Costco Connection - July 2009

VettingVoIP Saving money with digital phone service

By Chris Costanzo

IF YOUR SMALL business is like most, you are spending $200 to $250 every month on your phone service. Did you know you could make phone calls over your Internet connection instead? And at far less cost?

A technology called Voice over Internet Protocol (or VoIP) converts the sounds you speak into digital information that can be carried over the Internet broadband connection you already pay for, alleviating the need for a separate phone bill. VoIP, or digital phone service, is variously called cheap or free, and the distinction lies in how the system is set up.

VoIP users who communicate from one speaker-equipped computer to another will pay nothing more than their existing Internet bill to converse, even over long distances or internationally. Most businesses use VoIP with a telephone handset, which requires a one-time equipment purchase and/or paid service. These costs, however, are usually far cheaper than what traditional phone companies charge. In fact, the typical small business can expect to save up to 50 percent through VoIP, compared to regular phone service.

^inscⁱo^ds^etco

caller-ID, call-waiting and voice mail, and will likely charge very low rates for services such as international calling, 800 numbers and access to the information directory.

Larger businesses may prefer a VoIP system that offers more features. The latest generation of digital phone systems combines low-cost Internet phone calls with the functionality found in a private branch exchange, or PBX. A PBX is an internal switch that cost-effectively supports a number of benefits essential to many businesses, such as the ability to let every employee have his or her own phone number, rather than having to share one throughout the firm.

GETTY IMAGES /BLEND IMAGES

How sophisticated are you?

Choosing the best digital phone service for your business will depend in part on how many phone lines you use and how sophisticated your calling needs are.

Small businesses with four phone lines or less may require nothing more than the one-time purchase of a small device from your VoIP provider to handle the conversion of voice to digital information. Such a system should support all the features businesses expect from regular phone services, such as

Seeking sound compatibility

Whether you are seeking to support one user or 20 with VoIP, there are a few things to keep in mind.

First, phone calls should be able to travel over Internet connections without any static or gaps in the sound. Some systems address this by automatically setting aside bandwidth for phone calls whenever the Internet connection gets especially busy. Another way to handle the quality issue is for the provider to test a customer’s broadband lines at no charge before installation to verify their strength. Daily monitoring of the quality of connections is also desirable.

VoIP users can plug the service into their existing phones and Internet routers. But

if they want to take advantage of the sophisticated functionality of a PBX, they will have to make sure their phones are compatible.

Purchasing new phones can be an expensive proposition, so financing is important. Zero-percent financing over 12 months on equipment purchases lets users see savings right away without a big upfront investment.

Plug-and-play

A final consideration is ease of installation. Getting up and running should require little more than plugging the system in and then making phone calls. And that’s easy to do when the phone calls are practically free! C

Chris Costanzo is a freelance writer based in Maplewood, New Jersey.

VoIP access through AccessLine

ACCESSLINE Communications offers Costco members digital business phone services at exclusive rates. The company developed features for its VoIP phone system that caters to businesses with two to 15 employees. These features were developed at the request of AccessLine customers, many of whom are Costco members. The features include:

• A PBX phone system that

delivers real cost savings by allowing a business to purchase fewer phone lines and still provide each employee with a desk phone and a phone number on which they can be reached directly.

• Named ring groups. Identifies specific phones for incoming calls. Good for multiple businesses out of one location.

• Remote voicemail access. Available by unique phone number.

• Zero percent financing for all

phone equipment purchased through AccessLine. Additional lines are available as needed.

• All page intercom. Locate staff using your phone.

• Call park and pickup. Place a call on hold and pick it up on another phone.

• Ability to support multiple businesses with one phone system.

• Two complimentary business phone lines for the first year.

• Customizable music message for on-hold calls. Business members now have an opportunity to record on-hold sales and information messages along with custom music they provide.—Will Fifield