Have you budgeted for the forthcoming increases in communications charges?
Announcements to the communications community from a major player has given notice of at least two retail price increases per annum, on rentals, and changes to call costs to its direct customers over the years leading up to ISDN retirement in 2025. Many industry players have followed suit historically and are continuing to do so given their wholesale costs are also rising.
This will represent the continuance of significant annual increases in telecom costs for companies from much of the telecommunication industry. In conjunction with this announcement, call setup charges have been increased both on regular numbers and in particular to non-geographic numbers and call caps have been removed on business packages which could represent an increase of around 6% p.a. on rentals and over 100% increases on call charges.
Telecoms companies have started to encourage their clients to move onto IP based solutions in return for longer term contracts. However, as many companies do not have internal telecoms experts or the time to allocate to a thorough evaluation, some may perceive difficulties in changing technology and suppliers. Given not all offerings are equal this means potentially missing out on the benefits of the improved technology and pricing, and being shoehorned into longer term uncompetitive contracts.
Mobile networks are also trying to regain lost profits on 0800 and roaming revenue by doubling some non-geographic call costs and international call costs. They are offering some compensation to their clients with chargeable bundles if requested (and if indeed the client is aware of them).
At Expense Reduction Analysts, we are advising our clients of the significant scope for cost savings and business-benefitting technology enhancements. We have a proven track record over 20 years of delivering the cost savings which clients can now use to reinvest in the new technologies which empower them in the further advancement of their business. Indeed, can organisations afford not to embrace new technology when compared to competitors?
With the additional benefits and opportunities that new technology can deliver, in our opinion, there has never been a better time to undertake a full Telecommunications review, generating savings and redeploying them into better, more fit for purpose and future proof solutions.
Shortly I will be publishing a Road Map which outlines the steps to best of breed technology and the key issues to consider.
Article by Nigel Rosehill