ISDN cost saving potential

A cost analysis that compares the equipment required to provide telephone service via two local business lines with an integrated services digital network (ISDN) service offering is provided. Also, the same equipment cost comparison is made for two private line services: a 56-kb/s digital data service circuit and a two-wire voice private line circuit. The analysis views the cost from a capital requirement perspective as well as from a customer´s monthly expense perspective. The author concludes that in the near term, little economic benefit can be gained by implementing ISDN for residential customers with strictly POTS (plain old telephone service) requirements. Longer term cost reductions in ISDN customer premise equipment, with all other factors held constant, are expected to produce a cost incentive for the customer to select ISDN for a second POTS line. Also, very sizable cost savings can be realized by implementing ISDN in business and special service applications