What Every Enterprise Business Executive Needs to Know about Phone and Internet Charges

Online, March 11, 2010 (Newswire.com) - Chances are, if your business operates from multiple locations, your phone and Internet service provider is charging you much more than you should be paying. The larger your communications infrastructure, and the bigger the brand name of your phone and Internet provider, the more likely you are to pay through the nose-and not by a little. By a lot. In fact, you could be overpaying by as much as $1 million dollars a year.

What large, legacy telecommunications providers don't want you to know is that they are heavily invested in maintaining a billion dollar network infrastructure (based on PSTN technology) that is woefully outdated. Furthermore, FCC regulations require them to maintain that investment, which means they must pass on their costs in the form of higher rates for you, the consumer.

In January 2010, AT&T began petitioning the FCC to enter into discussions about when and how to phase out older technology and its accompanying federal regulations. If the FCC agrees to move forward with these discussions, the end consumer can eventually expect a transition that would be analogous to the transition from analog to digital-only television. Such a conversion would be both good news and bad news for AT&T and similar legacy telecom providers. The good news is, legacy telecom providers could stop investing in old PSTN technology in favor of more modern IP-based broadband service, which would allow them to compete more effectively in the new communications marketplace. The bad news is, the changeover would require an estimated $350 billion investment in infrastructure upgrades.

The bottom line is that legacy telecom providers struggle to provide next-generation Voice over IP (VoIP) and MPLS services at the cost savings this new technology inherently provides. And, with FCC hands-on in the upgrade equation, this situation is not likely to change anytime soon.

A host of newer telecommunications companies has recognized the potential for a significant competitive advantage over legacy providers and have built networks on newer, more relevant and more cost-effective technology from the ground up. Because they are not heavily invested in old infrastructure, they offer the best potential for cost savings to the enterprise customer.

While larger telecoms have recently made Voice over IP service available, forward thinking next-generation telecommunications companies are offering VoIP over MPLS. VoIP layered on top of an MPLS network is the enterprise business consumer's best bet for cost savings, simplicity of management, higher security, faster speeds, more productivity, better voice quality, and overall quality of service.

According to Will Gibson, C.E.O. of Vergent Communications (VoIP / MPLS provider), "VoIP implemented on an MPLS network consolidates voice, data, and all business functions into one integrated private network where Quality of Service is virtually guaranteed. The adoption of this technology not only enhances security and reliability, but also provides tremendous cost savings to the enterprise." According to Gibson, his enterprise clients typically save 30-50% in monthly costs, with some clients reporting savings of over $1 million a year.

Forward-thinking, expense-minded enterprise business executives would be well advised to consider the implementation of VoIP over MPLS, which is the next clear upgrade path in the ever-changing world of voice and data communications.

For more information about VoIP and MPLS, visit www.vergent.net.