Carroll County Times Articles
Give Your Phone Bill a Hard Look
by Mike Shelah – September 06, 2009
Deciphering your telephone bill comes down to four parts: local calls, line charges, long-distance calls and “taxes, surcharges and other fees." These guidelines will steer you through both business and residential phone service needs.
First, we'll address local calls.
You can be billed three ways for a local call: flat rate unlimited, message unit (a per-call charge) or measured (measuring the length of the call to determine cost). People are quick to pick the flat rate program as most effective. With very few exceptions, this is not the case. After analyzing thousands of telephone bills over the last 10 years, it turns out that flat rate is the most expensive, with message rate coming in second and, believe it or not, measured service being the least expensive.
Next are line charges.
A typical business has multiple phone lines. While the outside world will recognize the main number and the fax number, there are usually multiple rollover or “hunt" lines that work with the main number for all calls in and out. The most cost-effective line is referred to as POTS (plain old telephone service). There are features you can add to your lines on an “a la carte" basis or you can buy a bundle referred to as Centrex or Custopak. Most companies do not use Centrex to its full potential and rarely get the true cost benefits out of it.
Long distance is probably the least straightforward of all services out there. Your call can have different rates depending on if it is an in-state call, an Intra LATA call or a state-to-state call (international calls would warrant a separate article). Also, most companies charge a PICC, or pre-inter-exchange carrier charge. This is not a mandatory fee, and PICC per line can vary wildly. In addition, you can have a “plan fee" or a monthly minimum charge, but be sure to understand all these fees before selecting a plan. Notice I did not discuss the rate per minute. Get these other fees sorted before determining your best rate.
This last category deserves a close inspection.
True, taxes do not amount to much of your bill. But there are so many other items that can fall in here, such as access recovery charges, alternate providers and subscriber line charges. Again, most of these charges are not federally mandated or regulated and consequently can fluctuate wildly. Be sure to know at least an estimate of these fees when considering alternative providers.
In summary, taking a hard look at your telephone bill and meeting with an alternative vendor or a consultant can save your company thousands of dollars annually in telecom expenses.
About the Author
Mike Shelah is a Senior Account Executive with XO Communications. He is a member of the Tech Council's board of directors and is also chair of the Ambassador Committee. He can be reached at 443-340-8029 or mikeshelah@yahoo.com. To learn more about the Tech Council, visit the website at www.carrolltechcouncil.org
