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Cost and viabiliy of leasing a private line, converting to VoIP and transmitting messages

Can a corporation lease a private international line and convert this to VoIP and use this to transmit and receive messages at a cheaper cost?

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If a corporation has offices in multiple countries that are connected by a private network, that network can be used to transport VoIP traffic to achieve cost savings in the form of toll bypass calling (bypassing the traditional PSTN). Depending on the country, there may be laws against using toll bypass functionality, so local laws should be taken into account if a corporation is going to do this.

If a corporation does not have offices in other countries but makes a lot of calls to specific countries or regions, that corporation should look at getting service from an Internet Telephony Service Provider (ITSP). ITSPs today typically offer SIP based VoIP and have partnerships with many service providers to terminate calls to the PSTN in various regions or countries. Using an ITSP can significantly reduce the overall phone bill for the corporation.

This was first published in September 2004

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