| Telecom management is primarily about reducing | | | | are typically low, they can play a very important part in |
| telecom costs and improving service to your users. If | | | | the overall cost. |
| you are looking at new long distance rates, you might | | | | Don't waste time in a bidding war with three or four |
| notice that long distance voice rates have been | | | | carriers. Ask for their best rate up front. Narrow your |
| creeping up lately. Two years ago, carriers were doling | | | | options down to the incumbent and one other |
| out sub-two cent rates for relatively small | | | | competitor and then let them fight it out. Entertaining |
| commitments. Today, smaller users need to do some | | | | several carriers is a drain of your resources, and |
| significant arm twisting to get a sub-two cent rate out | | | | usually does not result in a lower rate than entertaining |
| of one of the big four telecom carriers (Verizon, | | | | just two. |
| AT&T, Sprint or Qwest). | | | | 3) Look beyond the rates. Once you have two |
| Great rates are available, but you need to have a | | | | carriers with their lowest rates, consider other factors |
| good telecom management approach with the carriers | | | | beyond price. Customer service and billing can require |
| to get their best offer. Follow these four steps to | | | | large investments from your staff. Consider which |
| ensure you are getting the best rate available. | | | | carrier is more full service and which is more |
| 1) Start your negotiation process early. The earlier you | | | | self-service. |
| start the more leverage you have. Many carriers have | | | | Give credit to the carrier with the lower minimum. |
| quarterly promotions. If you start your renewal process | | | | Lower minimums create flexibility for telecom |
| in the quarter before your renewal date, you may | | | | management down the road. Flexibility has a value that |
| have access to a promotional rate that will not be | | | | needs to be considered in the buying process. |
| available closer to the expiration date. Don't be tricked | | | | Billing increments (the fraction of a minute that the rate |
| into signing early just to lock in the promotion - just get | | | | is billed) can impact your bill by 5% or more if your |
| a commitment that the promotion will be extended for | | | | company has many short duration calls. |
| you as your consider your options. | | | | 4) Consider implementing more than one carrier. There |
| 2) Engage other carriers. Competitive bidding is the | | | | is nothing written that says you have to give all of your |
| best way to establish the market price. Ask your | | | | business to a single carrier. The days of huge |
| competitors for their best rate up front. Even with the | | | | discounts by aggregating your spending with one |
| so-called "best rate" there is usually room for | | | | telecom provider are gone. Building redundancy and |
| movement if you are seriously considering a | | | | rate optimization opportunities into your network will |
| competitor. Keep intralata rates in mind. Intralata can be | | | | lower your costs and improve your service metrics to |
| more than twice your interstate rate, so while volumes | | | | your users. |