1.
Multi Site Telecom Service Example
Typical Voice Infrastructure
Generally, a multi site organization consists of a large group of employees at the corporate
office(s), and smaller groups at multiple branches/stores. In this environment, the typical voice
infrastructure consists of a large PBX at the core and smaller phone systems/PBX’s at each
branch. This has been the default standard for years. Largely, this has even been the model for
most IP telephony deployments as well. Even if these sites are networked together (either with
proprietary legacy networks or IP based WAN connectivity), the issue remains that each site is
largely an “island” when it comes to access to the Public Switched Telephone Network. Though
this has been the standard, it is no longer the most efficient. Simply put, IP technology has
opened the door to “line sharing across the enterprise”.
Let us make some standard assumptions and review a mini scenario of the typical voice setup in
an enterprise:
ABC Enterprise has four primary locations: Houston, Orlando, Seattle, and Atlanta
•
o Houston (Headquarters)
Large PBX with 300 phones
o Orlando
PBX with 120 phones
o Atlanta
PBX with 50 phones
o Seattle
Key System (KSU) with 25 phones
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2.
Let us also assume that these are not terribly old systems riddled with “high dollar”
maintenance issues and consider them acceptable in operation. Industry standards show that
the typical costs associated with these systems are:
$16.67 per seat/per month for the average telephone line costs (average phone line at $50
•
on a 3 to 1 station to line ratio)
$8.00 per seat/per month for average domestic long distance costs (200 minutes at .04)
•
Without even getting into issues relating to phone system maintenance or time and material
move, add, or change requests, we can see that the standard “voice” cost of doing business for
ABC Enterprise each month is $24.62. Multiply that by the number of seats (495) and the result
is over $12,200 per month.
Logista Voice and IP Communications
5911 Greenwood Parkway, Birmingham, AL 35022 | (866) 502‐7274
http://www.logistasolutions.com/ps‐voip.html

3.
IP based telephone lines can dramatically change this bottom line. For
our practical purpose, replacing the current “TDM” industry standard
rates with those of IP telephone lines, the per seat breakdown would look more like this:
$6.67 per seat/per month for the average IP phone line costs (average line at $20 on a 3 to
•
1 station to line ratio)
$4.00 per seat/per month for average domestic long distance costs (200 minutes at $0.02 or
•
less)
The result here is $10.67 per seat/per month, or $5,281.65 for the enterprise per month. These
are significant savings (cost reduction of $82k per year). Now in order to accommodate the IP
telephone lines, there may need to occur a “right sizing” of bandwidth, so that would need to
be taken into consideration to evaluate the net savings each month. However, since IP
telephone lines can utilize less bandwidth than traditional lines, any increased costs in
Logista Voice and IP Communications
5911 Greenwood Parkway, Birmingham, AL 35022 | (866) 502‐7274
http://www.logistasolutions.com/ps‐voip.html

4.
bandwidth would be minimal (and in a normal MPLS WAN
environment the available bandwidth and QoS is typically sufficient).
Also, this revamping of carrier services can be done without actually replacing the current
legacy phone equipment. Often, with IP telephone line carrier services, any required
integration equipment used to “retrofit” the service to the legacy PBX or phone systems is
underwritten entirely with the contract (not unlike many traditional telephone line contracts).
To the end user, nothing changes; same phone/same phone number. The difference is simply
massive corporate saving.
If cost reduction was the only objective for ABC Enterprise, it has been easily achieved. If there
is also a need for voice or data infrastructure upgrades, these reduced operating expenses
provide plenty of budget room for enhancements or technology refreshment. Leased
equipment or other managed service offerings will often create opportunity for a complete
overhaul of voice and data network equipment at little or no impact to the existing IT budget
when deployed in conjunction with IP telephone line service.
Other benefits of IP telephone line service include:
Enterprise wide call detail reporting
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Single bill for all telephone line services
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Actual telecom “load balancing”
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o Real time views on actual utilization
o Purchase only the number of lines needed and share across multiple sites
o Eliminate over subscribing (realize even more savings)
Expediency for new service
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o Lines can be activated in days rather than weeks or months
Business Continuity/Disaster Recovery
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o Automatic line failover to alternate sites
Logista Voice and IP Communications
5911 Greenwood Parkway, Birmingham, AL 35022 | (866) 502‐7274
http://www.logistasolutions.com/ps‐voip.html