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VoIP Cuts Telecom Costs for California Insurance Department

Insuring Good Communications

June 8, 2008 By Chandler Harris

When California Gov. Arnold Schwarzenegger released the 2005 California Performance Review report, which recommended a state agency study the feasibility of voice over Internet protocol (VoIP) phone systems for state agencies, CIO Roy Simpson of the California Department of Insurance (CDI), took notice.

The CDI sorely needed to replace the private branch exchange (PBX) phone system the agency installed in 1989, and Simpson wanted a technology update that would enhance productivity, streamline communications and provide better access for constituents.

"We looked at the governor's report and said, 'Let's be that pilot, and let's provide information back to the Governor's Office and other interested parties through a work group, and share that information,'" Simpson said.
Simpson was prepared for a pilot program since 2004, when the CDI hired Delegata, a consulting firm, to perform a VoIP network-readiness assessment and evaluate the modernization needs of the CDI's call centers in Los Angeles and Sacramento.

Under Simpson's leadership, the CDI was selected as the test agency and implemented its Telecommunications Infrastructure Replacement Project (TIRP). The project upgraded the CDI's network infrastructure and replaced its existing telecommunications systems with a VoIP phone system. The CDI regulates the largest insurance market in the United States, and the agency's telephone system supports more than 1,300 users across 14 offices statewide.

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VOIP to Slow, Says Report

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