COMMUNICATIONS - 31.03.2010

Saving with GSM gateways?

In some businesses as much as 50% to 90% of corporate call expenditure is on mobile phones. So how can installing a GSM gateway enable your business to make savings on calls to mobiles?

Mobile v landline

As a result of the explosive growth in the use of mobile communications, huge volumes of business calls are now made to mobile phones as opposed to fixed lines. For companies offering sales or services, call centres, and those whose staff work away from the office, the artificially high rates that are charged for landline to mobile calls mean that communication costs are a major drain on outgoings. This is where a GSM gateway comes in.

What is a GSM gateway?

A GSM gateway, also known as a Premicell, is a hardware device about the size of a palmtop which contains one or more SIM cards and allows a landline-based call to be routed through a mobile phone in the most cost effective way. By connecting a GSM gateway to your telephone system, and routing the outbound call to the network that your mobile phones are using, all calls to your group of mobiles are free and the cost of calls to other mobile numbers comes out of your inclusive minutes.

How is the call routed?

The user dials a mobile number, e.g. 0777 123456. The system sees the number 0777 and identifies it as being a code belonging to your mobile user group. The system directs this call via the Premicell(s) instead of the landline. The call goes over the network without the user being aware of the routing. If the Premicell(s) are busy, the call will then go out via the normal landline route.

Installation costs?

The Premicell unit can cost anything from around £100 up to about £400. All it requires is a SIM card. Your landline provider must install the unit and the cost of connection is dependent on the supplier. Typically, if your business is making more than 15 minutes of calls every weekday to mobile numbers, then the cost of a Premicell and line rental will be paid back in only a few months. The selection of the best tariff is the key to any successful GSM gateway installation. Most businesses use calling plans that give a bundle of inclusive minutes to call any UK mobile phone network. This typically means that calls to mobiles can be as little as 4p per minute. However, don’t be afraid to talk to other providers and tell them what their competitors are offering. Their sales personnel can and will make adjustments in order to win the contract.

Other benefits

In addition to reducing mobile call costs, GSM gateways offer other benefits, such as international calls to 28 countries at no additional cost and free text messages. You decide when and how SIM cards are used. You can automatically turn off SIMs which have used all of their inclusive minutes.

What you’ll save

Call cost savings vary depending on your service provider and the number of minutes and free text messages included in your contract. By routing your calls directly to the mobile phone network, calls will either be free, or reduced to the minimum cost. Typical savings are:

Mins per month to mobiles Cost of landline to mobiles Cost using GSM gateway Monthly saving Annual saving
6,220 10.8p 5.85p £308 £1,889
10,350 9.8p 5.8p £414 £4,968
18,860 9.5p 5.2p £811 £9,732

The potential cost savings with a GSM gateway are significant. If your business has a monthly landline-to-mobile spend in excess of £1,000, you could cut your costs by between 40% and 60%.

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