PCN - Private Corporate Network Economy (part 1)

Summaries of findings

Multiple users (staff), annual savings

For large organizations the annual savings can be significant in absoluslute terms. For a large organization with 1,000 staff, annual savings can approach $6 million and for international and governmental organizations with say 5,000 staff cost annual savings can attain $30 million.

Orders of magnitude of organizational savings comparing conventional telecommunications with VoIP on V1 band

Staff member
telecom bill
10 staff100 staff1,000 staff2,500 staff5,000 staff
$25
$2,400$24,000$240,000$600,000$1,200,000
$50
$5,400$54,000$540,000$1,350,000$2,700,000
$100
$11,400$114,000$1,140,000$2,850,000$5,700,000
$250
$29,400$294,000$2,940,000$7,350,000$14,700,000
$500
$59,400$594,000$5,940,000$14,850,000$29,700,000
Single user savings from different VoIP bands

current monthly bill/userannual totalV3V3 annual V2V2 annual V1V1 annual
$25
$300
$15
$180
$10
$120
$5
$60
Saving
 
 
$120
 
$180
 
$240
Saving as %
 
 
-40%
 
-60%
 
-80%
$50
$600
 
 
    
Saving
 
 
$420
 
$480
 
$540
Saving as %
 
 
-70%
 
-80%
 
-90%
$100
$1,200
 
 
    
Saving
 
 
$1,020
 
$1,080
 
$1,140
Saving as %
 
 
-85%
 
-90%
 
-95%
$250
$3,000
 
 
    
Saving
 
 
$2,820
 
$2,880
 
$2,940
Saving as %
 
 
-94%
 
-96%
 
-98%
$500
$6,000
 
 
    
Saving
 
 
$5,820
 
$5,880
 
$5,940
Saving as %
 
 
-97%
 
-98%
 
-99%
Raising business communications convenience and slashing costs

Navatec.Com's Private Corporate Network service, available for any registered user of Navatec Voyager, offers a significant cost saving for companies of any size. Two recent studies 1 have assessed the potential savings offered by Navatec Voyager for companies in comparison with regular telephone services and reduced tariff services. This article discusses regular tarifff services.

Who benefits from VoIP?

Many large organizations and government agencies do not use the lower cost tarifffs on offer such as the N1, N2 and N3 bands but continue to use regular telephone charge structures. Others have special arrangements with the national PTT company or private operators.

Under such circumstances the V3 band for VoIP, $15/month, can achieve a major saving for those who use any online application using Navatec Voyager. The VoIP V2 band at $10/month and V1 band at $5/month represent even bigger savingseven for individuals who normally have modest telecom bills. For example, the percentage reduction in telephony charges achieved by using VoIP, for users with current regular monthly bills of $25 to $500 is between 40% and 99%.

Opportunity costs

Any group, small company or organization where they are several people using telecommunications should assess their performance by cost audits and then look into the options for using Navatec Voyager to boost productivity by reducing telecommunications charges. A saving of $30 million can represent a significant boost to performance by levering investment, improving development bank lending portfolios, an international organization's impact on grants and support programs as well as governmental initiatives for a specific segment of the population.

Where such funds are currently being consumed by conventional telecommunications operations it is a legitimate question to ask why. In terms of governance and transparency in international organizations and governmental agencies VoIP offers a better return on public funds.

In the case of private public corporations, the failure to take advantage of VoIP can become an issue of justifiable concern for share holders. Company management needs to demonstrate that they have optimised the mix between VoIP and any remaining conventional telecommunications systems. This should not be just a technological substitution but should boost performance by reallocating corporate resources to productive operations and away from overheads.


Graphic summary of potential VoIP-derived savings by substituting fixed telephones & mobiles paying standard charges



"Communicating through Seel-Telesis®-PCN", Seel-Telesis®, January 2006;
"Talking your way to business performance", H. W. McNeill, Seel-Telesis® VoIP Workshop, December, 2005;
"PCN, The Internal Vision - the Advantages of Private Corporate Networks", Navatec, February 2006.

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