Service providers benefit from the confusing nature of telecom billing, and the end result is your business paying more than it needs to for services it may not even be using. Reliable internet and phone service grant peace of mind; however, this often results in businesses not properly scrutinizing their phone bills.
Sunco has been navigating the murky waters of telecom billing for nearly 20 years now, and we’ve compiled a list of the top five things to watch for on your business phone bill. Examine it closely! What’s there could affect your bottom line.
1. Auto-Renewal Announcements
Buried in the fine print of your business telecom contracts are auto-renewal conditions. Easily overlooked, auto-renewal terms can be for up to five years, and it’s unlikely your providers will allow you to back out once locked in.
Businesses are on the hook once auto-renewal kicks in, while service providers effectively hold their business telecom clients hostage with little recourse but to go along with a potentially unwanted new term or ask for leniency telecom providers seldom give.
Sunco recommends that businesses be proactive in their contract negotiations with service providers. You are in the driver’s seat when it comes to auto-renewal clauses!
- Ask your providers to remove auto-renewals from business telecom contracts before you sign.
- Ensure terms do not exceed three years.
- Even if your services presently include auto-renewal clauses, contact your providers to remove them from your agreements. You can do this even one or two years into the term.
2. Old Services
Over time, as your business migrates from one service to another, it is easy to forget to disconnect old services.
Rest assured though: business telecom providers will not forget to bill you. The aforementioned auto-renewals exacerbate the problem, and you may soon find yourself committed to years of additional services your business no longer needs.
It’s alarming enough to find these charges on your business telecom bill; attempting to stop these services is a whole other matter. Cancellation fees can be excessive, from a couple hundred dollars to hundreds of thousands.
“You may soon find yourself on the hook for years of additional services your business no longer needs.” — Cedrick Leblanc, Director of Sales
Telecom providers may allow some leeway for loyalty, but they will not often go back on auto-renewals or cancellation fees for old services. It’s best to keep on top of what services your business no longer needs and cancel them promptly.
3. Non-Bundled Pricing
Like home service, business telecom bundles are a source of potential (and sometimes significant) savings. And like home service, bundles are not always apparent. Service providers are unlikely to contact their business customers about them.
Take long distance service as an example: if your business subscribes to month-to-month long distance service without a bundle, you can pay upwards of 34 cents per minute.
Individual services each may incur individual administration or activation fees, while bundled services often do not. These individual fees can add up on your business telecom bill, so bundling services leads to significant cost savings.
4. Orphaned Services
Orphaned services are services left at or tied to an old location, such as a closed office.
Preparation is key when managing changes to your communication system during a move or downsizing, but while reviewing and cancelling old and orphaned services at these times seems like a no-brainer, businesses are often afraid to cancel these services for two big reasons:
- They are not entirely certain if they’re still using those services in some capacity.
- They do not know precisely what it is they are cancelling and worry that they may be cutting off a necessary service that costs more to reinstate later.
The Sunco team can help answer these questions. Call us today!
5. Fibre-Based Services
Fibre optics is the future of business telecom, but many businesses assume only their incumbent service provider offers fibre. Businesses, therefore, don’t shop around, even though there are resellers that offer fibre optics for cheaper than upstream providers.
This is why you want a broker like Sunco auditing your telecom billing, to determine what services your business needs and the best possible price to pay.