We engaged a consulting firm to help us evaluate the
costs of various options for replacing our aged Avaya G2
switch. One of the options was to return to service from the
local phone company.
While we would have saved $500K in capital costs, as
Dave did at Dordt, the Centrex approach would have cost us
$7M more in total cost of ownership and operation over a seven
year life cycle. For sizing comparison, we have about 4000
lines compared with Dordt's 900.
So the caution is to be careful to analyze all the costs, both
capital costs and operating costs (including staffing), and to
consider other benefits to the community, such as those Dave
pointed out in a subsequent note.
Or, as they say in newsgroup-speak, YMMV (your mileage may
> Susan: We tried something fairly unique in 1996. Our switch
> was at capacity and we needed to upgrade. Instead of making a
> major upgrade and spending significant capital, we worked with
> our local Telco and created a ten yearcontract for local
> service. The phone company gets a guaranteed rate of $6.35 per
> month per line and in turn they installed a NortelDMS 10 on
> our campus at no cost to the college. They maintain the switch
> and do all necessary upgrades. Another unique feature is that
> our switch can serve as a backup for the phone company in case
> of a catastrophic event to their switch. As we come to the end
> of our ten year contract, we are thinking about developing a
> similar model for an IP system across the campus. I am not
> sure who your local service provider is in Allendale, but if it
> is an independent phone company like we have in Sioux Center,
> this might be a model to pursue. My estimate is that we have
> saved over $500,000 in capital expenditures using this
> approach. Please do not hesitate to contact me, if you have
> any further questions.
> David J. Netz
> Vice President for Information Services
> Dordt College
> Sioux Center, IA 51250
> [log in to unmask]
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