[asterisk-biz] CLEC costs

[Alex Balashov]

Brian Scott wrote:

> We are preparing to negotiate a contract renewal with our SIP vendor.  
> Not having a telecom background, I don't really have a frame of  
> reference on what our vendor's costs are. But we are sending around  
> $25K/mo their way, and I'm looking to reduce that, so I'd like to be  
> armed with some knowledge before I start negotiating. Does anyone know:
> 
> 1) how much does a DID cost a CLEC. Ignoring usage, per-channel fees,  
> infrastructure, etc., what is a CLEC's incremental out-of-pocket cost  
> to obtain and maintain a new block of DIDs?

This is difficult to say and depends on many factors related to 
operating area, whether number pooling is operative there, which tandems 
they're connected to, etc.

What can be said with great certainty is that numbering resources cost 
carriers quite little compared to what you're getting charged as a 
customer of an ITSP;  numbers are a high-margin item for ITSPs that they 
themselves obtain from carriers at relatively low cost, and use the 
spread from recurring monthly DID fees to subsidise the lower-margin 
revenue from minutes.

A few cents per number - at most.

> 2) for inbound toll-free calls, our vendor charges us a non-completion  
> surcharge if over 10% of inbound calls are not answered. But they  
> don't charge the same on inbound non-toll-free calls. Is there  
> something special about the nature of an unanswered toll-free call  
> (e.g. is there some "dip" that our vendor would be doing, or some  
> other actual cost that they would be exposed to?) or would this  
> perhaps just be "gravy" for them?

The carrier charges them a flat, nonrefundable surcharge for incoming 
toll-free calls.  If they are not passing that along to you, then this 
is their way of recouping some part of it.  No, it's not "gravy."

> 3) ignoring the (admittedly significant) human processing time that it  
> takes for LNPs, is there an actual out-of-pocket cost that a CLEC  
> would pay in order to facilitate an LNP?

Are you factoring in amortised costs required for the non-human 
infrastructure to do LNP, or not?  You have to pay for Neustar NPAC 
access, get and set up switches that do LNP, pay an STP vendor to do LNP 
dips for you, etc, etc.

Otherwise, there is no incremental cost on LNP.  However, as you have 
already acknowledged, the human cost is *very* *significant* due to the 
bureaucratic requirements put forth by the Bellheads and the FCC at 
conception.

I used to work for a CLEC of about ~15 people;  3 of them were devoted 
to LNP, full-time.  And they were spread quite thin.  It's pretty 
ridiculous.

-- Alex

-- 
Alex Balashov - Principal
Evariste Systems
Web     : http://www.evaristesys.com/
Tel     : (+1) (678) 954-0670
Direct  : (+1) (678) 954-0671