Award winning benchmarking, sourcing and transformation advisory firm, Alsbridge,
Inc., today announced a new report - The Expensive Truth About Your
International Network Contract.
Through the convergence of Voice and Data brought on by MPLS services,
Data networks now represent most companies' largest telecom expense category.
Interestingly though, a large component of this spend is often ignored when
negotiating WAN networking contracts. According to the report by Alsbridge,
no carrier has the ability to truly be able to provide enterprises with full
end-to end service entirely on their network. Instead, they purchase these
circuits from local in-region PTTs, incumbent telcos and competitive providers.
The telecom carriers have for some time proffered the notion that the rates
charged for these local access loops represent merely a pass through charge for
them. This is hard to believe coming from a group that charges surcharges for
everything from their cost of collecting and remitting USF to their real estate
taxes. That said, even if they are taken at their word, there is still a large
area of potential, and based on Alsbridge analysis real, cost variance
here.
“In your networking contract, require that your telecom carrier conduct access optimization
on an annual basis,” advises Alsbridge CEO, Chip Wagner. “Their network reach
in foreign countries is always changing and a year or two later may allow for
shorter more logical loops.” In addition, the more open international markets
see natural price compression from competition much the same as the US does. “Make
sure that you've got install charges waived and circuit term minimums of 12
months or you may not be able to take advantage of these cost savings,” adds
Dieter Thompson, President Alsbridge. Finally, check on the availability of
Ethernet Access in international locations. Ethernet availability is greater in
most countries than here in the US and is usually more cost efficient.
For further details access the complete report The
Expensive Truth About Your International Network Contract.
About
Alsbridge Inc.
Alsbridge is a global consulting firm that helps companies transform and
optimize the way they purchase, manage and leverage technology and business
processes. We have over 175 team members on 4 continents serving
over 200 clients a year including more than 40% of the Fortune 500.
Alsbridge has helped hundreds of companies reduce costs and get more value from
their vendors. Our experienced consultants leverage proprietary tools and
information databases to identify and engage the optimal vendors for your situation,
negotiate best practice terms at fair market prices, and improve the way you
work with your service providers. Alsbridge clients utilize the most cost
effective and value added sources globally for IT infrastructure services,
network carrier services, hardware and software, application support and
development, business processes and cloud services.
EDITORS/WRITERS: Journalists interested in covering the
above topic or interviewing one of our SMEs please contact:
Scott Tims
Office: 214-378-7970 ext. 278
stims@thepointgroup.com
www.alsbridge.com
