ORRTEL COMMUNICATIONS

---

NEWS LETTER

 

ORRTEL COMMUNICATIONS: KEEPING YOU UP TO DATE WITH VOICE, DATA AND VIDEO  

                                                                                                                            OCTOBER 2004

---

---

 

TECH COLUMN

---

WHAT TO KNOW BEFORE BUYING A PHONE SYSTEM!

Telecommunications is a basic requirement for your business productivity, and buying the wrong telephone system can cripple your entire operation for years. Helping you choose the right phone system for your business is what we do best.
There are many factors to consider when buying a telephone system. Cost, current need, future expansion and options you'll want to coordinate your purchase with. For example other equipment you already own or may need to purchase, such as a voice mail, music or messaging on-hold system, phone headsets, toll fraud equipment and auto-attendant are all very important options when choosing a phone system for your business.

 

DOES A SMALL FIRM NEED A PHONE SYSTEM

If you're a very small firm, you may not need a full-blown phone system, but still require something more sophisticated than single- or multi-line phones. There are a lot of choices in todays market. Just have a look at your local Staples or Office Depot for example. They have plenty of telephones and you may find what your looking for but keep in mind when making your purchase that you won't find industrial style telephones at these locations. Its always best to consult a business that specializes in telelphone equipment. There are full service telecommunication company's that offer free consultation with no obligations or sales pitches involved.

 

How To Choose a Phone System

This buyers guide works hand in hand with our Telephone System Wizard (a nifty little program that will actually configure a system for you!). Here are some basic questions you should ask yourself before getting started:

How many incoming (C.O.) lines and extensions do I currently have a need for?
The first and most important question you should be asking yourself. This will largely determine where to start your search.

How many incoming (C.O.) lines and extensions will I need in the future?
Save yourself money in the long run by anticipating your future needs. Most of the time it will cost less to expand an existing system than to buy a new one. Make note of the system's maximum capacity (both C.O. Lines and Extensions). Is this going to be enough for your business in 6 months?

Do I want voice mail?
For most people, the answer is yes. Voice Mail is a valuable tool that most businesses cannot afford to be without.

What other options (like Music On Hold, cordless phones, etc.) do I want?
Features like Caller ID, Paging, and Remote Administration add additional value to your system. Take a look at the matrix below to compare the availability of these features.

Am I going to install the system myself?
Depending on your technical ability, you may be able to install your system without hiring someone to do it for you. Modular (Plug-N-Play) systems are the easiest to install without hiring a professional installer. Amphenol systems require more technical ability to install; in most cases it is recommended that you have this type of system installed professionally.

Configure your system.
Once you answer questions 1-5 you are ready to configure your system. will automatically determine what parts you will need, what options are available, and the total final cost.

Key
* Caller ID is not available in all areas. Please check with your local phone company.
** Although there are no cordless system phones made for the Vodavi DHS, you can add one or more cordless SLT, like the Panasonic Gigarange Series.
*** Auto Attendant is included with all Voice Mail Systems listed.
*+ All systems have the ability to add music on hold, additional equipment is required.

 

Phone Systems | Buyer's Guide
Sizing a Phone System

In the case of key systems, system size is usually indicated as a combination of "lines" and "extensions." Lines, which are also sometimes called trunks, indicate the total number of outside lines used by the company, while extensions refer to every phone within the company. For example, a system might accommodate up to 12 lines and 36 extensions. In contrast, most PBXs define size in terms of "ports," which indicate the maximum number of connections that can be made to the system. This includes outside lines and inside extensions, as well as accessories such as voice mail or automated attendants.

Even if a system can handle your current phone traffic, you also need to check that it will be able to handle your future expansion needs. The ideal system should be able to handle such expansions in a very cost-effective manner.

Check which items will need to be purchased or replaced as your needs change and your staff grows to get a good sense for your future costs.

 

Phone Systems | Buyer's Guide
Digital vs. Analog

Most newer and more expensive phone systems communicate via digital technology. This means that sound is transmitted as bits of data rather than audio waves.

Theoretically, digital transmission has many advantages over analog transmission. Digital signals are less affected by interference and line degradation, meaning that digital lines have virtually no static or hiss. Most businesses, however, make outgoing calls over regular analog lines. This means that even a digital phone system must convert signals back to analog waves whenever a call leaves the office. Because very little sound degradation occurs within the smaller confines of an office, analog systems actually sound about the same as their digital counterparts.

The main reason for buying a digital system is that these systems tend to be better equipped to connect with accessories such as voice mail or caller ID.

 

Phone Systems | Buyer's Guide
Features

Systems can be equipped with literally hundreds of features for switching calls and directing traffic. Dealers estimate, however, that 95 percent of system features are never used within a company.

Instead of comparing features on a one-to-one basis, you should examine how a phone system is used. Limit your feature search to only those options that will improve the workflow in the office. This will allow you to focus on the real differences between systems for your office environment.

Although having the right features is important, even more critical is making sure they are easy to access. Because most employees devote very little time to learning how to use a phone system, it is important that the most common functions be extremely simple and intuitive to use.

Phone Systems | Buyer's Guide
Dealers

Virtually all phone systems require the assistance of a dealer for programming and installation. As a result, finding a good dealer can be the most important part of the purchase, since any phone system you choose needs to be properly installed for optimal performance.

The most important consideration in choosing a dealer is the number of installations completed with your system. A dealer who has installed many of the same systems will be much more familiar with the problems that can occur. Ideally, the brand you are considering should be the dealer's best-seller. Knowing that the dealer is committed to the line, you can be assured of a long-term source for service.

Also obtain a list of references, including several completed in the past year, so you can ask about their experiences in detail.

Some other questions you may want to ask:

Who will install the system? The dealer or a subcontractor?

Who will provide training?

What are the terms of the warranty?

What are the costs associated with service and maintenance?

Does the dealer provide backup during a power failure?

How long will it take for the dealer to respond to trouble calls?

Does the dealer have remote maintenance capabilities?

Phone Systems | Buyer's Guide
Price

KSU-less systems generally cost between $130 and $225 per phone. Comparable key systems generally start at $200 per phone, including installation. And for larger PBX systems, prices start at around $800 to $1,000 per line.

 

The savings from buying KSU-less phones can quickly exceed $1,000 on a typical eight-phone system. But keep in mind that this option is really only best for firms of 10 or fewer people.

While the smallest systems may cost a few thousand dollars to install, the price tag for more complex models can quickly climb to tens of thousands of dollars. Phone system prices vary based on four factors:

The central cabinet
The central cabinet controls and oversees the entire phone system. This price differs between systems and rises as cards and accessories are added. A small central cabinet can cost as little as $3,000, with the price increasing considerably for larger systems.

The actual phones
Most systems can be equipped with several different types of phones. The least expensive sets may cost less than $100, but can make accessing features very difficult.

On the other end, some "executive phones" sell for many times the standard price. These phones can make using the system slightly easier, but are more often just a significant source of profit for the dealer.

Wiring and installation
It can be very inexpensive to install wires in an unfinished building. However, installing wiring through already finished walls can quickly add up.

Everything else
This includes training, programming, service, and future modifications. Pricing is usually based on the time these tasks will require and can often be the most flexible portion of a bid. Sometimes, it is best to compare the hours that will be spent completing training/programming/service tasks with the price tag for the service.

The savings from buying KSU-less phones can quickly exceed $1,000 on a typical eight-phone system. But keep in mind that this option is really only best for firms of 10 or fewer people.

While the smallest systems may cost a few thousand dollars to install, the price tag for more complex models can quickly climb to tens of thousands of dollars. Phone system prices vary based on four factors:

Phone Systems | Buyer's Guide
IP Telephony

The emergence of computer telephony has thrown another option into the mix. Although voice over IP (VoIP), or the ability to place and receive calls for free using the Internet, is touted as the latest wave and looks good on paper, in practice, this next generation technology is not all it's cracked up to be - at least not yet.

What are the big selling points? The savings in long distance charges, the ease with which you can add new applications and extensions, and the easier management and monitoring of the system.

The idea revolves around the concept of melding voice, data, and video into a single technology. Since calls utilize unused bandwidth on the data network, voice essentially "rides for free" on the existing network, which sounds like a huge plus if you and your staff make many long distance calls.

But you also have issues such as if the computer goes down, then what happens to your phones? And even if everything is smooth sailing, the downsides are still apparent in practical use. You may get annoyed with the delay between when a word is spoken and when it is heard - meaning a call from Boston to San Francisco could sound more like an overseas call to Australia, which is far from ideal for a business environment. And just the sound quality in general sometimes leaves much to be desired.

While there are definite advantages to IP Telephony in an ideal world, the fact is there are kinks that still need to be worked out.

Phone Systems | Buyer's Guide
Buying Tips

Consider used equipment. Save money by buying used components such as phones or cards. There are more than 300 remarketers, with many offering strong guarantees for their remanufactured products.

Check voice mail compatibility. Make sure any phone system you are considering is capable of working with a wide range of third-party voice mail systems. By keeping your options open, you will minimize the chance of getting stuck with an inferior or overpriced product.

Get extra wiring installed. Avoid rewiring down the road and request that plenty of wiring be installed when the system is first purchased. A good benchmark is to ask for at least double the wiring you currently need. While this will add to the cost of installation, it will really only be a fraction of the cost you will face if wires need to be added later.

When to shop and buy. Shop for a dealer's advice at the beginning of the quarter when sales targets have just been set, and make your purchase at the end of the quarter when you can get a much lower price.

Look into phone line rates before selecting a system. Many local phone companies charge different rates for phone lines that connect a key system versus phone lines that connect a PBX, even though both have essentially the same functionality. Check rates beforehand to see if this may affect your buying decision.