Finance Q&A

difference between a residential telephone line and a business telephone line?

Edwards Finance > Phones

Q. Its basically a result of the history. They were allowed to have the business line rent higher than the residential one, mainly as a subsidy to residential phone users, back in the days when they were a purely govt operation and the govt had a say on that sort of thing. Even when they got privatised and lost their monopoly, the govt of the day, Keating, imposed some pretty stringent controls on what they could do on charges, mainly for political reasons.

A. there are still limits on the number of calls that can be made through a switch. There are only so many time-slots in the fibre that the switch can route into. These days the business lines could be offered a better quality of service that gave them a lower concentration figure. Say for business lines they are mulitplexed on a 3/1 ratio but residential lines at 5/1. Also there is only a finite number of physical connections that can be made to any one switch also. Even with the digital exchanges you still get call lockout. Here at work yesterday there was a period when all lines were full into the local area when my housemate tried to ring me. Never said there wasnt. The fact of the matter is that the SAME exchange technology has both business and residential lines on it. So the claim that you're actually getting something different technology wise with a simple business POTS line and a residential line is just plain wrong. And thats ALL that as being discussed, whether the higher line rent with a commercial line gets you anything special technology wise. It doesnt. The benefit of higher rent for a commercial line is reduced fault restoration time and a generally improved service level. Stuff that doesn't really matter much for residential services.

 


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