U.S. Telephone Bill Taxes

If you have ever scrutinized your phone bill you might have wondered what all the charges are. If you have never carefully looked at your phone bill do so, you will be surprised. This month I will briefly explain all the extra charges that appear on your monthly bill. By breaking them down into 2 categories you can see what are taxes and what are fees authorized by the FCC.
Phone company fees:
1. Access charges: This is a fee charged to subscribers/other telephone companies by a local telephone company for using use its local network. The FCC sets a maximum per line access charge; local telephone companies can charge less than the maximum or charge nothing. Even though the FCC sets a maximum charge this is not a tax.
2. Directory Assistance: charge for placing 411 or (area code) 555-1212 directory assistance calls.
3. Monthly Calling Plan Charge: Charge for any monthly calling plan such as unlimited long distance calling.
4. Operator Assisted Calls
5. Calling Features Charges such as; call-forwarding, 3 way calling, call waiting, voice mail, or caller ID
6. Single Bill Fee: monthly fee for combining local and long distance charges onto one bill
7. LNP (Local Number Portability): LNP fees allow residential and business customers to retain their existing local telephone numbers when switching from one telephone service provider to another but staying at the same physical location.
Taxes or other government mandated fees:
1. 3% Federal Excise Tax: applied only to local service billed separately from long distance service.
2. State and Local Taxes: imposed by state, local, and municipal governments on goods and services (may be labeled gross receipts taxes).
3. Universal Service Charges: The Universal Service Fund (USF)/Universal Connectivity fee provides support to promote access to telecommunications services at reasonable rates for people living in rural and high-cost areas, low income consumers, rural health care facilities, and schools and libraries. Telecommunications service providers and certain other providers of telecommunications must contribute to the federal USF based on a percentage of their interstate and international end-user telecommunications revenues. A Universal Service line item will appear on telephone bills if a company chooses to recover its USF contributions directly from its customers.
4. 911 and TRS (Telecommunications Relay Service) Charges: 911 fees are a local government charge to help pay for emergency services such as fire and rescue. TRS charges help pay for the relay center that transmits and translates calls for people with hearing or speech disabilities.
I hope this brief overview of the numerous charges on your phone bill help you understand your bill. If you have additional questions or want to save money and simplify your bill give me a call or send me an email.

Craig Hodges

craig_hodges@bsbcom.com

586-859-6308 DID/Cell

Time to Upgrade your Firewall?

Yesterday a firewall was all about security, but today a firewall can be deployed and used to increase employee and business productivity. Even if your firewall has only been in place for 3 or 4 years it may be time to look at upgrading. The new technology continues to provide network security and restrict traffic to unwanted or harmful sites, but it can also reduce the need for extra bandwidth and prioritize business traffic.

The primary purpose of a firewall is to filter incoming and outgoing traffic that flows through your computer network providing network security. Originally, firewalls were designed to protect your network from unauthorized access to your company’s system from the public internet. Now, firewalls can be used to prevent your employees from accessing specific areas of the public internet by fine tuning a whole host of rules. In many corporate environments employees spend a tremendous amount of time surfing the web, using bandwidth and consequently slowing internet speeds for all users on your network.

Recently, I had a company complaining that applications running across their Wide Area Network were slow. The cost of upgrading the WAN network speed amounted to thousands of dollars per month. We were able to do a packet capture and found many users streaming music across the WAN. In the old days we would have blocked the offending music site by utilizing a simple firewall rule, but some of the people streaming music were in work roles that gave them the authority to stream music. With the technology available in today’s firewalls we were able to create rules that allowed some to stream music while others could not. Further, if restricting traffic to such sites is not something you want to do, a firewall can prioritize business application traffic over non-business traffic.

New firewall technology allows for creating employee specific web content and tailoring web utilization by employee roles. Granular content filtering can be established by predefined categories, a combination of categories, or even on an individual user level. Filters can be further tailored by time of day and day of week! In many instances bandwidth is not an issue after business hours so restrictions on media would not be necessary for an employee working late.
Creating filters to prioritize web based applications and blocking or limiting non-business applications helps to reduce your bandwidth requirements and keeps employees using the internet connectivity primarily for business purposes only.

A properly installed firewall becomes a productivity and cost saving tool by prioritizing your web based applications over non-essential applications. A new, properly configured firewall will not only provide network security and increase employ productivity, it will also control bandwidth usage and prioritize traffic ensuring your organization runs efficiently.

For further information on this or any technology issue please feel free to call or email,

Craig Hodges
586-859-6308 DID/Cell

Smart Phone Security

The benefits of smart phones, tablets, and laptops are tremendous.  They have made our daily activities easier and our work more efficient.  We have access to data and the ability to work from anywhere at any time with lower operating cost while providing our customers quicker response times.    But this mobility comes at a potential cost.  The cost is not merely limited to losing or breaking the device but, more importantly, giving an unintended party a wealth of information about our lives, both personal and professional.

Think back over the day and what you have used your smart phone for.  You may have sent an email, logged into your calendar to check an appointment time, logged into your company CRM to check the status of part, checked the balance in your bank account, or used a mobile app to purchase an item. Are any of these sites preconfigured for easy login?

With the ability of our smart phones to do so much we need to be smart about security and to treat our mobile phone like our computer when it comes to security.  A recent poll showed 67% of smart phone users don’t use the screen lock pass code.  This statistic included me until I attended a webinar about mobile device security.

Here are some basic security tips.  Lock your phone with a pass code and when entering the code shield the numbers.  Due to financial incentives, mobile malware is on the rise so do regular software updates.  Don’t click on unsolicited links, use care when downloading apps, don’t jail break a phone and encrypt sensitive data.  If you access your bank account or even Facebook from your phone don’t have these sites preconfigured for easy login.

Assessing social media sites from your smart phone can pose a personal security problem.  Twitter and Foursquare are fun and beneficial.  Someone may Tweet about the newest restaurant or a restaurant that is running a lunch special.  You check in with Foursquare while in line at the local coffee shop and the competitor across the street sends you a coupon.  But the risk can outweigh the benefit.  Relay your Foursquare location to your public Twitter account and you just told the world where you are and that you are not at home.  Don’t have that many followers?  Check out pleaserobme.com  to find out how your information is accessed.

Follow your company’s security policy if you use a company issued phone.   From a personal security standpoint it is impossible to be aware of your surroundings if you are texting or talking on the phone in public.  Also, prevent the incentive to break into your vehicle by not leaving devices visible.

The bottom line is be smart when using your smart phone.

 

Craig Hodges

586-859-6308

PCI Compliance and Telephony

The Payment Card Industry Data Security Standard (PCI DSS) is a set of requirements that guarantee that all companies that process, store or transmit credit card information maintain a secure environment.  This applies regardless of size or number of transactions that an organization processes annually.   Most companies achieve PCI compliance by not keeping the credit card information in any type of database once the transaction is complete.  One often overlooked violation of PCI compliance is Telephone Call Logging or more simply stated recording the customer reading the credit card information to your call center agent or employee.

Companies that deploy call logging see increased employee performance through the use of objective employee grading standards.  This results in improved customer service and efficiency.  It is not a practical option for organizations to give up these productivity gains merely to achieve PCI compliance.

What are the options to achieve PCI compliance while still using call logging technology?  Options include having the employee manually pause the recording.  A second method is to transfer the caller to an unrecorded extension, collect the credit card information and hand the call back to the original agent.  Another option is to transfer the caller to an unrecorded Interactive Voice Response Unit (IVR) and have the machine take the number.  The fourth and most effective option is integrating your call logging appliance into your Customer Relationship Management Software (CRM).  The problem with solutions 1, 2, and 3 is that with any manual process the issue is getting your employees to following the process without fail.

The most reliable method is to integrate your call logging appliance into your CRM application.  With an integrated solution as soon as the employee clicks on the computer screen field to enter the credit card data the call logging appliance automatically shuts off.  Once the cursor is moved from that field the call recording automatically begins again.

Many organizations have deployed call logging; make sure you take a fresh look at what calls you are recording or risk losing your ability to process credit cards. Please feel free to contact me if you have questions about how to secure your credit card data.  I will put you in touch with a data security expert.

Craig Hodges

586-859-6308

 

How to Buy a Phone System

Today I am writing on what you need to know when buying a phone system; something I know a little bit about! This process will work well for you regardless of the type of system you’re looking for, be it IP, Hosted or Digital. All of our businesses depend on reliable communication. A phone system can cost anywhere from $500-$3500.00 per end user. Not a small purchase. The most effective selection processes I have observed during my years as a purchasing agent and sales person have been when a team of employees come together for the purpose of selecting a telephone system. The members of the selection team should represent the various business units within your organization. The business units charged with managing employees and those concerned with improving productivity need to have the most say in the process. When purchasing a phone system the following are guidelines:
1) Make sure you establish the size of the system you are looking for in terms of telephone lines, number and style of telephones, number of single line devices/FXS ports and future growth capacity. Your job is to get close to the number of telephones and lines as possible and not to change the quantities once you have asked for a bid. It does not need to be exact at this time because you’re only trying to get apples to apples pricing comparison.
2) Insist on itemized pricing and have the bidders list the presale and post sale pricing for each item quoted. Also, find out how long each suppliers system typically last.
3) Ask the people you plan to do business with what system they are using and who is the installing and servicing company. If you like what you hear invite their suppliers into the bidding process.
4) This is the most important part of telephone system selection: taking a detailed look at how your business currently processes telephone calls. Always ask the question is this the best way or is there a better way? The bidding supplier should have suggestions. (If you would like a copy of the questionnaire I use during my interviewing process please send me an email.)
5) Ask for your vendor’s best design. A poorly designed telephone system can cost your organization much more than the purchase price of the telephone equipment. A good company will also look at how you are using your existing lines and how you are using your Wide Area Network and incorporate network changes into the design to further reduce your costs.
6) Once you receive the quotes go over them line by line with each supplier. At this point in the selection process you have discovered that this journey is not going to be a simple. I’ve seen many potential customers choose the wrong system because of misinformation provided during this stage of the process. In other words have your “Baloney Detector” on high. Ask as many questions as you can so you are clear on the answers.
7) Visit at least one of the supplier’s references. Choose a customer similar in size to your organization and a company that has had the system for a couple of years so you know what to expect in the way of service.
8) After reading this article, Larry Evans, owner of PSI Contact Center made the point that total cost of ownership of 5 year span is also very important to consider.

E911 Compliance

E911 Compliant is a topic that has generated quite a few inquiries. 17 states have passed E911 legislation. According to MiCTA, Michigan will follow in January 1, 2012. This legislation applies to all businesses over 40,000 square feet, or if you have multiple buildings, regardless of the telephone technology currently in use within your organization. What does it mean to be compliant and how is compliance obtained?
The legislation, specifics obtained from MiCTA, requires all businesses that operate a multi-line telephone system inside one or multiple buildings, buildings that share a single address, or are more than 40,000 sq ft in size, install all necessary equipment and software to provide building, floor, and room number info to their local PSAP (public safety answering point) that can localize a 911 caller to an area no greater than 7000 square feet.
The question everyone is asking is how do businesses accomplish this? The first thing to keep in mind is that Plain Old Telephone Lines (POTs) can no longer reasonably be used to dial 911 and comply with the law. Upgrading to either an ISDN PRI or SIP Trunks and implementing Direct Inward Dialing (DID) numbers for each extension will be required. This technology works by attaching the detailed location information to the DID number within your carrier’s network. Contact your carrier for specific details on how to input the necessary location detail. When a 911 call is placed your E911 compliant telephone system will push the DID number you have assigned to that specific extension out to your carrier. Your carrier then relays your address information, in addition to the more detailed E911 floor number and the wing location over to the 911 call center. The dispatcher can then dispatch emergency service to your approximate location. Note: Please check with your telephone system manufacture for E911 compliance. Many businesses will find they are not compliant.
As with many compliance issues, no central authority exists for establishing uniform standards. Multi-site companies need to understand the law for each locality that they have buildings/employees and comply with that law. Don’t forget about those remote IP Phones many employees have in their homes!
To further discuss this issue or if there is a technology issue you would like more information on please feel free to call or send me an email.

Why implement live, web-based training and meetings?

Studies show that close to 40% of a company’s training budget goes to travel expenses.   Besides being able to cut your training budget in half there are other benefits to consider when implementing web-based training.  The first 2 benefits are convenience and flexibility.   No flights to reserve, planes to catch, or days away from the office or nights in a hotel away from families.  Eliminating travel helps with retention and creativity during meetings and training.  Employees won’t be tired from travel and the marathon method of training and meeting can be avoided.  By spreading the training over time, retention is increased.  If there is a document, idea, or project that needs collaboration, a real time meeting can be set up instantly enhancing organization productivity.  The number of people within an organization who can attend a web-based session is limitless.  In addition to increasing the number of employees participating, the ability to meet any time and any place, keeps employees where they are most productive; in the field or in the office.   Another factor to consider is global reach.  Even a small company can market to and work with international companies.  The final reason for implementing web-based training is accessibility of data.  The session is record allowing for later review to further help with retention and understanding.   Feel free to contact me with any questions or further information about implementing web-based training and meetings.

New Challenges facing salespeople

Is there a lack of business etiquette today? Talking to business people over the past few years, I have noticed a trend that can best be described as lack of attention; individuals not paying attention during sales meetings.  When combined with an ever demanding customer base, customers’ expectations can get out of hand very quickly.   Seasoned sales people have told me that they will “stop” the meeting by asking the customer if this is a bad time and should they reschedule at a better time.  I have yet to try this tactic, but I am keeping it my arsenal.

Nothing you or I can do will change poor etiquette during business meetings; we have to persevere in the face of this adversity.  Sales people work very hard to get a meeting and don’t want to chance loosing an opportunity in front of the customer.

What should be done in order to protect yourself and the company you represent from unreasonable expectations or misunderstandings during a sales call?

• Always go over the documentation before the customer signs, especially if the customer has signed the documents and then emailed them to your attention.  As exciting as it is to get the “deal” always take the time to go over the proposal line by line with the customer.  Explain to your customer that it is part of the process and the order cannot be entered until this happens.  Resist shortcuts!
• Voice documentation is very inexpensive these days.  I recently had an instance where a customer demanded I provide a year of support, instead of what he purchased, which was a block of hours.  Fortunately for all involved, the meeting was documented using a Livescribe pen.  The recording was provided to the customer and this eliminated any potential animosity between organizations.
• If you have the resources, bring another person from your organization to the sales call. An additional person can help to read the customer’s reaction giving you the best chance of overcoming objections.  More importantly, this individual can let you know where potential points of miscommunication occur.
• If things do get dicey with a customer, it is always best to arrange a meeting, in person, with all parties involved.  It is much easier to assert unreasonable and not agreed upon terms over the phone or via email.

I would be interested to hear if you have had similar experiences.  If you have any suggestions for working through these difficult situations please let me know.

Craig Hodges

586-859-6308 DID/Cell

Vertically Integrated Manufactures for your network?

Most individuals have not given thought to whether it is better to buy all products/services from a single manufacture or from multiple manufacturers. Suppliers in the telephony marketplace and data manufacturers are marketing “One throat to choke” as the primary benefit to be had when purchasing all of one manufacturers products, like Cisco. After years of buying and selling, I believe it is best to purchase products from a varied supplier base for the following reasons:
1) People who focus on one thing do produce better results and the same goes for companies. How many Bo Jacksons have there been? Was Bo as good as Barry Bonds or Barry Sanders? Both Bo and Craig know the answer. In my opinion the same goes for Firewalls, Network Switches, Telephone Systems, and Service Suppliers etc.
2) Standards allow best of breed products to be produced. Your job as a product and services buyer is to objectively determine what product is best for your organization. Cost of Ownership, Feature Set, and Reputation all should be weighed before purchasing any product or service.
3) The bureaucratic environment within large organizations stifles innovation. Innovation happens most consistently within smaller organizations. Look at how big corporations are consistently buying up smaller rivals to improve time to market and increase market share. If large organizations were innovators, why the need for acquisitions?
4) Better customer service is derived from smaller, more focused organizations. Big companies excel at developing processes for addressing customer issues. These processes are necessary in large organizations to make sure customer service issues are handled. The problem with cumbersome processes is not all customer service issues will fall into a given process for resolution. When working with these mega organizations does your representative have the authority to cut through the red tape to get your service issue resolved quickly? Most often the answer is no.
5) Henry Ford worked on building a vertical – integrated manufacturing plant at his Rouge River facility beginning in 1917. His vision was to manufacture everything necessary to build a car in one place. By the 1960’s Ford realized decentralization and specialization was a more efficient business model. Today all automobile manufactures embrace a decentralized, multiple vendor approach to building products. This same philosophy applies to the telecommunications market.
So what exactly do large organizations excel at? Marketing! Creative marketing pounds home the message that their products and services are the best for your organization. Your job is to sift through that crafted message in order to determine accuracy of their statement while keeping in mind that history is on the side of decentralization and specialization of products and services no matter what the marketing message says.

http://www.networkworld.com/news/2011/012011-gartner-slams-cisco-single-vendor.html?page=2

After a Year!

It’s been a year of blogging and what have I learned?
1) Telecommunications is not all that popular of a subject – I’ve had a total of 300 visitors in 2010.
2) As easy as it would seem to be to write an article a month, Its rather difficult to come up with ideas. My hat off to Bob St. John at the Grosse Pointe News – I have no idea how he does it!
3) Any time you put your ideas on “paper” you had better research the subject and be correct. Readers enjoy arguing, even the smallest points.
4) Never misspell anything in an article – you will absolutely get feedback Thank you very much Mr. Carlson.

Merry Christmas and have a Happy New Year!

Regards

Craig Hodges
Telecom Ambassador
586-859-6308 DID/Cell