In this day and age, everyone is trying to save money. Your monthly telecom costs are a great place to start. Telecom expenses are often high and confusing, so it’s a good idea to take a close look at your bills and see if you can find ways to reduce costs or find a better deal. Keep in mind that pricing can vary significantly depending on your location.
We often assume that the cost of goods and services is relatively consistent regardless of location. However, we know that’s not the case with real estate. Similarly, the cost of some telecom services can vary depending on where you are. Let’s explore why.
Many people believe that all phone calls are priced at a flat rate because of how cellular phone service is sold. With cellular plans, you pay a fixed monthly fee for a certain number of minutes, regardless of where you make calls within the US (excluding international calls). A minute is a minute, whether you’re calling from your home office or a hotel in another state.
Traditional landline services don’t usually operate this way. You pay a monthly fee for dial tone and local calls, and then you’re typically charged by the minute for long-distance calls between states. There’s also something called local long distance, or IntraLATA (Local Access and Transport Area). A LATA is a geographic zone managed by a specific phone company, often covering multiple cities or a city and its surrounding rural areas. Prices for IntraLATA calls can fluctuate significantly, with areas served by smaller phone companies often being more expensive than those served by larger phone companies in more populated regions.
The emergence of VoIP service providers has disrupted this traditional pricing structure. Unlike local phone companies limited by physical copper wiring, VoIP relies on the internet, private SIP trunks, or MPLS VPN networks. Your VoIP provider could be a local cable company or a provider located across the country. VoIP plans may resemble traditional phone company plans or offer unlimited local calling with a flat per-minute rate for long distance or even unlimited domestic calling for a flat fee. Exploring VoIP options allows for greater flexibility in aligning your monthly telecom expenses with your actual calling patterns.
Competition is even fiercer in the line services market. Prices for point-to-point data links or dedicated internet access, measured in Mbps, vary widely. Generally, being closer to a major metropolitan business center translates to better pricing. Options are fewer and prices higher in rural areas.
Ethernet over Copper (EoC) is a newer service offering competitive bandwidth prices. In major cities, prices for both EoC and T1 lines have dropped below $300 per month. EoC can provide twice the bandwidth of a T1 line at the same price. It also offers higher bandwidth options, such as 10 or 20 Mbps, without needing a fiber optic connection.
However, EoC has a distance limitation. To qualify for service, you must be within approximately 12,000 feet (about 2 miles) of the provider’s point of presence. This limits availability to metropolitan areas. Similarly, other competing services like HFC (Hybrid Fiber Coax) and fixed wireless have limited service areas, typically concentrated in urban areas.
Whether you need voice, data, video, or a combination of telecom services, there is more competition in the market than ever before. You may be unaware of new options available in your area. Requesting competitive quotes for telecom services tailored to your business location is a quick and easy way to identify potential savings on your monthly telecom bills. It’s a fast, free, and effortless process that could uncover significant savings.
