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Weekly UpdatesAn integrated voice telecommunications solution for your business should consist of local service, long-distance (LD) and wireless. Finding the best solution for your needs can be confusing. However, a little bit of guidance can go a long way in helping you deploy a new solution or reducing the costs associated with your existing solution.
LOCAL SERVICE
Local telephone service for your business is available from a number of service providers in much of Alaska. Furthermore, technological advances are enabling businesses to find new ways to meet their communications needs, increasing the number of options that are available. There are two aspects associated with local service solutions. The first is customer premise equipment (CPE), and the second is the service that will connect that CPE to the rest of the world.
The best solution for your business depends on the number of phones (commonly referred to as "lines") your business requires, the amount and types of features you desire, and your budget restrictions. The budget aspect is a trade-off between making a capital investment when the solution is deployed in the office and having a smaller monthly bill, or making a smaller capital investment up front but paying a larger monthly bill.
Determining the number of lines that your business requires is easy. You'll need a line for each employee who needs a phone, a line for each fax machine, and a line for each credit card machine or point-of-sale (POS) device. Odds are that the voice lines will be aggregated into a group that is on one system, and that your fax, credit card machines, and POS devices will not be on that system.
Determining the types of features your business requires is more complex. Some useful features most people are familiar with are three- or four-digit dialing, voice mail, caller ID, call forward, three-way calling, and do not disturb. There are many more features that are available, and a great way to ferret exactly which features your business needs is to talk to your sales agent from the service provider and describe your business and your operations so he or she can match them to the various features. Features are frequently purchased in a group.
The financial decision associated with deploying a phone system is not as simple as buying what appears to be the cheapest system you can find today. Odds are that each business will face a trade-off between a significant capital expenditure to purchase CPE and a lower monthly recurring cost (MRC), or a reduced capital expenditure in exchange for a higher MRC.
Understanding the three criteria discussed (total number of lines, desired features, and budget restrictions), it's time to begin shopping for a solution. The most common types of systems a business might choose from include Centrex, key systems, and private business exchange (PBX) systems. There are several network providers who can actually connect a phone call to the rest of the world. The main providers are ACS, GCI and AT&T Alascom.
Centrex is a robust, feature-rich, and flexible solution that is powerful enough to meet the needs of the most demanding customer. In many ways, Centrex is a flagship product. Centrex supports dozens of common features, including three-, four- or even five-digit dialing, call waiting, caller ID, three-way calling, reminder/alarm call, and many others. One Centrex solution can meet all of your needs, from the CEO, to call center, to the warehouse staff. Centrex is easy to deploy only requiring that the customer call the service provider and request Centrex. Growing or shrinking the system is equally simple. Additionally, Centrex requires a relatively modest capital expenditure. You will need to buy phones for each of your employees, but all of the switching equipment and technology that enables the features and functionality of Centrex belongs to the service provider. The term "Centrex" describes both the CPE, as well as the service you will purchase from the phone company.
Alas, Centrex is not the final word in business telephony solutions and is not necessarily the slam-dunk solution for your business. The MRC associated with Centrex is very high, and it never gets lower over time. However, Centrex is a great choice for organizations that require a flexible feature-rich solution that doesn't require a large capital expenditure, ongoing maintenance, or very many lines. A great example might be a modest law practice, perhaps with two or three attorneys, a secretary, and a paralegal or two.
Key systems and PBX systems are a popular alternative to Centrex. Generally speaking, the architecture of the two systems is very similar, with key systems making sense for smaller systems (up to 40 or 50 lines), and PBXs work best for larger systems. The latest key systems and PBXs also offer many features. The terms "key system" and "PBX" refer only to the CPE. You will have to purchase a product with a different name from a phone company to connect the system to the rest of the world.
The primary difference between Centrex and key or PBX systems is that where Centrex gets its functionality from equipment owned by the telephone company, key and PBX systems get their functionality from the CPE, which includes both the phones and some additional equipment that resides in a closet or an IT room.
You can purchase CPE from your network provider (GCI, ACS, Alascom, or other), or you can choose to purchase it from any number of retailers, either locally or on the Internet. The costs associated with CPE are not trivial. Keep in mind that you will own this equipment, and you are responsible for its installation, wiring, provisioning, and maintenance. Be wary of the temptation to purchase "bargains" on eBay unless you know exactly what you need and have staff to competently install and operate the equipment. A better solution for many businesses is to contract the purchase and installation of the equipment from the various local electrical/telecom contractors.
Connecting your key or PBX system to the rest of the world is relatively simple. The manufacturer of the system will likely provide specifications for this type of connection. Generally speaking, a product known as Business Complex or ISDN PRI is a common choice. Again, check with system documentation for guidelines on how many of these connections to buy.
In summary, Centrex is best suited to business that are interested in avoiding a large capital expenditures, but are willing to pay a higher recurring cost every month. It is also well suited to businesses that require a no-hassle solution. Key and PBX systems are well suited to organizations that are willing to make a significant capital expenditure to save in the long run, have staff capable of maintaining the system, and perhaps don't require the flexibility of a Centrex solution. Generally speaking, if your business requires less than eight lines, Centrex is probably lowest overall cost solution. If your business requires eight to 40 or 50 lines, then the key system will probably make the most sense. If you needs exceed 40 or 50 lines, then a PBX system is probably the best answer.
LONG-DISTANCE
Choosing a LD solution is less complex than buying a phone system. Additionally, LD services are not regulated as closely as local telephone services, so you have more room to negotiate with service providers. Additionally, your LD provider does not have to be the same company as your local service provider. Depending on the size of your business, you have a number of LD carriers to pick from. If you have a small business, GCI, ACS or AT&T Alascom are probably your best bets. If you have a larger business, especially with branches in the Lower 48, you might consider doing business with Sprint, Qwest, or other national providers.
Regardless of who you select, you'll likely find that you pay a relatively low rate for interstate LD (calls that originate in one state, and terminate in another state), and a relatively high rate for intrastate LD (calls that originate and terminate within the same state). That condition is not unique to Alaska, although intrastate LD within Alaska is very expensive. LD is often priced such that the customer purchases a "bucket" of interstate LD for a flat rate, and interstate minutes in excess of this bucket are charged on a per-minute rate. Intrastate traffic is often charged on a per-minute rate, as is international traffic, even if you bought an interstate bucket. It's worth talking to your LD provider about international plans if you business demands a significant amount of international calling.
Buying LD is as simple as finding a product with the lowest overall costs. Keep in mind that the service providers are hungry for your local service business, but probably not as hungry for your LD business. Local service is very lucrative in terms of cash flow and incremental costs. Local service is also closely regulated and service providers have limitations in terms of price cuts. The LD side (as well as business data and wireless services, for that matter) are ripe territory for monthly cash savings. Don't be afraid to bring local service to a provider in exchange for deep cuts on the LD, data, and wireless sides of your business.
WIRELESS
The Alaska wireless market is in great shape. There are three main service providers who operate large networks: ACS, Dobson (marketed as Cellular One), and Alaska DigiTel. Additionally, there are a number of smaller carriers in the state, such as MTA Wireless, Copper Valley Wireless, and a few others.
The three main service providers operate modern networks, and cell coverage across the state has become quite good. ACS boasts that they have "Alaska's best network," but MTA Wireless and Copper Valley Wireless effectively have equal coverage, and much of it is on the ACS network. Cellular One's network is also quite robust, and they cover much of the state. GCI resells Cellular One's service. If you buy wireless from GCI, you are essentially buying a near-identical product to that offered by Cellular One. Alaska DigiTel operates a rapidly expanding network, and they cover much of the state. They have publicly announced that they are going to make extensive capital expenditures to broaden their coverage into outlying areas, despite already having solid coverage across Anchorage, Fairbanks, Juneau, the Kenai Peninsula (including Seward), the Mat-Su Valley, Prudhoe Bay, and the Copper Valley/Valdez/Glenallen areas.
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