How to Reduce Internet and Telecom Costs for LA Distributors

Craig Pollack | May 18, 2015

How to Reduce Internet and Telecom Costs for LA DistributorsPeople, systems, telephones, mobile devices, and the Internet make up a connected work that was once unimaginable, but is now indispensable.

But do you know the real cost of your business communications? Adding up your overall budget for Internet and telecom costs might surprise you. Real expenditures may be vastly inflated beyond the basic monthly Internet and phone bill by separate employee call plans and communications equipment maintenance and upgrades.

For Los Angeles distributors and wholesalers, your company is likely to communicate online and through mobile devices more and more. But with the right telecom tactics, you could be paying less.

Get a Better Network Services Deal

Immediate savings may be possible by changing your plan or changing network service providers if possible – and if available. Telecom operators continually adjust their packages to offer new services or to react to moves from their competitors. What was once a good deal when you signed up, may now be just so-so or downright expensive.

  • Check out service provider websites. Some now have smart sign-up procedures that automatically orient would-be customers to the most advantageous price plans.
  • Telecom audit companies may offer their services on a commission-only basis. If they cannot find savings, you pay nothing.

Optimize How You Use Your Network

Is your enterprise bumping up against bandwidth limits? Resist any knee-jerk reaction to buy more capacity and increase your Internet and telecom costs, at least until you’ve looked at the way you use that bandwidth.

  • Verify that current networking equipment is set up to route traffic efficiently.
  • Check that security measures (which remain essential) are not imposing any undue limitations on communication flows. Your firewall for example needs to be properly tuned to keep the bad guys out while letting the good guys communicate without hindrance.
  • Identify any non-critical yet bandwidth-hungry usage that might be affecting higher-priority company applications. Sometimes a quick word with top users of such services lets you both find a better solution that meets their needs without squeezing the rest of business.

Build Cost Reduction into the Architecture

This is a longer-term solution, but also one that can save you the most money year after year. Better-designed networking equipment benefits users in two ways. It lowers daily operating expenses (OpEx) through more efficient use of existing links. It also provides a smoother upgrade path (CapEx) to meet future needs, avoiding costly ‘rip and replace’ moves to deal with boxes that just can’t get any bigger.

  • Gigabit-level internal connections are already a reality for many Los Angeles distributors. But links at tens or even hundreds of gigabits are likely to be used in the near future. Pick switches designed to accept higher speed modules as they become necessary.
  • VoIP (Voice over IP) combines voice and Internet traffic to save on Internet and telecom costs. Solutions vary from adapters on Internet routers to complete unified communications solutions.
  • MoIP (Mobile over IP) lets users take advantage of Wi-Fi connections to make calls and access web resources. You’ll need to factor in security considerations and possible Wi-Fi charges, but phone bills from sales and support staff out and about could go down as a result.


Where else do you want to optimize or reduce high Internet and telecom costs? Tell us about your challenges in the Comments box below.


And to follow up on the tips introduced in this article, download your free guide, How COOs at Los Angeles Distributors and Manufacturers Get More Done: A Guide to Productivity, Data, Staffing, Delegation, and Making It Home for Dinner Most Nights.


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Craig Pollack

Craig Pollack

Craig is the Founder & CEO of FPA Technology Services, Inc. Craig provides the strategy and direction for FPA, ensuring its clients, business owners, and key decision makers leverage technology as efficiently and effectively as possible. With over 25 years of experience building the preeminent IT Service Provider in the Southern California area, Craig is one of the area’s leading authorities on how small to mid-sized businesses can best secure and leverage their technology to achieve their business objectives.