SYDNEY, Australia – Bob Jane T-Mart, one of Australia’s largest independent tyre and battery retailers, is migrating its national communication network to IP telephony using Nortel* [NYSE/TSX: NT] solutions. The overhaul will see more than 30 company-owned stores and sites upgraded with Nortel IP telephony and digital handsets, with similar packages offered to the company’s 120-plus franchise stores around the country.
“Towards the end of last year we realised our existing phone system was becoming far too expensive and difficult to manage, so we started looking for a self-maintaining system with the aim of significantly cutting our call costs in the process,” said Edward Hore, IT manager, Bob Jane T-Mart.
“Across the group we’re spending more than $2.4 million annually on communication costs. With the move to IP telephony we’re aiming to save about $800,000 per year, which doesn’t factor in the productivity savings from simplified, centralised management and reduced equipment leasing fees.”
Nortel’s solution includes the installation of Business Communication Manager (BCM) 200 and 400 series IP PBXs at Bob Jane T-Mart company stores, depots and auxiliary sites, coupled with a combination of Nortel 2002, 2004 and 2007 IP handsets to the desk, supporting more than 2,000 staff nationwide.
“What attracted us to Nortel was the total solution they offered, which took into account our existing infrastructure and the upgraded data network we were building simultaneously. We wanted to eliminate call charges between our stores, and reduce long-distance call charges irrespective of the call location, and IP telephony was ultimately the best way to do that.
“Nortel’s solution is built for redundancy and allows us to quickly set up new stores and locations as our network grows. Should the data network go down for any reason the phones switch back to the PSTN network, which gives us that extra layer of service resiliency. Combined with ease of management and functionality, Nortel ran rings around anything its competitors could offer us.”
Bob Jane franchise stores will be offered a similar combination of Nortel BCM and IP handsets, but are not obligated to replace their existing phone systems.
“We expect 100 per cent take-up of IP telephony from our franchisees. Most of them lease their telephone systems, often at a premium price, while the Nortel solution can be owned outright after three years. We estimate ROI for a typical franchise store to be anywhere between four and six months, and 13 months at most, so financially it’s a no-brainer.”
“Nortel’s IP telephony solutions give companies like Bob Jane the flexibility they need when dealing with a large network of shopfronts or retail stores,” says Nick Avakian, general manager, Enterprise Networks, Australia and New Zealand, Nortel.
“The scalability of the BCM products means stores can be easily added or removed from the network, or operate autonomously. The benefit back to the business is far more than toll-bypass and capital or operational savings, but also a combination of ease-of-management, portability and functionality.”
Bob Jane is currently in the process of migrating its company stores to the new system, expected to be complete by mid-May. Rollout to franchisees will begin in the first week of June.
“It’s a massive undertaking in such a short space of time, and the only glitch we’ve had so far was losing the rubber feet off some of the IP handsets,” quips Hore. “To their credit Nortel has come up with a solution to fix this critical flaw in their design.”
About Nortel Nortel is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world’s most critical information. Our next-generation technologies, for both service providers and enterprises, span access and core networks, support multimedia and business-critical applications, and help eliminate today’s barriers to efficiency, speed and performance by simplifying networks and connecting people with information. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.