October 08, 2005

Money Matters

Before implementing a VoIP network, it is important to consider the financial implications of such a move. For investments in the new VoIP hardware to be favorable, it is sometimes essential to shift a fair number of minutes from the legacy network. This may lead to the cost of maintaining the existing network becoming unrealistic. Although, the lure of free or very low-cost long distance calls is very strong, a net manager needs to consider the company’s calling patterns in terms of domestic and international calls. voipplanet.com reports:

For example, assume that your existing service agreement specifies a rate of $0.05 per minute if you use one million minutes per month, and $0.03 per minute if you use two million minutes per month. Assume that you have recently used over 2 million minutes per month (at $0.03), but you estimate that you will drop substantially below this amount when you divert some of your voice traffic to data transport.

Read More: Putting it all Together—Part III: Implementation Tips, continued

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