Telecommunications Cost Management

by Yarberry, Jr.; William A.

• ISBN13: 9780849311017
• ISBN10: 0849311012
• Edition: 1st
• Format: Nonspecific Binding
• Copyright: 2002-09-17
• Publisher: Auerbach Public

Summary

Most telecom books focus on either traditional telecom billing audits or pure technology, with the cost saving ideas buried deep in the text. Busy decision-makers need the specifics quickly, without having to plow through details that do not affect the economics of a project. Telecommunications Cost Management takes cost saving techniques and brings them to the forefront where managers and decision makers can quickly use them for real world cost reductions or efficiency gains. Traditional bill auditing texts provide recommendations but only within the context of the existing architecture - for example, they might highlight techniques for reducing circuit switched leased lines but omit the pros and cons of leased lines versus alternatives. Telecommunications Cost Management provides a blueprint for cost reduction across all major technologies - from frame relay to IP telephony to contract recommendations. The text presents the key facts up front, with sample calculations for broadband, local access, equipment, and service alternatives. It provides scenarios showing the effects of different architectural strategies for both voice and data communications. Intended for the busy decision-maker, this reference eliminates the need to wade through unnecessary details and guides the reader directly to the cost saving techniques.

Table of Contents

Introduction to Telecommunications Cost Management	1	(8)
How to Reduce Telecom Expenses (The ``Cliff Notes'' Version)	2	(1)
Why Telecom Costs Are So Difficult to Manage	3	(1)
Drivers for Customer Demands	4	(2)
Carrier Challenges	6	(2)
Summary	8	(1)
Vision	9	(18)
Develop a Cost Management Vision	9	(4)
How Do Organizations ``Make It Happen''?	10	(1)
Looking for the Quick Fix	11	(1)
Special Needs and Groups within the Organization	12	(1)
Incidental Revenue	13	(1)
Preliminary Information Gathering	13	(2)
Getting the Numbers --- First Cut	15	(5)
Sample Reports and Forms	18	(2)
Summary	20	(7)
Telecommunications Auditing	27	(32)
Reasons for Telecom Bill Discrepancies	28	(4)
Telecom Service Providers	28	(1)
Overly Aggressive Competitors	28	(1)
Business Customers	29	(3)
The Telecom Service Ordering Life Cycle	32	(1)
Two Approaches to Paying Bills	33	(1)
Components of a Telephone Bill	34	(3)
Sources of Billing Information	37	(1)
Getting Down to the Details: Audit Steps	37	(18)
Review Contracts	38	(1)
Obtain Raw and Summarized Data	39	(2)
Findings Analysis	41	(14)
Summary	55	(4)
Wide Area Networking	59	(46)
Wide Area Network Technology Options	59	(13)
Frame Relay	59	(3)
Voice Communications Networking	62	(1)
Virtual Private Network (VPN)	63	(3)
Wireless Options	66	(6)
Wide Area Network Review Methodology	72	(32)
Step 1: Organize and Plan	73	(2)
Step 2: Gather Information	75	(2)
Step 3: Assess the Quality of Data	77	(4)
Step 4: Categorize and Prioritize Circuits	81	(1)
Step 5: Manage Scope of Work Changes and Issues	81	(1)
Step 6: Consolidate Billing and Circuit Data	82	(2)
Step 7: Initiate a Circuit Utilization Analysis	84	(6)
Step 8: Realize Savings	90	(5)
Step 9: Reconcile and ``Baseline'' Circuit Inventory	95	(4)
Step 10: Assess Processes	99	(2)
Step 11: Maintain the Gains	101	(3)
Summary	104	(1)
Architecture and Local Access Strategies	105	(16)
Voice-over-IP: Premises Equipment	105	(8)
The Centrex Alternative	109	(1)
Small Offices and SOHO Markets: Key Systems versus PBX	110	(2)
The Dreadnoughts: Enterprise Class PBXs	112	(1)
Local Access Strategies	113	(1)
Maximizing Traditional Access Circuits	113	(1)
Miscellaneous Technical Solutions	113	(7)
Digital Subscriber Line (DSL)	114	(3)
Cable Modems	117	(1)
Other Technology Cost Savings	118	(2)
Summary	120	(1)
Satellite Communications: Large Savings for the Right Applications	121	(10)
Basic Satellite Technology	122	(2)
Risk Areas for Satellite Communications	124	(1)
Controls to Improve Resiliency, Reliability, and Security	125	(3)
Other Concerns	128	(1)
The Future for Satellite Technology	129	(1)
Summary	130	(1)
Telecommunications Security	131	(14)
Voice and Telephony Security	131	(9)
Toll Fraud	132	(5)
Business Loss Due to Disclosure of Confidential Information	137	(1)
Malicious Pranks	138	(1)
Using Security Tools to Offer More Services	139	(1)
PBX Firewall	140	(2)
Savings Potential Using PBX Firewall	141	(1)
VoIP (Voice-over-IP) Security	142	(1)
Summary	143	(2)
Telecommunications Tax Minimization Strategies	145	(6)
The Telecom Federal Excise Tax Refund Opportunity	146	(2)
Ancient History	146	(1)
Details of the Opportunity	146	(1)
How the Refund Works in Practice	147	(1)
Summary	148	(3)
RFPs, Contract Optimization, and Outsourcing	151	(12)
Throwing It over the Fence: Outsourcing	152	(1)
The Telecom Procurement/Contract Review	152	(4)
The Request for Proposal/Request for Quotation	156	(1)
Creating the RFP/RFQ	156	(1)
Evaluating Vendor Proposals	157	(1)
Scoring Model for Vendor Proposals	157	(3)
Outsourcing	160	(1)
Summary	161	(2)
The Future	163	(158)
Regulatory Changes	163	(1)
A World Lit Only by Packets	164	(1)
Keynes Was Right	165	(1)
Storage Virtualization	165	(1)
General Trends	166	(1)
Summary	167	(2)
APPENDICES
A Telecommunications Cost Management Checklist	169	(6)
B White Papers from QuantumShift	175	(14)
C Summary of Communications Tax Regulations, United States Internal Revenue Service	189	(6)
D Web Sites of Interest	195	(10)
E Sample RFP Template	205	(12)
F Sample Contract Terms and Conditions for a Complex Telecommunications Development Program	217	(18)
G Billing-Related Telecom Concepts and Telecom Glossary	235	(22)
H Audit Program for Telecom Cost Management Field Work	257	(64)
About the Authors	321	(2)
Index	323