Hang up on high call costs

03.08.2006
Telecommunications costs continue to rank, and rankle, as one of the top three business expenses. But savings can be made when ITC managers arm themselves with information, scrutinize bills and battle it out when it comes to negotiations.

Business can routinely save up to 10 percent on telecoms expenses with initial savings of about 30 percent by negotiating contracts via request for proposals (RFPs), implementing telecoms expense management packages and expanding communication services to obtain long-term benefits. But cost cutting shouldn't impede company operations and strategies.

BuddeComm telecommunications analyst Paul Budde said to save on telecoms costs, companies need a strategic overview of operations, orientation and expenses.

"First of all, a strategic overview of costs including how much is spent, where and on what should be conducted along with company strategies, operations and customer service," he said.

"Most companies are better bundling their requirements (mobile, PSTN, broadband and so on) because of benefits like reduced vendor management and tariff discounts, but they have difficulty with evaluations because of fixed-to-mobile migration, which should look at the total use and commitment rather than individual deals," Budde said.

"Always ask for separate offerings and get at least three quotes based on specified telecoms invoices from the last three to six months, and remember you need a solution for your situation, not a generic one." Budde said assessing user profiles and trends will suggest whether a bundled plan is appropriate.