IT News

Advanced IP Carrier Report: Tandem Transit Offers Cost-Saving, IP-Based Alternative

 By Marisa Torrieri, TMCnet Editor

Even with the economy improving, voice carriers aren’t off the hook yet when it comes to saving money -- especially as newer, more data-intensive applications gain popularity among end users.

 But local exchange carriers who depend upon the RBOCs like Verizon (News - Alert) or AT&T to do their tandem switching might not be aware that transitioning to an IP alternative – a third party transit manager – could save hundreds of thousands of dollars per day in costs.

 “When we introduce calls through an IP alternative, we immediately reduce dependency on the TDM networks of the RBOCs,” Agostino Guglietta, VP of business development for Tandem Transit (News - Alert), told TMCnet. “By doing this, and introducing these IP alternatives, carriers not only reduce their dependency on the RBOC but their cost of local transit among other local exchange carriers”

 Tandem Transit, LLC is one of a few emerging carrier service providers that oversee national transit services for competitive voice service providers. Carriers want to take advantage of more efficient call routing to other competitive carriers while improving QOS and Reducing dependency on the RBOC. Tandem Transit is a provider which offers an alternative to RBOCs, who typically do all transit services for competitors within their footprint.

 “For example CLECs peering with Tandem Transit can reduce their dependency on an IXC and in turn, reduce their interstate traffic cost as well,” Guglietta told TMCnet.

 Though savings vary from carrier to carrier, Guglietta offered an example of how much a CLEC would save: “For instance, if the CLEC pays .0045 cents per minute through an RBOC, when that CLEC peers with Tandem Transit, they reduce their RBOC per minute rate by about 35 percent.”

 “Traditionally in the RBOC TDM network, the tariff rates are not something that can be avoided by the CLEC,” Guglietta said. “There are additional charges, such as per-call fees, in addition to per-minute fees, that must be paid. With Tandem Transit, there is only a per-minute usage fee.”