Archive for May, 2010

Hosted PBX Vs. TalkSwitch for Small Business

I recently had the opportunity to propose a phone system for a growing small business. The competition was a local Hosted PBX company. We will call them “HOSTED” for this blog post. I want to avoid the legal fees etc.

Here is the email to the customer explaining why TalkSwitch PBX VoIP is better. Keep in mind… TalkSwitch can do unlimited long distance with some simple SIP Trunk lines. TalkSwitch has multiple providers pre-configured for their units.


Aloha Customer

What “HOSTED” is selling to you is a Hosted PBX solution. They have a phone system in their data center that houses multiple companies. They buy their telephone lines in bulk from the carrier and sell them to you per phone. You will be paying $560 a month just for the phones on your desk. Nice that they make you pay for their phones just to make their service work! Additionally you will be paying $500 for the Digital circuit from their office to yours (T1). Usually they will provide internet services as well on the T1, but you will be very disappointed with the speed of the T1. The current  connection you have downloads at 5mbit per second when a T1 can only download at 1.5mbit.


We are not offering a monthly service at all. With us, you buy the equipment and you own the equipment. You will use the same reliable Hawaiian Tel phone lines that you already have. We will just be increasing the amount of lines and changing the services to make them cheaper. Another difference is our phones will communicate through your network to the phone system in your office not over the internet. Unless you would like to put a phone home, or get SIP trunks for some unlimited Long Distance.


I got a quote from Hawaiian Telcom to increase your telephone lines from * – 6. The monthly charge for 6 telephone lines is only $211/month. I know you are paying roughly $180/month for your * telephone lines. So your increase to * more lines will be about $40. You already have reliable internet so we figured we wouldn’t mess with it.  We will however hook up all your computers to the new network at no additional charge. We are a full service IT company, so anything you need we can do! (Mac or PC.)


With our system it’s very easy to use, easy to program and comes with a 3 Year Warranty on the equipment. No contracts, no terms, no maintenance fees and no training fees. etc. Additionally with our remote support we can manage your phone system remotely.


One thing surprised me with the quote from “HOSTED” is they didn’t mention the fact that you have no physical network cabling in place for a lot of the telephones. Did their installation fee include wiring your office? I know mine did!


With this system, when you move or grow we can take the system anywhere and grow it accordingly.


Here is a comparison price wise between the two systems.




$7,966.29 One time fee including wiring.

$2,400.00 One time Fee No Wiring (Yet)

$211/month for 6 phone lines


3 Years using the system with no contract $7,966.29

3 Years Term $34,920.00

TOTAL IN 3 YEARS $15,562.29

TOTAL IN 3 YEARS $37,320.00

Total Savings in 3 years with the TalkSwitch $21,757.71

If you would like I can give you some references to some VERY happy TalkSwitch customers. Additionally if you would like to see the unit I’m proposing I invite you to our office to see it in use. If you have any questions please don’t hesitate to give me a call!


So, is everybody ready for hosted PBX? I know I’m not!


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