While overall enterprise IT spending continues to grow, there’s a mounting emphasis on eliminating unnecessary costs across the IT ecosystem. This isn’t about indiscriminate budget cuts; it’s about smart, strategic cost management. One area ripe for optimization is telecom expenses, where significant savings can be achieved through aggregation and addressing several key challenges.
1. Mismanagement of Carrier Agreements
Many enterprises struggle with effectively managing their carrier agreements. A study by AOTMP Research found that 80% of organizations have overspent on telecom services due to poorly managed contracts1.
This mismanagement often stems from:
- Lack of regular contract reviews
- Failure to benchmark pricing against current market rates
- Inadequate negotiation of discounts and incentives
2. Complex Billing
Telecom billing is notoriously complex, with invoices often running hundreds of pages long. According to Gartner, billing errors account for 5-12% of telecom expenses.2
These errors can result from:
- Incorrect application of contracted rates
- Failure to apply agreed-upon discounts
- Charges for services no longer in use
3. Juggling Multiple Carriers
Large enterprises often work with multiple carriers to meet their diverse needs across different locations.
This can lead to:
- Inconsistent pricing across carriers
- Difficulty in comparing service quality and value
- Increased administrative overhead
4. Legacy Services and Slow Networks
Many organizations are still paying for outdated, legacy services that are no longer necessary or cost-effective. A report by Deloitte found that companies can save up to 40% by migrating from legacy systems to modern alternatives.3
Challenges include:
- Identifying all legacy services in use
- Planning and executing migrations to newer technologies
- Negotiating fair pricing for remaining legacy services
Telecom Aggregation
Partnering with a telecom aggregator can address these challenges effectively. Here’s how:
- Optimized Carrier Agreements
Aggregators have deep knowledge of carrier contracts and market rates. They can benchmark your current agreements and negotiate better terms. - Simplified Billing
Telecom aggregators often provide consolidated billing, simplifying the review process and making it easier to spot errors. - Single Point of Contact
Instead of juggling multiple carriers, you deal with one entity for all your telecom needs. - Technology Transition Support
Aggregators can help identify legacy services and support the transition to more cost-effective alternatives. - Dedicated 24x7x365 Support
Expert guidance whenever you need it, for issue resolution and peace of mind
By addressing these challenges through telecom aggregation, enterprises can achieve significant cost savings while improving service quality and reducing administrative burden. As we move into 2025, now is the perfect time to reassess your telecom strategy and explore the benefits of aggregation.
1. AOTMP Research. (2023). “State of Telecom Management”
2. Gartner. (2024). “Market Guide for Telecom Expense Management Services”
3. Deloitte. (2024). “Tech Trends 2024: Legacy System Modernization”
