But others are facing cost-cutting directives in response to the threat of decreased revenue and frozen credit. “We are really just trimming the fat,” says Mary Allan, regional telecom manager of Philadelphia-based Comcast Cable Communications Inc. Comcast has had to eliminate a few special projects and is definitely watching the wallet, but nothing drastic, she says. “We are trying to manage our costs and look at ways to streamline our processes and eliminate any redundancies that we may have.” But at Benjamin Moore, a planned release of a large number of IP phones is now on hold, a spending and hiring freeze is in place, and there have been some layoffs, Kemple says. Though these changes are as much in response to the ongoing housing and oil crisis as to the recent credit crunch, he says, they are sure to stay in place until the financial situation starts looking up. Telecom Departments Ran Lean Even Before Crisis
Even if company-wide changes haven’t trickled down to your department yet, it doesn’t hurt to be prepared. Be aware that if your organization looks to cut spending, your department won’t be exempt from new requirements. Trouble is, “there isn’t a lot left to cut in telecom,” says Joe Dechow, manager of IS infrastructure and telecom for Traverse City, Mich.-based Munson Healthcare. Most telecom departments operate with a cost-saving mentality even in prosperous times. “When you don’t have anything to begin with, there’s nothing left to take,” says telecom manager Jeff Mazzabufi of Orange, Conn.-based Hubbell Inc. He already had been under direction to maximize savings whenever possible, even before the crisis. “I’m always looking for cheaper ways to do things,” agrees Robbie McCray, telecom manager of the Stanton and Wilmington campuses of Delaware Technical and Community College. McCray hasn’t put in any new budget requests or asked for more money recently, but there’s really not a lot he can do to drive costs lower. “I have been auditing each invoice since the day I started, and found better – and usually cheaper in the process – ways to do things,” McCray says. For example, he just finished auditing a cellular carrier invoice that included extraneous activation fees and text message charges. “The total savings on this one invoice are relatively small, about $250, but it all adds up, especially over time,” he says. He cautions telecom managers against being afraid of vendors: “We’re the customer so we should always be right and I’m a pit bull when I think I’m right!” 5 Ways to Immediately Cut Costs Even if your telecom operations aren’t directly affected by belt-tightening company initiatives right now, there are some actions you can take to plan for and prevent major cuts in your department. Munson Healthcare’s Dechow has made a contingency plan in the face of economic turmoil. His company is not in trouble and hasn’t taken any hard hits, nor has his department been asked to cut any funds. But Dechow will be ready if that changes. His department has discussed ways to cut back. “It’s doable,” he says, “but we would have to make some tough choices in IT.” The hospital is in growth mode, and there are a bunch of projects underway for IT and IS, says Dechow. They still have to move ahead, but would have to consider less expensive – and perhaps less reliable – alternatives. Like Dechow, you should have a contingency plan. Even if your organization supplies a necessity, such as health care or education, remember that if people can’t afford it, they won’t be able to buy it. Here are five ways you can cut your costs in the event of a financial emergency, recommended by Scott Fogle, co-founder of Norcross, Ga. - based telecom expense management consulting firm Advocate Networks: 1. Review and analyze all bills carefully. In the most recent Telecom Junkies podcast, Comcast’s Allan discussed some measures she would consider taking if necessary in her department to make large budget cuts. “We would love to have someone dedicated to reviewing and analyzing bills, especially carrier-based bills,” Allan says. It would provide immediate cost savings, and it is definitely something her department could be more conscientious about, she says. Auditing bills can also let you know when your end users are costing you extra money for services such as dialing 411 instead of looking a number up on the Web, or by using text messaging and other add-ons, Advocate Networks’ Fogle says. He recommends that you either have a policy against using these extra services or simply block them altogether to avoid extra costs. “The best way to cost control is to do it up front and not have fat to start with,” Munson Healthcare’s Dechow says. “Don’t waste money by lack of control or by not paying attention.” He quotes Ben Franklin: “An ounce of prevention is worth a pound of cure.” 2. Cancel underutilized services. Another tough-times measure Allan advocates is disconnecting lines and services that aren’t getting enough use. Since many companies err on the side of having too many services, it is up to the company to “figure out where the unused circuits are and either reallocate them or just cut them loose and save that money,” she says. 3. Move DSL and 1FB services to a rebiller. A good way to save money and consolidate your services into one bill is to move your DSL and 1FB (flat-rate business line) services to an aggregator, Fogle says. By using a rebilling company, which buys the services you need from carriers wholesale before selling them to you, you can save as much as 15% to 20%, Fogle says. Additionally, your services come from one place, so you can deal with one company for service and bills instead of many. 4. Keep an eye on your conference services. Monitoring your teleconference costs more carefully can save you a lot of money if your PBX has a teleconference bridge, Fogle says. In many cases, companies instruct end users to use outside conference services only when the company bridge cannot handle the call. But audits tend to find that employees don’t always follow these directions, instead charging unnecessary costs to the company, Fogle says. Make sure that employees are using these services properly, and aren’t incurring fees they don’t know about, Allan recommends. “This is one area that probably isn’t given the level of investigation it should be … and could stand to be scrutinized a bit more closely,” Comcast’s Allan says. 5. Pool your air cards. Another idea you might not have considered: Combine your air cards onto a communal account. Rather than paying for a large number of individually dedicated air cards, you could have several air cards in a pool, Fogle suggests. Be Proactive: What Can You Do Now? So even if your company or department is not yet feeling the burn of cost-cutting, continue to do the obvious: watch your budget, keep an eye on your account balances and reprioritize your spending, advises Randy Hayes, voice services manager of the University of Northern Iowa. In the meantime, be proactive. “Telephony is in a good spot,” Allan says. Since cuts are being made on travel, the cost for telephone service is easier to justify since people can conduct business over the phone instead of spending money on travel and a solid location, she notes. Hayes suggests a similar strategy. Advertise telecom services as money-savers around your company, he says. Take advantage of the situation and make yourself needed. Perhaps now is a good time to show your boss how efficient you are; compile reports that display how your actions have been saving the company money. Most likely, there is no reason for panic. Benjamin Moore’s Kemple is not that concerned. “Things are cyclical… this is not the end,” he says. There will be a short period of struggle, and then things will balance out. Prepare yourself in the event of a serious recession, but in the words of Hayes, “don’t be a Wall Street wussy.” ( | 
