Here are six telecom pitfalls that your business can avoid this year that will drop more money to your bottom line:

1.  30 DAY WRITTEN NOTICE:

If you are planning to change telecom carriers, you may think that you should wait to notify your current carrier until after the switch over.  However, many carriers have a clause in their contracts that require the customer to give them a 30 day written notice prior to the discontinuation of service (even if the contract is expiring).  This means that if you wait until after the cutover to your new service provider, you will be billed for an additional month of service (essentially double-billed).  To avoid this situation, check the provisions in your current contract and make sure you provide the necessary notifications.  Also, don’t be surprised if you are contacted by an account manager from the carrier to try and “save” your account during this 30 day period.    

2.   AUTOMATIC RENEWALS

According to their contracts, some telecom carriers will automatically renew your existing contract at the same rates for the identical term.  That can often be a problem, because the current rates may be less than they were two or three years ago when you originally signed up for the services.  For example, an average T-1 today might sell for $100-$200 less than it did just 3-5 years ago.  Once the contract is renewed, you may not be able to get the lower rates or move to another carrier without paying penalties.  If a carrier that you want to use has such provisions in their contract, it is important for you to review the contract approximately 6 months prior to the expiration 

3.  LONG DISTANCE SLAMMING 

Most carriers do a good job of preventing unauthorized changes to your long distance carrier, but unfortunately it still happens more often than it should.  Many times the offending providers will call into a business and get an unsuspecting employee to give a recorded verbal authorization.  Often the sales pitch is misleading and confusing to the untrained employee.  The best defense to check your invoices on a monthly basis and notify your carrier or managed service provider of any changes.    

4.  RANDOM THIRD-PARTY CHARGES

I always tell my clients to review  their bills monthly.  One of the main things to look for are third party charges. They may appear for things like:  Long Distance, Internet Charges, Directory Listings, etc.  It’s very similar to checking your credit card statements every month. If you notice an unexpected or unauthorized charge on your statement and you contact your carrier or managed service provider right away, you can usually get it removed.  In unfortunate extreme cases, I have seen customers pay these charges for years not knowing what they were.  If you are not sure about something, it is always easier to ask your carrier or managed service provider right away.  

 5.  BILLING ERRORS

If your company has dramatic changes in variable charges like long distance, conference calling, or usage-based Internet Access, it can be difficult to tell if your invoice is higher or lower than it “should” be.  As I mentioned earlier, it is important to review your invoices on a monthly basis.  Carriers do make errors and occasionally fat-finger charges on your invoices.  My recommendation is to compare your contract with your invoice to make sure the base numbers match up with one another.  If you have questions about the two, you should ask your carrier or managed service provider to help explain what you are seeing.  

6.  CHECK YOUR EARLY TERMINATION PENALTIES

If you are considering switching to another telecom provider to save money or to seek better service, I would advise you to review your current contracts.  Most providers have early termination penalties that range from 50-100% of your remaining services.  That means that if you currently spend $1000 per month with a carrier and have 12 months left on your current contract, you would have an early termination penalty of $6,000 to $12,000.  If you are unsure about the expiration dates and termination penalties for your existing contracts, I would recommend that you contact your carrier or agent to review your options.      

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