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The High Cost of Improper Number Porting

Posted by Allison Boccamazzo on April 28, 2016 at 9:40 AM

For end-users, transitioning a phone number between providers can be stressful or inconvenient at most. For telecom resellers, however, it can make the difference between securing a strong bottom line and reaching the end of the line. For resellers, striking a balance between efficiency and cost-effectiveness is key for ensuring long-term profitability. Processes like number porting, in which a customer’s fixed or mobile number is reassigned to a new provider, can have a dramatic effect on finances if handled incorrectly.

There are three moving financial parts associated with every number port: non-recurring charges (NRCs); monthly recurring charges (MRCs) and usage rates. Let’s explore these costs further:

  • NRC: NRCs represent one-time porting fees and activation fees. These fees are one-time-only and are very unlikely to appear again.
  • MRC: This is the cost per month to keep a customer’s number on the new (or winning) carrier’s service. For resellers, full transparency into the status of every port—from initial submission to ongoing management to key performance indicators—helps ensure monthly recurring charges are accurate and on time, preventing revenue leakage and securing a healthy cash flow.
  • Usage Rate: A usage rate encompasses the per minute or per channel fee for handling calls.  

It’s important that resellers are practical and realistic when it comes to their finances.It’s important that resellers are practical and realistic when it comes to their finances. Many resellers are operating in response to today’s economic pressures; therefore, it’s not uncommon for them to either try to calculate the abovementioned finances independently in order to save on costs, or hand them off to a third-party company that can manage them at the right price.

In reality, operational expenses may actually increase if the reseller, or its chosen third-party provider, does not calculate these financial items correctly. In today’s ultra-competitive market, that’s simply not a chance that can be taken.

At VoIP Innovations, we believe that when a reseller makes the critical decision to handle number porting to a trusted provider, it has to be the right decision. In other words, we live in a world where there are unfortunately no second chances.

Learn more about number porting best practices here. For a Free Trial of the VoIP Innovations' BackOffice, please click the button below!

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Tags: Telephony, Finances, Entrepreneurship

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