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Information Library Article
Why You Should Consider A Professional Telecommunications Analysis

Date: January 1, 2004

Abstract: You go to the doctor to stay healthy. Here's why you should use a telecommunications expert to maintain the health — and control the costs — of your telecommunications network.

Statistics show that nearly 60% of all telephone bills are inaccurate. For many companies, this means they are paying more than they should for telephone service. In the years preceding competition, the monopolies actually staffed departments of auditors to review their billing and fix these errors. Now that competition has forced the carriers to look more closely at profit margins, these departments simply don't exist. Many carriers actually depend on these errors as a source of revenue. It has become the sole responsibility of the customer to catch these errors – that is, if they know what they are looking for.

A recent study by the FCC referred to your phone bill as the “hieroglyphics of the new millennium”. They acknowledged that the average consumer does not fully understand the charges on their monthly bill, the accuracy of the charges, nor have the knowledge to distinguish what options are available to them. The addition of new regulatory charges, entitlement fees, and add on taxes have greatly attributed to the bewilderment. And, the introduction of a consolidating multiple services onto one bill only further complicates the ability to understand the bill.

Understanding what you have and how much it cost is a necessity of business. However, when it comes to telephone services, the foundation of their communications network, many businesses simply do not know what they have or what it is they are actually paying for. The dilemma for most businesses is that they do not have the internal expertise, or more importantly the time, to audit these expenses. They merely review the “pay this amount” section of the bill and send in their check. No wonder experts estimate that nearly 95% of businesses overspend on their telephone bills.

Yet cost is not the only factor in needing to understand what you have. There are other issues such as growth capacity, feature requirements, redundancy, integration and flexibility of the network. If you don't know what you have or what you need, how can you be sure you are paying the correct amount or negotiate a better alternative for your company? Without this knowledge, selecting an appropriate service would be the same as going to the grocery store without a shopping list. You may end up getting a lot of stuff you really didn't need, and forget the most important items.

Unfortunately, many companies end up relying on vendors to provide them with this type of information. But it is important to note that the salesperson's job is to sell a product or service. Although this sounds obvious, many businesses still seek the salesperson's advice and end up buying substandard service. This type of review must be performed by the customer or from an outside, non-biased source to receive the proper results.


Disclaimer: This information is provided for informational use only. It is not a substitute for consulting advice or individual analysis of a particular consulting matter. Transmission and receipt of this information does not create a consultant-client relationship. Readers should not act without proper training or without seeking the assistance of their vendor(s). The user assumes all responsibilities associated with changing settings in their systems and agrees to indemnify TeleAdvice Incorporated for actions taken by the user in accordance to the Indemnification policies of TeleAdvice Incorporated. Any dissemination or duplication of the information contained on this web site is strictly prohibited.

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