Posted by Randy Kremlacek on Feb 9, 2016 9:00:00 AM
In our first blog post, we took a look at the challenges of using a legacy phone system in today’s world of cloud communications and connectivity. However, there is more to the story than outdated legacy phones, but also the monthly bills for these systems should be examined in some detail.
If it’s not broken, don’t fix it
This could be the motto for many organizations. It is so easy to get used to the ‘status quo’ and to lose track of the potential savings that may be hidden in those stacks of monthly bills. Once an organization is accustomed to paying a particular bill each month, it typically will pay each month without a thought. Over time, the price increases incrementally, but most customers don’t notice the additional expense. The telephone companies have perfected the art of gently raising prices steadily without bringing attention to themselves.
One of the first things we look at when we consult with a new customer is their current monthly cost for their voice and data services. Over the years, we’ve seen some incredibly high costs for voice and data services for companies that we’ve worked with in the San Francisco Bay area.
Our team has identified several factors that drive up the cost of company’s monthly phone bills. Read on to learn how to optimize your monthly communication costs:
Several providers and bills
Problem: When it comes to communications, many businesses have more than one service provider. For example, it’s not uncommon for a company to have one provider for their phone system and a different provider for data. In addition, each service provider may send multiple bills.
This happens because new services are added over the course of time and many old services not cancelled.The result is a patchwork of outdated services spread across a myriad of different bills.
Solution: The traditional solution for this issue is to hire a telecom cost consultant to wade through the pile of telecom bills and make suggestions on how best to consolidate the various services and providers. Plus, the consultant will make recommendations regarding which services are no longer needed and can be disconnected.
If you choose to go in that direction, keep in mind that all you will be doing is ‘consolidating your old phone bills.’ In other words, the services themselves have become obsolete. It’s no different than giving a horse and buggy a good cleaning, with the expectation that you’ll now be able to jump inside the buggy and then race past a sports car on the freeway.
The real solution is to simplify your business communications. Eliminate your old, outdated phone system and replace it with a modern, low-cost business communications and data network solution
Legacy phone lines and circuits
Problem: Legacy phone systems are connected to PRI Circuits and analog lines. These are traditional, public switch telephone services, which are out-of-date and quickly becoming obsolete.
Solution: Eliminate obsolete, analog phone lines and PRI’s and replace with either SIP Trunks on a new PBX or go to a Virtual PBX. Each of these options use the internet to send and receive calls. Both solutions are more efficient and cost-effective than traditional phone systems.
Analog lines are also used for fax lines and alarm systems. Today, alarm companies have switched to cell technologies and the Internet. Also, faxes can now be sent over the internet.
The current cost for one analog line is $59 per month and it is likely that you likely have several of them. And their price is increasing at a rapid pace. In fact, the price has more than doubled in three years. The cost is going to continue to rise because telephone companies want to move away from these outdated technologies.
Outdated data circuits
Problem: When our engineers are in the field, they often encounter T1or DSL and quite a few customers have moved to cable. Cable is faster than T1 or DSL but it can be quite unreliable.
Solution: We replace DSLs, T1s with one of several new types of Internet circuits.
Phone bills go up, they never come back down
As the old saying goes, “What goes up, must come down.” However, this is just not true when it comes to your legacy phone bill. While the price of modern voice and data circuits continues to fall, the cost of legacy phone services has gone up over time.
Solve all of these problems – get better service – and save money every month
No, it’s not one of those, ‘if it seems too good to be true,’ situations. It’s what happens when a new technology replaces an older one. In other words, it’s the natural result of a business catching up with the times.
The savings that a business can gain when it makes the switch from legacy communication services, analog phones and outdated data circuits can be dramatic. In almost all cases, we are able to increase our customers’ internet speed. We’ve seen improvements from one to five times faster, and more. We do all of this, while saving money for our customers.
This blog is second in a series of four posts titled; “The Top 4 Reasons to Switch to a Modern Voice and Data Network.”
In it, we will present the business case for a comprehensive communication solution that provides the following crucial business services:
- Business telephone system
- Monthly phone and data costs
- Reliable and redundant voice and data network
- A brand-new, cloud-enabled network
Don’t miss the next post in our series, "Reason 3: The Reliable Voice and Data Network."
About the Author
President | Head Chef
Randy Kremlacek is CEO and Head Chef of TeleDynamic Communications, a Digium Select Partner and four time Digium Pinnacle Award winner. TeleDynamic Communication, Inc. provides premise-based PBX, Virtual PBX, and SIP Trunking services. READ MORE