Switching to VoIP will save you money. That was
among the recommendations given to California�s state governor,
honorable Arnold Schwarzenegger last week, during the state of the state
meeting. A full written
report prepared by an assembly of independent auditors and IT
experts advices the head of state to adopt VoIP-based
telecommunications�both voice and video statewide in order to slash
government telephonic spending.
A five-month project�The Report of the
California Performance Review: Government for the People for a Change
contains four volumes of recommendations to reform and revitalize the
state government. Within its Information Technology section, the report
discusses the financial benefits of switching state government agencies
from traditional telephone to VoIP-based communications.
Changing Voice
When speaking numbers, the advantages were
presented favorably for Voice over IP (VoIP)
(define
-
news -
alert). According to the report, California State agencies spend
more than $120 million annually conducting business activities via the
telephone. A conclusive survey of state departments revealed that each
telephone line costs about $80 monthly on average. Experts contend that
replacing the various systems now used with VoIP technology under a
statewide network infrastructure would be cost efficient, simplify use
and provide a uniform telecommunication service to transact day-to-day
state business.
The switchover is said to have potential of saving
the state a 15 to 20 percent approximate recovery from billing errors in
audit savings; and a 15 to 20 percent of additional savings generated by
maximizing the use of discount rate plans, network optimization and more
efficient use of technologies in optimization savings. According to the
report, cost savings per user is projected at around $10 to $40 per line
converted monthly. The reviewers concluded that if lets say, one-half of
the phone lines are converted to VoIP, the state could possibly save
between $1.6 million and $6.3 million per month.
How much would the switchover cost California? The
experts revealed an estimated one time cost of $6.5 million for VoIP
installation in the year of conversion, if existing staff performs such
conversion.
Changing Videoconferencing
The report discussed possible savings for the state
if it switches to video over IP for conferences, distance learning and
training, as well as any other forms of video communications. According
to the report, California now uses a combination of �Internet protocol
(IP) video,� integrated services digital network, (ISDN) and
point-to-point systems for video conference services statewide. The
experts recommended IP video services to be provided statewide from a
centralized management IP video services location, such as a statewide
data center; and an IP video network providing various options for
videoconferencing to off-site meetings and for other services.
The experts presented a case study about the
state�s Department of Corrections Health Care Services Division video
conferencing usage and savings since 1998. They have made more than 400
conference calls over IP with savings of more than $700,000 so far, and
a total of $4.5 million for telecommunications during the Fiscal Year
2002� 2003.
The report recommends the implementation of IP
video for specific savings in telecommunications used by the state of
California�s Department of Corrections and its telemedicine program.
Savings by using IP video during the 2002�2003 fiscal year for the
department totaled $4.5 million, avoiding the transport of inmates to
medical facilities for services. With total implementation, this figure
could rise to an extra million dollars in savings.
Johanne Torres is the Assistant Editor for
TMCnet.com and Internet Telephony magazine. Previously, she was
the Assistant Editor for EContent magazine in Connecticut. She
can be reached by e-mail at [email protected]. |
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