Dan Aylward
Managing Consultant
Abilita Telecom Consultants
daylward@abilita.com

So many of us are looking for a telecom company that we can trust for the best rates and best service (local, long distance, Internet and cellular service). We want a company whose service always works and one that won’t nickel and dime us for everything we need. Do you know of such a company? Do you want help finding one? If so, read on!

Ok, here’s the bad news: It doesn’t exist! Oh, there are good companies out there … and there are bad ones, too. What I’m going to give you here is not a recipe for “Instant Shake and Bake Telecom.” I will give you some ideas for what you want to look for and what you want to avoid in a telecom company.

If I had a nickel for every bad experience I’ve heard about regarding the telecom companies, I’d be…well not writing this article, I’d be rich! And I’ll bet you have few stories, too. “The service stopped all of the sudden”; “the bill was out of control”; “we have a new Sales Rep again!”; “the Internet connection is down again”; “I got nailed for roaming on my cell phone”. The stories go on and on.

Did you know…?

• Companies are spending 42% more then they need to? (Star Tribune)
• Telecom expenses are now a top 5 expense for business up from top 10 a decade ago? (USA Today)
• Telecom companies are selling, merging and liquidating at such a dizzying rate that even experts have a hard time keeping up?

Sadly, the root of the problem is misunderstanding of telecom bills and a lack of understanding and concern from the telecom sales reps. I don’t entirely blame them, many are overworked and understaffed. They have sales quotas to meet, and if you’re not calling about upgrading your service, well you might not get your call returned.

Ok, so I already told you that chances are good your company is overspending on its telecom bills. What about your staffs’ time spent on this? For example: you have Margaret in accounting. Her annual salary is $50,000, with benefits, and other expenses brings it to about $65,000. Margaret spends sixteen hours per month (conservatively) reviewing the telecom bills. She checks for billing errors, requesting refunds (yes it happens regularly), compares billing rates to contract rates, shops for competitive service, educates herself on latest technologies, and does her best to eliminate unused services and features.

The cost of her time amounts to almost $10,000 per year! Margaret does the best she can with limited time and resources. Did she save the company $10,000 in rate reduction, billing recovery and new technology? If not, is it worth it to let it go and not check up on the telecom providers?

Well, here are four proven steps you can take to ensure you have the best telecom company and cut out wasted time and money:

1. Determine if you want a Tier I, II, or III carrier . Tier I is the “Big Dog” who maintain all the lines in the ground and equipment for Local service. They are big and don’t want to lose market share, so their rates aren’t always the best. They generally have reliable service. Tier III is a reseller, they want to grow their market share and have aggressive rates and services. Tier III can be awful or awesome- better get some references before doing business with them. Tier II is in between- i.e. they have some equipment out there and might resell some services.

2. Keep your eye on the MARC . That is, Minimum Annual Revenue Commitment. There are different names for this among companies, but they want to guarantee the least amount you’ll pay them per month or year. So are you overspending? Get a new contract and save money. Are you under spending? Better call your Rep to work something out so you don’t have to pay the penalties.

3. Great rates, but big bills . You need to do an “apples to apples” comparison. That means when a long distance competitor tells you he can get you $0.01/minute, you need to ask more questions. What are the surcharges? That is, the additional hidden fees you’ll pay regardless of how many minutes you use.

4. Blazing Internet . Ask your provider for a report on your Internet usage. You might be surprised how little bandwidth you use. Here’s the worst kept industry secret: Sales Reps have quotas. The more you buy the less they have to sell to someone else. Don’t get mad at them, its human nature to do what you’re rewarded for.

No one likes to examine the telecom bills (except for yours truly), but considering the consequences, it’s worth it. Stay on top on the telecom companies and keep them honest. It’s up to you to keep an eye on the spending!

About Dan Aylward

Dan Aylward is an Independent Telecom Consultant with Abilita.  He has a B.A. in Telecommunications from Michigan State University and over 8 years experience fighting, pestering and dealing with telecom companies.

Dan can be reached at (517) 853-8130 or daylward@abilita.com

Abilita is a full service telecom consulting firm helping clients across North America achieve greater cost efficiencies and improved performance for all of their telecommunications needs - voice, data and wireless.