So I’ve talked quite a bit about SIP and cost savings. I shared how SIP saves money. But up to this point, the dollars are not very tangible. How can you look at your current telecommunication costs and prepare an equivalent SIP configuration? Well because SIP is so flexible, and you can deliver it over any IP connection, the cost can vary depending on your situation. I’ll outline what I usually do when preparing an analysis for my customers. This usually generates a financial model in which further dialog can refine the numbers.
Try this:
1.) First inventory all of your current telcom costs – the number of analog lines, PRI’s, outbound long distance minutes and charges, inbound (toll-free) minutes and charges, and international calling.
2.) Take the number of analog lines and PRI channels and multiply by $12.75 per SIP trunk to get the equivalent SIP configuration. This works for remote offices too because we can port remote numbers across calling areas and eliminate remote office analog lines (this assumes some sort of WAN is in place)
3.) Figure out the IP-Transport mechanism that you feel comfortable with. I usually recommend a separate connection (in addition to the connection used for Internet traffic) if you have over 5-10 lines (unless you go with the QOS-T1 mentioned below). This is because most quality issues are a result of your SIP traffic contending with your Internet traffic on that “last mile”. If your organization is a heavy Internet user, factor in a separate Internet connection. Going with the QOS-enabled T1 allows you to prioritize the SIP VOIP over the data traffic. Use these rough numbers for determining IP transport costs:
Basic Internet T1: $300 – $350
Internet T1 with a private connection to the SIP provider and Quality of Service: $389
Commodity-grade DSL or Cable: $80
Remember, you can accommodate up to 48 SIP trunks on a T1′s worth of bandwidth (32K per call).
4.) Take your current outbound long distance minutes and multiply by .02 per minute for the equivalent SIP costs
5.) Take your current inbound toll free long distance and multiple by .03 per minute for the equivalent SIP costs
6.) Take your current outbound International costs and multiply by .02 per minute for the equivalent SIP costs. (this assumes most calls are to European countries).
7.) Add it all up and see how much you can save.
NOTE: These are very rough numbers – and don’t factor things like geographic location, number portability, installation costs, SIP providers, or further discounts associated with volume commitments. You’ll also need to make sure you’re able to convert your services (and you’re not under current contractual obligations).
If you don’t have time to do this, contact me and I”m happy to assist. Call me at (877) 226-7491 or email at info@access-techweb.com.
Or go to my website at: http://www.access-techweb.com/case_studies.php to see real-world examples of cost savings associated with SIP.
Talk to you later….
Tags: Cost Savings, Session Initiation Protocol, SIP, Telecommunications
