S.T.C. Inc. Telecommunications

S.T.C. Inc. Telecommunications

Improvement and Cost Cutting Effort

By

Kendi Miller

John Bruno, Instructor

NTC/360

October 18, 2004

Outline

Ð'* Introduction to IPT ( IP Telephony)

Ð'* Trends in IP Telephony

Ð'* Cost Savings Model

Ð'* Cost Saving Description

Ð'* Cost Savings Chart

Ð'* Cost saving Comparison

Ð'* Annual Estimated Savings

Ð'* IPT Structure and Vendor

Ð'* Infrastructure

Ð'* IP Phones

Ð'* Call Manager

Ð'* Voice Applications

Ð'* Graphic depiction

Ð'* Migration and coexistence

Ð'* Conclusion

S.T.C. Inc. Telecommunications Improvement and Cost Cutting Effort

Introduction

This is the initial feasibility study for the upgrade of the S.T.C. Inc. (Small Technical Company Incorporated) network in conjunction with the office move. The purpose of the study is to evaluate the upgrade to be done on the telecommunications system recommending the most cost effective solutions on the market today. After this report a project will be started to implement the recommended solution. The deliverable for this paper will be an implement able cost effective telecommunication solution. S.T.C. Inc. will acquire the hardware necessary to support and run the new system and programming changes will be performed by outside vendors. Internet Telephony Service Providers (ITSP) may use a single infrastructure for providing both, Internet access and Internet telephony. Only data-oriented switches could be deployed for switching data as well as packetized voice. Multiplexing data and voice could also result in better bandwidth utilization than in today's over-engineered voice-or-nothing links. (www.iptel.org), 2004. The business benefits of this type of infrastructure are increased productivity, grater business flexibility and reduced operational costs. (www.cisco.com),2004

Trends in IP Telephony

IP telephony is the technology for transmitting voice communications over a network using IP open standards and it uses a single network for the transmission of data, voice and video. There are currently many devices which use similar technologies to accomplish this tasks. Companies in today's economy are looking for ways to reduce the cost of doing business and IP telephony provide this opportunity. IP telephony will continue to see tremendous activity and make incredible gains in the enterprise space. Until the service providers work their way through all that excess inventory, and are once again ready to research new technology, you can rest assured that next-generation telephony will be busy gaining traction in the enterprise market.(www.tcnet.com,2004)

Cost Savings Model

Analog and digital based phone systems that use a different set of communication protocols but similar cables to connect to a POP (Point Of Presence) are a very familiar site. These are present not only in home setting, but also in large industrial and office application.

These applications in a very large scale are very expensive not only to maintain but also for the reoccurring cost associated with the monthly usage and fees charged to the customer by the service provider. A good example of these cost is Long Distance charges.

The most significant benefit of IPT and driver of its evolution is money-saving and easy implementation of innovative services (www.iptel.org/info/), 2004 and the following model was created using this premise. The table illustrate the actual cost of conventional telephony based on company history and the savings for phone to phone installation. The rates used in the calculation are the standards for both industries. Costs charged by IPT operators.(~ 7 cents per minute to the U.S. in August 98) and Cost charged by conventional operators (~ 25 cents per minute to the U.S. in August 98). (www.iptel.org/info/), 2004

S.T.C. IP to Conventional Telephony Comparison

Port Cost Installed *Minute Usage **Port # Cost/Min Cabling cost L.D. Cost Totals

Conventional $ 350.00 92500 100 $ 0.25 $35,000.00 $23,125.00 $58,125.00

IP $ 350.00 92500 0 $ 0.07 $ 0.00 $6,475.00 $6,475.00

Savings $16,650.00 $51,650.00

Equipment Cost is Calculated at 0 since all the equipment is to be purchase new before the move

* Minute usage is the monthly average for 100 users.

** No ports are needed because IPT uses the same port as data

The cost saving is substantial not only in the reoccurring cost category ( $ 16,650.00) but also in installation ( $ 35,00.00), these two combined will save the S.T.C. a total of $ 51,650.00. For the first year the estimated savings will be of $ 135,825.00 and $ 77,700.00 for every subsequent year.

IPT Infrastructure and Vendor

The vendor chosen for this implementation was Cisco Systems due to the experience the company has in the field with this kind of applications. The benefits of introducing Cisco's IP telephony infrastructure include a rapid deployment and more coherent support for a consistent set of desktop services and new applications - which fulfill many of the requirements for enabling increasingly flexible working patterns.(www.newsroom.cisco.com),