Save money now

  Five fundamentals that can help you save
  thousands in telecom costs.

  By Tom Thorne
  Network World, 12/07/98

  Successful sports teams emphasize fundamentals; if
  they are neglected, the chance for success is minimal.

  The same is true when it comes to ensuring that you're
  not paying too much for telecommunications services.

  In my 13 years as a cost control analyst and network
  engineer for several banking institutions, I've devised
  my own list of fundamentals for managing telecom
  expenses that could help you keep carriers in check.

  1. Audit local invoices.

  The need to audit your local invoices cannot be
  emphasized enough. Immediately after making a
  service change, you should make sure it is reflected
  correctly on your bill. Additionally, it's wise to conduct a
  full audit at least every six months. Specific items to
  look for are:

  Billing for unused or previously disconnected business
  lines, trunks, Off-Premises Extension (OPS) lines and
  other services. Local exchange carriers (LEC) are
  famous for billing for circuits long after they've been
  disconnected.

  Casual billing. For every site, you choose a primary
  interexchange carrier (PIC), which is the carrier you
  want to carry long-distance calls. But if your
  interexchange carrier (IXC) doesn't know you've
  chosen it as your PIC, the IXC may impose a "casual
  billing" surcharge of 70 cents to $1.30 on each call.
  Generally, IXC billing on LEC invoices ranges from 9
  cents to 30 cents per minute. If you see long-distance
  calls on LEC invoices that appear much higher than
  that, you may be the victim of casual billing. To fix the
  problem, make certain the LEC and IXC know which is
  the proper PIC. Also ensure that billing occurs on the
  correct invoice, which is typically the IXC invoice.

  Partial charges. Each line and trunk has several rate
  elements, such as charges for the trunk, access, touch
  tone and hearing impaired service. In examining an
  invoice, you may find some portions of a trunk have
  been disconnected, but not others. For example, the
  invoice may show 20 trunk charges at $80 per trunk
  and only 16 access charges. In this case, you may be
  being billed for four more trunks than you have.

  Charges for psychic hotlines, sports lines and the like.
  Incredible as it may seem, it's not uncommon for an
  employee to sign up for expensive calling services and
  list his work phone number, in which case his employer
  gets the bill. Charges for these services may range
  from $1 to $40 per month with an outrageous cost per
  minute. Keep an eye out for such charges, and make it
  clear to employees that they should only give out their
  business telephone number for business- related
  matters.

  2. Watch for unnecessary switched access
  services.

  In most instances, switched access services should not
  exist at locations where you have inbound or outbound
  dedicated T-1 access. Instead, configure the switched
  services to ride the dedicated T-1 lines as much as
  possible. Usage charges generally are 30% to 50% less
  with dedicated access.

  3. Check for phantom long-distance
  charges.

  When Company A disconnects a local line, the IXC and
  the LEC must be notified. If only the LEC is notified,
  the number will remain in the long-distance carrier's
  database as belonging to Company A. When the
  number is reassigned, its new owner will be charged for
  the local portion, and Company A will still be billed for
  the long-distance charges. Make a point to check your
  bill for such phantom charges.

  4. Be prepared to push for a deal.

  Competition for your long-distance dollar is fierce. The
  carriers want your money, and many of them will make
  some incredible deals if you demand it. If you have not
  reached a special agreement with your carrier, the time
  to do so is now.

  Alternatively, it may be time to renegotiate. For larger
  companies, a method that has often proven successful
  is to give your favored carrier about 70% to 80% of
  your business and give a second carrier 20% to 30%.
  This way, both carriers will be striving for more of your
  business and will be more likely to give you the best
  possible rates.

  5. Watch for off-contract IXC invoices.

  Normally, invoices for services covered under a
  contract come in a distinct package from an IXC,
  usually just a few times a month. If you are getting
  additional straggling invoices from an IXC, there's a
  good chance the contracted rates are not being applied
  to the services covered on those invoices and you're
  paying more than you should be.

  The circumstances presented here are not rare or
  extreme; they are real examples of what often occurs.
  Knowing what to look for gives you the potential for
  tremendous savings. If you cut your cost-per-minute by
  half a cent, you'll save $5,000 for every million minutes
  of usage. Similarly, if you find five disconnected central
  office trunks and five disconnected OPS lines that
  you're still being billed for, you can easily eliminate $500
  to $1,000 per month - and you may get a credit on top
  of that.

  So the message is simple: Stick to the fundamentals,
  and you'll find the savings.