Showing posts with label saving money. Show all posts
Showing posts with label saving money. Show all posts

Saturday, May 31, 2008

Mobile Rate plans - Promotions

Promotions
Wireless carriers regularly set aside funds to offer promotional deals to their customers. Promotions are designed to drum up new business for the carrier and are only for new customers, not existing customers. (Loyalty is rarely rewarded in the telecommunications industry.) If a new customer activates a phone with the carrier, she qualifies for the promotion. Promotions may include the following offers:

Free night and weekend calling for a year;

A free phone;

A free battery;

Free merchandise or gift certificates;

Extra airtime minutes each month.


Promotions are usually advertised on the Internet, on radio, and in newspapers, but you can normally find the latest promotions by calling customer service. If you are an existing customer, you can still request the promotion. Corporate accounts rarely qualify for consumer promotions, but the corporate account executive may be able to pull some strings because the purpose is to retain the corporate account and develop more business from it. Many account executives are skilled in securing preferential treatment for their corporate customers.

Upgrading from analog to digital
In the early days of wireless phones, everyone used analog phones. In the late 1990s, customers began migrating to digital wireless service. Around 2000, the number of digital users equaled the number of analog users, with about 45 million of each type. The two main reasons for this trend are that digital service is higher quality and is more affordable. When digital service was first made available to the public, carriers offered very attractive pricing. The carriers had invested in building their digital networks and were eager to build their customer base.

The downside of switching from analog to digital is that you must buy a new digital phone, your coverage area may be different, and you may have to get a new phone number.

For some wireless users, digital service is not the best option. Carriers offering analog service are still hungry for business and still offer competitive pricing. Of course, the rate plans vary from market to market, but especially in smaller, nonurban areas, analog service rate plans are usually the best. In these smaller markets, digital wireless service only has limited coverage, so a customer’s analog phone might be more useful.

Friday, March 28, 2008

Long-distance virtual private networks

Long-distance virtual private networks
Some businesses transmit data and voice calls across their own private networks such as on a college campus. Because all of the lines on campus are owned and maintained by the college, the college does not have to pay monthly phone bills for these calls. When someone at the college calls someone off campus, the public-switched network is used, and this usage is itemized on a phone bill.

Few organizations can afford to build their own private network, but they can still have some of the benefits of a private network by using a virtual private network (VPN). VPNs use public telecommunications infrastructure, but the carriers often provide more secure, private connections than a normal phone call would experience.

VPNs are used more for data than for voice calls. In today’s market, long-distance carriers will propose to a large client that the carrier be allowed to handle both voice and data traffic. Numerous technical issues must be clarified with the carrier if data traffic is to flow across the VPN. My objective is to explain how long-distance voice calls are affected by a VPN configuration.

VPNs connect all of a customer’s major locations through the long distance carrier’s lines. A location with dedicated T-1 service is an on-network site, while a location with switched service is an off-network site.

Save money with tie lines

Numerous businesses connect their locations with dedicated phone lines so that their computers can transmit data files back and forth. Without a private line, the business would have to send the data across normal phone lines using modems on both ends. If the locations are not in the same LATA, each call will be billed by the minute on the long-distance bill. If the call volume grows significantly, at some point it is more cost effective to pay for a dedicated connection. Private line pricing is based on bandwidth and mileage. To calculate the break-even point, simply compare the cost of a private line to the current cost of the dial-up calls.

A not-so-new trend in long distance is to migrate the voice long-distance calls across the same dedicated connection, as long as the connection can spare the extra bandwidth for the voice calls. In this scenario, the dedicated line is called a tie trunk because it connects two PBXs.

For example, a manufacturer in Maine made frequent long-distance calls to its office in Vermont. The company eventually automated its assembly line and had to share computer data between the two locations. Initially, the computers dialed each other and sent the data across normal phone lines. This became very expensive because the computers were calling each other throughout the day.

The telecom manager decided to install a T-1 line between the two locations to carry both voice and data long-distance calls (see Figure 1). This measure dramatically reduced the company’s costs, but it did not stop there. The Maine location made a large number of intrastate long-distance calls to customers and suppliers within the state. Maine intrastate rates are the highest in the country. In fact, some international rates are cheaper than Maine intrastate rates even though the actual distance is much greater


Figure 1: Tie lines.


To reduce the cost of the Maine intrastate calling, the telecom manager programmed his PBX to route all Maine intrastate calls through the Vermont office first. In doing so, these calls would be billed at the low interstate rate instead of the higher Maine intrastate rate. The call delay for the added mileage is undetected by the end user, for it happens in milliseconds.

Wednesday, March 19, 2008

Save money by moving to dedicated service

When considering moving from switched long-distance service to dedicated service, a simple cost comparison must be done. The up-front installation costs are normally factored in the first year’s numbers. The soft-dollar expenses of the additional time it will take to manage the conversion should also be considered, even though the financial impact is difficult to quantify. The potential cost savings of dedicated service are best illustrated in the following example.

Smith Designs is a young company that sells home decorations through a catalog and a Web site. The business has grown significantly over the past few years, and now the ordering and customer service is handled by a small call center staffed by 20 employees. Smith has always used switched long distance, but the long-distance representative is now proposing dedicated T-1 service. Table 1 shows the cost comparison.


Table 1: Switched Versus Dedicated Rates


Should we install a T-1?

When considering installing a T-1, you should ask your long-distance provider and your equipment provider the following questions:

- What equipment upgrades, if any, does your phone system require?

- What are the costs of these upgrades?

- Will the long-distance carrier cover this expense?

- What is the cost of installation for the T-1?

- Will the long-distance carrier waive this expense?

- What are the new domestic rates? International rates?

- How long will the installation take?

- How soon can the installation be scheduled?

- How much time will pass between the signing of the contract and the T-1 installation?

- Can we schedule the conversion to take place on the weekend?

- How will the conversion be tested?

Save money by removing dedicated service

T-1 monthly recurring costs have declined over the past few years. More and more customers are using dedicated long-distance service because of the tremendous opportunity to reduce costs. Some businesses, however, are doing just the opposite and are canceling their T-1s to cut costs. This is especially true for manufacturers that are closing facilities. When a facility is closed, a skeleton crew of workers remains at the old site for a year or two. They will make fewer long-distance calls and no longer need their T-1. They can instead allow their long-distance calls to be routed across regular local lines.

Save money by moving switched loose lines to dedicated
A common long-distance inefficiency is having switched long distance at a location that has dedicated service. A printing company routed its AT&T long distance across a T-1 for almost 10 years. When it ordered a new 800 number, AT&T’s customer service representative overlooked that the 800 number should be routed across the T-1, so the 800 number rang in on ordinary local telephone lines. Once the problem was discovered, AT&T agreed to redirect the 800 number to ring in through the T-1. This cut the company’s cost for these calls from $0.10 a minute to $0.06 a minute.

Monday, March 10, 2008

Save Money on Telecommunication

Save money with association discounts
AT&T’s Profit By Association (PBA) plan gave it a highly effective marketing tool. A customer who was a member of one of many associations, such as AAA, received an additional 5% discount. The long list of approved associations allowed almost every business to qualify for the PBA discount. The plan was very successful in drumming up new business for AT&T, especially when sales representatives set up a new PBA through the local chamber of commerce.

If your business has no membership in a participating association, consider joining one if for no other reason than to cut your long-distance bill by 5%. One enterprising AT&T account executive in Illinois created his own Secretary’s Association. Any business that has a secretary can join the association by paying only a $10 annual membership fee. Because every company has a secretary, the sales representative was able to offer this additional discount to almost all of his prospects. Similar association plans are available with other carriers.

Save money with international discounts
Enrolling in an international discount plan can be an effective way to cut your long-distance bill. These plans give an additional discount on international calls to one or more countries of the customer’s choice. AT&T’s plan, called the Favorite Nation Option, gives the customer an additional 10% discount on calls to a single country. Other carriers offer a discount on a group of countries, such as Latin America or the Far East.

Save money with referral programs
From time to time, long-distance carriers may offer a referral discount plan. Before LCI merged with Qwest, it offered a Goose Eggs referral program. This program gave a company an additional 2% discount for every company it referred that switched its long distance to LCI. The goal was to refer 50 customers, which would result in a 100% discount. The customer would then receive his bill every month with “goose eggs” in the bill’s amount due section. Other referral programs apply discounts based on the bill volume of the company referred. So if the new customer spends $1,000 per month, the referring customer sees a $50 credit on her bill each month.

Points programs
Some carriers have created their own points programs similar to the airlines’ frequent flier mileage programs. For the past few years, Sprint’s Callers’ Plus Points program has been very successful. For each dollar spent on long distance, a customer earns one Callers’ Plus point. Every 50 points can be applied as a $1 invoice credit, or the points can be redeemed for merchandise from Sprint’s catalog. The catalog contains items such as televisions, hotel nights, and office supplies. The catalog is often an attractive option for a company controller, because merchandise can be secured without using money from a budget.

Participating in this program may be a hassle, but the additional 2% bill credit may make it worthwhile.

Friday, March 7, 2008

Save money by avoiding shortfall penalties

If you are in a shortfall situation, you should contact your carrier immediately. Shortfall revenue is gladly accepted by carriers, but if the customer asks the carrier for relief, the carrier will normally negotiate an alternative. The key is to proactively address the situation before the shortfall charge is billed. The volume commitment can normally be reduced to the next lower level without having to sign a whole new agreement. Some of the discounts may be forfeited, however.

If the shortfall amount has already been billed, it is difficult for the carrier to simply waive the charges and reduce the volume commitment. Usually, the carrier will only waive the billed shortfall if the customer is willing to sign a new agreement with a new term commitment. I have seen customers in their last few months of a 3-year contract experience a shortfall and the only cost-effective way to avoid paying the shortfall is by signing a new 3-year contract. However, in this situation, the customer has little leverage and ends up paying high rates.

Contract value
Contract value is how carriers calculate how much money each customer is worth. Contract value is calculated by multiplying your monthly volume commitment by the number of months remaining on your term. For example, a customer at the beginning of a $1,000 per month, 12-month agreement has a contract value of $12,000. The same customer 10 months later is only worth $2,000 to the carrier. By studying the contract value of the entire customer base, long-distance company financial analysts can predict future revenues.

A customer in a shortfall situation should be aware that his carrier uses the contract value principle to guide him during negotiations. A wise customer considers this same principle when negotiating with her carrier. To clear up a shortfall, your carrier will always require you to increase your contract value. So a customer facing a $10,000 shortfall penalty must sign a new contract that promises the carrier at least $10,000 in future revenue.

Term agreements
Carriers normally offer 12-, 24-, and 36-month term agreements. The longer a customer will commit to a carrier, the greater discount the carrier will offer. The combination of the term agreement and volume commitment establish the discount amount. Table 13.1 illustrates how a typical long-distance carrier structures its discounts.

On national accounts, carriers will normally push for an even longer term agreement, such as 48or 60-month agreements. Ironically, the longer your term agreement, the less attention you get from your carrier. The carrier knows that they have no risk of losing your business in the short term, so they focus their attention on their more volatile customers.

Wednesday, February 20, 2008

Save money on 800 fees

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.

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.

Sunday, February 17, 2008

Long-distance service

Long-distance service consists of three major service types: outbound, inbound, and calling cards. Outbound long distance is what most of us know as direct dial long distance. To complete the call, the caller dials

1 + area code + number

Inbound long distance, also known as toll-free service, refers to a caller dialing an 800 number to reach a business. It is a toll-free call for the caller; the toll shows up on the business’ long-distance bill. Since the finite number of 800 numbers is running out, new numbers such as 888 and 877 are now used for toll-free calling.

Calling cards are most frequently used by callers who are traveling. Rather than use coins in a payphone or cause a charge on a host’s long-distance bill, calling cards offer a caller convenience and itemized billing each month. The complex world of long-distance service is not as baffling if you understand these three categories of any long-distance calling.

How a calling card call works
Calling card long-distance rates are higher than outbound and inbound rates. The cost of a calling card call normally includes a surcharge in addition to the per-minute rate. The surcharge may be as little as $0.15 per call or as much as $2.50 per call for some older cards still in circulation. The surcharge is designed to cover the cost of setting up the call.

During the past few years, the trend is that surcharges are lower or not charged at all. A business today must choose between cards with low rates that have a surcharge, or flat-rate cards that have no surcharge. In general, a business that makes very brief calling card calls should use a flat-rate card. Businesses that make long calls are probably better off with a traditional card that charges a surcharge. On a typical AT&T pricing plan, the surcharge of $0.35 and the cost per minute is the same as the direct dial outbound rate.

Use a discount carrier

The simplest way to cut your costs associated with calling cards is to switch to a discount carrier that specializes in the service. These niche carriers, such as VoiceNet, offer calling card rates that are usually lower than full-service carriers’ rates. VoiceNet advertises heavily in in-flight magazines and uses a wide network of independent sales agents. VoiceNet’s current program is a flat rate $0.149 card with no surcharge, which is one of the lowest rates in the industry.

Occasionally, other discount calling card providers spring up with rates that sound too good to be true. Be careful about doing business with these companies because their actual billed rates may be higher than their actual rates. When choosing a discount carrier, choose a stable carrier that has been in business for more than 2 years.

Once you have chosen the discount long-distance carrier for your calling cards, you should compare the cost. Normally, you can give your current calling card bill to the sales representative who will analyze it and offer a cost comparison. It is a good idea to then do your own comparison.

Prepaid cards
Prepaid calling cards are very lucrative for carriers, which is why they can afford to give them away as gifts so often. These cards are so lucrative because carriers get the revenue from the customer before they actually provide the service. In many cases, the carrier never does provide the service. Calling cards expire, and many are thrown away when they only have a couple of minutes remaining.

Most businesses should stay away from prepaid cards because they hurt cash flows and are difficult to manage. The expense of paying for calling cards before you use them shows up in the company’s books at least 2 months before it would have shown up with traditional pay-after-you-use-them cards. Keeping track of employees who use calling cards is another drawback of prepaid cards. Once the cards are issued, you never know how much they are used because the carrier will not send you a bill that shows the usage.

If you are willing to keep track of all the users yourself, then prepaid cards may be for you. For businesses that use temporary employees or fear their employees will fraudulently use calling cards, then prepaid cards may be the best option.

A few carriers offer a rechargeable prepaid card. ATX, a regional longdistance carrier in the Pennsylvania area, offers a superior rechargeable prepaid card. With rechargeable cards from ATX, a manager can issue cards to traveling employees with a limit, such as $50 per month. If the employee tries to make more calls, he has to call the home office and ask the manager to recharge the card. Rechargeable prepaid cards are very successful in limiting employee abuse and fraud.

Once a perpetrator obtains your calling card number and PIN, he can rack up thousands of dollars in fraudulent billing in just a few days. Using rechargeable prepaid calling cards that have a limit will minimize your risk of being defrauded.

Sunday, February 10, 2008

Saving money by using a customer-owned payphone

Besides using a payphone provided by the local phone company, a business may decide to use a private payphone company, or purchase and install its own payphone. Either way, the principle is the same. Many convenience store chains use private payphone companies such as the People’s Telephone Company, one of the largest private payphone companies.

The private payphone company installs and maintains its own payphone at the convenience store. If the local phone company already has a payphone on-site, which is usually the case, the private payphone company requests that it be removed. The local company will require a letter of agency signed by the site owner prior to honoring any of the private company’s requests.

Once the old payphone is removed, the private payphone company orders a line from the local phone company and physically connects its payphone to the line. All installation costs should be absorbed by the private payphone company. The company should also pay the $40 bill for the line each month.

Before removing its payphone, the local phone company will probably send a sales representative out to the site owner to try to convince him not to change anything. Most of the time it is too late, because private payphone companies usually sign 5-year contracts with their customers prior to contacting the local carrier. Customers considering signing one of these contracts should contact their local carrier first. If the local carrier can offer a similar commission check each month, then the site owner should not change. Local carriers normally offer commissions on coin revenue only, not long-distance revenue.

As expected, the private payphone vendor will pay the site owner a monthly commission on both the coin calls and long-distance calls. To handle all of the operator-assisted calls and long-distance calls, the private payphone company contracts an OSP, such as AT&T, Sprint, or Opticom, one of the leading independent OSPs.

Saturday, February 9, 2008

Saving money on semipublic payphones

In many states, a site owner does not have to pay for a semipublic payphone. There are varying definitions for the term, but usually semipublic means the payphone is accessible to the general public. The classic example is of a payphone at the back of a loading dock. Even though the loading dock itself may close for business at 5 p.m., the payphone is still available for someone walking by. In this example, the business should be able to get the local phone company to stop charging it for the payphone each month. On the other hand, the phone company may just decide to remove the phone at that point.

Saturday, January 19, 2008

Saving money on local calls by changing class of service

Reviewing the class of service for your local lines is an integral part of a telecom audit. Businesses can change from flat-rate service to measuredor message-rate service. Certain types of business are key candidates to change their service.

For example, a telemarketing company whose calls are all long distance should switch from flat-rate service to measured-rate service. Its line charges will be lower with measured-rate service and, because the telemarketing company makes minimal local calls, the charge for usage will be lower. Flat-rate service is better for a business with a lot of local calling.

Table below shows the cost comparison of a telemarketing company that switched from flat-rate to measured-rate local service. The telemarketing company has 50 lines, and each line averages only 60 minutes of local calling each month. In this example, the customer can save more than $5,000 per year by making this change.



This strategy does have a caveat. The phone bill for flat-rate local service does not give a summary of the local calls. Therefore, the customer does not know exactly how much local calling it has done. I have seen one business switch from flat-rate to measured-rate service only to find its costs increase by $800 per month. The company was unaware that its local calling was so high. Unless you are sure your local call volume is low, you should first find out exactly how much local calling you have. This can be accomplished by having your local carrier perform a traffic study. Your telephone equipment may also be capable of tracking the volume.

When considering changing the class of service for your local lines to reduce the cost of your local calls, the following items must be included in your cost comparison: number of local calls, duration of local calls, and the difference in the cost of the lines.

Off-peak calling

A low-tech way to cut the cost of your local calling is to use lower off-peak calling rates. This works especially well if you have a great deal of computer modem traffic. If you do not use dedicated data lines, then your computer modem calls are billed as regular voice calls. If you have a significant amount of modem traffic, consider changing the time that you transmit the data to be evening off-peak calling. Phone companies offer reduced rates at night to encourage callers not to flood the network during peak hours.

Local calling packages
As in the case with Bell Atlantic’s ValuePak calling plans, some local carriers offer discount local calling plans. A good rule to follow when auditing local bills is that anytime you see calls billed according to measured usage, there may be a less expensive way to have the calls billed. A quick phone call to the carrier is all you need to find out what options you have. If the carrier has no discount plans for local calls, consider eliminating the calls altogether by switching to flat-rate service.

Some local calling plans offer a discount each month, such as 10% off, while other plans simply offer lower per-minute calling rates. The impact of the plan is usually fairly simple, but the plan’s design may be puzzling. Consider Bell Atlantic’s ValuePak plan that has been offered for years in Pennsylvania. The plan allows you to purchase “Paks” of local calling at a reduced rate each month. For $13.80, you get a calling allowance of $18. If you use more than your allowance, the rest is billed without a discount. If you use less than your allowance, you are still billed $13.80 per month. Higher volume users usually add multiple ValuePaks but are limited to one Pak per line on the account. Table 6.3 compares a customer’s $100 cost with and without ValuePaks.



As illustrated on top, the customer can save $21 per month by adding five ValuePaks. I have also encountered numerous customers that pay for ValuePaks but have no local calling. Either their calling habits changed or they moved their local calling traffic to another carrier. If they do not cancel the ValuePaks, they will continue to make a donation to Bell Atlantic every month.

Using local call volume to secure discounts
Some discount plans offered by LECs do not offer lower rates for local calls, but they do allow the local calling volume to contribute to the overall volume. As with most telecommunications pricing, the greater your volume, the greater your discounts.

For example, a customer who signs up for Ameritech’s Complete Link plan with a 12-month term and a $500 monthly volume commitment receives lower rates for intralata calling and a discount of 4% to 5%. The discount is applied to monthly service, local calls, and intralata calls. While the local calls do not directly receive a reduced rate, the local calling volume may be significant enough to allow the customer to qualify for the next discount tier. Table below shows an example of the Complete Link plan.