The use of VoIP services is really in it’s infancy at the present time, and like an infant will grow as time moves forward.

While the business community has been on the forefront of the use of VoIP and broadband phone services, it’s use is catching on quick with the general public. The drive to cut costs and have fewer bills to keep up with are just a couple of reasons that consumers are beginning to take a serious look at VoIP and broadband phone services.

Cable television companies have begun to offer their clients service bundles which can include cable tv, broadband internet, and broadband phone service all in one. These bundles are usually priced to save consumers enough on their separate monthly services that it makes sense to make the switch to the bundled packages.

Consumer savings also doesn’t stop at the bundle. Depending on the service provider and the package chosen, there is also the aspect of cutting long distance costs to zero when using broadband phone services. This free long distance is an offer which some consumers simply can’t pass up, when combined with the extra savings on the service bundle.

If you are considering subscribing to a bundled service, there’s a few things you should know up front, and don’t be shy asking questions before you buy.

Before you can know if you’re truly getting the best deal is to know what you’re actually paying before you decide to go with a bundled service.

Add up your true present costs, factoring in:

There are so many ways that a VOIP Hosted PBX can save you money I can’t begin to cover them all in a short space. However, here a few of the major cost saving aspects of a VoIP Hosted PBX system:

Cash Flow - Controlling cash flow is a major factor that determines the ultimate success or failure of any business, regardless if you are a start-up or an established business. Tight control over capital expenditures and operating expense is essential. On average, a VOIP Hosted PBX costs 20-40% less than a premise-based PBX. Also, CAPEX is minimized because you don’t have to “Buy the “Box”.

Additionally, because of the way premised based PBX systems are designed, you have no choice but to buy more equipment than you actually need to support your current requirements.

Sounds crazy, but it’s true. Why spend precious dollars now on equipment you won’t need until six or 12 months later or longer? A VOIP Hosted PBX allows you to pay as you grow. In other words, you only buy what you need to support current requirements.

Adding new employees to the system is fast, easy, and cheap. More importantly, you don’t have to pay for something until you actually need it.

If you are ever affected by a downturn in business, a VOIP Hosted PBX gives you the flexibility to reduce your expenses accordingly by reducing your telecommunications requirements with no penalty since you only pay for what you need, when you need it. Generally, you cannot do that with a traditional premise-based PBX without incurring some form of financial penalty.

Moves, Adds, and Changes - Unlike a traditional PBX, in a VOIP Hosted PBX environment, Moves, Adds and Changes do not require an on-site technician to make changes to your phone system. A VoIP Hosted PBX can be remotely configured by the provider, thus providing you with the flexibility to add, change, delete or move users within hours instead of days.

Eliminating costly monthly maintenance contracts will reduce your expenses because there is no need for a technician to visit your location every time you want to make a change. This is done remotely by the VOIP Hosted PBX provider, which also gives you with greater flexibility to respond quickly to changing business or market conditions.

Significantly Reduce Depreciation Losses - Traditional PBX systems depreciate almost 70% the day you install them. With VoIP Hosted phone service, you won’t have to worry about depreciation since you’re not purchasing equipment.

Although there are many other reasons that a Hosted PBX can save you money, such as reduced maintenance, elimination of the need to track and implement software patches, no requirement to maintain PBX equipment inventories, no vendor finger-pointing, and faster trouble resolution, the overall savings can be summed up by considering the Total Cost of Ownership of a traditional PBX compared to that of a VOIP Hosted PBX.

In the December 2005 issue of Business Communications Review, Ken Dolsky and Warren Williams of InfoTech published an in-depth analysis comparing the TCO/ROI of a Hosted PBX to that of a premise-based IP PBX for a single location with 50 users. They concluded for most instances, the Hosted PBX environment was the clear financial and performance winner. Even though their analysis shows a significant opportunity to reduce costs with a VOIP Hosted PBX, it is important to point out that the analysis did not not take into account large savings associated with increasing employee productivity and revenue using the Hosted PBX’s advanced features.

Here’s another piece of advice.

When you replace your traditional PBX with a VOIP Hosted PBX system, then plan on buying a bigger piggybank, too.

Bill Casey is the VP of Marketing for Reignmaker Communications, headquartered in Atlanta, Georgia. They offer Hosted PBX service.

Share This

What is a broadband phone? How does a broadband phone work? Where do I find broadband phone service? How much can I expected to pay for a broadband phone and broadband phone service? These are the questions I have asked and set out to answer in this article.

What is a broadband phone? A broadband phone is essentially a telephone that makes calls to another telephone via a broadband connection.

How does a broadband phone work? When a phone call is placed the call is routed by a private branch exchange (PBX) from a company like AT&T, SBC, or Sprint. The difference is that the data from the phone call, which is the voice data from you speaking, is transferred back and forth through the internet using a technology called voice over IP (VoIP). A traditional phone transfers data over phone lines.

Where do I find broadband phone service and how much does it cost? A list of broadband phone service providers and their lowest monthly rates is below.

Broadband Phone Service Providers
Lingo - $19.99
Net2Phone - $14.99
SpeakEasy - $83.90
Voice Eclipse - $12.95
Voice Pulse - $14.99
Vonage - $14.99
ZingoTel - $14.95

I hope I have been able to answer some of your basic questions concerning broadband phones and goodluck with your future broadband phone endeavors.

Jason D. Barrett is currently focused on writing articles for InfoBriefs.com (Brief reports on several topics), ChildInsure.com (Child Insurance), and ScoutTechnology.com.

Share This