Authors: Bal Athwal, Fotios C. Harmantzis, Venkata Praveen Tanguturi
Addresses: Level (3) Communications LLC, 100 Williams Street, 19th floor, New York, New York 10038, USA. ' Stevens Institute of Technology, School of Technology Management, Telecommunications Management, Castle Point on the Hudson, Hoboken NJ 07030, USA. ' Stevens Institute of Technology, School of Technology Management, Telecommunications Management, Castle Point on the Hudson, Hoboken NJ 07030, USA
Abstract: The objective of this paper is to apply real options techniques to justify the replacements of a Centrex and PBX voice solution for a new Hosted VoIP solution. Qualitative and quantitative (real options) approaches are used to compare the Centrex and PBX based solution currently deployed by the traditional voice carriers, with the one currently being developed and deployed by the VoIP providers. Potential savings in hardware cost, provisioning, billing, maintenance and service with new feature sets created as a result of converging voice on a data platform using the Internet Protocol (IP) are investigated. Based on the technological merits and the real options analysis, it is seen that a Hosted VoIP solution is the most effective solution for a company engaged in acquiring a new telecommunications solution.
Keywords: Centrex; centric systems; hosted VoIP; investment analysis; IP PBX; PBX; TDM-PBX; valuations; voice carriers; internet protocol; voice over IP; telecommunications; data platforms; real options.
International Journal of Technology Management, 2010 Vol.49 No.1/2/3, pp.250 - 271
Published online: 30 Nov 2009 *Full-text access for editors Access for subscribers Purchase this article Comment on this article