Latest News

Spotting those telecoms overspends

Telephony, data-comms and mobile specialist Matrix247Law has announced the results of a lengthy study into telecoms procurement and usage within the sector – and reveals a catalogue of avoidable communications overspend.

The report – the Top 10 Causes of Over-spending on Telecoms – has been put together following three years’ of research and analysis, and all calculations have been drawn from real-life scenarios. Using a 100-user firm as an example, losses are set out on an annual basis, but in many instances these losses are reoccurring every year until they are eventually picked up and remedied.

The most common cause was found to be the paying of excessive charges on outbound call tariffs and continuing to pay uncompetitive telecom maintenance fees, racking up £6290 in unnecessary costs. The failure to decommission redundant PBX lines and non-required services on existing trunk lines was second on the list, clocking up to £4950 loss per annum. In third spot was non-usage of mobile GSM gateways to reduce landline to mobile call costs, which, when combined with incorrect or outdated mobile tariffs, was generating overspend of £4830 per year.

Also making it into the top ten were non-adoption of telecom SIP Trunk lines to reduce ISDN line rentals; subscribing to and often increasing arbitrary bandwidth capacity without ever analysing what is actually necessary; fraudulent usage through the hacking of unprotected telecom lines; and unawareness of contract renewal dates and associated notice periods with the risk of having to fulfill excessive contract termination terms and liabilities.

Commenting on the findings, Ste Pritchard, Matrix247Law’s managing director, said: “We’ve lost count of the number of times we’ve done full telephony audits for prospects and turned up one, or usually several, of these issues. We either find a lack of interest in, or a bit of a blind spot about telecoms generally, or we discover that there’s simply no ownership of the area – the office manager who originally got the phone supplier in has moved on, there’s some paperwork in a drawer somewhere, the phone systems just keep working, so there’s no real driver to analyse what you have. Or phones may fall between two stools – IT and facilities may share ownership but no-one’s really taking the lead and proactively evaluating system performance and communication strategy.

But the amount of annual overspend or losses that you could be incurring is sobering to say the least, so my advice is simple – take back control. There hasn’t been a time in the last three years when we haven’t been able to go into a law firm and make a significant difference to both capabilities and costs. That should be the challenge presented to any telecoms partner who says he wants your business.”

To receive the full list of top ten causes of over-spending on telecoms, please email