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Volume 2 Issue 7July/August 1998

Charging for Videoconferencing

Charles Mawson
Telecommunications Analyst, CCCCO

Several colleges have contacted the Chancellor’s Office asking how to charge for the rental of their videoconference equipment. The State of California, Department of General Services charges $150 per hour plus line charges for their system. According to other sources, some companies charge as much as $250 per hour plus line charges.

The following are factors to consider when calculating a billing rate for videoconferencing services (Some of the following figures are approximate, and should be determined for your site.):

Initial Investment Costs:
ISDN line installation :($220/per line) x 3 lines= $660
voice phone : installation cost may vary
modem phone : installation cost may vary
room wiring/remodeling/lighting : $5,000 - $50,000
(See www.classrooms.com for more information.)
PictureTel Venue 2000 : $25,000

Ongoing Costs:
ISDN line charges : ($39.00/mo) X 3 lines = $120.00/mo
voice phone : monthly charges
modem phone : monthly charges
long distance charges: $0.14/min/line (MCI) 6 lines x $0.14 = ($0.84/min) x 60 min = $50.40/hr
room maintenance : (lighting, heat, air)

Total Cost per hour to client (based on above figures):
ISDN installation = $ 0.32
ISDN line monthly = $ 0.70
long distance = $ 50.40
room rental = $ 3.50
technician = $ 30.00
Venue replacement (2 yr model) = $ 6.00

Using the above figures, a minimum charge of $50.00 per hour is necessary just to cover line charges; a charge of between $75.00 & $100.00 per hour is neccessary to be reimbursed for all costs to the college.

Contact Charles Mawson at 916-327-5902 or cmawson@cc1.cccco.edu for more information, or to discuss a more exact model for cost reimbursement.