Financial Institution Does Not
Receive Expected Cost Savings

A regional financial institution including 85 branches across the Midwest engaged third party telecom service aggregator.  The expected results were monthly cost savings and simplified billing across their remote branches.  However, after almost a year from the original project kick off, the customer was not receiving the results they expected experiencing the following challenges:

Operating Challenges

  • For sites that had been converted, monthly costs had actually increased from the original bills.
  • For many sites, the customer was receiving two bills, one from the previous carrier and another for the aggregator.
  • Updates from the aggregator were infrequent and often incorrect.
  • On several occasions, the customer experienced unexpected outages during the conversion process, some of the outages lasting for several days.
  • Many of the branches originally proposed by the aggregator were later found they could not be converted.
  • Some of the conversions included unexpected contract termination liability charges from the original carriers.

Project Steps

After thoroughly reviewing the available billing and the aggregator contracts, the following steps were completed by Orion.

  • An original inventory of services was provided prior to the conversion.
  • Updates to this inventory were then created with the conversions completed.
  • A secondary document was provided showing the previous, proposed and actual costs by branch.
  • It was determined the original proposal vs. the contract was incorrect, especially related to local and long distance usage costs.
  • It was deemed the most appropriate path was to revert to the original providers and resolve the challenges.

Project Outcomes

With these deliverables in hand, Orion was able to work with the customer to achieve the following results:

  • Over 90 days, all of the services were reestablished to the previous provider.
  • A service plan was applied to 65 of the applicable branches that actually decreased the monthly cost for the original bills by 18%.
  • Upon the completion of the conversion back to the previous providers, Orion was able to have the carriers waive the unexpected termination costs as a function of their return.
  • As an additional bonus, the original provider applied a two month free bonus.
  • It was determined from the inventory that many of the telephone lines at the remote branches were no longer required. These lines were disconnected increasing the monthly savings.
  • Comparing the original monthly costs prior to the attempted aggregation, Orion was able to reduce the monthly costs for the remote branches from $17,800 to $14,600 (18%). Plus, the customer received almost a $20,000 one-time credit for returning services to the original carrier.
  • The 60 lines found that were no longer needed added another $2,100 of monthly savings. The total monthly savings was over $5,300.

Other Results

  • Prior to the attempt to convert services to the aggregator, the customer received 120 invoices for telecom services. Orion was able to reduce this quantity to 17 and implemented an on-line portal to monitor and pay on-going invoices.
  • A complete inventory was provided to the customer by branch to manage future change.
  • A trigger was established providing the customer with a 6 month prior notification of all contract expirations so future higher costs are avoided.
  • As a result of this project, Orion Communications continues to work with the customer to assist with the management of telecom services.

Although the original attempt by the customer to reduce monthly costs and simplify billing failed, Orion was able to resolve the challenges and deliver the originally expected outcomes.  In addition, the customer was provided numerous additional tools to help avoid such challenges into the future.  And, Orion continues to work with them to provide valuable telecom resources.