Pacific Bell input changes calculation

In the January Law Office Management Assistance (LOMA) column which discussed phone systems including Centrex, Pacific Bell informed the writer of an error. The columnist, Dan Bodner, incorrectly assumed that set-up costs include a one-time $200 fee per line for the first 10 lines. Instead, the fee is applied only once for the first 10 lines, after which there is a $20 per line set-up fee. Therefore, the column recommended Centrex as cost effective for only four or five staff members.

However, with Pacific Bell's input, Bodner now sees Centrex as being cost effective for up to seven staff members. Beyond that size, one should also consider purchasing a system. The calculation assumes a three-year period. Centrex becomes increasingly less cost-effective over longer periods due to continuous monthly payments, Bodner believes.