1: | Is there a difference between switched and dedicated voice service? |
A1: | Yes. The difference often resides in the cost-per-minute (CPM) charged by the NSPs. Dedicated access services are more efficient to maintain than switched access services and therefore these efficiencies can be passed on to the customer. There is a break-even point in the dedicated versus switched access debate. This break-even point is based upon the customer site call volume and the CPM. For example, if a customer's call volume is 10,000 minutes a month (444 minutes a day, based on 10,000/22.5 = 444.4, 22.5 days in a standard business month), and the CPM is five cents (0.05), the total cost for switched service is $1000/month. If this same customer secures dedicated service from a service provider at a cost of $500/month and a CPM of three (0.03) cents, there is a $200/month cost savings over the $1,000/month based on switched access. The calculation here is 10,000 minutes x $0.03/min = $300.00, + $500.00 (dedicated access) = $800/month. |