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How the "End of Life" for Nortel is Going to Affect Your Telecom Expense

May 10th, 2013 by admin

In June 2009, Nortel announced it would cease operations. Recently, Avaya announced the “End of Life” for enterprise communications equipment it purchased after Nortel went bankrupt. The repercussions may be severe on telecom expenses. Product offerings have reflected updates in technology and features, so the goal is always to find the best equipment for the lowest price. The evolution from analog forward to technologies such as T1 and SIP is the perfect example of how enterprises have become dependent on both the technology and its providers.

The Telecom Evolution

Enterprises originally had only analog systems to deal with. Based on the same copper phone lines as residential homes, these relied on mechanical switchers and wiring that went directly from a central office to the corporate infrastructure. Key telephone systems were commonplace, while manufacturers tried to simplify their complexity until the 1980s. Subsequently, integrated circuits found their way into phone systems, making them less expensive and paving the way for the Private Branch Exchange (PBX). Functions such as speed dialing, automatic call accounting, caller ID, and answering machine capabilities then became possible, along with lower overall costs.

Analog Centrex is a PBX-like phone service dating back to the 1960s. The service was run by equipment managed at the exchange site run by the phone company, with analog phone lines serving as the delivery method. Soon, switchboards were replaced by control consoles and newer types of switches were invented. In the late ‘60s, Bell Labs took over Centrex development while similar services were soon offered. The Integrated Business Network from Nortel, then known as Northern Electric, was one of those. While still in existence, Centrex lines have steadily declined in use; there were fewer than 11 million by 2008.

While T1 lines became popular for business later on, AT&T introduced them as part of a digital T-carrier system in the 1960s. They are ideal for digital communications in businesses with high call volumes, such as enterprises, government agencies, Internet access providers, or universities. A T1 line is often mentioned simultaneously with high-speed Internet. As part of the analog-to-digital evolution, the next step became the Primary Rate Interface (PRI), which supports 24 digital signal paths. Businesses often use PRI services to run their VoIP systems. These, in turn, have promoted the Internet as the primary medium for telecommunications. This is where Session Initiation Protocol (SIP) has come into play, allowing communication sessions to be managed over the Internet, cellular networks, or private data networks within the enterprise.

Impacts on cost

Using a PRI circuit and its associated keycode can, in fact, reduce costs. Incorporating one into your existing network eliminates charges from using traditional lines and delivers long distance service digitally. Plain Old Telephone Service (POTS) analog lines vary in cost, but the number of them needed, combined with fees and taxes, leads to exorbitant expenses. Depending on your company’s location, there may be nothing you can do to bring down the cost. Installing a new system may be the only way to lower the ultimate operating costs.

Why Continuing with Nortel Equipment Is Not Your Best Option

You might still be tempted to use Nortel products, despite service being discontinued. Like all equipment, there are bound to be issues eventually. If a phone system crashes, there will be no way to replace the keycode that must be entered to get the system up and running again. With the “End of Life” of Nortel products, the company’s original keycode retrieval system will no longer exist. It is as if Toyota stopped producing car parts. In this case, you would not have anything to repair a car with if it broke down. The same goes for your enterprise telephone system.

Take Preventative Measures

To avoid downtime associated with a broken down telephone system with nothing to fix it with, now is the time to act. It is important, therefore, to either upgrade the system or replace it entirely. This will eliminate the risks of lengthy downtime and disruptions. Leaders in the enterprise telecommunications market currently offer cutting-edge products, even cloud-based telephone infrastructure, which save on cost and increase efficiency.

Some current systems do not rely on a keycode. You will not have to worry about misplacing it, nor require a new one should something go awry. Any means to simplify things and avoid disruptions in service are good for the organization, especially in a 24/7 world. The authorization process is much simpler, and can be integrated with your authentication system used to access cloud resources, for example.

Business Phones Direct Can Help

With experience, knowledge, and expertise, the team at Business Phones Direct listens to your current needs. As a leading vendor, we understand the best options for each individual customer. Each choice on the market has its benefits depending on the needs of your organization. Company size, call volume, and technical expertise all play into the right choice. The company will walk you through these selections and provide a price quote so your IT team, managers, accounting staff, and executives can plan accordingly.

The most valuable advantage is that you get to purchase the right equipment up front. Working with expertise in the telecommunications field always saves trouble down the line. You can also save your company a lot of money. For enterprises which rely on the latest technologies, the best available service can be fully utilized. Make sure your teams understand the value of consulting with an industry leader. Many organizations have fully invested in new phone systems in the past, installing them while basically flying blind. This inevitably leads to significant downtime and lost business. Making the right decisions means following expert advice and potentially having only daily tasks, product development, and sales and marketing initiatives to worry about.

The “End of Life” for Nortel does not mean the end for your business. In fact, if you play your cards right, the chance to save on telecom costs is there. You just have to look in the right place.

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