destined for any of the sites outside the  city were routed to the  main site  within the  city, transported over  the  private VoIP line to the  out-of-city main site,  and forwarded to the  desti-  nation telephone. As a result, all on-net calls were treated like local calls for billing and  bypassed the  regulated intralata charges.

As mentioned, the  main site  in the  South Hills had  Internet service, but none of the  other ten sites could access it. In the  second month, we used some of the  money they  were saving  to put  in an Internet gateway in the South Hills. Now every  location could access the  Internet through the company’s VoIP network.

By the  second month of implementing VoIP, their intralata toll service charges had  dropped to $184 because all interoffice voice  traffic was now car- ried  on their private VoIP network instead of the  regulated PSTN. Moreover, they  could now understand the  single  bill that covered their entire VoIP net- work services; this  alone brought sanity to their operation. In addition, all eleven locations could now access the  Internet. They  were already beginning to plan  their Web site  design and  working  out  processes with their suppliers to use several e-commerce applications that were not possible before VoIP.

Some startup costs were not  exactly inexpensive. However, their savings from VoIP more  than covered these costs with money left over