The Seven Deadly Sins of Telecom – Gluttony

Gluttony – Capped calls and Bundled Call Minutes can be a false economy

“All you can eat” restaurants and “all inclusive” holidays often appear attractive. However have you ever stopped to think that if it is that good a deal, then how is the supplier making money? The basic principle is that they are relying on 90% of customers not consuming the full amount or not taking advantage of all that’s on offer.

It is no surprise that many businesses also believe that capped call prices and inclusive bundles appear to be a great deal.  For residential customers, where average call durations are longer, this may be true. However, the average business call in the UK is only about 2 minutes.

Capped call deals usually have a high minimum charge, so unless your average call duration is four times the national average it is likely to cost you more than conventional call charges. Most people have a perception that they speak for longer than they actually do.  Also remember, that out of every two calls you make, one is likely to go to voicemail. We recently moved an Estate agent from capped calls to paying for actual usage and their annual bill fell by £15,000 or 50%.

Similarly, bundled call deals such as 500 minutes for £8 a month sounds like a bargain. But only if you make close to 500 minutes of calls every month of the year.   With summer and Christmas breaks, these are effectively half months.   Not using all the minutes can dramatically raise the actual cost of each call. Also, if you are over the call limit then the cost per minute rises dramatically.

It is therefore essential to undertake a detailed analysis of your invoices to see on which calls these special deals will actually be of benefit. Many companies push these offers without checking that they are right for the customer. One client of ours saved over £3,000 per annum by moving back to paying for actual calls.

The same is true of unlimited calls and texts for mobiles. Most users vastly overestimate their actual usage. Many clients we review are better off on lower tariffs with usage caps which they so not exceed.

In the past year we have only found one customer who benefited from this type of package. Before you choose, contact us for clear advice on 020 8912 0845.