Getting Connected

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Create a written plan

Before choosing a new system or service, it is important to develop a clear understanding of your company’s communications needs, in the form of a written preliminary plan which you can show to potential providers. Your firm’s plan should include three interrelated elements: a detailed assessment of your company’s specific service needs, a schedule, and a projected budget.


Needs Assessment

Evaluate your specific service needs for telephone, fax, and Internet connectivity. Answer the following questions in each area to assess basic needs. Your answers will help you decide what equipment and services to purchase.


Telephone (Voice)

• What are your company’s local, long-distance and international calling patterns?
• What is your incoming and outgoing call volume?
• Should you consider a toll-free number?
• Will your business use a "call center" for sales, customer service, or other purposes?
• If you have a call center, do you need call monitoring capability and the ability to generate user statistics and capture data about callers?
• Should your business consider a mobile communications plan for employees?
• Will you need the ability to track and monitor individual employee calling patterns for cost control purposes?
• How many employees within your organization will need individual telephone extensions and handsets?
• Would you prefer direct extensions or will you have a receptionist handling incoming calls?
• Will your system need the capacity to "hunt," that is, will calls automatically be rerouted to an open line in a pre-selected group so your customers do not receive a busy signal?
• What voice messaging services and capabilities will your business need, and how will voice mail be accessed?
• Would your business benefit from using an automated attendant (voice response system) to deliver information?

Consider how you want your company to deliver your services over the telephone. For example, if it is very important for callers to have swift access to members of your staff, you might want to think carefully about whether and how to offer automated attendant services.

The number, length, and types of calls you make (local, regional, long-distance, international) will be very important in choosing calling plans. Rates can vary considerably based on your company’s calling patterns. If you have an established business, you can evaluate call volume and calling patterns by analyzing previous telephone bills.

If your company is just beginning to operate, you will need to estimate your expected usage. It may be helpful to look at start-up usage and growth patterns for similar businesses. Companies providing phone service and phone equipment may also be able to help you evaluate your needs.

Count the number of phone extensions your employees will need. This will help you anticipate call volume and resolve issues such as how many handsets and what type of system you will purchase. Decide whether you will want options such as call transferring, call forwarding, caller identification, speed calling, call waiting, and conference calling. All of these factors will affect the complexity, and the rates, of your telephone service.

It is critical to take into account the short-term growth of your company, so you can create a system that will be able to accommodate your business into the future. Think about whether you will need to add additional employee extensions and whether you expect increased call volume or changes in calling patterns. If you sign a contract, understand what flexibility you will have if your needs change.


Fax

• How many employees will need to use fax machines?
• What will the volume of incoming and outgoing faxes be?
• What will the calling patterns be for your company’s outgoing faxes?
• What time of day will most faxes be sent?
• Will you require paper faxes, or is it practical for your business to send and receive faxes through personal computers?

Facsimiles of documents can be sent through traditional fax machines or through computers. If you intend to use fax machines, evaluate the volume of incoming and outgoing faxes and the number of employees needing to access these machines, and purchase enough machines to handle the projected traffic comfortably. You can determine your volume and calling patterns in the same way you assess your phone needs; doing this will also help you make cost control decisions about fax use. Review old bills and make estimates based on past performance and anticipated growth of your business. If you dedicate specific communications lines to faxes, the presence and number of such dedicated lines will affect what type of calling plans you should consider.

Increasingly, personal computers and networks have fax capability. While this may not be an option for all businesses, it may be a way to decrease your costs and increase productivity.

Internet (Data)

• How many employees need Internet access and email accounts?
• Will you need extra speed and reliability for your Internet connections?
• Is it worthwhile for your business to pay extra costs in order to have access to more sophisticated or newer provider technologies?
• Does your business have special security needs that might affect your network and Internet provider choices?
• Will your company want to use automated email services such as content scanning, routing, or acknowledgment systems?
• Should you use a LAN (Local Area Network) or not?

Numerous technologies are available for connecting your business. Deciding whether your company needs to rely on the Internet for internal and external communications now or in the near future will help you choose the most useful technology for your business.

Factor in your expectations for growth when determining the level of Internet service you will need. For example, if you expect your company to become more dependent on email communication, you may find it important to have especially swift and reliable Internet service and the option to add email accounts easily. Establish standards of performance for the service provider in a Service Level Agreement (SLA).

Many businesses find that local area networks (LANs) are effective tools for sharing information and software, as well as high speed Internet access, among employees. This can affect Internet usage levels and security precautions for your business. To create a LAN and connect it to the Internet, you will need to purchase the necessary hardware and software from service providers; if you pursue this option, consult a professional about protecting the security of your data and personal computers.


Schedule

Develop a list of all elements needed for the project, and the sequence in which they must be completed. For example, elements you should consider when establishing telephone service include the following: electrical power for your telephone system; cabling within your office to connect the telephone service provider’s lines to your switch and your switch to your phones; and installation of phone service to your company, as well as installation of a phone system within your offices. Set target deadlines for completion of each phase of your project. This will be helpful as you begin to speak with vendors. Be prepared to adjust deadlines, if necessary, in response to information you receive from providers, in order to set realistic goals and meet budget objectives.


Budget

Determine your budget for setting up or upgrading your communications system. Depending on your needs and the complexity of service and equipment, communications options can range from reasonable to extremely costly. Be realistic about how much you have to spend, and set spending limits for specific time frames. Examine plans that are within your spending range.


Inside Wiring

Select inside wiring, equipment, and service Inside Wiring Almost all types of telecommunications systems, from basic phone systems to complex voice and data systems, rely entirely on the wiring in your physical space. Wiring can cost as much as $150 per desk for voice and data connections.

A carefully installed, clearly labeled and well-tested wiring system will be much easier and less expensive to operate than a sloppily installed one. Consider whether you need wiring for voice services (CAT 3) or higher-grade wiring that can handle data or voice (CAT 5 or better) or both. If you are planning to install both data and voice wiring, it is usually much less expensive to install all needed wiring at the same time. Provide extra capacity, since phone and data infrastructure systems should last at least five years. Most experts advise that you plan for at least 25% excess capacity on your communication lines to keep up with your company’s growth.

There are Web sites that list contractors and product guides. One such site is www.broadband-guide.com, which lists cabling contractors from across the nation.

Wireless communications technologies are available, in various stages of development, primarily for voice communications, and to some extent for data communications. For a few businesses, these relatively new technologies may be advantageous. For many other businesses, wireless technologies will be a fascinating trend to watch for the future.


Telephone Equipment

The basic types of phone systems used in offices are key systems, hybrids, private branch exchanges (PBX) and Centrex.

• Key Systems are the simplest type and can handle up to 60 stations, with a maximum of 40 usually recommended. In this type of system, the wires from outside lines and extensions are connected in a small box called a Key Service Unit. The phone on each employee’s desk has lighted buttons, representing each line. An outgoing caller selects an unlit button to get an outside line. Incoming calls are routed to an extension. If that extension is busy, the call is rerouted to another line, or to a receptionist.
• Hybrid Systems can handle a maximum of 100 stations. With hybrid systems, users do not need to select a line manually, as the system will automatically find an open line. This eliminates the need for more complex lighted handsets used in key systems. Additionally, hybrid systems are usually more electronically sophisticated, offering more features.
• Private Branch Exchange (PBX) Systems offer no limit on the number of stations that can be accommodated, but the price increases with the number of stations. PBXs are more sophisticated than key systems or hybrids, but also more costly. The capacity of a PBX is described not by lines, but by ports, the total number of wires the system can connect. PBXs can support advanced special features.
• Centrex offers the same kind of options as a PBX, but the phone company provides the switching functions. Centrex is a leased service that relieves you of the expense and administrative concerns of buying and operating a complex system at your site.

Traditional Phone Service

Evaluating the types of calls your business makes is crucial. Local, regional, long-distance, and international rates can vary depending on the provider, the calling plan you choose, the volume of calls you make and even the time of day.

Additionally, you should consider the number of lines that you would like to dedicate to fax machines. Most vendors recommend dedicated lines for faxes, so if there are problems with your system, the fax line is not affected. Take this dedicated line into account when designing your system.

As a result of deregulation, many new as well as traditional types of players are offering local, regional, long-distance, and international telephone service, based on several different kinds of technologies. Some non-traditional providers may offer lower prices, as well as high quality services. Some service providers use their own facilities (copper wire, fiber optic lines, or wireless) to bring service to your office. Other providers rely on the local phone company’s wires and resell that service to customers.

Evaluate how well various providers meet your firm’s unique requirements for affordability, sound quality, and network and service reliability. Narrow the pool of potential providers to companies that meet those requirements; then choose a plan that offers the best possible rates based on your firm’s calling patterns and projected future growth. It may or may not make sense to factor in current and future data needs, including bandwidth, when choosing a telephony provider.


Communications Technologies

Your needs and budget will determine the type of technology you choose for your telephone and Internet connections. The most commonly used technologies and connectivity options are detailed below. Most require a monthly service fee.

• Analog technology uses what we think of as traditional telephone lines. An analog connection to the Internet is the slowest, but in most cases, the least expensive one. The user gets access to the Internet with a "dial-up" connection to a local telephone number (to save on phone bills, make sure the dial-up number is local) using a standard modem. The fastest available modems are 56K; many personal computers come with internal modems installed. If you have PCs that do not have internal modems, you can purchase external modems.
• ISDN (Integrated Services Digital Network) service utilizes digital technology, which is suitable for voice and data communications, and is faster than an analog connection.
• T-1 is a dedicated, high-speed connection used for both voice and data communications. It can be divided into 24 channels that can provide advanced voice services or that can be combined to provide a data connection up to fifty times faster than a 56K modem. For small businesses, full T-1 lines may be cost prohibitive, but sometimes fractions of T-1 lines can be purchased at a lower cost. Fractional T-1 lines provide slower speeds, but it may be possible to use other parts of the T-1 for voice communications and further reduce costs.
• DSL (Digital Subscriber Line) service is a broadband technology that provides a range of access speeds as much as 10 times faster than ISDN and 25 times faster than standard modems. You will need a DSL adapter to use a DSL connection. Some providers may include a DSL adapter as part of the service; otherwise you will have to purchase one separately.
•  Cable service connects the cable infrastructure in your building to your computer, permitting much faster access to the Internet. Cable allows download times up to hundreds of times faster (speeds may vary with number of logged on users) than standard analog connections, often at costs lower than other technologies. Cable service requires a cable modem, which usually is an external box that connects to a network card inside your personal computer.

Digital and cable connections are "always on" connections that eliminate the need for dial-up. This is convenient, but "always-on" types of service raise security concerns for your business that you should investigate and resolve to your satisfaction. Check to see what security precautions your provider has in place and consider what other steps you might want to take to protect your information and your privacy.


Bundled Services

Many telecommunications providers offer "bundled" services, meaning that one provider can meet virtually all of your voice and data communications needs. Bundling is often a cost-effective option, which offers the convenience of consolidated billing and a single point of contact. For many businesses bundled service may be preferable. However, in the current competitive environment, it may also be advantageous to investigate smaller independent service providers and consider combining services from several vendors before making your selections.


Rates and Pricing

Local calls may be billed at per-call, flat, or measured rates. Regional, long distance, international, and calling card calls are charged separately at different rates, based on the length of each call. It can make a significant difference whether calls are charged in six-second increments or are rounded up to the next full minute. Plans for discounted rates generally involve a commitment by the customer to use a specified minimum number of minutes or dollars per month. If the customer does not meet the minimum commitment, it will have to pay a penalty, which is often the difference between the discounted rate and the full rate. These agreements are usually for a specific term, and early termination brings other penalties.

There are a variety of charges associated with installing and then using lines, in addition to the call charges. Common charges include a basic line charge; a fixed, monthly charge for each phone line; and a number of government mandated charges, such as FCC line charges, taxes, and surcharges. Installation and changes in equipment and services have their own associated charges.


Identify potential service providers

As you begin to talk to providers about making an investment in a new system or a service change, bear these questions in mind:

• What specific services can the provider supply, and at what cost?
• Which specific company (if not the provider) will provide maintenance and modification services and how will that be handled?
• Does the provider offer direct connectivity through its own network or is it using another company’s network to deliver services?
• What kind of technology does the provider use to deliver services (copper wiring through telephone lines or fiber optic cable, for example) and what are the advantages and disadvantages of each?
• Compare your company’s budget and requirements to the provider’s technology and menu of service options, in terms of service quality, maintenance, speed, and capacity to handle growth. Will the provider be reliable and able to serve your needs, both now and in the future?

To locate potential providers, investigate these and other sources of information:

• Visit the Web sites of major telephone and Internet providers. Most major providers have Web pages that deal specifically with the needs of businesses. In many cases, these Web sites provide information that can help you assess your communications needs.
• Consider using companies that are authorized sales agents for the local telephony companies to learn about your options. Authorized sales agents sell the phone companies’ services, but they will often offer you cost-effective options that the service provider may not offer directly. Ask your local phone companies, colleagues in your industry, and neighbors in your building whether they work with and can recommend authorized sales agents.
• Some service providers are working within your building already; other providers may be planning to enter the building soon. Talk to your building’s management, as well as other businesses within your building, to find out who is servicing the building already.
• Investigate smaller phone companies that compete with the principal local provider. The best way to find these providers is to ask others in your building and your industry to identify service providers they have employed successfully.
• In the case of Internet connections, there are many independent Internet Service Providers (ISPs). Talk to others in your building and in your industry to find out which providers they use. Also, locate Web sites that refer you to these ISPs. Two such sites are http://thelist.internet.com and http://www.isplist.com.
• Decide whether it will be most effective to use the same technology for telephone and Internet communications. This will help you determine which technology is the most appropriate for your business. You may have to choose services that are compatible with the limitations of your existing infrastructure.

Evaluate service providers and plans

When you have identified a preliminary group of potential providers, you are ready to ask important questions that will help you make smart choices.

• Check the provider’s reliability rating with your area Better Business Bureau before you do business with any company.
• Collect written bids based on a single set of written specifications, and compare the costs. Make sure you know exactly what is included in every bid. If prices vary for the same products, ask why. Feel free to share the costs of competitors’ bids and to negotiate prices.
• When purchasing services, investigate the quality and reliability of the provider’s network, its quality and history of customer service, and its financial stability. Determine who provides the actual network service, who does the billing, and who performs repairs and modifications. How many different people and companies will you have to deal with? If you choose a sales agent or reseller, you are not likely to deal directly with the actual provider of the service.
• Ask for references and check them. Other customers’ satisfaction is a good indication of the caliber of products and service provided. Evaluate the quality of a provider’s support services. You want to ensure that if your system ever fails, maintenance will be provided. Check references for the reliability of maintenance.
• Search for Web sites that rate the providers, using terms such as "telephony" and "telecommunications." Online telephony industry publications often contain useful hotlinks to other "bulletin board" style Web sites, where current and past customers rate their ISPs and phone service providers.
• When purchasing equipment, understand what is included in any service contracts, and what maintenance costs you will have to incur in the future.
• Don’t be intimidated by technical jargon. Make sure that service providers explain products and services to you in a way that you understand.

Glossary

The following glossary of telecommunications terms may be helpful when researching service providers.

Analog — A transmission method that employs continuous electrical signals that vary in amplitude or frequency. Traditional telephone service uses analog technology.

Automated Attendant — A system that greets callers with a recorded message, and instructs them to enter various numbers from their phones to get information or to route calls to specific extensions.

Bandwidth — Frequency range that can be accommodated by a transmission line. The bandwidth determines the rate at which data can be transmitted. A bigger bandwidth will increase the amount of traffic your connection can accommodate.

Broadband Technology — Uses data wires that have greater capacity for transmission and therefore can handle more traffic.

Bundling — Grouping various telecommunications services as a package to reduce expenses associated with delivering services.

CAT 3, CAT 5 - Standards for wiring within an office. CAT 3 (Category 3) is adequate for most telephone applications. CAT 5 is the generally accepted minimum for data wiring.

CLEC (Competitive Local Exchange Carrier) - Company competing with the established local telephone company by providing its own network or switching or both.

Dedicated Service — Provides data and voice communications over a circuit that is used for a single purpose.

Digital — Method of representing information using "1" and "0" numbers.

DSL (Digital Subscriber Line) — A broadband access technology that allows transmission at bandwidths several times higher than permitted by conventional analog modems.

Hunting — Calls to a particular number may be arranged so that when a line is busy, the call will search a group of lines in a specified sequence until an available line is found.

Hunt Group — The group of lines used for a hunting sequence.

ISDN (Integrated Services Digital Network) — High speed digital service that offers simultaneous voice and data transmission over the same channel.

LAN (Local Area Network) — Data sharing network created within the confines of a local area, such as a building or a group of buildings, that consists of data equipment, cable and computers. Least-Cost

Routing — Automatically chooses the least expensive long-distance carrier for a call. This feature is usually not available on key or hybrid systems.

SMDR — SMDR is a telephone call tracking and reporting system that automatically divides phone bills by department, and lists the name of each caller. Switch — A system used to control routing of transmission signals entering and leaving a central office.

T-1 — private line digital transmission service providing fast transmission capability for voice and data.


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