The simplest strategy here is to switch your service to a carrier that does not bill fees per 800 number, or get your current carrier to waive the fees. Like the banking industry, the telecommunications industry earns a significant amount of fee income. If the customer has the right amount of leverage, the average long-distance carrier will waive the toll-free number fees. A customer who has just completed a term agreement with a carrier and is renegotiating a new contract probably has enough leverage to get these costly fees waived.
When negotiating contracts with carriers, it is of the utmost importance that the cost of fees be clarified before executing the agreement. During negotiations, long-distance carriers will usually steer the conversation to discuss discounts and rates. Too many customers have allowed the negotiations to end here. When they get their bill, they may be surprised to see miscellaneous fees increase the bill by as much as 30%.
As could be expected, carriers are never happy about losing business. Most carriers will fight to retain a customer once they receive a change of RESPORG form from a competing carrier. They are not allowed to refuse to give up the number, but they do not have to forfeit the business without a fight. The first tactic is to call the customer directly and try to retain the business. The incumbent carrier may offer lower pricing or other premiums such as a free month of service in an attempt to save the account. If the customer is switching due to poor service, the carrier will probably attempt to resolve the problem.
Beware of the name mismatch game
If none of the tactics mentioned works, the incumbent carrier will play the name mismatch game. Upon receipt of the change of RESPORG form from the new carrier, the old carrier will double-check the exact spelling of the customer’s name. If the names mismatch only slightly, the carrier will refuse to release the number. I have seen numerous cases in which the current carrier had misspelled the company name years ago, and now that the company wants to change carriers, the current carrier will not release the number because of a mismatch.
For example, a company called Dave’s Trucking and Transportation uses Sprint for its 800 service. Dave wants to switch to AT&T, so he fills out the proper forms with the AT&T representative. Sprint refuses to release the 800 numbers because it knows the account as “Dave’s Trucking and Transportation, Inc.”
In an era where mergers and acquisitions cause business names to change frequently, the name mismatch game can be a very effective way for a long-distance carrier to earn an additional 2 months’ worth of billing.
Save money (and hassles) when switching inbound long-distance carriers
When you fill out the RESPORG forms with your new carrier, give the company a copy of your current long-distance bill. This way, the carrier can ensure the name on the forms will match exactly. Better yet, have the company send the bill copy to the new carrier along with the RESPORG form. This may save you up to 2 or 3 months of extended billing with the old carrier, as well as the frustration associated with micromanaging your long-distance carriers.
Showing posts with label 800 number. Show all posts
Showing posts with label 800 number. Show all posts
Wednesday, February 20, 2008
Tuesday, February 19, 2008
Save money by using an 800 number instead of cards
Most telecommunications cost management measures do not require any advanced knowledge of the services or billing. By taking time to review the phone bills each month and apply a little common sense, most people should be able to successfully manage their telecommunications services.
Inbound long distance
Inbound long distance has its roots in AT&T’s WATS, which was more of a bulk pricing service than a sophisticated telecommunications service. Nonetheless, In-WATS service could be used by a business to allow its traveling employees and remote customers to call in for free. The business being called that signed up for In-WATS service paid for the calls. This became a significant competitive advantage for sales organizations that relied on their sales to come from inbound phone calls. Consumers are far more likely to call a business with toll-free service than if they have to pay for the call themselves.
Because inbound long distance requires more of the carrier’s network resources, inbound long-distance rates are slightly higher than outbound long-distance rates. In general, inbound long-distance rates are one cent higher than outbound long-distance rates. As previously mentioned, most carriers charge a monthly recurring fee of $10 to $20 for each toll-free number. The higher rates and fees for inbound long distance ensure that the carrier’s additional costs for this service are covered.
The “ring to” number
When signing up for inbound long distance today, customers must tell the long-distance provider to which number they want the 800 number connected. 800 numbers are virtual numbers. They do not have physical wires assigned specifically to each 800 number. Instead, the calls come in across a regular phone line that is specified by the customer. This number is often called the “ring to” or “pointed to” number.
A small business with five local lines would probably choose to have its 800 number pointed to its main phone number. With a simple phone system, the person who answers the phone may not know if the caller is using the 800 number or not.
Change carriers for inbound long distance
Prior to 1993, if customers wanted to switch long-distance carriers for their 800 service, they would also have to change to a new 800 number. AT&T controlled most of the long-distance market at that time, and its rates were usually 5% to 50% higher than competitors’ rates. If customers wanted to change carriers, they would have to be willing to put up with the hassles involved with changing 800 numbers. If the number was used only by company employees, the change might not have been too cumbersome. On the other hand, if the number was highly publicized and advertised, the potential lost business could far outweigh the cost savings associated with switching to another carrier.
In 1993, 800 number portability was implemented. As a result, customers can switch their inbound long-distance service to another provider but retain the same 800 number. However, a change in the RESPORG must take place. To change carriers, the new carrier requires customers to sign a change of RESPORG form, which is then sent to the old carrier and serves as a request for the old carrier to release the 800 number.
All of the carriers cooperate nationally to keep track of who is responsible for each 800 number. Even local carriers participate, because they may be the RESPORG for a customer’s 800 number that is used only to carry intralata traffic. The carriers usually explain that they must charge a fee for each toll-free number a customer has so they can fund the national toll-free directory and database. The fees per toll-free number may be as low as $1 per month with WorldCom or as high as $50 per 800 number with AT&T’s MegaCom billing.
Inbound long distance
Inbound long distance has its roots in AT&T’s WATS, which was more of a bulk pricing service than a sophisticated telecommunications service. Nonetheless, In-WATS service could be used by a business to allow its traveling employees and remote customers to call in for free. The business being called that signed up for In-WATS service paid for the calls. This became a significant competitive advantage for sales organizations that relied on their sales to come from inbound phone calls. Consumers are far more likely to call a business with toll-free service than if they have to pay for the call themselves.
Because inbound long distance requires more of the carrier’s network resources, inbound long-distance rates are slightly higher than outbound long-distance rates. In general, inbound long-distance rates are one cent higher than outbound long-distance rates. As previously mentioned, most carriers charge a monthly recurring fee of $10 to $20 for each toll-free number. The higher rates and fees for inbound long distance ensure that the carrier’s additional costs for this service are covered.
The “ring to” number
When signing up for inbound long distance today, customers must tell the long-distance provider to which number they want the 800 number connected. 800 numbers are virtual numbers. They do not have physical wires assigned specifically to each 800 number. Instead, the calls come in across a regular phone line that is specified by the customer. This number is often called the “ring to” or “pointed to” number.
A small business with five local lines would probably choose to have its 800 number pointed to its main phone number. With a simple phone system, the person who answers the phone may not know if the caller is using the 800 number or not.
Change carriers for inbound long distance
Prior to 1993, if customers wanted to switch long-distance carriers for their 800 service, they would also have to change to a new 800 number. AT&T controlled most of the long-distance market at that time, and its rates were usually 5% to 50% higher than competitors’ rates. If customers wanted to change carriers, they would have to be willing to put up with the hassles involved with changing 800 numbers. If the number was used only by company employees, the change might not have been too cumbersome. On the other hand, if the number was highly publicized and advertised, the potential lost business could far outweigh the cost savings associated with switching to another carrier.
In 1993, 800 number portability was implemented. As a result, customers can switch their inbound long-distance service to another provider but retain the same 800 number. However, a change in the RESPORG must take place. To change carriers, the new carrier requires customers to sign a change of RESPORG form, which is then sent to the old carrier and serves as a request for the old carrier to release the 800 number.
All of the carriers cooperate nationally to keep track of who is responsible for each 800 number. Even local carriers participate, because they may be the RESPORG for a customer’s 800 number that is used only to carry intralata traffic. The carriers usually explain that they must charge a fee for each toll-free number a customer has so they can fund the national toll-free directory and database. The fees per toll-free number may be as low as $1 per month with WorldCom or as high as $50 per 800 number with AT&T’s MegaCom billing.
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