What are the actual prices for the
lines and calls?
Compare the prices to your current bills
to confirm the claims. Are those prices
guaranteed or only for the first year? Do
you have the right to cancel if they raise
prices?
Have they quoted for all the services
you currently receive?
When comparing costs, many proposals
include money you might be paying for
an alarm line or lines for PDQs in your
current costs but exclude them from the
proposed costs.
When they present back your existing
costs, check them against your actual
bills.
Go through your recent bills and check
that they are accurately reflected in the
current cost column of the comparison.
Is the system being provided on a
lease hire or lease purchase?
If the latter, what are the options at
the end of the contract? Is there a cost
for the transfer of title so you actually
own it? If so, is that reflected in the
claimed savings? If it is a lease hire, what
happens at the end of the agreement?
What happens if you need to expand
the system during the lease?Will any
equipment that’s added link to the same
end date as the original agreement?
Ask for a separate quote for outright
purchase of the equipment.
Then ask other suppliers for a purchase
price so that you can compare. Ask them
to break out the different elements of
their costs, rather than just giving a total
figure. Ask them to confirm the rate of
interest being charged.
What equipment is actually being
supplied?
Ask for the make and model of all
elements. Visit the manufacturers’
websites and see if they are current and
the prices quoted are right.
Are there any charges that will be
levied that are not identified in the
proposals?
Who is providing the finance?
If it is a third party finance contract,
be wary as it will be harder if you want
to challenge the contract later. If the
finance is provided by the supplier or the
equipment manufacturer then you have a
greater chance of disputes being resolved.
magazine
36
Free phone scams:
what you need to know
Dave Millett of Equinox explains
how to recognise if the offer of a
free phone system is a good deal
or a dirty trick
Telecoms
In 2011, three directors of a telecoms
company in Norfolk were sent to jail for
fraud. They enticed companies and charities
with the promise of free phones, but those
who took up the offer found themselves
stuck in expensive, long-term contracts.
Scams like these keep resurfacing – and
companies keep getting caught out.
They usually start with the promise of
a new phone system for less than a firm’s
current outgoings, backed up with a proposal
that purports to compare current and future
costs. Typically, these imply large savings, but
in reality they are very short on detail and
obscure the fact that you’re signing a lease hire
agreement, plus a long-term commitment to
lines and calls.
If you are approached with this type of
deal, here are the questions to ask. Only accept
answers in writing and if you sign the contract,
add a clause based on the responses you
received and state that it is on that basis that
you’ve signed.
Reputable suppliers who have a genuine
offer should be willing to answer these
questions and agree to make responses
part of the contract.
Once you have all the answers, rework
their ‘before and after’ pricing. Does it still
show a saving or has it swung to a point
where it is costing you money?
If you have already signed one of these
deals, there is still hope. If there was a false
inducement to purchase, the deal could be
struck down by a court. Trading Standards
is another option. If you are a company of
fewer than 10 people, check to see if the
supplier is registered with the Ombudsman
scheme
/
communications.html), as they offer free
binding arbitration.
There are some genuinely good deals
being offered but there are also far too
many dodgy ones. The old adage, ‘if
something looks too good to be true’, holds
here – if it looks too good, it’s probably
dodgy.
Dave Millett is an independent telecoms adviser with more than 35 years’ experience in the
telecoms industry. He has worked in European Director roles for several global companies
and now runs Equinox, a leading independent brokerage and consultancy firm. He works
with many companies, charities and other organisations and has helped them achieve
savings of up to 80%. He also regularly advises telecoms suppliers on how to improve their
products and propositions.
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