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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
- Comparing Cisco vs. Shoretel
- Managed VoIP Solutions with the Best ROI
- VoIP Places More Demand on Web Hosting
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3-7-08 Technology Week in Review
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.
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?