Telecommunications Is Alive, Well And Confusing

By Thomas Kern



Ask any business owner to name one facet of his or her business that is so critical, yet so confusing, and the answer is simple-telecommunications. The unleashing of competition to this industry was intended to create options and benefit the consumer, but what has been created is something we refer to as "confusology."

In its noun form, it refers to the condition created by the suppliers of telecommunications products and services. It's the condition of not really knowing what's best for your business-but you've got to have it. It's the condition of being at the mercy of the salesperson-of-the-day who, by the way, is subject to the same condition and is driven by the highest commission incentives on the street.

It's the art of creating the condition, whether purposeful or by accident. It's the art of making you wonder about 5 cents per minute rounded to the nearest minute versus 6.9 cents per minute in six-second increments, the special hours for nights and weekends and when is the best time to call Aunt Sophie in Miami. It's the condition that has led many to call long distance from within their homes on their mobile phones, while corded and cordless phones gather dust.

Confused? That's because you are an unwitting victim of confusology.

So what does this mean when you are attempting to run your business in a highly competitive marketplace? It means that it's very difficult to determine whether you've got the right mix of telecom products and services to meet your needs best and at the best prices possible. Most companies live and die by their ability to communicate with customers, suppliers, staff and branch offices. Not very many consider the cost of such ability as the most important item on their income statement. As a consequence, for decades, companies have ignored the "telecom expense" line. They've accepted whatever accumulated there as simply the cost of doing business that grows with the business. In today's world, there is significant opportunity to manage this expense, cut costs and increase the profitability of your company.

The world of long distance has been in a state of flux for the longest period of time. As companies battle for market share, the ability for the average business person to reduce costs becomes imperative. If you don't take advantage of the marketplace offerings, then your overhead will not decrease. Conversely, if you change to a low-rate provider, you may be mired in service interruptions and billing fiascos that can cripple your productivity.

The first step in capitalizing on this market is one of mindset. It is imperative to think of long distance as a pure commodity service. Many carriers are merely resellers of the larger carriers, so the billing name may change, but your calls still travel over the same carrier you used prior to making a switch.

The second thing to realize is that technology will make the sale of voice cheaper over time. The nation's infrastructure was terribly over-built in the late 1990s capital expenditure spree, and carriers will sell service at cut-rate levels to maintain capacity across the nation's fiber networks. In addition, IP telephony has evolved to be a formidable alternative to the traditional voice options. The bottom line is do not get caught up in any long-term commitments. By the time the ink dries on the contract, there will be another alternative on the street.

The world of mobile telephony has evolved from an exclusive corporate luxury to a staple necessity for the American family. This method of communication is critical to success in today's world. Wireless carriers have grown their business with a constantly changing version of "confusology."

Buying a mobile phone is similar to the confusion of buying an automobile-there are too many choices available, and the slickest sales tactic usually wins. Multiple carriers, multitudes of rate plans, options and features lead many to throw in the towel and buy from the carrier that has the least number of complaints among their circle of influence. Once the purchase is made, the user must be vigilant to stay on top of the changing rate plans, pooling options and secret codes to understand their bills. No matter what carrier and plan you select, there's always a better one available next week.

Much like the advice given earlier, avoid long-term service contracts, and stay on top of what your contracted supplier has to offer. Usually there is no penalty for changing plans within a carrier, but don't expect the carrier to call you proactively and offer the best solution to fit your usage patterns. Granted, the market competition has lowered overall rates, but this expense must be carefully monitored before it has a negative impact on operations expenses.

We haven't even touched upon the wonderful world of competitive local services-that is another headache (and article) to address.

The critical point is that there are a multitude of options available, and that technology is constantly changing. There can be significant cost savings for those who pay attention and take advantage of the marketplace. Just remember, confusology is contagious, and it may be best to see a specialist before it runs rampant through your business.



Thomas Kern is a business optimization specialist with Schooley Mitchell Telecom Consultants in Ellicott City. He can clear up your case of confusology at 410-203-0109 or at Thomas.kern@schooleymitchell. com.