Day-to-day management of telecommunications services and systems typically includes many tasks - authorizing payment of bills, allocating costs, modifying and/or optimizing facilities, controlling and curbing abuse, detecting and correcting problems, training, improving user productivity, etc.

Effectively managing and controlling telecom costs is directly related to your organization’s ability to efficiently manage and process monthly telecom information.

First Things First: Get Organized

The first step in managing telecom information successfully is to implement a compartmental system for staying organized.  Operational information should be grouped into five major categories - account orders and bill tracking, inventory status, usage of system capabilities and carrier facilities, local and long-distance calling, and service and diagnostic information.

Compartment #1: Account Orders and Bill Tracking

The number and formats of separate bills received each month from telecommunications vendors has multiplied many times over in the last 20 years. It is not unusual for even small to mid-size companies to handle hundreds or even thousands of bills every month.

Develop an internal system for keeping track of account orders and be sure that every bill can be easily retrieved and tracked. Use of a systematic control record for each account is essential for staying organized. Simple to complex software is now available commercially or you may choose to develop your own to suit your company’s unique needs. Whatever option you choose, be sure that your system provides a complete visual status of each account onto a single display.

Compartment #2: Inventory Status

Maintaining and updating inventory records for all aspects of your telecommunications department is essential for achieving long term cost-reduction results. The term “inventory” applies not only to hardware, such as wireless handsets, but also to station assignments, station numbers, carrier facilities, and wiring.

Large organizations will almost certainly use a software-based automated inventory control system. As with any system, the software is only as good as the data the system is fed. Before entering any information into an inventory database, a thorough audit and inventory analysis of equipment and services should be conducted. Failure to take the proper steps in setting up your inventory system will almost certainly result in flawed information from the outset.

Compartment #3: Information Drawn From Systems and Carrier Facilities

Collecting and analyzing system usage data is an often overlooked area of telecom cost-reduction. This information is typically drawn from PBX systems or carrier facilities or suppliers. Most PBX and ACD systems store data on how often various features are used. Older systems maintain proprietary control of system access, requiring users to obtain data through the supplier.

Analysis of system usage data will reveal which productivity-improving features are being utilized and by whom. It will also reveal areas where overprovisioning is evident. Be sure to instruct employees on how they can more effectively use the system. Eliminate areas where features are either not used or not needed.

Compartment #4: Local, Long-Distance and Wireless Call Activity

Many options are now available to collect, organize and report on call activity. Modern PBX, hybrid and electronic key systems make Station Message Detail Recording (SMDR) data available through an RS-232-C interface. SMDR data typically provides a record for each call - the station originating the call, date and time of origination, number dialed, duration, and the facility carrying the call. Most carriers now provide this billing information electronically.

Once obtained and organized, this information can then be fed directly to on-site services for processing. There are hundreds of commercially available software programs for sorting and organizing call detail. Reports generally fall into one of three categories - system management reports and summaries, cost allocation reports, and traffic reports. Each provide valuable information for determining the appropriate cost-reduction measures needed.

Compartment #5: Service and Diagnostic Information

A variety of diagnostic routines can be performed on most current telephone systems. These tests will reveal non-working aspects of the system. Traffic reports will sometimes indicate problems with facilities such as a trunk that shows no usage. Check with your suppliers for a list of diagnostic tests they can perform that you may not be aware of.

Don’t let the enormous flow of monthly telecommunications information overwhelm you. With proper organization and analysis, the data collected from each of the above compartments will invariably reveal areas that are ripe for cost-savings.

Submitted by: TelCon Associates, Inc.

Present day telecommunications carriers can handle a myriad of services for both voice and data.  But with so many choices, how do you find and decide on just the right one for your company?

If you engage a telecom consultant to work on your behalf, they will be able to assist you in finding the best and most c0st-effective carrier for your business.  If you plan on going it alone, you will need to get key questions answered before making your final decision.

The following is a list of questions that should serve as a guide to helping to narrow down your choice of prospective carriers.

1. What experience do you have as a provider in the telecom industry and what type of companies are current clients?

After the deregulation of AT&T, the number of telecommunications companies based in the U.S. soared.  Many have since gone out of business.  In many respects, the marketplace has returned to a psuedo “monopoly” state, with just a few carriers currently dominating the industry.

The company you eventually decide on does not have to be the biggest.  It should have a successful, steady, and multi-year track record for servicing similar companies in your industry.  A little research goes a long way in this area.

2. Do I have to sign a contract, and if so for how long?

Telecommunications carriers like contracts because they “lock” in customers for a set period of time.  Do not shy away from companies who require contracts, but do be diligent on the negotiation of the terms.

Generally, the longer the term of the contract, the better rates you should be able to negotiate.  Rates and lengths can vary widely, so plan on spending considerable time hammering out the details of the contract to your advantage.

3. What kind of billing increments and surcharges are involved or included in the pricing?

Telecom carriers have devised a variety of methods for billing customers for local and long distance calling.   Always ask your prospective carrier to lay out ALL billing options for both local and long distance calling.

For example, if your outgoing long distance calls tend to be very short, ask if the provider offers 6-second (or even 1 second) billing increment plans.  Depending on the monthly volume, these alternatives could add up to major cost-savings.

Hidden charges or surcharges should be uncovered before signing any contract.  “One time” charges (ex. installations) and monthly recurring charges should be identified as well.  Your telecom representative should be able to easily explain the billing method(s) used and any surcharges or penalties that will be incurred if contract requirements are not met in a given month.

4. Are you a reseller, or do you own your own facilities?

The Telecommunications Act of 1996 forced incumbent Local Exchange Carriers (LECs) to open up their networks to competitors.  As a result, hundreds of CLECs (Competitive Local Exchange Carriers) were created to take advantage of the newly deregulated environment.  These “resellers” are companies that did not actually own the network or switches, but rather “leased” them from the incumbent LECs.

Always ask your prospective telecom vendor if they do indeed own the equipment and switches used to transmit your telecom voice and data traffic.   Going with a reseller is not necessarily a bad decision, but companies that have control over the network have a distinct advantage over 3rd party resellers.

5. Who handles the account after we sign the contract?

When it comes to telecom services, what can go wrong probably will at some point in the future.  For this reason, it is imperative that your telecom provider be there when you need them.  Billing issues, service outages, moves, adds, changes, etc. will require the intervention of a real live person to assist when help is needed.

Be aware of the issues that can (and probably will) go wrong, then insist that your account be assigned a personal representative when they do.   Ideally, the account representative should alert you to more competitive plans and services when they become available during the term of your contract.

Summary

The importance of your understanding your business needs is vital to choosing the most cost-effective telecom service provider.   The main objective should be to seek out and engage a telecom provider who first seeks to understand your business, then provides efficient and cost-effective solutions to help your business prosper.   The time and effort it takes finding just the right one is well worth it in the long run.

Submitted by: Karen Thatcher, CEO, TelCon Associates, Inc.

When it comes to increasing efficiency and reducing expenses for telecommunications products and services within your business, certain tasks that could lead to success can often be delayed unnecessarily or even ignored altogether.

The following “to-do” list will help you stay focused on the goal of reducing and managing your corporate telecom expenses for 2008. It outlines the tasks to be completed, as well as a number of action steps to take immediately to help you get started. These action steps are intended to begin the process of completing the task. You will want to add your own action steps to the list as they arise. When you have completed the task, simply check it off.

Task #1:

Analyze Local Phone Service Plans and Regrade if Necessary

Getting a handle on local phones service charges is an important first step in helping to reduce and gain more control of your corporate telecom expenses. Many business owners make the mistake that telecom costs savings can be found in big ticket items such as long-distance services. Choosing the local service package that fits the usage patterns of your business is crucial for keeping costs down.
Action Steps:

Call local carrier representative for information on all available plans;

Gather and organize all local bills;

Determine current plan, analyze usage patterns, and upgrade/downgrade if cost-savings warrants it;

Download free booklet
“27 Ways to Slash Your Telecom Costs;
Learn more about local service plans here

Task #2:

Renegotiate Telecom Contracts

A telecom service contract is an easy way for a service provider to lock you into a predetermined rate structure and set of conditions for a specified period of time. The telecom industry changes constantly, however, and the conditions of a contract you agreed to 24 months ago may be totally outdated and costing you a bundle today. It is best to keep all telecom contracts handy and always know when they come due. You can often negotiate a new contract with an existing carrier before the old one expires.

Action Steps:

Gather existing telecom contracts and make note of expiration dates;

Contact vendors to determine if renegotiating or cancelling contracts without penalty is possible;

Assign individual, committee or outsource negotiations when contracts become due;Read 7 Areas For Successful Telecom Contract Negotiation

Task #3:

Inventory All Wireless Devices Company-wide

Wireless usage is quickly becoming a larger part of corporate telecom expenses each and every year. No longer do employees simply carry cell phones - wireless PDAs and laptops have become indispensable tools for conducting business as well. Since virtually all wireless devices today have data transfer capabilities, keeping an eye on costs is crucial. The subject of wireless cost management is too broad a topic to cover here. (This topic will be the subject of a future newsletter) One task you can begin immediately however is the inventory all wireless devices.

Action Steps:

Collect all wireless bills that are sent to the company;

Collect all wireless bills submitted as expense reports;

Create spreadsheet that lists employees’ names along with all wireless devices in use;

Determine all wireless devices not in use and eliminate wherever possible;

More information on how to establish a wireless company policy

Task #4:

Action Steps:

Learn more about the advantages and disadvantages of VoIP for voice traffic;

Determine if current corporate network is capable of handling VoIP;

Contact telecom consultant to determine if cost savings warrant the migration to VoIP;

Estimate ROI and amount of time needed to recoup investment; Learn about VoIP readiness assessment here

Task #5:

Action Steps:

Gather and organize bills from March 2003 to July 2006;

If not possible to gather all bills, collect April and September 2006 bills;

Determine refund through either calculation method;

Contact accounting with figures;

Task #6:

Action Steps:

Determine what telecom duties could be easily outsourced;

Contact 3 telecom consultants to determine what areas are most cost-effective for outsourcing;

Compare current costs with costs incurred by outsourcing;

Read “How to Choose a Telecom Consultant“; Learn more about telecom outsourcing here

“To-do” lists are only effective if you take the action steps necessary to complete the tasks. Try to block out a few minutes each week to focus and help you stay on track with your telecom cost-reduction efforts. The time spent is well worth it in the long run. If you are someone who is a “to-do” list maniac, try using this free online version.

Submitted by: TelCon Associates

Ideally, this information should include the specific recommendations that were made and the percentage of cost-reduction attained after the audit was complete. Look for a firm that has consistent success in a variety of industries.

#5 What Are Your Fees and How Are They Structured?

There is no doubt that engaging a telecom consulting firm will help your company cut expenses and increase efficiency. Asking the right questions will help you save time and money in your search for the telecom consulting firm that will best suit your needs.

Submitted by TelCon Associates, Inc.

The first mission of telecommunications management is to effectively utilize and manage present services and systems. With the continual emergence of new and cost-saving telecommunications technologies it is easy to become seduced by the constant need for changes and upgrades.

But making changes for the sake of change, or to cater to whims or new but yet unproven technologies can be counterproductive or even very costly in the long run.

But how do you know when it’s time to implement major changes in your telecom department?

The answer: Conduct a “needs” analysis of your current telecom department.

How to Conduct a Needs Analysis of Your Telecommunications Department

The importance of a careful and complete analysis of needs BEFORE making major changes cannot be overstated. But don’t rely on your suppliers to make these decisions! Yes, it’s true that your suppliers and vendors may be very sensitive to your needs - as long as those needs can be met with their product or service. More often than not, vendor sales reps are merchants of solutions in search of a problem or a need.

3 Signs That Changes Are Needed in Your Telecom Department

1. Business and operations planning can give you plenty of advance notice that new or changed telecommunication facilities are or will be needed. A growing company will eventually need new offices, plants and facilities. These changes will invariably result in more and changed communications patterns that could exceed the capacity of present services and systems. Moves to new locations will often lead to new communications services since it may not be economical to move existing systems.

2. Even in the absence of planned operational change, there may be signs your present system is no longer cost effective. In addition, service problems, outages and even complaints by customers or employees are a good sign you’re in need of change.
3. Technological advances are creating new products and services that make even the most cost-effective services seem obsolete in comparison. Be aware that new technologies need time to get the “bugs” out. For example, the reliability and quality of VOIP services in the past has kept some from making permanent changes in that direction. It has only been in the last 12-18 months that this emerging technology has gained a major foothold and what can be considered now as a major trend in mainstream telecommunications services.

6 Steps To a Successful Telecom Needs Analysis

Step 1: List detailed concerns and problems that the proposed changes will solve. Make this list as specific as possible. Ultimately this list should be quite long, even for small changes in services and systems. Examples of such concerns could included:

• “customers complain about busy signals”

• “we disconnect callers when trying to transfer them”
• “the 800 lines always show people on hold”
• “we can’t get employees to choose the most economical line for their calling, and they are making alot of personal calls” etc.

Step 2: Summarize company plans that suggest changes in telecommunications requirements. Again, be as specific as possible when listing these items. This summary should include numbers, locations, timing of changes, special requirements, etc.

Step 3: Where necessary, draw a schematic diagram or matrix representation of telecommunications. If the anticipated system must serve changing communications requirements, draw several diagrams for different points in time. This diagram can be as simple or complex as the situation warrants. This visual will help clarify the proposed changes to those involved in making them.

Step 4: Quantify major requirements. These should include items such as:

• Phone capacity - List the number of access lines, telephones and/or station numbers to determine system size.
• Capabilities - List the major characteristics of any new service or system that will be required to fulfill major needs. (i.e. incoming call patterns, peak traffic, call-pickup groups, speed-dial groups, paging circuits, automatic call routing, classes of services, multi-video conferencing, etc.)
• Equipment items - List the type and quantity of telephones, modems, cords, peripheral items…everything that will be connected to, or work with, the new services.
• Features - Identify the significant features on which the new services will be evaluated. List only minimum requirements.
• Options - List capabilities, equipment and features that are desirable but not essential.
• Add-on Items - Anticipate the items that may be added to the service or system during its lifetime.

Step 5: Summarize needed capabilities. A concise summary of quantified information can and should be made for even the most complex systems or services. This summary should include a general description of telecommunications needs, and a listing of quantified items in two categories - essential and options. This summary will enable you to obtain general pricing from vendors, consultants, or other reference sources.

Step 6: Review and confirm changes to be made. Discuss the summary of needs and pricing with management and others that are involved in the project. When a general agreement is reached on the configuration of new services and/or systems, the approved summary can be used in the process of vendor qualifications and actual system/service design and selection.

Eventually the need will arise for you to make major changes to your telecommunications systems and/or services. A careful and systematic approach as outlined here will make your project more organized and allow you to make decisions that will enhance your business productivity and efficiency.

About the Author

Karen Thatcher is President and CEO of TelCon Associates, Inc., a 35 year old telecom consulting firm. More information on TelCon Associates.

Time to get down to business and set some new year’s resolutions for your telecom department, don’t you think?

This month is a very important issue because it will serve as a “checklist” to help you reduce and gain control of your telecom costs throughout 2008 and beyond.

Let’s get started!

7 New Year’s Resolutions for Your Telecom Department in 2008

1. Review and Be Sure You’ve Chosen the Most Optimum Local Service Options

Most businesses are unaware of the options that are available from their local phone company. The 3 basic local service options for businesses are below. Check your bills to be certain you are on the optimum plan.

1) Flat-Rate Service: the line cost is high, but the user can make unlimited local calls on the line at no extra charge.

2) Message-Rate Service: the line cost is lower than a flat-rate line, but the user pays an additional per call charge, usually $.07-$.12 per call.

3) Measured-Rate Service: the line cost is usually low, but the user pays for each minute of local outbound calling. There is an initial rate for the first minute and a lower rate for each additional minute of the call.

2. Locate, Review, then Evaluate All Current Telecom Contracts

Contracts you signed 1-2 years ago are probably coming due. First, you’ll need to locate any contracts that are currently in place. (Sounds simple, but you’d be surprised how many clients we work with that can’t even find the contracts they have!)

Next, check to be sure that there are no automatic renewals that will lock you into the same terms without renegotiating. Remember…Things change. Make a note the dates of expiring contracts and plan to renegotiate or research better options.

3. Put Phone Policies in Writing for Employees to Avoid Possible Abuse

A big area of waste we see with clients is phone abuses by employees. Oftentimes employees have no idea their behavior is costing the company LOTS of money. And other times employees knowingly engage in outright abuse and fraud.

To avoid confusion and misunderstanding, always have a separate written policy of acceptable phone usage for both landlines and wireless usage.

4. Schedule a Complete Telecom Audit/Evaluation in 2008

Seriously consider having your staff or an outside firm complete a full audit and inventory of your entire telecom department. A complete audit of your department will give you the foundation you need to help uncover problems.

Left unchecked and unresolved, this overspending will occur month after month - costing your company thousands of dollars over the course of the year. If you have your staff conduct the audit in-house, TelCon Associates has training publications and training modules that will help tremendously. TelCon can handle the burden for you as well.

5. Research New Wireless Options Due to Wireless Number Portability Legislation

New laws passed in November of 2003 allow for you to change wireless providers without having to give up your current number. Carriers have by now worked out the “kinks” so it’s a safe bet that you can make the switch without any problems.

When wireless contracts come due in 2005, shop around to see if you can acquire a better value from another carrier. Make a list of your needs and wants BEFORE you start talking with carriers. It is probably a good idea not to sign more than a 1 year contract - no matter what kind of deals they pitch you.

6. Establish an Electronic Inventory to Help Facilitate Moves/Adds/Changes More Easily

For multi-location companies, controlling and managing moves/adds/changes for field locations can be a real hassle. The solution is to inventory all of the lines at all field locations into an electronic database. Headquarters can now stay informed and in control of adds/moves/changes for each specific location.

It’s best to do a complete audit before building the electronic inventory database. The audit will help eliminate unused or overprovisioned lines without needlessly going into the database.

7. Stay Current and Informed With Telecom Technologies, Industry and Legislative Changes

We try to cover helpful topics in this newsletter and you can stay current with recent and interesting telecom news at www.telconassociates.com
Another terrific source for all kinds of telecom information is CCMI - (Center for Communications Management Information). CCMI is well-known for their seminars on just about every available telecom topic.

The Telecom Manager’s Voice Report is an award-winning publication that provides critical news and proven guidance to help telecom end-users secure the best rates, services and equipment for their company, twice monthly.

Resolve to make 2008 the year that you get your telecom department running like a fine Swiss watch!

Contributed by the folds at: TelCon Associates, Inc.

Telecom Audit Techniques: Observational and Personal Surveys

One of the most useful tools for helping you to conduct a successful audit of your telecommunications services is the “survey”.

Surveys come in two categories:

1. Observation Surveys
   

2. Surveys via Personal Interviews
   

Each plays an important role in helping you to obtain the most reliable information possible and to uncover the maximum amount of savings throughout your telecom audit.

Why Do Surveys?

Imagine a detective attempting to solve a high-profile case successfully - and never interviewing any witnesses or personally visiting the scene of the crime! It would never happen (and certainly make for bad crime TV!).

Remote and/or on-premises observation and interview surveys are critical to the information gathering and hypotheses testing processes. Surveys are the “glue” that helps all the hard data you’ve collected come together.

Surveying Through Observation

On-premises and remote observation can uncover problems in many areas. It is best to focus your efforts on one or more of the following items:

• Central Office Circuits and Related Items - identify all circuits that are brought to the premises. The demarc is the natural point to observe. Be sure the demarc is properly labeled. If the demarc is not labeled, you will need to determine if there are other circuits entering the premises via non-centralized locations.
  

• Equipment and Maintenance - identify terminals and other billed items. You may have to complete a census of relevant items in and about the common equipment area.
  

• Layout and Usage - locate equipment/departments/functions to suggest or support possible and reasonable changes in provisioning, such as sharing of a line for a FAX or PC. You can also gather relevant traffic data observing and tracking attendant call handling, or observing signal-light activity on trunk circuit packs.
  

For remote observation, look at carrier and maintenance provisioning items such as service charges and white and yellow pages directory listings and ads.
Specifics of Personal Interview Surveys

Aside from billing records and customer service records, personally surveying the users of your telecom services may be the single most critical and beneficial method of gathering the information you need to complete a successful audit.

At TelCon Associates, we’ve used a system for on-site and remote interviews that has been very successful and worked well for many years.

The content of your interviewed surveys can be as simple or as complex as you would like to make them.

However long or short, your interview surveys should at least consist of and include the following items:

• General Data about the user such as name, position in the company, address of phone and type of business at the surveyed location (ex. sales, administration, retail outlet, etc.)
  

• Verify all the services you have found as billed to each location. It is important that you ask the user open ended questions that illicit an informative response and not a “yes or no” response. For example, “how many lines do you have at this location?” will give you more precise information for verifying lines and services than simply saying “do you have 5 lines at this location?”.
  

• Verify all the features you have found billed to the interviewed location. Ask the user about every feature that is being billed, how it is used and if it is needed. This verification process with the end user can turn up abuses of pay-per-use features such as call-return or repeat-dial. If abuse is present, it will most certainly be apparent during this line of questioning.
  

• An estimate of in-bound and out-bound calling can be beneficial for determining the correct choice of local service options used at the location. Additionally, you may choose to ask the user about percentages of outbound local vs. long-distance calls made. This kind of information can assist you later in choosing correct local and long-distance plans to suit the needs of each specific location.
  

• Percentage of time all lines are busy at one time helps identify obvious over provisioning. If a small percentage of lines are busy at one time, you can be fairly certain that over provisioning is present.
  Hours of operation and number of staff is useful information for analyzing certain hypotheses such as long-distance options or alternate answering issues.
  Surveys, whether conducted in person or over the phone, should be considered an integral part of any successful telecom audit. Get started today developing your telecom survey strategy!