Cape Town - Voice over Internet Protocol (VoIP) solutions address the shortcomings inherent in the premicell or least cost routing (LCR) solutions, such as the lack of Caller-ID information on outgoing calls and the long contracts companies need to sign with service providers.
That's according to Greg Massel, managing director at Switch Telecom, a telecom company that operates an advanced VoIP and switched network.
He says that many enterprises that have been using premicell (a type of cellphone device that gets attached to your switchboard) to reduce their telephone bills, should be looking at moving across to VoIP-based solutions instead since they offer a range of functional benefits, in addition to the cost-savings.
One problem that many enterprises experience with premicells is that they generally block the sending of Caller ID information.
Consistent caller ID
Even when configured to send Caller ID, the multiple different numbers associated with each premicell are difficult to recognise. That means many of the people you are dialling will not answer their phones.
With VoIP, a consistent and recognisable Caller ID is displayed on the recipient's phone so that they know who is calling.
The result: you get in contact with more people on the first attempt, and without annoying them, saving you time and money, said Massel.
Another benefit of VoIP is that it is available on a month-by-month contract with no minimum call spend commitment.
By contrast, premicells are subject to 24-month contracts which means that one could be stuck paying for unneeded minutes if the company's call volumes dip.
Savings on all phone calls
Alternatively, if call volumes are increasing, one will need to constantly add capacity and refresh the contracts.
VoIP allows companies to achieve savings on all phone calls to fixed-line numbers as well as cellphone calls and even calls to special numbers, while premicell offerings address only cellphone calls.
While premicell technologies do deliver cost reductions on cellphone calls, the savings are almost always less than anticipated and come at the expense of 24 month contracts and difficulties connecting calls at peak call times, said Massel.
One problem with premicells is that each device and contract can carry only one call at a time, meaning that if two or more people in the organisation try to dial a cellphone number at the same time, only the first call will be routed through the premicell at a discounted rate.
Multiple calls
Although multiple premicells can be installed, companies need to strike a careful balance between having too few devices and contracts to cater for the volume of calls to cellphones and having too many, which means that they will not use all the minutes they pay for, Massel said.
"VoIP, by contrast, can handle multiple calls simultaneously. On the surface, savings on call rates to South African cellphones may not appear as impressive as those promised by premicells, but in reality, they usually add up to more since savings apply to every single cellphone call made from the switchboard," Massel added.
"In a nutshell, VoIP offers you savings on call types and across your entire call volume and without getting tied into a long-term contract.
"You don't need to worry about managing call volumes since a VoIP solution scales alongside your business," said Massel.
In addition, all calls are routed via direct interconnects resulting in superior call quality, faster connection times, and guaranteed delivery of Caller ID.
VoIP is a compelling and affordable solution for any company that is looking to save money on its monthly phone bill.
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