• Posted on Sep 7, 2023

With inflation, government regulations, and digital security rising to the forefront of telecom costs and expenditures, how might these factors affect businesses in other industries? The impact of the telecom industry on operational costs in companies that rely on such services has been felt worldwide for the last several years, particularly since the pandemic when many companies went remote.

Rising Costs in Telecom Affect Other Industries

Many industries rely on telecom services to manage supply chain issues, connect employees and clients, store and process data, and more. When costs increase for telecom companies, their customers often suffer the effects.

Offices, IT providers, retailers, warehouses, and network security firms all use telecom technology in their daily operations. They’re also looking for cost reduction options in their telecom solutions.

Top Concerns in Telecom

Cost drivers in telecom include improving network security for users at every service level, inflation and its effects on the supply chain, and government regulations and fees for the telecommunications industry. Increases in these areas can lead to price hikes for telecom customers.

How can these key issues in the telecom industry impact your business, and does your business benefit from these cost drivers?

Network Security

Hacking attempts, DDoS attacks, and data breaches are all issues for telecom companies and their business clients. Keeping equipment and software solutions up to date and secure against malicious software and attacks requires a heavy investment in new product development and labor for IT support to keep systems secure against attacks.


Inflation affects shoppers at retail outlets, drivers at the pump, and business expenses at every level of the supply chain, including telecommunications. Costs of labor, equipment procurement and leasing, energy, and other expenses all rise during periods of high inflation.

Government Regulations

Telecom companies are subject to various government regulations from the FCC, IRS, and other regulatory bodies. As laws change to support stricter regulations over communications technologies, telecom companies will see higher costs linked to compliance.

What Companies Can Do About Telecom Solutions

As a business owner or manager, is there something you can do about the impact of the telecom industry on operational costs for your company? You have some options available to mitigate price increases for your telecom solutions while maintaining network quality and efficiency.

Determine Telecom’s Place in Your Business Strategies

Is your current telecom service package the best fit for your business operations? Do you need that state-of-the-art teleconferencing room, or can you downsize some of your telecom services to reduce your contract price?

You might find that you need the same internet speed but can reduce your on-site workstations if you can shift some employees to permanent remote positions or find other solutions that better suit your business needs.

Find Lower-Cost Alternatives to Your Existing Telecom Solutions

Sometimes, a horizontal move is the best option when comparing your telecom options. Changing providers may be enough to reduce costs for IT solutions, cloud storage, telephone service, and network installation and management.

When was the last time you negotiated a service contract with your telecom provider? New providers in the area could have better deals, more gigs of storage, and the newest technologies for phone, internet, and digital services. It doesn’t hurt to ask.

Set Up and Manage New Teams To Reduce Telecom Reliance

Some industries can benefit from scaling back on telecom services by establishing new work teams to reduce reliance on third-party service providers. For example, some offices are large enough to take on a small team of permanent IT professionals to manage device and software updates throughout the office and emergency support for sudden issues that pop up.

However, a cost-benefit analysis may show your company already benefits from a third-party telecom provider offering services to reduce your labor costs. Analyze your options thoroughly to determine the most effective path forward.

Automate as Many Telecommunications Tasks as Possible

There could be tasks you can automate to reduce your reliance on your telecom provider and improve cost savings by downsizing to a lower service plan. For example, some companies use overseas call centers to offer 24/7 customer support. This requires a costly international phone service.

If your company currently offers 24/7 overseas phone support, could you use an automated answering and messaging service instead for overnight or weekend hours? How would switching to an automated line affect your telecommunications costs? Automated telecom solutions could help you reduce costs if implemented effectively.

Contribute to Employee Mobile Phone Plans

Many companies have nearly eliminated desk phones and other office phones. Instead, they have employees working from cell phones. While some companies may find a mobile phone plan that allows them to offer affordable company phones for employees to use, others are offering a different solution.

Some companies offer to pay a portion of an employee’s cell phone bill to offset the cost of the employee using their personal phone for work. This makes it easier for employees to keep in contact with colleagues and clients.

Determine Whether Additional Profits Can Offset Higher Costs

Companies added teleconferencing technology to their infrastructure during the pandemic, leading to more long-distance partnerships with clients around the globe and the potential for increased profits. If your company benefited from new technology for higher profitability, are your profits enough to offset rising costs?

Telecom companies have narrow profit margins, requiring them to raise prices as their costs rise. As a customer, your company may still see increased profits using your telecom services to establish and maintain new and existing client relationships. Your profits might be able to offset the rising prices.

Find the Right Telecom Solutions for Your Business

The impact of the telecom industry on operational costs for business owners has many companies looking for new telecom solutions. If you’re a business owner or manager looking for new telecom solutions for your company, contact us at eNetwork Supply. Call us today at (312) 283-5983 or contact us online to learn more about our global telecom solutions.