Question

Maestro of the Telecom Industry: most cost-effective simple phone system for today (TDM?/VoIP?) you can design using all your tips/tricks.

Asked by: avtel

Hi people,

I'm setting up my first business facility, and since I have no leeway with the money (I'm risking it all for a dream...But a well-calculated one...), I need to get the perfect phone system for me.  But, the Telecommunications Industry may be the oldest industry that is still so completely a mystery to so many of us commoners.

My perfect phone system means:
1. cheapest Equipment Cost, and
2. cheapest Monthly Recurring Charges.



VoIP or TDM?:
I don't know if VoIP makes things cheaper in my situation.  We don't have branch offices, and we don't make a lot of International, or other long distance calls - except to whatever category other Los Angeles area phones are.
Yet, we will have a DS-3 (45Mbps) line, and could also save some money on the cabling, since we could just put in single drops of the Cat5 cables.
I'm leaning to a regular old phone system (TDM-based system) because I think there might be some really cheap refurbished equipment out there - in particular the old phones.  But I'm unsure if the Monthly Recurring Charges from the Phone Company will be more costly over 2 years?  

Also, please not that this phone system only needs to exist for 2-3 years maximum.
And I don't mind buying refurbished.

PHONE SYSTEM DESCRIPTION:
I'll have 40 phone users, all in one location.  We probably need about 10-15 lines (although anyone know if that's too much for an Engineering office environment?), and each person with an extension.
We need Voicemail and Conference calls.  That's it - other features are just gravy if they happen to come with the system, but we don't need anything else.

Distribution of Phone Calls made:
Mostly, the 40 employees will be dialing each others' extensions.  But of outside calls, 60% will be to another business that is located about 2 blocks away.  Another 30% of calls will be to locations around the greater LA area, which is where this business is located.  The rest is probably around the US and maybe a bit of International.


I really appreciate any help you guys can give on this, even if it's not a complete answer.

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Asked On
2009-11-04 at 03:12:16ID24870479
Tags

VoIP

,

TDM

,

PSTN

,

Phone

,

Phones

,

PBX

,

Telecommunications

,

Costs

,

Cheap

,

Avaya

Topics

Telecommunications Providers

,

IP Telephony

,

Legacy PBX

Participating Experts
2
Points
500
Comments
6

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Answers

 

by: LexmarPosted on 2009-11-04 at 08:11:57ID: 25740786

A VOIP solution based on open source asterisk systems will run about half the cost of a traditonal key system.  Essentially for the cost of a 4 year old used system you can have a new VOIP/SIP based commercial version of asterisk with support and all the bells and whistles.  Pretty much everyone's stuff today is web administrated even the current key systems. When properly setup they can be easiliy managed locally for extensions and autoattendant and remotely for more complicated stuff.

VOIP costs are also cheaper than traditional phone service and will allow you scale up or down as your size dictates.  You can get plans that run based on minutes or flat rate.  Figure 10 lines of flat rate have a national average around $350/mo for a quality carrier.  The nice thing about VOIP is you can go to the provider's website and add capacity to your account up or down as you please.  VOIP is getting better with FAX but still has some issues with older FAX equipment so you will need a POTS line or two for FAX or use a service like eFAX.

BTW - about >8-10 lines is just about the point where it starts to make economic sense to move away from a flat rate plan and go to a minute based plan (also called bucket plans).  Remember that on anyone's system intercom is not telephone and has no associated line /usage costs.  If the majority of calls are going to one place and they have have sufficient bandwidth there you can bridge your system to theirs over VOIP and give yourself say 4/8/12... extensions straight in and that 60% call load becomes zero cost intercom calls - it does not matter what they have; there are ways to hook the systems no matter what they are.

Alternatively you can also just go with a hosted PBX service and just put in IP phones and not even have an internal phone system, you still get intercom and can do all the same stuff.  National average is roughly $50/mo per extension - this is usually more cost effective for a smaller office but there are some big organizations doing it when they have people scattered all over the map.  Rule of thumb is that if telco calls are >60% of the total phone system then take a close look at hosted.

Commercial asterisk systems:  IVT Evolution (I am a dealer), Fonality (direct or thru Dell), Asterisk Now Business (Digium - sponsor of asterisk), all told there are a dozen or more good commerical adaptations of asterisk you can Google.  There is also SIPXecs and 3CX (WIndows based) as well as Windows Communication Server as alternatives.  All of these systems come in various levels of features and you can go with the high end versions that offer Unified Messaging that can take incoming FAX and voicemail and shoot it straight to your email and still be way less than the cost of a used Avaya/Nortel/Comdial etc.

Hope this gets you a start, I am pushing the rules for the forum by possibly getting too close to a commercial plug or self promotion here.

 

by: avtelPosted on 2009-11-05 at 18:07:50ID: 25756103

First - you are indeed a Maestro of Telecom.  It looks like you'll be getting the 500 points, and not only because no one else answered.  I'm new and don't know what those points actually mean, but hopefully it's not the foolish motivational tool it sounds like.  I'll give it a few more days and then close this question down.

So, I was definitely considering an Asterisk system, as I like the open-source/DIY possibility, range of features, and the possibility I can remotely manage it since I spend a lot of time in another part of the country (am I right about the remote management capability?).  But, are you sure the older-style phones (b/c non-IP phones) and pbx's aren't going for super-low prices because everyone's moving to VoIP?

COMMERCIAL v DIY ASTERISK:
You've suggested commercial Asterisk systems - but would me setting it up on my own be out of the question?  (Using FreePBX I think?).  I need a pretty simple system: voicemail and conference calling, and that's it.  

BRIDGING TO ANOTHER PBX:
You also mentioned that I could bridge my system to the system of the business that a big chunk of calls will be going to, and that it would then be essentially free b/c it's all over the data network, not voice.  But what about security concerns?  That other business is a branch office of a large Utility company - I'm wary that their IT guys would allow that connection.  Or is something like that not a big deal?

HOSTED SERVICE:
For hosted service - you gave an estimate of $50/user.  We have 40 users, so $2000.  This phone system has a set 2-year lifespan (at most 3-year).  I was thinking that having an on-premise system would be cheaper in the long rung - do you agree?


CHEERS!
Seriously, thanks for the help.  And I wouldn't say that your answer was equivalent to a plug/promotion.  As long as the opinions on cost you gave are true, you've presented a clear, unbiased picture of the situation.

 

by: LexmarPosted on 2009-11-05 at 20:47:50ID: 25756671

The advantage of asterisk is that it is just a software package on a standard linux box.  You can remote in to the shell or for 95% of all the PBX stuff just use the web admin.  Need a bigger server, move it to a bigger box, need more storage for voicemail, $50 at Newegg for a bigger drive.  Its all commodity stuff you can buy from dozens of sources.  Need a bigger CPU for a Comdial, you can find 12 different variations of the CPU card on the used equipment lists, but which one do you need?  Is the ROM the right version for the rest of your system?  The legacy key systems are DESIGNED to lock you in and force you to need the dealer/installer to do anything.  The bottom dropped out of the used telcom equipment market because current economic conditions have forced a lot of doors to close and businesses to downsize.  The trap is that you have to have a guy in your area that can service what you bought and the telcom guys are $100/hr or more.

Commercial vs DIY isn't really the issue.  What do you do?  Are you an IT guy or an engineer in an engineering company that does IT?  Regardless of asterisk or a key system, support means somebody that can get your system working when you get stumped or it goes down and you aren't in town.

In really general terms the UI in the commercial asterisk boxes are a lot nicer than the free ones.  I may be biased but the ease of use and better stability of a commerical system is well worth the $600-1500 it costs for the software.  For those of us selling the stuff we can run you through a survey of your network and basic needs and preconfigure 95% of the system to where you can plug in the server, turn it on, plug in the phones and the system will just start working, even the VOIP.

Bridging, I guess that depends on your working relationship with the utility.  It isn't really a security issue because odds are they are already using VOIP to tie the branches together.  What's one more?  Anyway, SIP is cheap so if you figure your cost to actually call them is around 2 cents a minute it is unlikely to be a serious impact on your bottom line.

Hosting is just starting to catch on, it will be at commodity pricing in another couple years.  It is ideal for SOHO and small offices with less than 10 people.  The nice thing is no pbx hardware/software, programming, or maintenance - they handle everything for you as part of the service.  It isn't for everyone but any organization without their own IT people should look at it carefully to see if it is a good fit.

Points along with the solution grade get me some additonal features that I don't have to pay for and loosely indicate ranking within Experts-Exchange that gives some indication to folks that I may know what I'm talking about and how helpful the comments I post really are.  I have gotten some really good advice from EE or sometimes just a different way of looking at a problem that have helped me get things done faster - I like to give back when and where I can.

 

by: atrevidoPosted on 2009-11-10 at 08:25:21ID: 25786923

Unless you're in IT or are a closet geek  I would steer you away from VoIP and asterick or another DIY VoIP.  You can pick up a traditional PBX or key system for pretty cheap nowadays that is refurbed.  What part of the country are you in?  I see PST, I can refer you to a number of dealers that have refurb Mitel sx200 gear that you could pick up for a song.  Mitel SX200 is key/pbx depending on what you need and size.

 

by: avtelPosted on 2009-11-10 at 08:47:02ID: 25787184

This setup is for a facility in the Southern California area.  I'd definitely appreciate you pointing me towards some cheap refurb equipment.

 

by: atrevidoPosted on 2009-11-10 at 09:06:32ID: 25787406

please give me your email address and I'll email you some contacts.  Price quotes are good.  You can get some quotes from some people, then compare them to the asterick and see what there is to see.  Someone installing it versus you figuring it out.  I'm not an asterick pro but I think some sort of knowledge regarding VoIP, routing, telephony, etc is required, especially considering the qty of questions we get on it in the telecom section

20120131-EE-VQP-002

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