Long Distance Consolidation Between Two Locations Achieves ROI in Less Than Eight Months

The Challenge
Tom Pear, President of the Atlantic Club, was looking for a cost-effective way to converge the voice and data networks between the Atlantic Club’s newest health club and day spa, located in Red Bank, New Jersey, and his existing 44-acre campus in Manasquan, New Jersey.

The VoIP Solution
Ivo Allen, President of Hunter Solutions, Inc. of Neptune, New Jersey, analyzed the existing network infrastructure in both locations. There was an Avaya DEFINITY® PBX in Manasquan and a MERLIN MAGIX® Integrated phone system in Red Bank.

The network provided triple redundancy. The Tenors are connected to Cisco® 1700 Series routers with dedicated Internet connections and dialup ISDN service for WAN redundancy. In the event that the Internet service went down, the Cisco would roll over to the ISDN backup. In the event of an ISDN failure or an entire router failure, the Tenor would roll voice traffic over to the integrated PSTN backup.



This solution also allowed the Atlantic Club to route all the long distance traffic from Red Bank’s Tenor through to the Tenor in Manasquan, which can then utilize the long distance T1 out of the Manasquan location. In effect, the Atlantic Club trunked all their traffic through their Manasquan office, which handled not only interoffice communications, but all corporate traffic from both offices. All calls being placed outside the club’s network hopped off the Tenor to the PSTN. This configuration saves the Red Bank club more than 4 cents per minute on their long distance service because they are bundling all long distance calls through one carrier’s T1.

The Result:

ROI: Breakeven on Savings In Just 8½ Months
The cost to install the VoIP solution including the two Tenors ($8,000), the telephone system T1 cards ($4,500) and installation and programming charges of $2,000 totaled $14,500.00.

The Estimated Monthly Savings:

Elimination of Verizon® point to point T1 (PRI) line	$875.00 Per Month
20,000 Minutes of LD @ 4.1 Cents per minute savings	$820.00 Per Month
Total Savings	$1,695.00 Per Month

The total cost of $14,500 was recouped in a little over 8½ months.

The voice traffic handled by the Tenors amounts to approximately 71,000 minutes per month in point to point, voice mail and long distance traffic. Since the installation in February of 2002, there has been no interruption of service or loss of voice quality of any kind. (100% up time).

(This case study was prepared with the assistance of Mr. Ivo Allen of Hunter Solutions and Mr. Tom Pear of The Atlantic Club. It was also featured in Communications Convergence magazine.)

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