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 Home > Enterprise > COST CONTROL: Pruning the telephone bills
  Enterprise
COST CONTROL: Pruning the telephone bills
GSM gateways can reduce the communication bill of any company by upto 60 percent
Anurag Prasad
Wednesday, April 13, 2005

Telephone bills are a nightmare for any corporate. The different rates for calls between fixed and mobile phones have been further swelling the corporate bills. For any enterprise almost 60–70 percent of its telecom bill comes from landline to mobile calls. And, a CIO has to constantly walk a tight rope between controlling the telecommunication bill and keeping the telecom services always available because today they are essential to keep an enterprise alive and running.

Any business organization or corporate house has a PBX to route the calls being made and received. Coupled with the hunting line numbers, this method proved cost effective when landlines dominated and mobile phones were less prevalent.

On an average, calls made from a landline to a mobile cost Rs 1.20 per minute. Depending on the plan adopted, if the call is placed from a mobile to another mobile within the same network (even if the operators are different) the rates vary from zero to Rs 0.40 per minute. The differential is greater when STD calls are made.

So, the enterprises are looking for ways and means to control the bills keeping in mind that more and more people are going mobile.

One way to cut the telecom bill could be to give mobile phones to all users. However, this is not always possible. for eg., in a hotel, it is not feasible to provide GSM phones to all the guests. And, guests' calls have to be routed through a PBX for a variety of reasons such as ease of billing. The other, theoretical, option is to have a pool of mobile handsets and ask the users to use this pool for making the calls instead of the desk phones. However, this might result in long queues for using the pool resulting in loss of working-hours, negating any gains from the excercise.

The Solution: GSM Gateways
GSM gateways, also known as GSM routers or a fixed cellular terminal, are devices that facilitate calls from fixed phones to mobile networks. They can be attached to a PSTN PBX and all calls to mobile numbers are routed through it.

The gateway essentially acts as a pool of SIM cards from various mobile operators. When a company installs a GSM gateway in its telephone system, calls to mobile numbers are detected by the internal exchange and routed through the appropriate SIM card in the GSM gateway. The gateway software detects that a mobile-to-mobile call is being made and the gateway SIM card is charged at mobile-to-mobile call rates.

The numbers and brands of SIMs to be installed is the prerogative of the enterprise. It is useful to have an audit done to determine the number of channels required. Leela Palace Kempinski hotel in Bangalore has installed eight SIMs.

"We had a study done and came to know that at any given time there were six to eight callers. Hence, we provisioned for eight cards. If a ninth caller is there, he is routed through the normal PBX. Even then we have been successful in cutting down the phone bills by almost 62 percent," said N Srinivasan, telecom manager, Leela Palace.

Not only GSM gateways, enterprises can have VoIP and SMS gateways too. "The box remains the same, we just add a few cards depending on the requirement. The enterprise pays for the basic GSM gateway and then invests in the cards," said PS Vijay Simha, head corporate sales, Teles, a GSM gateway provider.

In VoIP gateways, the voice calls are routed on an IP network. This is particularly useful for companies having multiple locations and can connect with each other at very low cost. Similarly, the SMS gateway enables users to send messages from their landlines and desktops.

Coming Soon: CDMA Gateways
Among the mobile phone users, there are CDMA subscribers too, and the GSM gateways would not serve the purpose if a large number of calls were to be made to CDMA subscribers. Unlike GSM, CDMA UIMs are embedded in the phone itself, hence the card slot equipment is not feasible in this case. Here, operators have to join hands with gateway manufacturers and allow the unique coding of gateways for enterprise users. "We are working with a US-based partner to come out with CDMA gateways. They are interacting with the Indian CDMA operators and we expect the product to hit the market by end of April," said Vijay Simha.

Considerations for CIOs
Though cost savings will draw customers to the gateways but Indian enterprises will take time before investing in it, as it is still a new technology. Besides, problems like STD/ISD calls being dropped at the EPABX and issues of gateways' compatibility with the existing EPBAXs need to be sorted out.

"It has not been even a month since we deployed these gateways and till now we are having problems with STD calls being dropped. We need to evaluate its efficiency before opting for ISDs over it," said Sunil V, head (administration), Tavant Technologies, which has a 12-SIM, GSM gateway.

As the gateways provide a digital interface, they would not support an analog EPBAX. So, before finalizing on any gateway, CIO must ensure that the EPBAX supports ISDN. The GSM (and soon CDMA) gateways work on protocols to interact with the EPBAXs already installed. Normally there are three types of protocols: PRI, E1, and T1. The basic difference between them is the area of adoption and the number of channels they support. E.g., E1 is a European standard and supports 30 channels while T1 is an American protocol and supports 24 channels.

Apart from checking on the ISDN and protocol compatibility, CIOs must check whether the product has least call routing functionality and supports IP connectivity.

GSM gateways available in the market
Company Name Website Products
Ericsson www.ericsson.com Ericsson F250m, Ericsson F221m, Ericsson F251m, Ericsson F220m
2N www.2n.cz GSM Gate Analogue, GSM Gate ISDN, Bluetower, Bluestar, Stargate, Voiceblue
Nokia www.nokia.com Nokia 32, Nokia 22
Quasar Communication Systems www.quasar.biz Cellulink Smartcell 111, Cellulink 301, Cellulink 101
Telular Corporation  www.telular.com Phonecell SX5D, Phonecell SX5E, Phonecell SX4E
Telecom Protection Technologies (TPT) www.telecom-protect-tech.co.uk TPT2000
Novatec www.novatec.de TMG-S10/2BA, TMG-S10/4BA, TMG-S10/1Prim, TMG-S2
Company Name Website Products
QuesCom www.quescom.com QuesCom 400 GSM, QuesCom 400 IP/GSM
Topex Mobilink - Mobilink ISDN2, multiACCESS GSM Gateway
Teles www.teles-communication-systems.com Teles.iGATE
Burnside www.burnsidetelecom.com Desktop Mobile
Integrated Telecom Systems (ITS) www.its-tel.com CGW-T
Orion Telecom www.oriontelecom.com E1 GSM PRI ISDN (Euro ISDN) 1-SIM Gateway, E1 GSM PRI ISDN (Euro ISDN) 3-SIM Gateway, E1 GSM R2 3-SIM Gateway, E1 GSM R2 1-SIM Gateway T1 GSM 3-SIM Gateway, T1 GSM 1-SIM Gateway

E-mail to SMS conversion and call-back functionalities are optional and depend on the enterprises-whether they want it or not.

Don't Want to Buy, Rent It
A GSM gateway would cost anything between Rs 2.25 lakh to Rs 4 lakh and even more. Cost variations are due to the number of SIM slots and functionalities an enterprise wants. For many enterprises, this amount might be a huge investment, with benefits showing only after couple of months. With the pressure on capex being high, and the management demanding optimum opex, enterprises might be reluctant to make new investments in addition to the EPBAX already installed.

While larger enterprises may like to buy the equipment, for smaller ones, options like rental and revenue-sharing plans are also being floated by the gateway makers. This model works on the premise that the gateways would reduce the telecom cost for enterprises. The equipment maker installs the gateways and gets a certain percentage of the revenue that is saved. The percentage of revenue sharing, which some call rental, is decided through due diligence of inbound- and outbound-call traffic from an enterprise.

Anurag Prasad

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