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The intelligence embedded in the virtual network at the carriers’ serving offices also gives users more flexibility in selecting equipment. PBXs from various vendors connect to a VPN service provider’s POP through various local access arrangements. The private network exists as a separate entity on the VPN service provider’s backbone network, with the service provider assuming responsibility for translating digits from a customer-specific numbering plan to the service provider’s own numbering plan, and vice versa. All routing and any failures are transparent to the customer and, consequently, to each individual user on the network.

Billing Options

One of the most attractive aspects of virtual private network services is customized billing. Typically, users select from among the following billing options:

  The main account accrues all discounts under the program. In some cases, even the use of wireless voice and data messaging services qualifies for the volume discount.
  Discounts are assigned to each location according to its prorated share of traffic.
  A portion of the discounts is assigned to each location based on its prorated share of traffic, with a specified percentage assigned to the headquarters location.
  Usage and access rates are billed to each location, or subsidiaries are billed separately from main accounts.
  Billing information and customized reports are accessed at customer premises terminals or provided by the carrier on diskette, microfiche, magnetic tape, tape cassette, or CD-rom as well as in paper form.
  A name substitution feature allows authorization codes, billing groups, telephone numbers, master account numbers, dialed numbers, originating numbers, and credit card numbers to be substituted with the names of individuals, resulting in a virtually numberless bill for internal distribution. This prevents sensitive information from falling into inappropriate hands.

AT&T, MCI, and Sprint all offer rebilling capabilities that use a percentage or flat-rate formula to mark up or discount internal telephone bills. Billing information is even summarized in graphical reports, such as bar and pie charts.

Carrier-provided software is available that allows users to work with call detail and billing information to generate reports in a variety of formats. Some software even illustrates calling patterns with maps.

Electronic invoicing also is available. AT&T, for example, provides this capability by linking its SDN Billing Advantage with EDIView, its EDI offering.

NETWORK MANAGEMENT

Each of the major VPN service providers offers various management and reporting capabilities through a network management database that enables users to perform numerous tasks without carrier involvement.

The network management database contains information about the network configuration, usage, equipment inventory, and call restrictions. On gaining access to the database, the telecommunications manager sets up, changes, and deletes authorization codes and approves the use of capabilities such as international dialing by caller, workgroup, or department. The manager also redirects calls from one VPN site to another to allow, for example, calls to an East Coast sales office to be answered by the West Coast sales office after the East Coast office closes for the day. Once the manager is satisfied with the changes, they are uploaded to the carrier’s network database and take effect within minutes.

Telecommunications managers access call detail and network usage summaries, which are used to identify network traffic trends and assess network performance. In addition to being able to download traffic statistics about dedicated VPN trunk groups, users receive five-, 10-, and 15-minute trunk group usage statistics an hour after they occur; these statistics are then used to monitor network performance and carry out traffic engineering tasks. Usage is broken down and summarized in a variety of ways — such as by location, type of service, and time of day. This information is used to spot exceptional traffic patterns that may indicate either abuse or the need for service reconfiguration.

Through a network management station, the carrier provides network alarms and traffic status alerts for VPN locations using dedicated access facilities. These alarms indicate potential service outages (e.g., conditions that impair traffic and could lead to service disruption). Alert messages are routed to customers in accordance with preprogrammed priority levels, ensuring that critical faults are reviewed first. The system furnishes the customer with data on the specific type of alarm, direction, location, and priority level, along with details about the cause of the alarm (e.g., signal loss, upstream failed signal, or frame slippage). The availability of such detail permits customers to isolate faults immediately.

In addition, telecommunications managers can request access-line status information and schedule transmission tests with the carrier. The network management database describes common network problems in detail and offers specific advice on how to resolve them. The manager submits service orders and trouble reports to the carrier electronically through the management station. Telecommunications managers can also test network designs and add new corporate locations to the VPN.

ACCESS ARRANGEMENTS

A variety of access arrangements available from the VPN service providers are targeted for specific levels of traffic, including a single-voice frequency channel, 24-voice channels through a DS1 link, and 44-voice channels through a T1 link equipped with bit-compression multiplexers, in addition to a capability that splits a DS1 link into its component DS0s at the VPN serving office for connection to off-net services. The same DS1 link is used for a variety of applications, from 800 service to videoconferencing, thereby reducing access costs. Depending on the carrier, there may be optional cellular and messaging links to the VPN as well. Even phone card users can dial into the VPN, with specific calling privileges defined for each card. All of a company’s usage can be tied into a single invoicing structure, regardless of access method.


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