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My name is Charron and I am the Publisher here at Compare Business Products, a leading marketplace for buyers and sellers of business products and services. Our mission is to generate more sales opportunities for vendors by connecting them with the serious, in-market prospects who are shopping for business products across the Web. CPB also serves business buyers by providing them the most efficient way to research and shop for products and services in order to make the best purchasing decisions for their organizations. We have many comparison charts and articles so come take a look.

How much should a VoIP system cost per user?

By Pha Lo

The best argument for switching from traditional phone service to VoIP is the long-term cost savings of calls made through broadband internet. Instead of paying three or four different bills for local and long-distance calling and internet, VoIP lets businesses combine telecommunications costs. This kind of streamlining saves time and money, but depending on the telecommunications needs of a given business, VoIP costs can vary widely.

According to 2007 research from AMI reported by Forbes.com, hosted VoIP spending in 2005 for small businesses with one to 99 employees was $80 million, with individual spending highly specific to each individual business’ needs. That number was projected to increase to $1.12 billion by 2010. Businesses with 100 to 999 employees spent as much as $66.7 million in 2005 with 2010 spending projected to reach $310.8 million.

Spending will vary from one business to the next. Here are some variables that will affect the costs of traditional VoIP systems:

Owning versus Hosted

Purchasing a system outright and managing it in-house versus going with a hosted solution will impact costs. The decision is personal and highly specific to a small business needs.

Scale

The number of lines, employees and remote locations linking into the VoIP system all impact costs. Scale is one of the main predictors of cost and is always included in customized price quotes. Often, VoIP vendors provide cost estimates based on a range of users, for example 0-5, 6-10 or 11-15 employees.

Service can start at around $200 for certain number of lines, such as four users, with fees for additional users.

Equipment

A business’ current hardware and potential equipment upgrades impact cost. Items to assess for equipment cost include telephones, headsets and the current data connection–whether it’s DSL, fiber or cable. Look for vendors who bundle in free equipment or who can integrate services with your existing equipment. As a point of reference, equipment can cost around $250 per phone.

Take a look at our Business Phone System Comparison Chart.

More about VoIP from Compare Business Products

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The auction of the 700 MHz band ended yesterday after thirty eight days of bidding. A whopping $19,592 billion was raised for the federal treasury, despite fears that the auction would disappoint due to a staggering economy.

During the auction the bidder’s identities were kept secret to prevent collusion, and the FCC is expected to release the results within a few weeks once the auction is officially closed, and the D block is de-linked from auction 73. Speculation has it that Verizon will come out the winner for the commercial block C, although with eight regional licenses, others could share in the spectrum. Google was said to be in the bidding only to ensure that the C block reached the minimum reserve, triggering the open access rules.

One result that we know of already is that the D block public safety band failed to sell. It was bid on once in the first round for less than the reserve and received no more interest for the rest of the auction. The FCC has the option of reauctioning the D block with a lower minimum reserve, and a change in rules to rekindle interest in the band.

The D block requires a public sector, or a commercial entity to build out the nationwide network that could be used commercially in normal times, but would hand over the waves to public safety organizations in times of emergency.

The $19.6 billion raised by the FCC is said to be the largest amount raised for any FCC auction, and in fact exceeds the amount of all the past FCC auctions put together by a half billion dollars.

Related Articles:
FCC’s 700 MHz Spectrum Auction Ends with $19.6 Billion in Bids
FCC Ends 700 MHz Auction
FCC Nets $19.6 Billion On 700MHz Auction

 

Siemans, Skype, Clearwire, and Tata – Apple opens the iPhone

Skype for Call Centers

Peer to Peer VoIP provider Skype will be the backbone for the AltiGen Communications call center solution. Through a partnership with VosKEY, the Skype Certified VosKEY Exchange VoIP application gateway will provide access to the Skype network.

In addition to saving call centers tons of money in communications costs, the AltiGen/VosKEY/Skype offering adds four new capabilities to AltiGen’s call handling and management functionality.

  • Remote Agents: Allows remote agents the same access to AltiGen’s IP PBX as on site agents utilizing Skype’s free client on their computers.
  • Web Click-to-Call: Web site visitors will have click to call access to call centers, reducing toll free number costs and increasing conversion rates by giving them real time access to experts and/or sales staff.
  • Skype Trunking: Reduces toll charges using Skype Pro and SkypeOut, saving 90% on US/Canada calls, and 50% on international calls.
  • Global Direct Inward Dial (DID): Gives businesses a local presence anywhere they want by using local access numbers for incoming customer calls on the Skype network, reducing toll free number costs.

The VosKEY Exchange is a rackmounted hardware appliance that connects the AltiGen PBX phone system to the Skype network.

On the Wireless Front

Indian service provider Tata Communications Ltd. announced plans to build the largest fixed WiMax network to date, covering 110 cities for Enterprise, and 15 cities for retail by the end of 2008.

Tata already has over 5000 customers in 10 cities, Bangalor alone deploying 600 base stations. They plan to increase their customer base to 200,000 by 2009.

The wireless ISP will use Telsima WiMax solutions to deploy over 3000 base stations in India.

Clearwire’s fourth quarter results indicate 47,000 new subscribers over the year, giving them just under 400,000 total subscribers. Revenue per user however, fell $.30 and churn rate increased from 1.9% to 2.4%.

Clearwire is still negotiating with Sprint to try to work out a deal to build a nationwide WiMax network, with Intel being rumored in there to help facilitate a deal.

Siemans Goes Soft

German company Siemans Communications has said that it is restructuring its business from hardware to software based. It drove the point home recently by announcing it would close down factories and layoff about 6,800 employees.

Siemans Open Space Unified Communications Server is the app that will transition them to a software company, their view being that voice as a standalone technology is no longer feasible. Microsoft, with their Office Communications Server, seems to have the same point of view.

iPhone Opens Up

In an effort to get a piece of the Blackberry market, Apple will offer a software development kit (SDK) to third party developers to write applications directly for the iPhone. Users will be able to download them from iTunes after the iPhone 2.0 release.

Apple caved to Microsoft, and the iPhone will now offer native support for Exchange with Active Sync. Other business friendly upgrades include VPN security and authentication, and enhanced WiFi security.

The switch from a consumer based to a businesscentric Apple might seem to some as too little too late.

Related Articles:
AltiGen & VoSKY Partner to Deliver Advanced Skype-Enabled VoIP Call Center Solution for Businesses
Tata Communications Rolls Out World’s Largest Commercial WiMAX Network with Telsima
Clearwire Increases Subscribers, Revenue and Losses
Unified communication with Siemens OpenScape v2.3
Apple and Business – Is it 25 Years Too Late?

 

Senate Passes e911

The Senate passed the IP-Enabled Voice Communications and Public Safety Act this week that would require all VoIP service providers to offer enhanced 911 services to all of their subscribers. The bill also gives the FCC the authority to require new 911 services as they evolve, and mandates they keep an eye on next generation 911 capabilities. VoIP pure plays and Cable companies would be given the same access under the same terms as traditional providers to emergency services.

This could be good for the VoIP market, especially in the residential arena, where the perceived lack of 911 capabilities has served as a deterrent for those who might have otherwise switched.

The enhanced part of 911 is that persons dialing the number would be connected to a local operator, and contact information would be sent automatically to the call center. Most pure plays today do this today by having the subscriber sign up for 911.

Which brings up another question: How will the center know the source when the user is not dialing from their registered address? One of the great advantages of VoIP is mobility, allowing users to place calls from any location with a broadband Internet connection.  Are GPS enabled devices the answer? Maybe the FCC can figure it out!

The Senates bill must first square up with the House version, which is expected, before it will be sent to the President for signing.

Comcast Blocking People Too?

In an FCC forum on traffic management at Harvard University Monday, Comcast apparently paid people off the street to take up seats in the meeting hall. The cable company was on the hotseat as the FCC looked into their practice of tampering with some p2p traffic from BitTorent to save bandwidth.

Comcast says it did pay people to hold places in line for some of their employees, but denies it paid them to take up seats at the public forum. Others disagree, saying about 100 interested citizens were denied access to the meeting, as seats were taken by people sleeping in their seats, and carrying yellow highlighters in their pockets.

The Silicon Valley website Valleywag says that the FCC will take no action on the companies DOS to the public practices, but is considering holding another hearing this time at Stanford University.

Comcast, what are you doing? You just lost pretty much any credibility you ever may have had, at least with the public. These dirty little tactics may work well in D.C., but taking them to a public open meeting on a college campus will win you no friends. You should definitely consider firing your PR guy.

Talk about shooting yourself in the foot!

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3CX has released a new version of 3CX Phone System for Windows. The latest version of the award-winning software-based IP PBX has an integrated 3CX Tunnel which simplifies firewall configuration by channeling all VoIP traffic over a single port; making it easy for remote workers to connect to their company’s PBX and for Network Managers to connect different remote PBX systems between them. Traditionally, firewall configuration for remote SIP / VoIP systems and/or extensions can represent a challenge, because it requires many open ports.

Nick Galea, 3CX CEO, says that the 3CX Tunnel, “unlike other similar tunneling protocols, is not proprietary and can be used with popular VoIP softphones and hard phones.” This is good news for businesses, as they can use a variety of telephone options with their IP PBX depending on their needs and budget.

3CX Phone System for Windows allows businesses to completely break free from the restrictions of hardware-based, proprietary phone systems. It is built on the open SIP standard and interoperates with all popular SIP phones, VoIP Gateways and VoIP providers.

3CX Phone System for Windows is available in four editions: Free, Small Business, Pro and Enterprise, all supporting an unlimited number of extensions.

 

Speaking of the Cablecos and their bandwidth, the FCC’s open forum on ISP traffic management is today in Harvard. Speakers will include representatives from Comcast and Verizon, U.S. Rep Ed Markey of the Internet Freedom Preservation Act, and Professor Timothy Wu, original coiner of the phrase “net neutrality”.

Comcast (CMCSA) is there to defend its practice of traffic shaping, recently admitted to being done on streams of p2p bittorrent traffic.

The meeting will also address Verizon’s decision last September to deny an abortion rights group access for a IM program on its network. Verizon (VZ) has since reversed its decision and said it was a mistake.

The forum is billed to be the first serious discussion by the FCC, industry leaders, and consumer rights advocates, on the issues and principles relating to the net neutrality debate. I’ll let you know if they draw any conclusions.

 

The Telecom Industry Association’s 2008 Market Review & Forecast is out, and as previewed on FierceVoIP, the U.S. residential VoIP market is expected to grow at a compound annual rate of 20% over the next four years. Cable companies will continue to gain market share at the expense of the pure play providers.

Business wise, enterprise spending may see a downturn in the short term due to the present economic uncertainties, but most companies already have plans to convert to voice over IP.

The residential VoIP market is expected to double from 16 to 32 million subscribers, with revenues reaching $10 billion by 2011. Cable companies currently have 73% market share (as of 2007).

Local phone companies are also forecast to gain market share as they begin to bundle VoIP with new video services.

The trend has been for consumers to go for the bundling of services, with 40% now in a bundle, things look bleak for the pure players with the forecast putting bundlers at 82% in 2011.

Data and web services are expected to drive telecom industry for the next four years, and with bandwidth consumption rapidly increasing, some new investment is expected to avoid bandwidth shortages at the end of the decade.

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T-Mobile’s Fixed Mobile Convergence

Cellular provider T-Mobile USA now has a trial offering of a landline based VoIP service in Seattle and Dallas-Fort Worth, according to an Associated Press release on Thursday. Dubbed Talk Forever Home Phone, for a $10 addition to your $39.99 cell phone bill, customers can make free local and domestic long distance calls over their broadband Internet connection using T-Mobile’s $50 router, which has two connections for standard corded or cordless phones.

Last summer, T-Mobile launched their HotSpot AtHome service, allowing customers to make calls over a WiFi connection with a dual mode WiFi/Cellular cell phone. One phone, one number, anywhere!

The Talk Forever Home Phone plan is aimed at getting customers to drop their traditional landline service, by offering the less scary option of having a “real” telephone at home.

Duke to Deploy 802.11n

In what is deemed to be the largest planned deployment of next generation WiFi technology, Duke University taps Cisco Systems to rollout a campus wide 802.11n wireless network at their Raleigh Durham location.

Over 2,500 Cisco Aironet 1250 series access points will blanket the campus pumping broadband Internet access to every nook and cranny.

During testing, Duke says it experienced a reliable average throughput of 130Mbps per client with the Aironet access point. Legacy 802.11g laptops gained nearly twice the throughput of older wireless networks, indicating that backwards compatibility should not be a problem.

Broadband Balloons? Not Just a lot of Hot Air

This one blows my mind.

A company in Phoenix Arizona has caught the eye of Google, and could be in for a ride as wild as the transceivers they send to the stratosphere on a daily basis.

Space Data Corp. currently provides wireless telecom services to truckers and oil companies in the southwest U.S. Everyday they launch 10 latex hydrogen balloons with a shoebox size payload of what is essentially a miniature cell phone tower. In about two hours they reach their target altitude, between 65,000 to 100,000 feet. The balloons are only good for about 24 hours, when they burst and disintegrate from lack of air as they climb up to 20 miles into the stratosphere. Before that happens, engineers at ground control in Phoenix release the payload from the balloon, which parachutes back down to earth.

The transceivers cover a range of thousands of square miles as they drift over Arizona, New Mexico, Texas, and Oklahoma, each balloon covering an area equivalent to 40 cell phone towers. Wow!

Seems pretty labor intensive, since the balloons have to be launched so often. So just how cost effective can it be?

The balloons cost $50 dollars to make, and are launched from airports and farms across the area. The company pays airport mechanics and dairy farmers $50 per launch. Space Data CEO Gerald Knoblach says dairy farmers are “very reliable people,” They have to “milk the cows 24-7, 365 days a year, so they’re great people to use as a launch crew.”

The electronics payload cost $1,500, and is thus something that you would not really want to lose. Space Data hires “hobbyists” to track and fetch the Styrofoam incased boxes via GPS. The company pays $100 for each box recovered.

Talk about your trickle down economics.

So why would Google be interested in Space Data Corp.? Their main interest is expanding broadband internet coverage everywhere they can. This method covers huge areas at a relatively small cost, making it perfect for serving rural areas, the have nots on the dark side of the digital divide. Googles interest in wireless technology and its open source philosophy has been well documented as of late.

It is rumored that Google is looking to partner with Space Data Corp., or maybe just buy it. Space Data won’t comment on who it’s talking to or about what.

Star Wars Debut?

A little off topic, but noteworthy nevertheless.

This week the U.S. Navy launched a missile that effectively disintegrated a school bus size satellite that was falling to earth anyway.  Some say it wasn’t necessary, but we could, so we did, and everybody knows it now.

Ok, so it wasn’t a fleet of missiles launched to intercept an intercontinental rocket with a nuclear warhead arcing towards the western hemisphere, but now we know we can destroy things in space!

Are we getting too smart for our own britches?

 

Bill Gates was talking this week, specifically to a group of students at Stanford University in Palo Alta Ca. In an after speech interview with  CNET News.com, Gates says what makes Yahoo so valuable to Microsoft is its engineering talent. Never mind market share, its products, or its advertiser base, Microsoft wants the engineers. But do the engineers want Microsoft?

It has been said that the two companies have significant cultural differences, Yahoo being very collaborative with a Linux based open source philosophy. Microsoft has never been accused of being a champion of open source technologies. The engineers that thrive in that kind of innovative environment are even now considering bolting.

Yahoo announced this week a new severance package for their employees, with salary and benefits for two years. In order to stem the potential bleeding, MS will offer a retention package, the details of which have not been made public. Speculation has it that they could offer a $500,000 bonus to the top engineers if they agree to stay for say, three years. Mid level employees could get some stock options, while the bottom tier could be encouraged to leave.

Thing is, software developers are generally not just motivated by money. The risk for Microsoft is that in their quest to take on Google, the very engineers they want to get end up going there, just to stay in an open source environment.

Gates says there is no haggling going on between the two companies over the price, and maintains that the offer is a fair one. Nobody doubts that Microsoft is serious about the acquisition, and will go hostile if need be. Yahoo is taking its time with a formal rejection of the offer, saying it is weighing its options.

Meanwhile, Steve Ballmer, among others on a conference call Thursday, says they will not be suing open source developers for products that connect to Microsoft software. In fact, they intend to publish the APIs, initially for Windows Server and Office 2007, in an effort to bolster interoperability.

Is Microsoft going open source? That might be a smooth move if they want to keep the brains at Yahoo.

 

The Sydney Morning Herald reported on Tuesday that the International Telecommunications Union (ITU) is looking into sabotage as a possible cause of the five submarine cable cuts that affected the Mid East and south Asian Internet and phone services in late January and early February.

While the investigation is ongoing, a spokesman said that the UN agency is not ruling out that it was a deliberate act of sabotage. “We do not want to preempt the results of ongoing investigations, but we do not rule out that a deliberate act of sabotage caused the damage to the undersea cables over two weeks ago,” said Sami al-Murshed, head of development.

Internet speculators have widely believed that five cable cuts in a two week period is just too much of a coincidence. Richard Stiennon’s Q&A with former counter terrorism advisor Richard Clark on ZDNet sheds some light on the world’s preparedness to handle such outages.

According to Murshed, “Some experts doubt the prevailing view that the cables were cut by accident, especially as the cables lie at great depths under the sea and are not passed over by ships.” 

Hmmm. Dragging anchors across the ocean bottom – a new form of terrorism?

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