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Pbx vs Voip

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PBX vs VoIP
A cost Benefit Analysis for Residential/Small Business Use
Applied Research Paper

Prepared for: xxx Keller Graduate School of Management
IS 590 – IP Telephony / VoIP

Prepared by:
Lester Henry
February 20, 2011

TABLE OF CONTENTS I. Subject Definition / Introduction 1
II. Problem Statement 1
III. Analysis 1
IV. Recommended Solution 3
V. Implementation Plan 4
My implementation plan is to leave things the way they are. If my needs and circumstances change in the future, I will revisit this to see if it is advisable to switch then. 4
VI. Reference List 4
1. http://www.bellsouth.com/consumer/local/localProducts.html?product=PAMA8&CID=IBA-CSmr427v0310ccelearnse 4
VII. Exhibits 4

NOTE – To update the Table of Contents above:
 right click on the table
 select ‘Update Field’ then
 select ‘Update Entire Table’
I. Subject Definition / Introduction

With the development of technology came the advent of Voice over Internet Protocol (VoIP). This technology has exploded onto the scene of everyday life in the past few years and is promising to take us into the future. The future that it seems to bring is one filled technologically efficient communications that have a reduced cost to both the carriers and the users.
II. Problem Statement

Every day I am bombarded with advertisements for one product and service or another. The ones that are easiest to ignore are the ones that do not apply to me. Telephony services do not fit into that category, as my family needs to communicate over the phone. Also, I do want to get the best deal so that my hard earned cash will be put to the best use. This leads me to ask the following questions:
• Should I switch my home phone service and get a VoIP Plan?
• What are the pros and cons for me to switch over my family’s services to a new type of plan and provider?
• Will I end up paying more?
III. Analysis
To understand if converting to VoIP will be beneficial, I have to evaluate the cost of what I am receiving now and compare that to what I would be receiving with a new VoIP plan. The current services that I am receiving now include [1]:
• Caller ID
• Call Waiting
• Call Waiting ID
• Three-Way Calling
• Call Return
• Call Forwarding
• Selective Call Forwarding • Call Blocking
• 8 Code Speed Calling
• Speed Dial 30
• Repeat Dialing
• Remote Activation of Call Forwarding
• Call Trace
• RingMaster®

What I am paying now through my current carrier for telephone service is $32.90 monthly. This price includes all taxes and fees for the features in the list above. It also allows my family the freedom to talk as much as we want to without counting minutes. The most likely carrier that we would select for VoIP service is Vonage. A listing of their plans are included below [2].

Compare Phone Plans Vonage
Pro Vonage
World
Vonage
Basic Basic
Lite

Price per month
Plus taxes & fees $34.99 $14.99 for 3 months then
$25.99/mo. $17.99 $9.99
Online Only Offer
Local & long distance calling in the U.S., Canada and Puerto Rico Unlimited Unlimited 500 minutes
3.9¢/additional minute 200 minutes
5¢/additional minute
Countries included for unlimited international calling 5 Countries included 60 Countries included Low per minute rates Low per minute rates No Annual Contract!
No Commitment!
Learn More

Caller ID, Call Waiting, Anonymous Call Block,
3-Way Calling and tons of other standard features

Unlimited 411 Directory Assistance

Unlimited Readable Voicemail

Vonage PC Companion

In order for any of the packages to be of any use to me and my family, we would need to be able to do a lot of local calling including long distance to relatives across the country. My wife has many friends and she stays with them on the phone for long periods of time. Therefore, the only plans that could be considered are the two unlimited plans, Vonage Pro and Vonage World. Because of the special on the Vonage World and its lower normal price of $25.99 that appears to be the best fit for our needs. There is serious problem to this solution however. Vonage, like all other VoIP services need an internet infrastructure to work on. Simply speaking, if you don’t currently have an internet subscription to a carrier, you cannot utilize any VoIP solution! Vonage requires a minimum of 90kbps uploads for call quality. For me to be able to take advantage of any VoIP solutions I would have to consider ordering service from an internet provider. Two reliable internet providers in my area are Comcast and AT&T. AT&T provides DSL service in my area [3]. According to their prices, the best deal would be their fast access 3.0M solution at $19.95 per month (with the price guaranteed to stay the same for the first year). Comcast prices are much higher, clearly favoring their current subscribers over anyone else. Their best deal, is on a 6 month limited time offer is $29.99 per month for internet service that will satisfy the needed requirements for VoIP [4].

IV. Recommended Solution
In the search for the answer of which is more cost effective between PBX vs VoIP, I have found that because each user is different that you can get different answers. I was sure that VoIP would have been cheaper for everyone. That was not the case in this investigation. Every person who wants to consider the same for themselves will have to do the research themselves. If they do, they may very well come up with a different result than I have. What I have found for myself is, based on my current needs it is not advisable for me to switch to a VoIP solution at this time. A switch would cause an increase in service costs without adding any real benefit to my telephony usage. For me to stay as I am would cost $32.90 per month. To add internet service with either carrier, just for the sake of using VoIP would raise my costs from $45.94 - $55.98 after the brief introductory period and likely higher afterwards!

V. Implementation Plan
My implementation plan is to leave things the way they are. If my needs and circumstances change in the future, I will revisit this to see if it is advisable to switch then.

VI. Reference List
1. http://www.bellsouth.com/consumer/local/localProducts.html?product=PAMA8&CID=IBA-CSmr427v0310ccelearnse

2. http://www.vonage.com/residential_calling_plans/compare_plans.php?refer_id=WEBHO0706010001W
3. http://www.att.com/dsl/shop/compareDirect.jsp?wtLinkName=Compare_Plans&wtLinkLocation=BDY
4. https://www.comcast.com/shop/buyflow2/products.cspx?SourcePage=Internet&&Inflow=1
5.

VII. Exhibits

3. Great Deal
FastAccess® DSL Direct 6.0M Great Deal
FastAccess® DSL Direct 3.0M Great Deal
FastAccess® DSL Direct 1.5M Great Deal
FastAccess® DSL Direct 768K

Plan Details
Speed
• Downstream
• Upstream
Up to 6.0 Mbps
Up to 512 Kbps
Up to 3.0 Mbps
Up to 384 Kbps
Up to 1.5 Mbps
Up to 256 Kbps
Up to 768 Kbps
Up to 128 Kbps
Monthly Price* $24.95 $19.95 $19.95 $19.95
Term Commitment No term No term No term No term
IP Address 1 Dynamic IP 1 Dynamic IP 1 Dynamic IP 1 Dynamic IP
Plan Type DSL without home phone service DSL without home phone service DSL without home phone service DSL without home phone service
Special Offers Save $276!
$24.95/mo. for a full 12 months. Reg. price $47.95 Save $276!
$19.95/mo. for a full 12 months. Reg. price $42.95 Save $216!
$19.95/mo. for a full 12 months. Reg. price $37.95 Save $120!
$19.95/mo. for a full 12 months. Reg. price $29.95
Wi-Fi Access AT&T Wi-Fi Basic included AT&T Wi-Fi Basic included AT&T Wi-Fi Basic included AT&T Wi-Fi Basic included
Ideal for • Streaming video
• Online gaming
• Home Networking
• Sharing photos
• Downloading music
• Email & web surfing • Online gaming
• Home Networking
• Sharing photos
• Downloading music
• Email & web surfing • Social Networking
• Sharing photos
• Downloading music
• Email & web surfing • Downloading music
• Email & web surfing

4. COMCAST
Performance - Special Offer
NEW SUBSCRIBERS: Sign up high-speed Internet today and get download speeds up to 15 Mbps and uploads up to 3 Mbps with PowerBoost®! o Surf the net, download music, upload photos and chat with friends at speeds way faster than DSL. o Norton™ Security Suite (a $160 value) included at no additional charge. o SmartZone® Communications Center with 7 e-mail accounts, each with 10GB of storage. o More than 3,500 live games on ESPN3.com. o Backed by the Comcast 30-day money-back guarantee. This special price is for customers who currently aren't subscribed to any Comcast services.

Minimum System Requirements
Terms and Conditions
Learn More

Special Offer!
$29.99 per month for the first 6 months

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