Category Archives: Telecom Finance

Effective finance plan for telecom industries

Telecom finance, financeThere are a lot of aspects on which the financial security of the telecom industries are dependent on. Therefore, it is important that your company ahs a plan for all types of interruption. Not having a back up plan in case of an interruption on the data or the telephone service can be very problematic.

It is important that the company is prepared for events like network failure, power outage, failure of the phone system and such similar events. It is very important that you have the proper staff, skill and equipment for getting the telecom systems restored. These are the things that ahs to be properly planned put so that the financial flow of the company is not hindered at any cost. A bad service will make you lose clients and it is only simple math that it will lead to financial loss. Therefore, you have to make sure that your service is consistent.

How to Reduce Telecom Bills

Most companies struggle to pay high telecom bills but there are ways to reduce them. The first thing you need to do is determine your telecom needs. This will prevent you from buying services you do not need. Most of the deals that are offered by sales people have some hidden charges therefore it is good to know exactly what you need.

You also need to compare a variety of plans for all the products that you require. Compare the plans offered for long-distance, local and international services. It is important to determine the number of minutes that you require for each month and get a plan that offers adequate minutes. Make sure you factor in unforeseen usage as you decide on the minutes you require.

You should also know the number of devices that you have. This makes it easy to determine if you need an upgrade or not.

Telecom Expense Management

Telecom expense management is an approach used in business to manage the expenses of various telecommunication services through manual editing and different software tools. A business can either carry out these activities internally or choose to outsource them. If the telecom expense management is carried out internally, a company’s employees are in charge of supervising telecommunication costs. This approach is commonly used by small businesses.

The main function of the telecom expense management activities is to determine how to save money. The manual auditing involves comparisons and research using data applications like databases and spreadsheets. The software editing element of this approach utilizes specially designed software tools that can used to total billing data and usage.

This approach has become popular and it is now widely used in various countries. Its use was initially confined to North America but it is now well established in a majority of countries across the world.

Securing telecom financing

telecomSub prime mortgage catastrophe has brought the world to its financial heels and many of us our busy cooling our burnt feet. In such a pessimistic credit climate, it becomes quite difficult to gain telecom financing. Past was great but things are set to present standards.

Venturing into telecom service provider’s league can be tough. For starters, it’s a venture that requires a lot of investment on infrastructure and the investment has also got to be premium as the value of the equipment might deteriorate fast in an otherwise case. We are also looking at a lot of negative resource pile-up as customers often pay late ranging from a couple of days to about a month. For large scale telecom ventures’, this means a cash deficit that can really block inventory purchase.

If you are a small ISP player then you can get loans more easily by securing the lender with your receivable invoices, physical assets and also finding venture capitalists that are wiling to take a gamble on you.

Independent telecom finance options

telecom financeThese are tough times and with the mounting credit crunch and poorer liquidity, banks have tightened their lending norms. As it stood, conventional banks were against lending to small and mid scale ventures of telecom. This is because they did not fully understand how telecom operated and there was also a huge problem with delayed invoice receivable that could not completely be hedged upon.

Today, independent telecom financers are willing to take the plunge. It’s a gamble that has its own benefits. Telecom sector’s main problem lies in pile-up of revenue owing to delayed customer payment. A lending unit factors on this receivable and hence lends a part of money that the customers need to pay for their last operative bill.

This way, the independent telecom operators don’t fall in the trap of delayed revenue and get fund. They can also try institutional investors (provided they are big) and venture capitalists (in all cases) to set their business up for them.