Major companies incur significant network expenses from telecommunications carriers in order to maintain their IT infrastructures. Generally, management establishes an annual cost reduction target where network planners and carrier managers help achieve this objective through circuit grooms and contract re-negotiations. There is nothing wrong with establishing a measurable network cost reduction target and work hard to achieve it, but management must be careful not to design a financial goal that motivates ...<< MORE >>
Metro Ethernet Forum (MEF) introduced Carrier Ethernet (CE) 2.0 in 2012. CE 2.0 added new features including the industry’s first standardized Multi-Class-of-Service (CoS) with application-oriented CoS performance objectives. Despite the clear benefits from implementing CE 2.0, there are only 17 CE 2.0 certified service providers as of January 2014 as compared to 73 CE 1.0 certified service providers. Many carriers have not yet implemented services based on CE 2.0 because customers ...<< MORE >>
Many ISP providers, telecom carriers, and data center operators rely on other network provider’s leased circuits to provide end-to-end services to their customers. Many of them habitually match the leased circuit and customer commitment terms without much effort ...<< MORE >>
Numerous Competitive Local Exchange Carriers (CLECs) chase after the wholesale carrier business (e.g., inter-exchange carriers looking for a last mile solution). Many of these wholesale carriers implemented circuit routing tools, which let them automatically select least cost providers. Additionally, wholesale carriers challenge the CLECs to match the lowest cost providers in a region as a condition for negotiating a contract. Such price matching may make it difficult or impossible to stay ...<< MORE >>
Due to various reasons, such as mergers and inheritance of bad management practices, corporate managers are often forced to implement the telecommunications cost reduction strategies without adequate processes, reports, or tools in place to make informed decisions. Additionally, there’s tremendous pressure for these managers to achieve an annual cost savings target. This target forces them to prescribe a harmful cost reduction strategy. Although it’s tempting to swiftly initiate network cost reduction projects to ...<< MORE >>
Has your goal of maximizing short-term task savings in carrier contract negotiations set a condition to lose customers or erode profit margins? Do you have to pursue a costly strategy just to maintain the necessary volume or revenue commitments?
A carrier contract negotiation with a major ILEC/RBOC requires serious attentions because carriers ...<< MORE >>
AT&T (Bell South) Managed Shared Network Services (MSNS) is a service under which customer assigns AT&T the responsibility for facility design and engineering routing of point-to-point circuits. AT&T’s access customer identifies aggregation location(s) in each LATA and the customer must maintain 90% of equivalent DS1s at aggregate location(s) or else pay an annual shortfall penalty.
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Although large telecom carriers can afford to negotiate a nationwide contract with AT&T which may waive DS1 termination liability charges, many network planners and carrier managers often struggle to select the best term plan for ordering circuits. AT&T (Ameritech) access tariff offers several term commitment plans for special access DS1 and DS3 services. Two such plans are the Optional Payment Plan (OPP) and the Discount Commitment Program (DCP). Although each plan brings ...<< MORE >>
A large number of telecom carriers use lease circuits as a last mile solution to reach their customers. Naturally, these telecom carriers try to implement an effective method to manage the leased circuit renewal process. They often identify a list of circuits soon to be expired and evaluate whether or not these circuits should be renewed. If circuits are not renewed, a cost of leased circuits would increase significantly. On the flip side, they ...<< MORE >>
New technology standards, applications, and regulations get introduced every year. Some of them will have a profound impact to a long-range demand of telecommunications services. The MEF, an industry alliance of more than 200 organizations, has recently introduced its Carrier Ethernet (CE) 2.0 standard. This ...<< MORE >>