Yesterday, the announcement that Nortel Networks Corp., North America’s biggest telephone equipment maker, filed for bankruptcy protection sent ripples through the telecom world.  It is a sign of the times we live in that even large, well-known and well-respected companies can be so affected by troubles in the economy.

But not all is a sea of chaos.  There are companies that have managed to be stable, even thrive, in this atmosphere, and I’d like to highlight one of them, our phone manufacturer of choice: ESI (Estech Systems, Inc.).

It’s true that ESI is less well-known than some of the other players in the market. But they have been quietly innovating for decades, and have some of the best products on the market.

And ESI is debt-free.  Quite an achievement for a company in the telecom industry, or indeed, any industry.  ESI is a U.S.-based company doing $50 million+ in revenue per year, and growing.  They have consistently grown in sales year over year, and have been profitable every year of their existence.  How many corporations can say that about themselves?

ESI products are used by such companies as:

• Coca-Cola
• Hertz
• Chase Bank
• Holiday Inn
• Century 21 Realtors
• Blockbuster Video
• Best Buy
• Office Depot
• Hampton Inn
• Advantage Rent-a-Car
• Farm Bureau Insurance
• And more

There’s a reason that practically everyone that comes to know ESI’s products, loves them.  There’s a special atmosphere at ESI that fosters cooperation and innovation.  And, because ESI is a privately-owned company and is not beholden to shareholders, venture capitalists, or other outside investors, it can (and does) make decisions based on the best long-term strategy, rather than what looks good to investors in the short term.  And it shows in their products.

I have been following the progress of ESI for a number of years, and it seems they are beginning to really come into their own.  I have no doubt that ESI is poised to capture significant market share in the years to come.  At any rate, they are here to stay–and we are proud to have them as our manufacturer of choice.

A short video about ESI.

With the economy in a shaky state, many businesses are clamping down on purchases to ensure that they are able to weather tough times.  But there are some good reasons to forge ahead with a new phone system, and to buy sooner rather than later:

(1) Tax benefits. This year, Congress passed the Economic Stimulus Act of 2008 to help individuals and businesses and to spur economic growth.  You’ll want to consult your tax professional for all the details, or check out the IRS website here, but in brief the following benefits are among those in the Act:

• increases the limit up to which a business can expense property purchased and placed in service during its 2008 tax year;
• provides an additional 50 percent special depreciation allowance for property acquired and placed in service during calendar year 2008.

To take advantage of this, the equipment you purchase:

• must be new equipment;
• must have been acquired in calendar year 2008; and
• must have been installed in calendar year 2008.

(2) Special deals. Many phone equipment manufacturers and resellers are now offering very good deals on the purchase and installation of new phone systems and voicemail in an effort to get your business.  In general, you can expect lowered prices and added value to work in your favor.  (Check out our current specials for phone systems in Phoenix or surrounding areas.)

(3) Opportunity Costs. Phone system technology has improved significantly in the last few years, and now provides efficiency gains that you may not be enjoying on your current system.  Increased ease-of-use, tightly integrated and more responsive and powerful voicemail, flexible auto-attendant, and other productivity-enhancing features such as Unified Messaging, phone control via your PC, and Voice Over IP are all things that businesses with new systems can enjoy and use to their advantage.  In economics, opportunity costs are the value of an alternative foregone as the result of making a decision.  In this case, you should evaluate the cost to your business of staying with your current phone system and foregoing increased efficiency, competitiveness, and client satisfaction.

(4) Doing your part. While placing tight restrictions on spending is becoming more common for many businesses, experts agree that this actually exacerbates the country’s economic woes.  Making an important investment in your company’s future not only strengthens it in the long run, but makes your company part of the country’s economic solution.  And, because both Telco Ltd. and ESI (our phone system manufacturer of choice) are U.S.-owned and operated companies, you can feel good knowing that the majority of your dollars will continue circulating in our economy long after you have spent them.