Signing up for a hosted IP PBX provider is just like signing up for cable TV; the provider
is trying to lock you in to a long-term contract at terms that give them the most proit,
while you're just trying to get the service and features you need at the lowest possible
price. Plus, there are always hidden costs.
The key to avoiding a contract with more (or less) service than you need is asking the
right questions. This list covers what questions you should ask before you sign on the
dotted line. If you have speciic concerns such as advanced call center features that
might afect your business, you'll want to add them to the list as well.
- What is the contract termination policy?
You want to know whether you can get out early without a penalty and what the
other termination costs might be. Unfortunately, providers " and particularly their
sales teams " often try to lock you into long-term contracts. This is common practice
throughout the communications industry and you may not be able to avoid it, but
you can do your best to remove arbitrary and excessive early-termination penalties.
Several of the newer hosted IP PBX providers are reacting smartly to the situation by
providing service with no installation or termination penalties. Be sure to check the
policies on equipment, as well as those that apply to the basic service.
- What startup costs are there beyond setup and equipment fees?
This is where you want to look for hidden costs. Find out exactly what you'll need
to get service. Ask if phones, extra servers, interface cards and other add-ons are
included or if they cost extra. If you have the "wrong" kind of network (one that
doesn't work with the hosted provider's VoIP system) will you end up needing new
cards and extra software? Can you use your existing broadband service? If not,
can you switch your broadband supplier without penalty (and preferably at an
additional saving)?
It's easy to get sucked into a deal with installation and equipment costs at $100 or
less per seat, but that's often for a minimal coniguration. You might ind out later
that you need add-on equipment. Be particularly careful about phones; if the phone
is free, it's quite likely to be extremely basic, and you may need more features. Think
of the phone as a piece of equipment you use all day, every day, and you'll get an
idea of why you want the best phone.
- What day-to-day usage costs are not covered by my service plan? What are the
rates for international calls, for example?
This is yet another place where hidden fees lurk. Make sure there aren't any addon
fees for important features; some providers charge more for conference calling,
others for diferent forms of long-distance and still others for some advanced
features. Make a quick list of all the communications needs that you have, then ask
about all the items so you can forecast prices accurately. This is particularly true if
you make a lot of international or toll-free calls or if you need extensive inbound
toll-free calls. One bright spot is that this is an area where you can't really lose " all
hosted IP PBX solutions are cheaper for actual calls than any non-IP or non-VoIP
solution.
- Can the system handle outbound and inbound faxes out of the box? Can I just
plug in a fax machine or do I need special equipment?
Faxing is a hidden gotcha of VoIP. Many older systems can't handle faxes, while
others require a special faxing module. The bottom line is that just because you
have a phone line with VoIP, it doesn't mean you can plug a fax into it. Make sure
you're covered and ind out what it will cost. A typical solution is to obtain an extra
box or adapter for a fax line, which will cost extra. But some solutions are smart
enough to route faxes beyond the adapter and deliver them to email inboxes as
well. Check the details before you bite.
- Do I need add-ons or extras to handle old-style analog phones that I already
have or that remote or branch oices have already installed?
Fortunately there is a solution to this issue that can save you some money. If you
have oices that already have extensive, modern analog phones, some provider
systems will work with them as transparently as with more advanced SIP (Session
Initiation Protocol) and VoIP phones. That can save you as much as a couple of
hundred dollars per phone. This is particularly important for remote branches or
oices, especially if you need to do a phased rollout. You will need to double check
what features are supported on analog phones and how they are operated. If it is
too diicult to transfer calls for example, this feature, even if it is supported by the
provider, might as well not be there.
- How does the system handle remote and mobile workers?
The key here is to ind out whether the experience is the same for a telecommuter
in a rural area as it is for someone at a head oice and how it will handle people on
the road.
If you don't have mobile or remote requirements, obviously this isn't a concern right
now, but in time it may be. And if you do have remote and mobile employees, then
you need to ind out what the provider can and cannot do for you. Some providers
can handle any mobile or remote phone almost as easily as an extension in the main
oice, but others cannot. Creative solutions might save you more money than going
to a system that can handle remote employees. For example, getting a single line
for a remote employee on a diferent plan then using your system's call-forwarding
features might end up being more cost-efective. Since many hosted IP PBXs handle
remote users very well " including ‘road warriors' who travel a lot " this can be a
great extension for your business.
- If I underestimate my requirements and need a major upgrade or my company
grows, what are the additional costs for upgrading?
There isn't too much you can do here " miscalculating requirements is going to
be a problem no matter what. But you can minimize the pain with a provider that
is willing to work with you and that provides good service. At least ind out what
the issues might be down the road as you'll need to know how to handle business
growth anyway.
- How do you guarantee your quality of service?
Quality of service is a big diferentiator among providers. What you want to know
here is, if you have issues with quality, how you'll get support, who you should
contact and how fast ixes will happen. When there is a complex problem and your
network equipment supplier, your broadband supplier and your service provider
are all pointing ingers at each other, you want a provider that will step up to solve
the problem.
These are all questions to ask the provider directly. If they can't more than satisfy you
in this area, look elsewhere. Your communications system is vital to your success, so
don't put yourself in a position of being held hostage by an incompetent provider. It
obviously helps if your broadband supplier and your IP phone provider are one and
the same, but regardless, if they aren't willing to even step up to try to solve your
problems, then how good will they be at actually solving them? Take the time to
understand all the issues. For example, if there is a major backhaul network failure
(the network that connects most of the Internet together in the background), then
your provider is unlikely to be able to do a single thing about it, but check if they will
at least provide failovers to an old-style analog line for emergencies.
- What about emergency services " do you provide full 911 or E911 services?
Will dispatchers know my location automatically " and how about remote
workers?
This is a lat-out requirement that many VoIP providers don't like to talk about. If they
don't have a solution right now, they ought to have one in the pipeline. Fortunately,
since 911 compliance has been made a federal mandate, the problem is being solved
very rapidly. But do ask how the system will know things like location for someone
on the road. And that leads us to the last question...
- How do I know you are going to be around in two years, let alone three?
Communications and VoIP is an industry of consolidation and aggressive competition.
Find out if your provider is stable and make sure your contract is binding even if your
provider gets acquired. Ideally, you want the new provider to take up your contract
with no change, while giving you the option of moving on without penalty if you
don't like the new arrangement.