Bundling can relieve your telecom burdens
Mie-Yun Lee, Editorial Director, BuyerZone.com
June 5, 2001
There's the bill from the local phone service. The bill from the long-distance service.
The bill from your ISP. Your calling card company. Your cellular service company.
Ever notice that half the bills you pay relate to telecom? There is a way, however,
to wipe out this monthly barrage.
Telecom companies have started to bundle multiple services for a lower price and with
a single bill. Over 43 percent of small businesses have bought into bundling so far,
according to a 2000 report by The Strategis Group, a consulting firm based in Washington,
D.C.
In theory, bundling works well because of the convenience. You don't have to cobble
together all your different telecom needs from different providers or keep track of separate
bills. Bundles offered in major metro areas can offer significant discounts - from 10
percent to even 50 percent - over buying services a la carte. Even if prices aren't discounted,
however, the attraction of a single point of contact might be enough to win you over.
The most commonly bundled services include local telephone service, long-distance telephone
service, and dial-up Internet access, with monthly costs typically starting at $25 per
phone line and 500 long-distance minutes. More comprehensive packages may include high-speed
Internet access like T1 or DSL lines, wireless telephone service, calling cards, toll-free
numbers, conference calling, or Web site hosting.
Some bundles can also let you use existing telecommunication lines more efficiently.
If you have more than 12 phone lines, for example, leasing a T-1 line can be a cost-effective
way to scale up to 24 digital lines, which you can use for your phones, toll-free numbers,
and Internet connection, for instance.
So how do you choose a telecom package?
The biggest thing to keep in mind is no single provider can offer you the best price,
service, and support for every item included in your bundle. You will most likely have
to sacrifice something in the name of simplicity.
Start by evaluating which telecom services are critical for your business - low long-distance
rates or a good cellular plan, for example. Most important, be familiar with your monthly
usage patterns, such as how many long-distance minutes you typically use and which geographic
areas you call the most. With Internet access, know what kinds of Web content you're
likely to access and the kinds of connection speeds that requires.
Now investigate providers' terms for your prioritized services, and know beforehand
the shortcomings you can live with. If the provider bundles a higher-priced calling card
with a well-priced nationwide cellular plan, can you stomach paying a little more for
calling cards you'll hardly use?
And ask whether your provider has a single customer service number. After all, calling
different divisions of the same telecom company for a billing dispute or a support question
could be as frustrating as calling multiple service providers.
Bundle up if you want, but don't tie yourself up too tightly just yet. As deregulation
grows and technology develops, your telecom bundling options will continue to improve
while falling in price.