| Know what costs to reduce -Reducing costs is | | | | example where the headline rate for a local call is 1.5p |
| sometimes just a percentage game with a focus on | | | | per minute. Now with a 1p minimum call charge a 20 |
| the areas of main expenditure. A 25% saving on an | | | | second call will cost 1p or double the advertised rate. If |
| £60,000 telecoms bill is more important than | | | | calls are rounded up to the nearest minute the cost will |
| working towards a 50% reduction on a £4,500 | | | | be 300% more than expected. In addition, 30% of |
| spend on vending machines. | | | | business calls are below 30 seconds and nearly all |
| Length of Contracts - Signing a contract for 1-3 years | | | | business calls are under 2 minutes. What impact are |
| is good for the telecoms company as reductions don't | | | | these two areas going to have on your telephone bill? |
| have to be passed on and customers cannot benefit | | | | Capped Calls - Another minefield. With most business |
| from moving to a lower cost provider. Also, if there is | | | | calls of less than 2 minutes duration, these calls would |
| a 3-month notice period, who at your organisation will | | | | be considerably more expensive on a capped call |
| send out the letter to the telecoms company? | | | | tariff. Some major providers have a 7p call set-up |
| Know what you can achieve - People are busy. Who | | | | charge for calls to mobiles plus a per minute rate of |
| will be responsible for reducing costs? It may be more | | | | 10p. So therefore a 1 minute call on this capped call |
| efficient to hire an expert who works to a tight | | | | tariff would cost 17p or a 30 second call would cost |
| deadline and is motivated to deliver real results. | | | | 12p, considerably more than they would cost on a |
| On-going monitoring - Measure the future savings as | | | | standard per minute tariff. 90% of businesses on |
| initially, any new supplier knows that they must | | | | capped calls tariffs are paying much more than they |
| perform. The key is to check that after the | | | | should be paying. |
| 'honeymoon period' prices do not creep up whilst | | | | Line Rental - This can now be easily reduced by |
| service levels fall | | | | between 10% - 25% |
| Did you know that telephone costs can often be cut | | | | Calls to expensive 0870 numbers - Sometimes |
| by as much as 40% - this is even where another | | | | inevitable but there are numerous ways with which |
| telecoms company is being used. | | | | you can reduce this unnecessary expense. |
| Calls to Mobile - Another major area with approx 62 | | | | 1. Ask the company for their ordinary local number in |
| million mobiles currently in use in the UK. These cannot | | | | case you need to call them from abroad. |
| be avoided and often account for over 50% of the | | | | 2. Look at your phone when they call you. If you have |
| monthly call spend. However, rates are falling - in | | | | caller display, their real number might show up. |
| October 2004 there was an OFCOM imposed tariff | | | | 3. Look up their number in BT's online directory |
| reduction and there will be more in the future. | | | | enquiries or on their web site or on Their real number |
| Competition is also causing telecoms providers to cut | | | | might just be listed. |
| their margins. | | | | 4. Go to An excellent site listing many company's |
| Minimum Call Charges and Rounding - Take an | | | | alternative numbers. |