Issues such as LNP, E-911, 411, CALEA, yellow page listings, and taxes will take a bite out of any profit.
Even termination, origination and DIDs cost money.

Let's say you get a 2 way CLEC PRI for $615 + DIDs at $10 per 20.
And let's say the CLEC will do your LNP and 911.
$615 divided by 23 ports is $26.75 per line (not including taxes nad fees).
You can over-subscribe about 5:1 for Resi, so your port cost is $5.35 + $5 in fees say = $10. LD Termination varies: switched is $0.03; Ded LD is $0.17 plus the T1 line; VoIP LD Termination is $0.018 from Primus.
Average LD is 300 minutes = $5.40
That's $15 of cost without factoring in labor, admin, etc.
Someone like delta3 has plans for $15.99.

Plus now instead of bursty traffic you have steady streams, so please engineer your networks accordingly.
Next, you have the CPE and install costs.
Plus bad debt on International calls as well as on the local dial-tone.
In addition, Billing costs are about $1.50.

Mind you , this was just one quick case.

Regards,

Peter


Jason Hensley wrote:

For someone like me who is currently looking at getting into the VoIP business, why is it that you feel VoIP will be a long-term loser? I have just started my research into what it will take to provide this so I'm a little behind on it, but I'm definately interested in all opinions and options.

Thanks!

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