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Tunstall Response

Tunstall Response
 
Tunstall Response

PBX Business Investment & Return

In order to offer services to residents, the facility would need to purchase a larger telephone switch and bulk lines from the common carrier, referred to as either a PRI or Megalink. A typical configuration will provide 23 lines to the facility. The cost of the PRI for a facility with 94 residents and 6 administrative staff is estimated at $800.00 per month, plus an installation charge of approximately $1,000.00. However, with the PRI or Megalink, the 6 telephone lines currently used by your administration staff would not be necessary, as all administrative calls would go through the PRI. Therefore the additional cost of adding the PBX services would be only $500.00 per month, since each business telephone line costs approximately $45.00 per month.

The following business case is an example of the potential opportunity for cost savings and additional revenue for a facility of 94 residents and 6 administrative telephones over 66 months (Additional revenue from Internet access is not included in this model).

Investment Investment Total Capital Investment – PBX Switch
Less Existing Budget for Telephone Switch
NET Capital Investment PBX
53,000.00
(18,000.00)
35,000.00
  Sample - 66 Month Fair Market Value Lease 700.00
  Sample - Current costs for network services PRI & 94 Resident Unique Telephone Numbers (D.I.D.s) 1,400.00
  Sample - Costs of Monthly Long Distance @ .07 cents per minute 800.00
     
  Administration Charges - Delphi Solutions to bill and collect from the residents on behalf of the facility 400.00
  Total Monthly Costs 3,300.00
     
Revenue Billing Residents local Dial Tone @ $ 30.00 per month X 94 Residents 3,000.00
  Billing Residents LD @ 10 cents per min per month X 94 Residents 1,200.00
  Total Monthly Revenue with new PBX & ERS Solution 4,200.00
     
  Total Monthly Revenue 4,200.00
     
  Net Return on Capital Invested – Monthly 900.00
  Total Return 1st 66 months 59,400.00
  Total Return Annually after 66 months 19,200.00
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