The economic drivers for voice and data integration using voice over IP (VoIP) are catching the attention of CFOs, CIOs and others involved on the cost side of any business. This white paper will show the cost justification for voice and data network integration and how much increase in bandwidth will be necessary once voice traffic is added to the traditional data traffic being carried across a wide area network (WAN). | Global Knowledge Expert Reference Series ofWhite Papers VoIP How to Plan for the Bandwidth and Calculate the Cost Savings 1-800-COURSES VoIP How to Plan for the Bandwidth and Calculate the Cost Savings Bill Treneer Global Knowledge Instructor CCSI SME Cisco Multicasting Introduction The economic drivers for voice and data integration using voice over IP VoIP are catching the attention of CFOs CIOs and others involved on the cost side of any business. This white paper will show the cost justification for voice and data network integration and how much increase in bandwidth will be necessary once voice traffic is added to the traditional data traffic being carried across a wide area network WAN . Before VoIP a network for an institution had two distinct infrastructures one for voice and one for data Copyright 2005 Global Knowledge Network Inc. All rights reserved. 2 With VoIP a network for an institution has just one integrated infrastructure At first glance it seems that without the PSTN infrastructure the cost justifications for VoIP are simple. While PSTN usage can be reduced considerably it cannot be eliminated totally since the PSTN must handle call overflow and any calls not destined to the remote sites. Also the extra voice over IP traffic may cause an increase in WAN bandwidth. The cost for this extra capacity will have to be subtracted from the savings achieved from reduced PSTN usage. The step-by-step cost justification example below can be used as a model for other network integration projects. Step 1 Obtain a busy hour and an overall traffic study from the voice service provider. Most PBXs provide similar statistics. Use the study to determine the number of hours of voice conversation or Erlangs of voice traffic the new integrated voice data network is to handle during the busiest hour of the average day of the busiest month. Sample Study Company XYZ has a Frame-Relay connection in San Jose that is a T-1 physical connection with .