Business Telephone Systems ?

Edwards Finance > Phones

Q. Telephone systems for a small office, is it usual for a small business to buy a telephone switch exchange for their office, or is it more likely rented? What kind of prices get paid for these things, to buy or to rent?

A. If a business has multiple telephone lines, it depends if they are analogue or digital. Analogue lines are acceptable for perhaps a single user and a fax machine or if you need broadband. ISDN 2e is available in blocks of two, up to a maximum of eight lines. You'd connect every second group of lines to your system. ISDN 30e is for eight or more users; it uses a single wire to supply between eight and thirty lines. With regards to question two, unless your business is quite large (possibly incorporated and publishing full annual accounts), sometimes leasing can provide a tax-efficient alternative to purchasing. But for smaller business, normally you'd have to have been in business for either three years or be expected to provide a guarantee (such as your home). Leasing will normally be the cost of the system, divided by three to five years in most instances, with a margin on top but you can write-off 100% of the costs in your accounts. The longer the lease, the lower the monthly price, but it can all add up. For a typical small business installation, lets say 2 numbers and 3 lines (one number handling two lines), into an analogue/hybrid such as a Panasonic system. If you place the order for all three lines at once and tell BT that you want them terminated at a distribution point, the likelyhood is that BT would run in a single bundle (possibly ten pairs of wires running in a single cable). They would then terminate all ten pairs, and make the first three pairs active. The reason for this is that any future orders you place for more lines dont require more cable runs and BT still charge you the full installation price simply to activate more pairs. Sound business sense on their part. You then have responsibility for everything on your side of the DP. However, for exactly the same system, if their are existing lines coming into the building terminated at standard wall boxes, and you simply place an order for an additional line, the likelyhood is that BT will run in another 2 pair cable and terminate it at another wall outlet. Digital and DDI block orders can be as complex as the systems that hang off the back of them. My humble advice would be to talk to one of the numerous companies that specials in advising small business on data/comms. Many of these will do all the leg work in sorting out the ordering and systems installation at reasonable cost. Even if you only go for a simple consultancy session it will probably save you money and heartache in the long run.

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