Are there alternatives to Telkom voice for SME's?

Recently, there has been a lot of noise in the press that Telkom are decommissioning their fixed telephone network, ie, the copper network (https://techcentral.co.za/fixed-line-bloodbath-at-telkom/93957/). This is logical. It is an expensive network to maintain, especial when it gets damaged or stolen - copper is a sought-after commodity. The reality is that they cannot afford to keep their fixed copper network alive.

Where does this leave you as a customer, business or entrepreneur when you need a geographical number (011, 021, 031, etc) to run a business?

The solution being touted by Telkom and many other telecommunication companies in South Africa is VOIP (Voice on IP) or VoLTE (Voice over LTE).

For a large business, you should be ok. You have an IT department, you have big IT budgets, you buy IT equipment, and you sign an agreement with a fibre provider, and you sign-up for VOIP. You port your existing geographic numbers. You integrate voice calls with your data infrastructure. Your business carries on as per normal.

But for businesses that don’t have IT budgets, or even an IT guy, you can’t afford the expensive IT equipment, or afford the leased line to carry VOIP, what can you do? Especially if you are a sole proprietor, SME or even a medium-sized business with Regional branches! Go VOIP as well? Maybe go VoLTE as this is cheaper?

Before you decide, you need to understand the pitfalls of going with a VOIP, or especially a VoLTE solution. Small businesses cannot afford to be tied up into lengthy contracts that cost an arm or a leg to maintain, or even worse, don’t work as promised.

Through my experience in the industry, I would like to highlight some of the issues that consumers and businesses should be aware of before going down the VOIP / VoLTE route.

Voice quality

Simply put, VoIP is completely reliant on the quality, stability and consistency of the underlying internet connection it runs over. Businesses need to consider this carefully when planning for VoIP, and not overlook the current and future impact of other network devices inevitably involved, such as firewalls, routers and network configurations. Taking shortcuts or inadequate planning in this space can result in calls with jitter, delays, echo and call cut-offs.

This could shape up to be a massive problem for a small business. Most companies rely on calls to find and keep customers - and a call that cuts out or where it is difficult to hear the other party will impact customer relationships and business image.

With VoLTE, which is a best-effort rather than a guaranteed-rate data solution, call quality is also dependent on several additional factors, including data latency, the overall network quality, and congestion. In fact, even the weather and topographic conditions can impact negatively on data quality.

Security

It’s a simple fact that if something is connected to the internet, it is at risk of attack. VoIP fraud is at an all-time high and security breaches can result in toll fraud (fraudulent calls) and even breaches of customer data. 

Modern internet fraud syndicates operate 24/7, scanning the internet for open or unsecured IP ports. A VoIP or VoLTE port that is not secured WILL be attacked, and then hackers can make international calls through a foreign call service provider but on the client’s account, running up astronomical phone bills virtually overnight.

Stable and consistent internet connectivity

VoIP can work extremely well, but generally, an expensive, dedicated data link is needed that has a reliable, high-speed connection. Unfortunately, this luxury is not a reality for most small businesses that run on small IT budgets and need to manage their costs very closely.

Furthermore, customers who are not located in main metropolitans or those still using legacy technologies like ADSL, bonded ADSL, Wi-Fi, and VoLTE need to remember that these technologies were not designed to carry voice – and a common issue found on these networks is that they can start off well, but over time they struggle with growing latency. In other words, the more people connect, the less throughput becomes available for everyone, and acceptable voice quality quickly becomes unacceptable.

Technological complexity

VoIP is a highly complex technology – it takes specialised equipment and configuration to get it functioning properly. This includes but is not limited to Quality of Service (QoS), firewalls, IP addresses, and as mentioned above, a stable internet connection.

Often, users in the small to medium enterprise market lack access to the resources needed to make VoIP run smoothly, resulting in a complicated and frustrating experience. Or they manage to get it well balanced and working acceptably, but the minute something more is added to the network, the whole voice service degrades due to the new network configuration.

Poor installation

When a VoIP solution is poorly installed, this will result in serious headaches for small businesses. SMEs often believe they can magnify the savings afforded by VoIP technology by using an underqualified person to install their office solutions. However, this can lead to more complexities and expenses in the long run, even to the extent of a poorly installed system needing to be rebooted every day!

Too many VoIP providers, due to low barriers to entry

There are literally hundreds of VoIP and VoLTE providers and resellers currently in South Africa that have various options in terms of pricing, features, and how their service is delivered. This is because it is possible to start a VoIP business or reseller with little to no capital or expertise! Correctly choosing a reliable service provider can, therefore, be a difficult exercise.

Here are some relevant questions that should be asked before going this route:

1.      Who will own the VoIP hardware installed?

2.      Is the technology offering the “best of bread”?

3.      What costs are involved, including installations costs, upfront costs for major hardware purchases, and call rates for voice service and data costs?

4.      What are the customization needs, both initially and overtime?

5.      Is your VOIP / VoLTE provider reputable and has the financial backing to invest in support?

6.      Does your VOIP / VoLTE provider have a dedicated call centre or support structure to service customers, especially after hours?

7.      What is their backstop solution in the event of fraud?

Fooled by the price of VOIP

The cost of a VOIP or a VoLTE call is relatively cheap, especially when compared to landline and mobile cellular rates. However, businesses need to factor in other costs as well, for example, equipment costs, fibre line costs, and data costs. Add these costs up, and you will soon see the true costs of making an IP call.

In closing

Before you commit to a VOIP or VoLTE solution, it is important to do research.

First of all, VOIP / VoLTE is not the only alternative to Telkom in the market. Huge Telecom offers a last-mile fixed-line voice solution using GSM. Their solution is called FST.

FST allows a business to port its geographic landline number over the GSM network. Business’ can make concurrent inbound and outbound calls to other businesses using GSM mobile networks. It has the same features as “traditional” copper landlines, and like landlines, it can be connected directly into a PBX.

GSM has also been around in South Africa for over 25years. It is stable, reliable, secure and cost-effective.

FST is ideal for most small businesses that need quick, easy access to reliable voice communication services. FST, using GSM voice remains popular with the SME market because it offers a reliable, predictable service without any of the above-mentioned issues with VOIP / VoLTE.

Once you have ported your geographic number, it is not an easy exercise to reverse the port.

Be alert!