VDL Consulting: Telecom Optimization: Organize - Optimize - Cut Costs

Telecom Optimization • Case Studies


Medium-Sized Business
SITUATION

  • 35-office Residential and Commercial Real Estate Brokerage with corporate offices and over 1,500 phones across the enterprise.
  • Local and Long Distance service via hundreds of Centrex and Analog single-line services with some Digital T-1s. Data and Internet provided via various Cable, DSL or Dial-Up services.
  • Service spread across multiple carriers with multiple invoices per location (AP dept. receiving over 100 invoices monthly).
  • Contractual obligations mostly unknown.
  • Total monthly expenditure $24,000.

MANAGEMENT OBJECTIVES

  • Management realizes the area is out control and they don’t know what they are paying for every month. They want to (1) get the area organized and under control (2) reduce costs if possible (3) improve Data service speed and reliability (4) minimize the number of invoices received monthly.

RESULTS

After completion of audit including service inventory, contract review, assessment of all services, review of business needs and completion of bidding process involving multiple carriers:

  • All phone numbers retained and services consolidated with one carrier for Data and Local Voice service and one carrier for LD. Each carrier providing a single monthly bill.
  • Implemented Fractional T-1 services enabling provision of Digital Voice lines and Data services on a single T-1 at each location. Provided added benefit of DIDs for direct-dialing capability.
  • Implemented business-class data service providing fast, dedicated and reliable data service.
  • Current/competitive pricing obtained and locked-in with minimal contractual commitment.
  • Eliminated numerous unused lines and dozens of surplus lines through traffic and needs analysis.
  • Obtained over $20,000 in refunds for 12 months of service on two T-1s that were previously cancelled but still being billed.
  • Established database of services with costs and contract dates which client uses to manage area going forward.
  • Total Savings:

Pre-Audit Annual Spend ……… $ 288,000
Post-Audit Annual Spend ……. ($ 230,400)
Annual Savings ……………..  $   57,600 20%

Small Business

SITUATION

  • 27 room boutique motel with management office and a total of 29 phones.
  • Service spread across two carriers: Integra and AT&T.
  • Contractual obligations unknown.
  • Total monthly expenditure $800.

MANAGEMENT OBJECTIVES

  • Owners did not understand their invoices and were:
    (1) concerned they were paying for more service than they need and,
    (2) wondering if they could be getting better pricing.

RESULTS

After completion of audit including service inventory, contract review, assessment of all services, review of business needs and completion of bidding process involving multiple carriers:

  • All phone numbers retained and services consolidated with a single carrier providing a single monthly bill.
  • Original carrier (Integra) retained, minimizing installation cost and avoiding possible disruption involved with changing carriers.
  • Current/competitive pricing obtained and locked-in with minimal contractual commitment.
  • Eliminated 10 unused Data trunks and reduced per-line rates for Voice trunks.
  • Total Savings:

Pre-Audit Annual Spend ……. $ 9,600
Post-Audit Annual Spend ….. ($ 4,512)
Annual Savings ……………. $ 5,088 53%
Small Business
SITUATION
• 27 room boutique motel with management office and a total of 29 phones.
• Mixture of Digital T-1 and single-line services for Local and Long Distance:  16 Voice trunks/lines, 10 Data trunks.
• Service spread across two carriers: Integra and AT&T.
• Contractual obligations unknown.
• Total monthly expenditure $800.
MANAGEMENT OBJECTIVES
Owners did not understand their invoices and were:
(1) concerned they were paying for more service than they need and,
(2) wondering if they could be getting better pricing.
RESULTS
After completion of audit including service inventory, contract  review, assessment of all services, review of business needs and completion of bidding process involving multiple carriers:
• All phone numbers retained and services consolidated with a single carrier providing a single monthly bill.
• Original carrier (Integra) retained, minimizing installation cost and avoiding possible disruption involved with changing carriers.
• Current/competitive pricing obtained and locked-in with minimal contractual commitment.
• Eliminated 10 unused Data trunks and reduced per-line rates for Voice trunks.
• Total Savings:
Pre-Audit Annual Spend $ 9,600
Post-Audit Annual Spend - $ 4,512
Annual Savings $ 5,088 53%


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