Hosted IP Centrex Service

In a few other blogs I have referred to IP Centrex as a new service for businesses, so I thought I ought to explain the service. Hosted IP Centrex service uses data-centric phone sets to replaces key system, PBX system or existing Centrex service. The IP Centrex phones can be controlled by a softswitch or by connecting an IP PBX to a legacy switch.

A number of CCG’s clients are having success selling IP Centrex to business customers. The product includes the best features of a large PBX plus many additional “value added” services that are only available through IP based phone service. The product can be integrated with a subscriber’s computer systems to provide such features as dialing from Outlook, common databases for all employees, etc.

There is a wide range of phone sets available that include a screen that allows a caller to manage their calling. The product requires a customer to buy new IP handsets and many of my clients lease sets as part of the price.

This product has a large potential market since it can be tailored for the very small or very large business. It is easy for the carrier or the subscriber to customize features for each phone or for the whole system.

There are a number of benefits of this product to both the carrier and to subscribers. Some of the biggest advantages:

Benefits to the Carrier

  1. Can be sold to any business subscriber regardless of what service they had before. It’s a good replacement for B1’s, trunks or traditional Centrex.
  2. Subscribers become stickier to the extent you can get them hooked on custom features not available elsewhere.
  3. Allows a carrier to sell service outside your traditional footprint. You just need to find businesses that have a decent high-speed data connection. This also means you can sell voice services to all branches of a customer’s business and not just to those in your footprint.
  4. It promotes the Company’s data products and is easily bundled with data.
  5. The product has a lot of pricing flexibility and can be sold to compete with multiple B1’s or traditional Centrex. You should be able to profitably beat the price of any traditional phone product.

Benefits to Business Subscribers

  1. The Subscribers get a telephone system that equals the features of a high-end PBX.
  2. The Subscriber no longer needs to buy or maintain a PBX. The customer can buy the IP phones or lease them from you.
  3. Subscribers can portray a unified professional image to the public. Employees at remote locations can be integrated into the telephone system. And small companies can act like bigger companies by the use of the various features. Remote employees can be made to feel like a part of the Company.
  4. Subscribers can tailor the phone system and each phone to meet their needs. There are hundreds of features available including many that were not available on analog systems.
  5. Subscribers can easily manage the features available on each set using the Subscriber portal that allows for easy and immediate changes to the features on any or all phones.
  6. Phones are portable and an employee can quickly move their phone from desk to desk or office to office and keep the same extension, voice mail and features.
  7. Phones can be programmed to be nomadic (portable, but not mobile). This means that an employee can take the phone out of the office and work at home or in a hotel as if they were in the office.  All features and functions of the phone remain unchanged.

What Business Customers Want

A significant percentage of CCG’s clients sell telecommunications services to businesses. When I ask them what they think businesses are now looking for from a telecommunications provider, I most often get the responses listed below.

Interestingly, saving money is not on this list. While most of my clients sell at competitive prices, they say that business customers value a reliable network much more than they do a lower price. Since phones and computers are often now tied together using IP, a network outage effectively can completely cripple a business if they lose both phone and the Internet.

Single service provider. Ideally, most small to medium businesses would like one service provider to take care of everything from data, phones, IT, computers, etc.

Reliable network. They want to be served by a reliable network, with reliability measured in terms of outages. This is often why a new network owner in a town will see slow sales to businesses for a few years until the local market perceives that their network as reliable.

Faster data speeds. While faster download speeds are always important, many businesses also covet fast upload speeds.

Employee mobility. Businesses want the ability for employees to be able to work from home or on the road.

Off-site data storage. Businesses want key data stored offsite to avoid catastrophic data losses. They feel safer if they know the company who is storing their data.

Fast provisioning and changes in services. Businesses want to be able to change things on the fly, be that moving an employee to a different office, changing the features on a given phone or computer, or increasing data speeds.

Physical security and surveillance. Businesses want next generation security systems with features like biometric access, motion detectors and hidden surveillance cameras.

Redundant connections. More and more businesses want physically redundant data connections since their businesses are more reliant on the Internet to be profitable.

Moving to the cloud. Lately businesses have been asking about cloud services since they hear it is a way to eliminate or reduce their IT functions and let outside parties take care of updates, security, etc.

Unified communications.  Businesses want phone calls and data to get to them over multiple devices across multiple networks.

HD Voice

A spectrogram (0-5000 Hz) of the sentence &quo...

A spectrogram (0-5000 Hz) of the sentence “it’s all Greek to me” spoken by a female voice (Image:en-us-it’s_all_Greek_to_me.ogg). (Photo credit: Wikipedia)

HD voice (or wideband audio) is a technology that delivers the full frequency range of the human voice.  Traditional telephony has delivered a narrowband voice transmission and only transmitted sounds between 300 Hz and 3.4 kHz. However, the human voice extends between 80 Hz and 14 kHz, so traditional telephone has chopped off parts of every voice transmission.

The range of frequency was curtailed for traditional telephony based upon the limited bandwidth available for transmitting voice calls over a twisted copper pair. But voice that is sent over an IP path does not have those limitations and can send the full range of the human voice.

There has been an industry standard for wideband voice since 1987. However, until recently the only uses of the standard were in high-end video conferencing systems and for transmitting sports announcers back to the home station for rebroadcast.

But the industry is starting to use the HD voice protocol for calls made over VoIP. For example, Skype and some other PC-to-PC voice providers use the full HD voice bandwidth and the higher quality of the call can be experienced by a caller using a high-quality headset or handset. These same calls don’t sound better when listened to on a standard phone due to limitations in the speakers. There are also a number of vendors offering wideband telephones such as Avaya, Cisco, Grandstream, Gigaset, Polycom and others. These sets are capable of both sending and receiving a wideband voice signal, but the phones at both ends must be wideband capable to engage in an HD quality call.

So what are the business opportunities with HD Voice? Businesses are interested in having high-quality calls, particularly in conference rooms, noisy areas and other places where the quality can make a difference. The business opportunity is to make the phones available to businesses that are served with IP voice paths. HD Voice can then be sold as an add-on feature or as a more expensive voice line. A company that wants the higher quality calling is a great candidate for moving off of traditional TDM services onto VoIP, IP Centrex or other IP voice solution.