Fixed and mobile telecom service optimization is the practice of improving service-to-cost performance and right-sizing service capacity based on dynamic business needs. According to a recent AOTMP research study, 100% of enterprises indicate they perform optimization activities that seek to eliminate unused and underutilized telecom services to some degree.
While all enterprises perform optimization activities, the depth of focus and frequency of activities vary greatly. Only two-thirds (67%) of enterprises perform mobile rate plan optimization activities and only 61% focus on fixed telecom voice service optimization. These numbers are surprising as mobile adoption and utilization are increasing and fixed voice service utilization is declining as mobile services are supplanting fixed voice for many business users.
Digging deeper into the research findings, the frequency of optimization suggests that enterprises may not be fully equipped with the tools, resources and information required to effectively perform optimization activities. Only 40% of enterprises that perform mobile rate plan optimization do so on a monthly basis with 14% performing the activity on an as needed basis. Only 8% perform fixed telecom service voice optimization on a monthly basis with 23% performing the activity on an as needed basis. These rates suggest that several organizations bear potential risk for maintaining unneeded and underutilized fixed and mobile services, which leads to excess cost.
Effective and productive optimization requires a firm understanding of utilization rates and trends, as well as business drivers behind the trends. Implementing an optimization practice that analyzes utilization across all services in the telecom estate improves an organization’s ability to confirm and establish efficient service-to-cost performance while maintaining technical and financial efficiency across the telecom estate.
Timothy C. Colwell is a telecom management industry thought leader exploring the impact of technology as a business accelerator and social capital enabler. Download our free telecom management industry thought leadership white paper on maximizing optimization.