While telecommunications infrastructure is important, it really doesn’t make a difference if you’re not implementing the correct services. This is the view of Anton Potgieter, MD of Huge Telecom.
“The danger in companies investing small fortunes in buying their infrastructure is that it is outdated before they’ve even depreciated the hardware,” he says.
When it comes to basic communications, the actual type of voice infrastructure used is not important – as long as it allows the user to make a call at their required level of quality.
“We find that most new voice technologies have led to a drop in call quality against landline or ‘toll quality’,” says Potgieter. “This is due to a number of factors, such as the technology being in the refinement phase, or that it is of a lower quality to drive down costs.”
According to Potgieter companies should rather focus on using their existing infrastructure more effectively, by applying the right communications management services.
“A telephone system should sit in the background and just work,” he says.
It is critical for companies to understand their business requirements, translate those into communications requirements and only then come up with a detailed technical solution.
“Each new technology brought to market is showing significantly less incremental benefit against its predecessor(s) – we believe customers would show a larger return on investment if they did not upgrade each time a new technology was released – don’t upgrade for the sake of upgrading, rather make sure you really will get a tangible and cost-justified benefit.”
Least cost routing has increased in popularity as organizations try to drive down their costs of communications. “It is critical to understand that while least cost routing has a distinct role to play, it is just a small component of a total telecommunications management solution,” says Potgieter.
Huge Telecom has designed several layers of proprietary technology to drive down costs in a normal business environment. By utilizing least cost routing organizations can save on average 35% of their telecommunications costs on a monthly basis. By implementing a managed telecommunications service, this can be escalated to produce savings of up to 50%.
"In business we are all striving to improve our bottom line,” says Potgieter. “In rand value terms, if you are spending R10 000 per month on telecommunications, a R5 000 saving goes a long way.”
Managed telecommunications goes a lot further than pure least cost routing. Various technologies come into play including short messaging services (sms).
“Think about an almost intelligent telecommunications service – we provide the cheapest possible route for your message to go, which in some cases may not even be the voice route, but an alternative, more effective form of communication” says Potgieter.
In a world where telecommunications costs are impacting tremendously on business efficiency, least cost routing has become a well-known term.
“Least cost routing has a key role to play by providing the lowest available rate-per-minute, but its effectiveness can be leveraged immensely by addressing and managing communications properly at all levels in the organization first,” he says.