Tips To Reduce Your Telecom Costs

By: John Shepler

Business is open. Business is closed. Business is open again. Most businesses are suffering from whiplash as they navigate the Covid-19 crisis. When times were good, growth was king. Now survival is key and a major element of business survival is cost control. Here are some things you can do immediately to curb expenditures while still being operational.

Are You Paying For Things You Aren’t Using?
it seems obvious that nobody would pay for something they don’t use, yet both consumers and businesses are guilty of just that.

Get your phone bill and some pens and highlighters. Now go through it line by line. Consider yourself an old time prospector looking for gold. That gold is in the form of expenses that don’t provide value.

Are you currently using every line that comes into your business? How about lines to buildings that were offices and are now storage? Fax lines not connected to fax machines anymore? Old burglar alarm lines or extension phones? Old data lines that aren’t being fed by anything anymore?

What about mobile phones? Each phone should be currently used by an employee. Are there leftovers from departed employees that haven’t been reassigned? What about features that nobody is using?

Every line, every feature, every device should be assigned and preferably be in-use. Now, get on the phone with your carrier and delete everything not being used.

The same goes for equipment rentals. If you are not using it, send it back and stop the bleeding. When things pick up, reacquire the resources you need then.

While you were doing your survey, I’ll bet you found a bunch of equipment squirreled here and there. Routers, switches, PCs, phones, adaptors, and even boxes full of software. Have someone who is not otherwise engaged look into selling this stuff on e-bay. True, some has little value and should be just recycled. Sell anything that is worth the time and shipping cost to unload. This could turn into a cash cow and justify an ongoing job assignment.

Pay Less For The Same Value
I feel pretty safe in saying that you are paying more than you have to for your telecom lines. That’s because deregulation and new competition have driven down the cost of bandwidth year over year. You may be finishing a 3 year contract or be paying month to month on an expired contract. There’s high value-added in figuring out how many lines of what performance you need and getting a new competitive price quote .

T1 lines are still popular, but they cost a fraction of what they did a decade ago. Same lines, much lower prices. The fiber optic services from DS3 (45 Mbps) and OCx to 10 Gbps and more are largely being replaced with Carrier Ethernet. It’s more compatible with today’s equipment, bandwidth is scalable, and costs are much, much lower. Fiber is king these days, but there is also Ethernet over Copper and wireless services. MPLS networks are a better deal than multiple point to point lines. SD-WAN is replacing MPLS for even greater savings.

How do you sort all of this out? You need to work with a good master agency like Telarus that has relationships with dozens and dozens of suppliers. A knowledgeable agent will get you multiple quotes and help you decide on the best options for your situation.

Don’t Invest, Pay As You Go
You’ve heard that the cloud is taking over everything. Well, there’s a good reason for that. We’re past the time when every company needs to maintain telecom rooms and server rooms. All of that goes bye-bye to the cloud, which is nothing more than one giant data center with full time staff to maintain everything. You concentrate on your business and they take care of the constantly changing infrastructure. Cloud centers can also provide cybersecurity and stay on top of evolving threats? Do you really want to be saddled with that?

Moving to the cloud does two things for you. It avoids capital expense (capex) and allows you to pay as you go (opex). Paying as you go these days can be really helpful because you can scale both up and down rapidly as business goes on a rollercoaster.

Don’t forget to consider bandwidth that can also be easily scaled both up and down. If you get a fiber optic service with a GigE or 10GigE port, you can run any bandwidth level you like and pay for just that. Some services even let you upgrade and downgrade online instantly. It’s a far cry from the old days of nailed-up telco circuits.

Are you busy adjusting to the new normal and concerned that you may not be able to afford your ongoing business costs? Don’t let networking and telecom drag you down. Get competitive quotes and expert advice now and reduce your costs ASAP.

The Important Contribution of Small Business [Infographic]

Strategies For The Hunkered Down Economy

The calendar has turned, but the economy has not. We’re still looking at double digit unemployment, public companies making their numbers by cutting expenses rather than increasing sales, and a lot of angst over what it will take to get things moving again. In the meantime, consumers are hunkering down to spend less and save more. That means businesses large and small are left with little to do except hunker down themselves. It’s hard to get excited about taking the big leaps when you don’t know how wide the abyss is.

Does this mean that your company is permanently stuck in the mud or that your ship is sinking with nothing more to throw overboard? For most, that’s way too dire a scenario. But you are faced with an opportunity that requires a choice, at least in your telecommunications expenses. Do you want to maintain the same level of service and pay less for it, or do you want to maintain your budget at current levels and get more service?

Many managers consider this an enviable position. There’s really no way you can lose. The only one who isn’t going to make out in this arrangement is the overpriced service provider who either isn’t sensitive to your needs or has failed to optimize their own business to offer you a better deal.

Perhaps the first thing to do is to honestly assess your needs for the coming year. Do you need everything you have now, more, less, or just different? For instance, if the phones aren’t ringing off the hook, then perhaps you can get by with fewer outside lines and no one will be the wiser. If your staffing levels have dwindled, you may have more broadband capacity than you are really taking advantage of at the moment. You can almost certainly save by matching the level of telecom services to your current reality. In some cases, you may be able to dramatically save by combining your telephone and broadband in an integrated T1 line or SIP trunk.

You may be concerned that downsizing your bandwidth puts you at risk if business suddenly bounces back. That can be mitigated by ordering scalable bandwidth services. Metro Ethernet is a good example. The connection that’s installed may be capable of 50 Mbps, but you only pay for 10 Mbps. If business doubles, you call your provider and tell them to take it up to 20 Mbps. They can do that quickly and easily, since no hardware changes need to be made.

For some businesses, opportunities are available to increase activity. What’s holding them back is the unavailability of bank loans or a reluctance to make long term commitments to expenses that might not be covered if the ramp up in business activity doesn’t happen as planned. What you don’t realize is that you may be able to get more and better service without spending more money. This is commonly the case with companies that leased line services years ago and have been paying month to month since their contract ran out. Telecom service rates have been dropping, sometimes dramatically, over the last few years. But you’re still paying the old rate to the old provider who makes no effort to offer you a better deal. How can you be sure you are getting the most for your precious expense dollars? Get competitive telecom service quotes quickly and easily online.

The services we promote are offered through a telecom broker who’s job it is to research the best rates available for your business location. When you request a competitive quote, a Telarus consultant will be working on your behalf to understand your current and future needs and then find the best deal available from dozens of service providers. That consultant will check back with you from time to time to make sure that what you are leasing is still the best cost solution as your situation changes. Best of all, this is a free service. It’s truly one of the best deals you can get in any economy.

Get Ready For The Recovery With Bandwidth on Demand

There is an economic recovery on the way. For some companies it may already be here. For others, it’s a dicey situation. Sure, you’re maintaining your earnings per share. But it’s being done by cost cutting, not top line sales growth. When things actually do turn, you’re going to need to move fast. But you can’t take on additional expense until your income justifies it. What to do? Try bandwidth on demand.

The idea behind bandwidth on demand is that you have the facilities to deliver all the bandwidth you need to support your operation. But you only install the facilities, not the full bandwidth service. Then you idle along at a speed that meets your current requirements and a cost that you can afford. When business picks up, you simply contact your service provider and say, “crank it up.” Your line bandwidth will increase by a factor of 2x, 5x, or 10x as per your specifications. Your cost will go up incrementally, but the increased business volume will more than cover it.

This is different from planning on a future need and getting the full capacity in place before it hits. That’s certainly a low risk approach from an operational standpoint, but it’s a high risk from a cost standpoint. What if business doesn’t ramp up as rapidly as projected? What if the marketplace takes another leg down? There you’ll be, stuck with a big expense commitment and forced to cut other costs to offset what you’ve put in place.

Bandwidth on demand services can work in both directions. You can order additional bandwidth at any time. You can also reduce your bandwidth on demand down to some base level. This way you can hedge your bets in a volatile business environment.

What types of services are suitable for bandwidth on demand? They vary by carrier, but Ethernet services are often structured in just such a way. Your bandwidth will have lower and upper limits determined by whether you have copper bundles or fiber optic cable installed as a last-mile connection.

ISDN PRI offers up to 23 telephone lines on a single digital trunk. That doesn’t mean you need to install 23 outside lines. Perhaps you are just getting a customer service contact center in place and only need 6 to 10 lines. You anticipate growth, so you’ll want to fill those additional lines as call volume increases. But for now, just get the number of lines you need to satisfy your customers.

Even T1 line service has some bandwidth options. A standard T1 line runs at 1.5 Mbps. Perhaps your application only needs half that amount. You can order a fractional T1 line for the smaller amount. Later on you’ll want to upgrade to full T1 service or even expand to 3 Mbps and beyond by bonding in additional T1 lines as you need them.

The best way to get a handle on your cost / performance options are to discuss your current and projected needs with an expert bandwidth consultant. That service is available free of charge through our Telarus telecom brokerage service. Call the toll free number or enter a quick online request at T1 Rex right now.

Scrambling For Business Leads

You can't help but notice that business activity is thinning out. Fewer inquiries are coming in and fewer order commitments are being placed. What's really scary is the "Out of Business" signs that seem to be popping up in more and more store fronts. So, what do you do to hang on?

The platitudes such as "business goes in cycles" or "this too shall pass" aren't much help when you're staring at red ink on the income statement. Truly, the frozen credit markets will thaw and eventually we'll exit what's likely to be a prolonged recession. But you need a way to keep people working and cash flowing until that "rising tide lifts all ships."

There may not be any of the proverbial magic bullets around, but there certainly are things you can do rather than just wait and hope. Belt tightening is always a good thing to consider. Chances are that there are expenses that have found their way onto the books and you're not even sure why you're spending that money anymore. But you should also look at doing things to increase income as well as reduce expenses.

Here's an idea if you happen to be in a technology related sales and service business, particularly one involved with computers and networking or business telephone systems. Join a collaborative network of like-minded technology professionals to increase your sales opportunities with current customers and get warm leads for potential new customers.

This organization is called the VAR Network, VAR meaning Value Added Reseller. If you're in this line of work, you'll recognize the acronym. The VAR Network gives you a double-headed approach for increasing your business receipts. First, you have the opportunity to include telecom line services in your stable of offerings. You may feel that specializing in network routers or IP PBX systems is really as deep as you want to get into systems work. But you're leaving a lot of money on the table for someone else to scoop up. Why not grab that share of the client's budget for yourself?

I know. You don't know squat about line services and are concerned about the learning curve involved to be able to productively sell things like dedicated T1 Internet, ISDN PRI, and Metro Ethernet. Fear not. You'll be partnering with an expert at the VAR Network who knows the ins and outs of all of those services. This consultant has the tools and carrier relationships to efficiently identify the best cost offers and close the deal, including the paperwork.

What do you get out of it? In exchange for providing the line services lead to the VAR Network, you'll be rewarded with a monthly commission based on your customer's usage. That can range up to hundreds or thousands of dollars a month per client for larger enterprises. Lots of smaller customers can also result in big incomes. But you already know that.

The other side of this double-whammy is that the VAR Network will send leads to you. That's right. The VAR Network sells line services through the Telarus Master Agency, but doesn't sell or install equipment. Many clients looking for line services also are seeking upgrades to their business telephone networks or local area networks and computers. Those leads are passed on to member VARs based on location, service specialization and support of the network.

Now the best part of the deal. You pay nothing to join or maintain your membership in the VAR Network. You just need to have an established business in the right field. Telecom line service consulting and support are absolutely free. You'll share in the income generated from the leads you supply. You'll also get leads for free as they become available. If, and only if, a lead supplied by the VAR Network results in a sale are you expected to remit a small percentage of your receipts from that lead to support the network.

Does this sound like an easy and painless way to give your business an edge in this declining business environment? It doesn't come easier or more pain free. Find out for yourself. Check out the VAR Network and Sign up to become a VAR Network partner now.

Cut Telecom Line Expenses, Not Lines

In this recessionary business climate, keeping the enterprise afloat may mean throwing every non-critical expense overboard. Soon the obvious fat disappears from the budget and managers start questioning line items once thought sacrosanct. Do you really need 10 phone lines or could everybody get by with 5? Take turns calling if you have to. What about that Internet connection? Do we really need that T1 line when those 56K modems are still boxed up in the back room?

Good grief. Cost cutting can easily go from savvy business practice to organizational nightmare when desperation sets in. It's best to start coming up with reasonable reductions before upper management gets a whiff of blood in the water and goes nuts. Think through the justification for each budgetary line item yourself and make changes you can take credit for, or at least have proposals in your back pocket.

Now here's the good news. If you can keep a cool head at least for a little while, you may be able to get the savings your business needs while maintaining the services you need to be at your most productive. The trick isn't just to slash and burn every telecom expense you come across. It's getting the same functionality for less money. You don't necessarily want to cut your lines, and with them your livelihood. You want to cut the expenses associated with those lines.

Most companies have two types of telecom line services: voice and data. Video, such as video conferencing, can fall into either the voice or data category depending on how it's implemented.

Lets start with voice services. Most businesses of any size have a PBX telephone system that manages their telco connections. There may be some room for cost savings here because of the way the system has grown. It usually starts with a few lines, adding another and another as the company need grows. Pretty soon you've got a dozen or two individual lines. Usage reports say you need them all or customers will start getting poor service and some of your employees will be cooling their heels while waiting to place a call. But you aren't necessarily married to the configuration you have today. By consolidating all those individual phone lines into one or two T1 PRI digital trunks, you'll have the same level of service but at a discount.

If you already made the move to T1 lines years ago, you might still be able to save. Competitive prices for T1 voice lines, including long distance rates, have plummeted in the last few years. By running a competitive service check you can find out if a simple change of provider could result in significant cost savings for the very same usage.

The same logic applies to your business Internet service. A T1 dedicated Internet line might now be priced at half what you paid when you signed a multi-year lease years ago.T1 prices are very favorable right now and you can make a good deal getting into a better contract. Once again, you keep the same functionality you have now but simply pay less.

You might also want to consider some newer technologies, such as MPLS networks or Metro Ethernet to interconnect multiple business locations. SIP trunking offers a way to get high quality voice and data service delivered on a single line service. All of these services have become readily available only in the last few years. If they work for your situation, you could find very substantial cost savings available for the asking.