VoIP for Dummies Book - XO Communications

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XO Communications VoIP For Dummies
Moreover, VoIP brings to the table a number of slick calling
options. VoIP call features include all of the features offered in
POTS-related telephony systems, as well as many other features
the likes of which have never been seen before in telephony
systems. VoIP features enhance the collaboration of employees
across your business/enterprise and ultimately reduce the
operating expenses of the company.
Saving Money with VoIP
One of the big “aha’s” with VoIP is that companies can enjoy
an immediate savings on their regional toll and longdistance
voice and videoconferencing charges. Before VoIP
telephony, everyone was critically dependent on POTS running
over the PSTN with no other options for their telephone
needs. That is why the majority of companies today have
POTS-related systems in place.
No more leasing POTS lines
But VoIP is changing this because there are several disadvantages
to companies that use POTS-PSTN when compared with
VoIP telephony. POTS-related lines are leased from the local
exchange carrier, which can incur added expenses. For example:
� Each line usually has a nominal startup charge.
� Each line has a monthly recurring charge known as the
access cost.
� For every POTS line, the company must pay monthly
recurring usage charges for local, regional toll (includes
intralata and intrastate), and long-distance (interstate)
services.
All recurring service charges are based on a rate per
minute per line basis. For example, a company on the
average may pay $0.10 to $0.64 per minute for its
intralata carrier services. (Intra means within the same
LATA but outside of the local calling area. LATA means
Local Access Transport Area.) It may sound like it is a trifling
kind of cost factor. When you add up all the minutes
from every line in operation, however, the cost each