Phone System FAQ

 

What is Voice Mail?

At its most basic level, voice mail is essentially a phone answering system that can take messages for any number of people. Unlike an answering machine that stores messages on a single cassette tape, voice mail systems store messages on a computer disk in "mailboxes." Each staff person is assigned a mailbox where only his/her messages are stored. This mailbox has a password so that only the assigned staff person can retrieve his or her messages. In addition, these systems allow the individual staff person to create his/her own greeting so that callers can receive specific information such as daily schedule, that the person is on vacation, or who else to call for more information.

Voice mail systems can allow an organization to have an "unattended" main line. This means rather than having a receptionist answer the phone, the voice mail system answers the phone, provides a common greeting and then guides the caller to the appropriate staff person. This feature is known as the voice mail's "auto-attendant."

At its most advanced levels, the voice mail can unify voice, fax, and e-mail messages into a single screen of a user's personal computer. This feature is known as "unified messaging." Voice mail can also interact with a caller's voice, recognizing the spoken response and act according (e.g. transfer a call to a specific staff person). This feature is known as "interactive voice response."

What Do I Look for in a Voice Mail System?

A voice mail system is often an additional component of an in-house phone system. When shopping for a voice mail system you need to evaluate two key aspects: the number of ports and the hours of memory allocated to messages.

A port can be best understood like a berth for ships coming into San Francisco. Although there are many ships coming in and out of San Francisco harbor, only a limited number can be in a berth at a given time. The number of berths will affect the "efficiency" of the harbor. If there are a large number of ships but few berths, then each ship will be delayed by the others. On the reverse, if there are many berths and few ships, then the berth space is wasted. The goal is to balance the amount of traffic with the demand for berth space. With a voicemail system, you need to balance the number of callers with the available ports that manage a call.

The hours of memory refer to the capacity of the voice mail system to store messages. Using the harbor analogy, memory could be thought of as warehouse space. A harbor with a lot of traffic may need a great deal of warehouse space to store and manage cargo. If there is less traffic, then there is less cargo to store temporarily.

The following table shows the number of ports and hours of memory that is suggested for a certain number of staff:

Table of Average Ports and Memory Per User (Auto-Attendant Not Used During the Day)

# of Staff	Minimum # of Ports	Hours of memory	Average costs
2-14	2-4	4-8	$ 2,800- 5,000.00
15-30	4	8-30	$ 5,000- 6,000.00
31-50	6	30-60	$ 6,000- 7,000.00
51-70	8	60-120	$ 7,000-10,000.00

What Are Some Key Considerations in Selecting a Voice Mail System?

1. How you use voice mail will determine what you need.
   Each application is different and requires the purchaser of a voice mail to determine how heavily the staff will be using the voice mail system. The numbers above are to serve only as a guideline. An important concept to understand is that a port is in use whenever someone either leaves or picks up a message. The voice mail is also in use when it answers an incoming call and transfers the caller to a staff member's extension, albeit for a slightly shorter interval than when someone is either leaving or picking up a message.
2. Older systems may not support voice mail.
   Many "older" phone systems (more than five years) will not adequately integrate with the newer digital voice mails. Unfortunately, these phone systems must be replaced before you can obtain voice mail.
3. Most current systems have adequate memory capacity.
   Most voice mails have enormous memory storage capacity--more than you will ever need. However, some manufacturers are providing small, inexpensive voice mails that do not have hard disks. Since messages and greetings are stored on chips, the amount of available memory is often less than ninety minutes, which is only sufficient for offices with no more than two or three staff.
4. Expanding a voice mail system will cost money.
   When you request a bid for a new voice mail system, make sure to include a bid on the cost of expansion. If you purchase a system that is adequate for your current staffing, what happens when the office grows and you need more voice mail capacity? It is a good idea to find out at the time of purchase what are the costs of expansion and how long the vendor will honor his/her quote for expansion.
5. There are several important factors that may require you to purchase a larger voice mail:
   1. Is the system going to be used to answer incoming calls either in place of a receptionist or on a "backdoor" basis? (A "backdoor" is a number other than the organization's main number that is answered by the voicemail at all hours. This number can be given out on a "need to know" basis). If so, you will probably not be able to use the smallest, 2-port voice mail system and will have to go immediately to a 4-port system.
   2. Does your organization anticipate using the voice mail to "broadcast" information to callers? (e.g. directions to office, commonly requested information, etc.
6. Identify the costs of remote maintenance.
   Find out the vendor's charges for remote maintenance before purchasing the system. These costs can vary widely, and all systems require "care and feeding" that often can only be provided by the vendor.
7. Find out the costs of additional training.
   As staff come and go, it is sometimes advisable to have your staff re-trained in how to use the voice mail system.
8. Most voice mails offer equivalent features.
   Buy only voicemail systems that use one of the major brand telephony cards inside: Dialogic, Rhetorics, Bicom, Natural Microsystems, or Brooktrout. Some systems lower their costs by using "house brand" boards. None of the house brand companies have been able to keep up with R&D. They fall behind, their product doesn't sell, they abandon it, your vendor cannot get spares, and you have to replace your system when it breaks. This has happened to many companies in the short time that voice mail systems have been on the market. You should be willing to pay the $800.00 to $1000.00 extra it costs to get systems that are made with parts from reliable companies.
9. The most important factor in purchasing a voice mail system is the reliability of the vendor.
   Voice mail glitches are certain to cause significant problems for your staff, and you have to get prompt, professional service from a vendor who understands your needs and acts promptly. Without this, you will be left figuring out how to fix every little problem yourself.
10. Voice mail is training intensive.
    Your staff may need one-on-one training, and some may need follow-up training. While voicemail is not difficult to use, it does require that users are attentive at the training and are willing to learn something new. Staff may resist the change from existing methods to voice mail. If a vendor's bid seems too low in this category, it could be a sign that their training is rather cursory.
11. Beware of really cheap voice mail products.
    Some manufacturers (e.g., Lucent) offer an inexpensive voice mail with flash memory only and no hard disk. These systems should be purchased for only the simplest of applications, because they usually do not have the full complement of features and message storage.

How Much Will a Phone System Cost?

The cost of a phone system will vary widely depending on the features, hardware, and vendor chosen. The table below shows estimated equipment and installation costs for small, medium, and large phone systems. These costs assume a simple configuration and do not reflect the added expenses of "special" phone lines such as Direct Inward Dialing ( DID) or T-1 lines, the cost of full featured handsets such as display or super-display phones, and do not include the cost of cabling. (See the question below about phone cabling considerations).

Small	System with initial capacity for 4 lines by 8 stations and 6 multi-button phones	$2,500.00
	Installation	$500.00
	Total	$3,000.00
Medium	System with initial capacity for 8 lines by 24 extensions and 18 multi-button phone sets	$5,200.00
	Installation	$1,000.00
	Total	$6,200.00
Large	System with initial capacity for 12 lines by 32 extensions and 28 multi-button phone sets and receptionist console.	$8,500.00
	Installation	$1,700.00
	Total	$10,200.00

Important Points About Buying a Phone System

1. Costs will vary widely between manufacturers and vendors.
   A system supplied by Lucent or Northern Telecom will cost far more than a system provided by a Nitsuko or Toshiba dealer, even though the underlying technology is almost identical. The costs will also vary from vendor to vendor for equipment from the same manufacturer.
2. "Sizing" of the phone system is the art of the deal.
   A good rule of thumb is 1 phone line for every 3-4 full-time staff. This equation will vary depending upon how intensively your office uses phones. One way to assess this is to monitor whether you have difficulty accessing an outside line or whether callers complain that they constantly receive busy signals.
   
   You also must be able to anticipate your growth path for the next five years and find out the costs of expansion. It is usually less expensive to purchase additional equipment at the time of the initial purchase than later. If time allows, it is a good exercise for someone on your staff to perform a "Needs Assessment" by canvassing the department heads. Make sure you note "special" needs such as capacity for phone banking or a part-time receptionist. Growth needs vary widely, but in general, your system should be able to grow at LEAST 50% from the initial configuration, and more if there has been a marked pattern of growth over the last several years. Your organization could change a lot in ten years. If growth is an issue, have the competing vendors explain the cost of growing their systems to larger sizes. Systems vary widely in design, but it's not rocket science; if they can't explain it clearly, they're hiding something.
3. Leasing is a way to hold down your monthly expenditures.
   If you lease your phone equipment rather than purchasing, you can reduce your monthly expenses. However, most vendors use leasing companies that charge a high rate, 12-15% per year, for their loans. Most organizations will want a $ 1.00 buy-out clause at the end of the lease term, which means that the organization can purchase the equipment for only an additional dollar. Leases usually come in 12-, 24-, 36-, 48-, and 60-month periods. In addition to the $ 1.00 buy-out clause there are also leases that have Fair Market Value (FMV) and 10% buy-out clauses. These leases usually have slightly lower monthly payments but carry a higher buy-out at the end of the lease term. FMV leases require that the leasing company determine the value of the equipment at the end of the lease, essentially leaving you at their mercy. FMV leases are good for companies who want to keep present costs to a bare minimum and who want to "expense" these payments for tax reasons.
4. You need to prepare the site for a phone system.
   A phone system should be installed in a phone closet. This closet will require sufficient space, good ventilation, clean & stable electrical power, and security, i.e. a locked door. A good space will make the system more reliable as well as easier to install and maintain.
5. Make an installation plan and inform your staff.
   Many phone vendors request 4 weeks from the time of signing a contract until the system can be installed. You should expect that your phones will be "down", i.e. not working, for the day. Weekend or evening installations are more convenient but often will cost more.

What are the Costs of Maintenance and Support?

Your organization will rely on the phone system to get your work done. If it fails or doesn’t keep current with your staff or workload, your organization may begin to suffer. A maintenance contract with the original vendor will help make sure that your phone system continues to operate optimally.

When considering a phone system, ask if the vendor provides remote maintenance and diagnostics on their phone systems and how much this service costs. Remember, service counts. Phone equipment is similar in most respects and should not be the sole factor that dictates your choice. Choosing a phone system is really about choosing a vendor, which is not unlike choosing an accountant, lawyer or doctor. It is starting a relationship that will last over many years. When selecting a phone system, don’t rely on the salesperson’s assurances. Take the time to check the vendor’s references and ask him/her about the quality of service & responsiveness of the service staff.

A service contract is a good way to ensure support and service over time. Service contracts are like insurance policies. They are a waste of money when not used, but extremely valuable when you absolutely need them. Whether you should take a service contract depends upon whether you have the in-house expertise to troubleshoot basic problems and whether you can afford it. Some vendors even cover remote programming under their service contracts, which makes them more affordable. The table below shows the average costs for service contracts. Please note that service contracts can vary widely among vendors and that some vendors sell their service contracts to third parties. This is not a good thing because the third party may not provide the quality the initial vendor promised.

Service contract for 4-port Voice mail	$575- 800.00/year
Service for phone system with 8 lines by 24 extensions and 18 phones	$700-1,000.00/year

What Do I Need to Consider When Cabling for a Phone System?

A phone system is comprised of phones (handsets), a phone closet (switch), and the wires that connect the phones to the closet. Unless the cabling already exists in your office, you will need to have it installed as part of your phone system purchase. The cost of this task is largely labor which is affected largely by how difficult it is to install the phone cables. The more distance to cover, the more floors to interconnect, or the more walls to drill through will all increase the cabling cost. One way to economize is to have a single vendor install both voice and data cables so that he/she lays cable once to satisfy both needs. Another way to control costs is to install more phone and data jacks than you currently need. In other words, instead of one phone and one data jack per desk location, consider two of each. If staff or equipment needs to expand, you only need to plug in a new phone or computer rather than pay a cabler to add more cables and connections. The cost of multiple cabling jobs far exceeds the cost of extra jacks in a single cabling job.

How Do I Select Cable?

Cables are graded according to the speed with which they can shuttle data bits from one end-point to another. Voice grade cable (i.e., cable capable of supporting a connection to a standard business telephone set) is known as category one, two, or three. Most vendors now use category three cable for voice. It is often referred to as "twisted pair". Category three cable also supports present 10BaseT Ethernet local area networks (which has a pass-through rate of 10 megabits per second). If you are installing new network cable, you should not use category three cable but category five cable. This cable supports a pass-through rate of 100 megabits per second and will be used in future technologies (e.g. "fast" Ethernet). Recently, cabling manufacturers have introduced an "enhanced" category five cable, which is capable of sustaining a pass-through rate of 1000 megabits per second. When installing new network cable, you should request category five enhanced cables and jacks. This should "future proof" your office for the next five to ten years. These same manufacturers are discussing the standards for category six and category seven cable, but these protocols have not been completely determined, and it is unlikely that many organizations will find that they absolutely need category six cable anytime soon.

Once you've selected the speed, you need to consider the "type" of cable: pvc or plenum. These terms refer to the type of coating used to cover the copper wires used in a standard voice or data cable. PVC, or poly-vinyl coated, cables are less expensive than plenum cables and should be used whenever the electrical code allows. Most offices that have dropped ceilings will require plenum cable. The table below shows the approximate costs for a "standard" cable run. These should be used as a guide because they do not reflect the unique circumstances each building may present.

Type 1	cat three run	1 cat five enhanced run	1 cat three & I cat five enhanced (combined)
PVC	$60.00-$75.00	$100.00-$125.00	$30.00-$150.00
Plenum	$75.00	$125.00-$135.00	$160.00-$190.00

Key considerations for cabling projects:

1. What kinds of walls do you have?
   If your walls are not made of sheet rock (hollow), your cable may have to run on the wall surfaces. It is possible to install the cable in flat surface conduit (metal or plastic) but this is very expensive. Look the job over with your vendor to determine if conduit needs to be used anywhere, either for cosmetic or safety reasons. Most of the time it is not necessary, but make sure you will be satisfied with where cables will be routed and how they will look afterward.
2. Does your vendor know how to install data cable?
   Make your vendor demonstrate that they know the special techniques required for data cable installation.
3. Will the cable run outdoors?
   Outdoor & underground routes require special types of cable. Indoor cable used outdoors will fail after a few winters of cold, and exposure to sun and rain.
4. Where will the equipment be installed?
   Cable & equipment junctions need a proper environment. This means a dry location, not under or near water pipes, heaters or windows. If the equipment is installed in a closet, do not expect to be able to use the area in front of the equipment and cable terminals for coats or other storage. Remember that you will need dedicated electrical outlets to power the phone and network equipment.
5. What extra lines will I need for non-phone system equipment?
   In today’s world, many auxiliary devices may need special cabling. For example, a phone line for the alarm system, a cable to the front door exterior for a "door box" intercom, or a phone line to support communications to a service center for a copier or postage meters. Additional phone jacks may be needed in non-work areas: a courtesy phone in the reception area, two phone jacks in your conference room if it's big enough, or a data cable for a centrally located network printer.

How do I deal with the phone company?

In order to make or receive calls, your phone system will inevitably have to connect with the phone company. In order to ensure this is a relatively problem-free encounter, here are some things to consider:

1. If purchasing new equipment is part of a move, will you need to get new numbers?
   The phone lines in each building run back to only one phone company central office (CO). It is entirely possible that the phone lines for the buildings across the street from you may go to a different CO than yours. Currently, the CO is what determines the phone numbers in your building. If you are changing locations, you may not be able to bring along the same phone numbers, even if you are just moving down the street.
2. Get your phone system vendor involved with ordering your service.
   Your vendor will be familiar with the process of working with the phone company and likely have people on his/her staff who specialize in ordering, tracking, and fixing orders from the phone company.
3. Your lines should be installed several days before you need to use them.
   If you are referring your old number to your new number, the phone company will (with some exceptions) provide one free week of "duplicate service," in which your old lines remain live at your old site while your new lines are live at your new site.
4. Don’t advertise new numbers until you know they are working.
   If you are getting new numbers, DO NOT print new stationary, business cards, etc. until your new main and fax numbers are installed and tested. 1-2% of installations require reassignment of numbers before installation. If you print, and your number assignment is changed, you are out of luck.
5. Test your new phone numbers before disconnecting your old number.
   Before your move date, have your vendor check that all your lines have arrived, that they "hunt" (roll over on busy calls) where required (and not otherwise), and that the proper long distance carrier is connected (using the test number 1-700-555-4141). If you are disconnecting or forwarding your old number, install call forwarding service on your main and fax lines a couple of weeks before you move, and activate forwarding to your new numbers just as you move out. This way, if the phone company doesn't disconnect on schedule, calls to your old numbers can still get through.