Business Phone Goes Hosted

Business telephone service has expanded over the years, from the single line analog POTS (Plain Old Telephone Service) to multi-line PBX systems that handle hundreds and thousands of phone sets. What’s the next logical development? Could it be even larger and more sophisticated in-house PBX systems? No, just the opposite. The PBX is moving out as business phone service goes hosted.

Hosted business phone is another term for telephone switching in the cloud. Hosted means that a service provider hosts your telephone service on their equipment. The responsibility for running the PBX system and providing the lines to the public telephone system are effectively transferred from your company to your service provider’s.

Why would you want to go the hosted route? It generally boils down to finances and flexibility. The first financial advantage is that you no longer have to buy expensive capital equipment and provide a space for it in your building. This is seldom a one time allocation. Every so many years you find that your equipment has become obsolete and too expensive to maintain or it can no longer keep up with the demands placed on it. You need a newer and likely larger system to replace it. That process is called a “fork lift upgrade” because it you can’t often salvage any of the existing equipment. A fork lift truck drives in and hauls out the old PBX system. It then drives back in to deliver the new replacement.

Granted, smaller PBX systems that support branch offices or retail locations may be something you can pick up and carry yourself. Even so, the “fork lift” metaphor applies. It’s out with the old and in with the new. Hopefully you can pay off the old system before it’s time to replace it.

With a hosted PBX system, there are phones but there is no PBX or telephone switching system in-house. That lets you avoid a major capital expense and also the guessing game of trying to predict how much capacity you’ll need during the lifetime of that system. If you guess low, you’ll be replacing it while it still works just fine. If you guess high, you’ll pay for capacity that you never use. Either way, it’s hard to know the future well enough to pick just the right size PBX.

The other financial advantage is that PBX phone systems cost more than just the purchase price. Every time to you to do a “move, add or change” with your telephones, somebody has to do some rewiring and change some programming in the system. That could be a dedicated staff member who is the telephone manager full or part time. Otherwise it is a contractor known as a VAR for Value Added Reseller. Either way, there’s ongoing expense to run the system and keep up with the changes.

How do hosted business phone systems save you all that grief and expense? The service provider has a much larger shared PBX system and the staff to run it 24/7. They keep up with day to day maintenance and upgrades. Because this system is so large, it can accommodate many customers and easily expand to meet your changing needs. That’s the principle behind the cloud. You don’t have to worry about all the hardware, software and personnel needed to keep the phone system running. The service provider specializes in this and handles it for you.

What’s available in the way of hosted phone services? There are a number of cloud communications providers who offer this capability. They generally provide the service on a “per seat” per month basis. Each phone has internal, local and long distance switching capability included. Most of the time its a single price for all calling other than international and for all the features. Some providers can include your mobile phones so that they are part of the PBX capabilities. Some providers even include the physical phones. These are IP Telephones than plug right into your company LAN. You connect to the provider with a network connection called a SIP Trunk.

Can hosted business phone make sense for your company? There are solutions for every business from the smallest retailer to the largest corporation. Get prices and features for competing hosted PBX service providers now and see if you can save both money and effort.

Hosted Voice Goes Mobile

There’s a major migration in progress right now. Can you guess what it is? If you answered “to the cloud,” you’d be right, of course. If you answered “PBX to the cloud,” you’d have read my mind. Companies are abandoning their PBX telephone systems in favor of cloud communications systems. You may know these as hosted PBX or hosted VoIP. Now, that also includes mobile.

Megapath’s Hosted Voice Mobile gives you the ability to have one-number VoIP calling from your desk phone, desktop computer or smartphone. The key is the one-number capability. Do you have one of those business cards with half a dozen different phone numbers? I’ll bet that confuses your customers and prospects. Hey, what are you supposed to do. You can’t be in the office all the time. Sometimes you are at your desk, sometimes you are out and about, the rest of the time you are at home. If a really important call comes in you aren’t about to quibble that you are “off duty” at home.

Legacy approaches to solving this problem include having a calling service that will try to locate you, carrying a pager (very legacy), remembering to forward to your phones, one by one, when you make a move, having a secretary take messages for you and leave them on your desk or just relying on voice mail that you check all the time. None of these approaches has been ideal, but they sure beat missing a critical communication.

This is where cloud technology shines. Location doesn’t mean a thing to the cloud, because it covers all locations. With cloud services you can be anywhere and access your account in the cloud using whatever compatible device you happen to have handy. With Hosted Voice Mobile, you use an easy-to-manage Web portal that controls call routing using a single VoIP number. That’s right. You hand out one number and know that you’ll get calls to that number no matter where you happen to be.

Hosted PBX systems relieve you of the responsibility to maintain a small telephone switching system in your back room. This function moves to a much larger platform at your cloud service provider. All you have in-house are IP phones, a voice gateway that delivers telephone services, plus your mobile smartphones. The hosted system contains the functionality for such features as Find Me / Follow Me and Visual Voicemail. Now that includes your smartphone as well as your desk phone.

Megapath goes beyond some of the basic hosted PBX services to include features like HD voice for crystal clear call quality, free domestic calling that includes long distance and the ability to replicate key telephone systems.

What’s a key system? If you have a phone system that has individual buttons for all the outside phone lines, you have a key system. Key phones have lights next to each line switch so you know when the line is busy. If you want to make an outgoing call, you select an unused line. If you want to join a conversation in progress, you push the button for that line and you are conferenced in.

PBX telephone systems differ from key systems in that the PBX manages the outside lines. You don’t have the ability to pick a line and probably don’t even know how many lines there are. They are placed in a pool and assigned as needed. That’s when an incoming call comes into the system, or someone requests an outside line by dialing a number, usually “9.”

Are you feeling constrained by the limitations of your present phone system or are experiencing outages that are time consuming and expensive? Before you get a loan to buy yet another in-house phone system, check out the options available with one of the newer hosted VoIP systems. You’ll avoid large capital investments, pay per seat per month, and gain valuable features such as mobile integration that you don’t have now. Compare competitive cloud hosted communications systems with what you have now and see what you’ve been missing.

Who Still Needs a T1?

With all the hoopla over copper and fiber Ethernet, plus new options in Cable broadband, that stalwart of business connectivity, the T1 line, is getting little fanfare these days. Does that mean that T1 is on its last legs? Or, is there a future for this proven telecom service?

Far from fading out, T1 is as popular as ever. New installations are being provisioned as you read this. The fact that T1 has been around for decades is one of its strongest features. That and the decline of T1 prices in tandem with competing Ethernet over Copper services are keeping T1 in the game.

So, who really needs T1? You do if you need professional grade dedicated bandwidth, secure point to point connections, or robust telephone trunking. That’s especially true if your business location is a bit off the beaten track. If you can’t get any wireline service other than plain old telephone, you probably can get a T1 line installed.

T1 has almost universal connectivity today. To understand how that can be when DSL and Cable rarely go past the city limits and Ethernet services are mostly found in business districts, we have to look back at why T1 was developed in the first place. We think of T1 lines as wide area network connections today, but in the beginning T1 was a telephone trunking system.

Prior to WWII, telephone companies connected to each other through analog lines on telephone poles or underground cables. Carrier telephony used a frequency division multiplexing scheme to load multiple conversations onto a single pair. In the 1950’s, Bell Labs developed digital multiplexing to replace the analog systems. The basic digital trunk was defined in the T-Carrier specifications. T-Carrier includes T1 and T3 lines.

The genius behind the design of T1 is that it runs on two pair of ordinary twisted pair copper. This is the subscriber loop connection that is installed in every business for telephone service. The wires are the same, but the signals on a T1 line are digital, not analog. While one copper pair can carry one business phone line, two copper pair can carry 24 phone lines or a digital bandwidth connection of 1.5 Mbps.

Another smart thing about the design of T1 is that provisions were made to boost the signal so that it can connect far flung locations. Not every business location is within a few thousand feet of a telco central office. Even analog signals fade out with distance. The much higher digital signal frequencies fade out much quicker. That’s why DSL is hard to come by. Unless you are close to the phone company CO, the DSL signal has little bandwidth capability left by the time it gets to your place.

The T1 support system was designed with a device called a regenerative repeater that can be installed in the line every mile or so to complete regenerate the signal. The noisy and faded input signal is boosted and reshaped so that at the output it looks like what comes out of the central office. Keep adding these repeaters and you can extend T1 service far out into the countryside.

If you have a business on the edge of town or in a remote location, you may still be able to get a T1 line for a reasonable price. The only real competition is two way satellite broadband. It works, but has very long latency times that make telephone service perform poorly, is subject to rain and snow outages, and has download limitations. If you exceed your quota, your speed will be reduced so that you don’t hog the limited resources of the satellite.

T1 has none of those problems. You get a rock solid 1.5 Mbps in both the upload and download direction. Load it full up with data transfers 24/7 or use what you need, the price is the same. Latency is negligible for most applications. In fact, T1 works great as a multi-telephone service or in the ISDN PRI configuration that supports most PBX telephone systems. You don’t have to get an Internet only data connections. T1 lines can be ordered between two business locations for a private line connection.

Is T1 the right service for your needs? Check T1 prices and availability instantly and compare with other options... if there are any that are suitable.

SIP Trunks vs ISDN PRI

Enterprise telephony long ago advanced beyond analog business lines in favor of PBX telephone systems and ISDN PRI trunking. Now there’s another option that may offer cost and performance advantages for companies that want to improve their voice services. It’s called SIP Trunking. Let’s compare and contrast SIP Trunks with ISDN PRI to see how to choose between them.

You should know that we are still talking exclusively about digital telephony. There is no analog transport in either a SIP Trunk or PRI. What differentiates the two is that ISDN PRI is based on a switched circuit model and SIP Trunking is based on packet switching.

For many companies it could be six of one and a half-dozen of the other. That’s because either trunking service can be made to work with your in-house phone system. The idea behind digital trunking is to carry a half-dozen or more outside phone lines on a single digital line. Usually that’s one or more T1 lines, although DS3, OC3 fiber or Ethernet can also be used.

ISDN PRI uses a T1 line configured into 23 separate voice channels plus one data and control channel. Most PBX systems and the newer IP PBX phone systems make it easy to connect to ISDN PRI. They either offer one or more PRI ports built-in or accommodate a plug-in adaptor card.

If you need more than 23 lines, you simply add more ISDN PRI lines incrementally. Each additional line can bring in up to 23 more business phone lines. You’ll have to check what’s available for your phone system, but it is not uncommon to have 2 to 4 PRI lines plugged into a PBX system.

The technology used for ISDN PRI is defined by the Integrated Systems Digital Network specification. PRI is the Primary Rate Interface. There is also a lower performance BRI or Basic Rate Interface that isn’t seen much anymore. This is a legacy telephone technology designed to support the idea of separate digitized telephone lines, one per channel. There’s no chance of interference between calls because the channels are strictly defined and timed using Time Division Multiplexing.

SIP Trunking is more of a network than a telephone based technology. It is a packet switched network line, much like you would use to connect two business locations. What SIP Trunking can do is directly support a converged voice and data network. You can run SIP Trunks between business locations to expand your voice and data network geographically.

The SIP in SIP Trunking stands for Session Initiation Protocol. That’s the switching technology used in VoIP telephone systems. In SIP trunking the control signals for the phone system are transported in packets that travel down the same network pipe as the voice packets.

ISDN PRI isn’t so much about convergence. It’s really about having separate telephone and data lines leave the premises, although you are free to converge your in-house network and let an IP PBX system on the network handle call routing, including outside calls on the ISDN PRI trunk line.

SIP Trunking doesn’t have to be about convergence, either. You can simply use a SIP Trunk to connect your PBX system to a telephone service provider rather than using an ISDN PRI. Depending on which CODEC or coding scheme you use, you may be able to handle more than 23 lines on a SIP Trunk. If you are using an Ethernet connection to your provider, you may be able to support dozens of phone lines depending on the bandwidth available.

For small businesses, SIP Trunks can be configured to transport both voice and data to your service provider. Most often this is used to bring in telephone lines and broadband Internet service on the same SIP Trunk. There’s a cost advantage, even if you are not running a converged voice and data in-house.

Since either ISDN PRI or SIP Trunking might be able to support your needs, how do you choose? That depends on the features you desire and what’s available to serve your particular business location. You may have several options to choose from. To find out, check out SIP Trunks and ISDN PRI availability and pricing now.

Reducing Call Center Costs

Call center owners and managers would love to find some way to reduce costs without reducing quality of service. This is especially important as on-shore call centers become popular for premium value customer service. Labor costs may increase with domestic personnel, but is there any way to offset these? You bet there is.

Facilities and personnel are only part of the expense in running a call center, regardless of where it is sited. A big recurring cost is telecommunications services. The larger the center, the bigger the lines coming into and leaving the facility. Pennies per minute on the phone soon become thousands of dollars and tens of thousands of dollars per month. Add to this the cost of data lines and you've got a major line item expense.

The fastest and easiest way to reduce call center costs is simply to pay less for the same quality of service. Is that even possible? It is when you optimize the value of your voice and data telecom line services. You may be lulled into thinking that you are already getting the best rates possible based on your usage volume. But are you?

Unless you've recently gone out for quotes from half a dozen to a dozen competitive service providers you may well be paying more than you have to. I'm not talking about trading down to a lower quality of service. I'm suggesting that there are high quality competitive carriers out there who are hungry for your business, especially in this economic environment. But you have to have a way to find out about them and work out the contract details.

Suffice it to say that simply signing with the incumbent local telephone company does not guarantee you the best competitive rate. If anything, they may treat your business as a captive market and offer limited if any discounts. You may well get incrementally lower rates on voice minutes as your call volume increases. But when was the last time they sat a contract on your desk that was half the cost of the last one? Ha!

So where do you find these alternate carriers and how much time and effort is that going to take? It could be a major project, or it might be a trivial effort. It all depends on how you go about it. The easy path is to work through a telecom services broker who has the tools, personnel and expertise in place to efficiently run a search specifically for your needs and location. Location is important as most carriers have limited service footprints and line prices are calculated from carrier offices to specific business locations.

The task of doing this is made easier by automated tools, such as GeoQuote (tm) from Telarus, Inc. This patented software system has been optimized to interface directly with carrier databases and develop optimum pricing, often in real time. You can give it a try yourself by simply entering some basic telephone and business address information into the GeoQuote online search form. You'll be well advised to also speak with a Telarus consultant, as they have access to special limited time offers not accessible by the search engine. You can request this through the form or call the toll free number and discuss options with a consultant at any time.