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Telecom Experts Advise Businesses to Make Long Distance Contingency Plans, Offer Tips to Shield Against Service Disruptions
Experts from The Michael Group, which offers telecom compliance audit and contingency planning services, offer tips to help businesses maintain telecom services continuity amid today's services provider turmoil and market uncertainty.
OKLAHOMA CITY, March 1, 2003 -- Amid the continued swirl of telecommunications-industry consolidation, divestitures, bankruptcies and uncertainty about the financial stability of leading long distance providers,experts recommend that businesses take proactive steps during 2003 to minimize the risk of potential service disruptions.
Telecom industry analysts and bankruptcy attorneys monitoring today's shaky market do not paint a rosy picture for businesses without a contingency plan, according to Larry Treas, president of The Michael Group, which offers telecom compliance audit and contingency planning services to businesses whose communications are mission critical. (1-800-749-1331)
"If any major carrier exits the long distance business, for example, there would literally be a stampede of customers forced to switch providers on short notice," Treas explains. "Because of the complexity of most companies' telecommunications networks today, it would be impossible for the remaining providers to process new orders fast enough for everyone to remain in service."
Leading telecom analysts and other industry insiders commenting on the evolving long distance scenario at a recent Society of Telecommunications Consultants (STC) conference in Nashville, Tennessee, advised that businesses learn everything possible about their current network services.
This will help them quickly switch to an alternate long distance services provider should any of the major carriers declare bankruptcy. "Research indicates that a contingency plan gives you the agility to switch providers two to five months faster than otherwise possible," Treas says, "which could translate to thousands of dollars in savings. The best posture businesses can adopt this year to minimize risk is to get professional help in determining what services they have from what providers and to formulate a fast migration strategy in the form of a telecommunications contingency plan."
Treas recommends two required elements for an effective contingency plan:
| | - Start with a complete, accurate inventory of all telecommunications facilities and services at all company locations.
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| | - Work with a reputable telecommunications compliance auditing specialist to get a detailed historical audit of the existing long distance contract.
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"The contract audit should include terms, conditions, per-minute rates and volume commitments from contract signing to present, resulting in an accurate benchmark for informed negotiations with any new providers," Treas advises.
FCC's 30-DAY RULE DEMANDS SWIFT CUSTOMER ACTION
New service order bottlenecks could occur because the Federal Communications Commission Code of Federal Regulations Title 47 pt. 63 requires long distance carriers filing for bankruptcy to give their customers 30 days' notice before shutting off service.
Treas cautions that, because there have been instances where providers clearly headed for bankruptcy failed to provide customer notification, businesses should be prepared in advance because 30 days is not enough time to transition most of today's telecommunications services without interruption.
Although the FCC regulation is designed to protect customers from continuing to accrue bills with an insolvent company, it puts those who don't have a contingency plan in jeopardy of waiting in long lines for replacement services.
"As anyone who orders PRI and other broadband services, wide area networking services, special circuits or any 'designed' service knows, the typical turnaround time can be weeks to months," Treas says. "Thus, if a federal regulation suddenly affects tens of thousands of businesses, it is clear that many could be financially devastated by waiting indefinitely for new service."
Treas stresses that telecommunications contingency planning should be viewed as a business necessity considering the increased prevalence of telecom provider financial instability, global terrorism, corporate sabotage, natural disasters and other factors that can severely disrupt internal and external communications.
"Surprisingly few telecommunications managers actually maintain an accurate voice and data services inventory or know what they're truly paying for telecommunications services, which is a precarious position to be in during times of uncertainty when a quick switch for any number of reasons could be necessary," Treas says.
ABOUT THE MICHAEL GROUP
Founded in 1985, The Michael Group is a vendor-neutral information technology consulting firm that helps enterprises optimize their information technology investments, communicate more efficiently and save money in an era of rapidly rising costs. Its experts combine best practices in IT-based communications solutions with technical expertise and uncompromising standards. For more information, visit http://www.michaelgroup.com .
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