South Florida Hospital News
Friday May 14, 2021

test 2

April 2015 - Volume 11 - Issue 10


2 Things You Must Know About the Telecom Industry

A contract with your telecom carrier usually lasts 3 years. Since you’re contractually obligated to pay a pre-determined rate, your carrier’s goal isn’t to proactively find you the lowest rates. Their job is to keep you paying what you’re paying and entice you to sign up for more products and services along the way.
If your carrier isn’t accountable for keeping your costs down, who is? The fact of the matter is that the responsibility to keep your expenses down falls on your organization.
We know from experience that a few phone calls with your telecom representative could save your organization tens of thousands of dollars a year.
An important concept to understand is the difference between acquisition pricing and retention pricing.
Acquisition pricing is the discounted pricing that a carrier can offer as an incentive to get you to sign a new contract with them. This introductory pricing usually lasts between 12-18 months, or approximately halfway through your contract.
Retention pricing is the long-term price you end up paying your carrier once the initial offer has ended. Retention pricing is rarely as competitive as acquisition pricing and almost always significantly increases your annual spend.
Carriers assume that you’ll continue paying the retention pricing for many years because you’re satisfied with the service, or simply because of the work it takes to switch to providers. If you can get your telecom provider to realize that you don’t plan to continue paying retention pricing you can usually get them to sweeten the deal.

Ken Reda, Managing Partner, Profit Advisory Group, leads the Operations & Audit teams at PAG. He loves to save you money and prides himself on finding savings other auditors miss. You can download PAG’s newest resource – Telecom Expense Management for Hospitals – at 

Share |