Service Description Monthly Cost
Local ISP charge Fixed IP address to facilitate mail server $30.00
Bell Atlantic Commercial message unit charges and telephone line subscription.(Internet and outgoing sales calls slow-up) Also e-mail is only being checked periodically to save on message unit charges. Full time connectivity would be prohibitive. $295.00
  Total $325.00

In the above case it may be difficult to calculate the actual lost efficiency and cost of a slow Internet connection as it may be reflected in the overall telephone charges until the costs are re-evaluated following an improved connection. It should be noted here that even with this inefficient system there has been a cost savings whereby they have been e-mailing Insurance quotes to distant clients rather than faxing them and paying for the fax toll calls.


Our solution for this client includes greater bandwidth and more productivity by decreasing the waiting time for information from the web. The sales call time is greatly reduced by increasing Internet connection bandwidth. The savings are realized in man-hour productivity (OK woman-hours or people-hours if you prefer) and savings on the actual monthly cost of the connection. For this case study we installed an ISDN custoflex connection, which has a flat rate cost from the Telephone Company as well as a flat rate ISP charge. The costs and savings are estimated in the tables below:

Estimated One time Initial setup costs
Service Description Costs
Bell Atlantic One time setup costs for ISDN custoflex service Estimated one time cost $300.00
Termination equipment ISDN routers, Ascend Pipeline 50 ISDN routers (2 required) Estimated one time cost $1200.00
  Total one time cost $1500.00
Estimated Monthly Costs
Service Description Costs
Bell Atlantic 128KB dual channel ISDN custoflex. Using STAC compression on ISDN routers apparent bandwidth can be up to 512KB. This is a full time connection so all email is on line and immediate. Estimated monthly costs within same CO $99.00
ISP Charge for outgoing bandwidth Monthly ISP charge for bandwidth 128KB Estimated monthly charge for full time connection, necessary to support in house mail server $200.00
  Total $299.00

In this case at first glance the savings appear minimum, however the increase in productivity and real time connectivity to the Internet will actually improve overall business performance. For example if the speed increase can improve sales by 10% with an annual income of $100,000.00 then a net gain of $10,000 can be realized here. We are deliberately using modest figures here to avoid grandiose promises of profit performance improvement.

Return to Case Studies