Phone Service Upgrade

[Gerry Laughlin]

We recently met with a representative with Ameritech to review our current phone line setup. We currently have about 18 separate lines for the dealership. He is recommending that we switch to a T1 prime line setup, where all the lines are routed thru 1 T1 line and broken up into separate channels. This change will require an $11,000. upgrade to our phone system, but theoretically we will save $1000 a month in phone service bills (not long distance). Has anybody else done this? If so did you see the savings that you were promised up front?

Thank You,
Gerry Laughlin
SysAdmin

[RBeaslin]

We are in the process of doing the same thing throughout our group, which includes 5 different locations. We are going to do the same thing, once we have a configuration that will be most beneficial for our group. I am working with a telecommunications consultant that can help be an independent voice between you and your vendors. If you would like this information, please feel free to contact me.

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Robert

[sallen1]

Gary,

We were sort of forced into the same solution a couple years back. Our old phone system was unable to dial the new area codes so we had to get a new one for both dealerships (separated by about 20 miles).

We had about 20 trunks coming into each locations and they were replaced by a 'super trunk', basically a T1 with 100 line capacity. We now have DID service (individual dial-in phone numbers for extentions) and point-to-point extention dialing between the two stores. We point 'call forward' numbers from other area codes (makes us look local to those customers) and 800 numbers point over too. Also has voice mail, usage tracking, etc. Works really well but cost a bunch to set up and you must have someone at the dealership to handle small system changes.

Do we save money? Hard to tell. It's like a photo copier: If you have a lousy photo copier, you don't make a lot of copies but if you have a state-of-the-art copier, your usage goes up. Probably the same for phones, too.

scott

[mark vandersteeg]

gerry, you have not really defined what the reason for your wanting to upgrade is. have you had any traffic studies done? make sure you are not trying to buy technology to solve a personel or operational problem you may have.

[This message has been edited by mark vandersteeg (edited 09-20-2000).]

[Gerry Laughlin]

Our only reason for upgrading is pure cost savings. No other reasons.

Thanks
Gerry Laughlin

[mark vandersteeg]

T1 sounds like a good choice then...

[clange]

Gerry, as a technology consultant to car stores, I get called on to design data networks, both local and wide area. Part of the consideration I have to bring to a network design is the idea of resource utilization. T-1 is a great technology, and you can often get a 'package' deal with a 2nd tier service provider to get you a lower rate on your long distance as well. Another consideration is the type of T-1 they are proposing ... and this may get too technical, but there is a point-to-point version and a dynamic bandwidth version. The dynamic bandwidth version is always quoted as cheaper, however it limits the other uses that can be made of the T-1. Consider the possibility of 'channelizing' the T-1 and using part of it for data communication. There are 24x64k channels in a T-1 ... why not use some of that for data, either to the Internet or between operational locations. The question always has to be asked '...and what is my other option?'

You also have to look at the benefits of moving to digital switching for your internal phone system. Today's benefits are not all that profitable, but as integrated telephony matures, you will find that digital will actually simplify your operations by tying the phone to you data systems.

Good luck.

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Chris Lange
Senior Consultant
Automotive Technology Associates, Inc.
clange@carstoresystems.com
401.831.6870