Telecom Expense Management, Mobile Device Management, and Carrier Services Blog

Why is XO Increasing Rates?

Posted by Noel Huelsenbeck on Mon, May 19, 2008 @ 09:13 AM

Why is XO raising rates? XO states “increased costs” and “making significant capital investments to maintain our state-of-the-art, award winning nationwide network” as the reasons. Is that accurate? We like XO and we recommend them when appropriate, but costs should be going down, correct?

For some financial background on XO check out these blogs:

Itaron and Bear on Business

Here are the California rate increases which represent about a 10% increase. Here are all the states.

For a lot of companies paying for Telecom Expense Management or Wireless Expense Management Software and outsourcing of manual invoice data entry is seen as an unnecessary expense. The roughly 2% of total spend it costs for the software is seen as just another expense, but the reality is a lot of companies don't have controls in place to catch rate increases and billing errors. Just catching a 10% rate increase would net an 8% savings to your company.

These rate increases from XO, and the other recent rate increases from AT&T and Verizon will result in a 10% or more increase in costs. Are they set in stone? Are there other services that you can migrate to and lower costs? Can you negotiate you're way to lower costs? The answer is yes.

If you haven't reviewed your costs in a several months, or even longer, contact us today and we'll provide a free audit and free trial of our software to get you started. Click here to start your free trial.

 


Topics: Telecom audit, XO Rate Increase

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