[Asterisk-Users] Provisioning CO lines

[David Carr]

I discovered and deployed a solution some would consider counter-intuitive.
For whatever reason, I can get a dedicated long-distance T1 for about $400
MRC ($16 per line) while a "local" T1 costs over $1,200 MRC ($50 per line).
My telco automatically assumed I would want/need the local T1 for my local
traffic but when I did the math it was all backwards.

All inbound calls for a local T1 are free. However, most companies hook a
toll-free number to ring through to their local number so many incoming
calls cost the switched long-distance rate of 5 cents per minute. Outbound
local calls are free too, but outbound long-distance calls were 5 cents per
minute for switched long-distance.

For the dedicated long-distance T1, all inbound and outbound calls cost 1.9
cents per minute, even if you are calling a toll-free number or the company
next door. Instead of having local DIDs, we simply got a huge supply of
toll-free numbers, all with unique DNIS so we use them as DIDs for not only
direct voice numbers but also direct fax numbers.

The short story is that 90% of our outbound calls were long-distance and 90%
of our incoming calls were toll-free so paying $800 more MRC and 3.1 cents
more per minute for a local T1 made no sense. The break-even point is going
to be different for everyone depending on your total call volume and the
relative difference between costs for each type of line. For us, the
break-even occured at around 40% local calls. What I mean is that if 40 or
more percent of our inbound and outbound calls were to local numbers, then
getting local calls for free benefits us enough so that a local T1 saves us
money.

Do the math for your company.

> -----Original Message-----
> From: asterisk-users-admin at lists.digium.com
> [mailto:asterisk-users-admin at lists.digium.com]On Behalf Of Mike Ciholas
> Sent: Thursday, August 21, 2003 9:21 AM
> To: asterisk-users at lists.digium.com
> Subject: [Asterisk-Users] Provisioning CO lines
>
>
>
> Hi all,
>
> This is a NEWBIE question, so all you experienced types that are
> tired of stupid questions can move on...
>
> I've pretty much given up trying to do my entire phone system
> over IP (including local service), so I have to select and
> provision my local CO lines.  I need about 10-12 lines which can
> be POTS lines, of course.  But, I thought, why not get something
> digital and expandable like a DS1, PRI, T1 or whatever they call
> it with 23 or 24 channels of 64 kbps voice.  It seems like it
> would be simpler for me to deal with this (and better quality)
> and it *should* be simpler for the phone company, too.
>
> However, while everyone can sell me POTS lines, when I ask about
> getting these in some sort of digital muxed interface, I seem to
> confuse the providers.  In one case, I was able to get something
> called "channelized T1" which cost a lot and did not actually
> include the "phone" service for any of the channels, that was
> additional.  So the cost to go from POTS lines to something
> digital was extreme, so much more than I can't understand why
> anyone would have T1 voice interfaces, yet all the PBXes have
> this and it seems commonly used.  I must be doing this "wrong".
>
> Okay, so I need help with:
>
> 1. Understanding terminology so I can ask for the "right thing".
>
> 2. Advice on when it is reasonable to go POTS versus something
> else and what that something else is.
>
> 3. Feedback on what others are doing with 10-12 lines in the US
> that may want to expand to ~20 lines.
>
> 4. Interfacing so many POTS lines to Asterisk.  I guess that
> means an FXO channel bank to T1 card?  Kind of stupid to go
> digital/analog/digital in the last 100 feet.
>
> Help?
>
> --
> Mike Ciholas                            (812) 476-2721 voice
> CIHOLAS Enterprises                     (812) 476-2881 fax
> 2626 Kotter Ave, Unit D                 mikec at ciholas.com
> Evansville, IN 47715                    http://www.ciholas.com
>
>
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