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Frequently Asked Questions about
Telecommunication and Network Services
Pricing and Financial Model Changes
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Why did TNS change prices?
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A primary driver for the change was
to price the services as close as possible to the actual cost of delivering
each service. The old pricing model used revenues from some services to fund
other services. The elimination of this cross-subsidy was a major goal.
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The most obvious example of this was
the higher cost for long distance and the monthly telephone rentals. Our
actual expenses for these services were lower than the prices we charged, and
the subsidy generated was used to fund other services where we undercharged,
such as network connections.
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Under the new pricing model, these
services are priced close to the actual cost of delivering the service, so
departments are paying fair prices for the services they use.
The increase in data rates seems like a big jump.
Why does TNS need so much more?
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The pricing is based on the actual
cost to deliver the service. The increase in data rates was accompanied by
the elimination of the telephone rentals, the reduction of long distance rates
from an average of 17.5 cents per minute to 5 cents per minute and other
reductions or elimination of voice charges.
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The overall projected impact of
these changes across the campus is a reduction in charges of $370,000. This
means that for the same number of services, departments will be charged $370,000
less under the new pricing model than they were under the old.
Are GEF and Research Funded
ports now free?
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No. Even though the departments do
not directly incur monthly charges for GEF and Research funded basic voice
and data services, the costs are expected to be covered by the amount of GEF
budget that was reverted. Therefore it is extremely important that individual
departments and TNS work together to make sure only needed services are being
requested and delivered.
Can I just put all my new ports
under GEF and Research Funds so I do not get monthly charges?
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No. You still need to follow the
University accounting rules and allocate voice and data expenses to the proper
Funds. You will be asked for written verification that a new service is
properly allocated to a GEF or Research Fund.
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However, if you do want to switch
some telephone lines or data ports to GEF funded, you can do this by reverting
the additional budgets.
If I am not paying monthly for
Voice and Data services, then why would I ever disconnect a service?
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Hopefully, you understand how unused
connections can impact the GEF distribution and you want to be a good
University citizen, so you only have the services that you need. Departments
and TNS must continue to work together to keep costs down for the whole
campus. Unused voice or data connections add unnecessary expenses.
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It is also much less expensive to
Move a service to a new location than to Add a new one, $75 versus $200. So,
if you are changing locations, you will save $125 per connection by moving the
service to your new location rather than installing a new one.
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TNS will also periodically perform
audits of services and may disconnect unused ports. This most often happens
when new services are requested but the network equipment serving that area
does not have the capacity to fulfill the request. It does not make good
operational or economic sense to install more capacity if there are unused ports. In all
cases, customers are notified of the ports that are identified for possible
reclamation and have the chance to identify those that are need to be
active, but are little used, like conference rooms or offices that are in
transition.
Can I add Voicemail to existing
telephone lines now for no charge?
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There will no longer be any monthly
charge for basic voicemail. If you want to add voicemail to an existing
telephone line, it will cost you $50 for the change to the service as stated
on the Price Sheet. However, for the first few months of 2003, TNS will
facilitate this change by trying to make the additions in bulk for departments
at reduced costs. If your department wants to add voicemail to several lines,
please contact the TNS customer representative group at 5-2945. The needed
information will be gathered and the additions made and charged for at $50 for the first
voicemail and $10 for each additional one on the same order.
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A telephone with a voicemail light
is required for you to have voicemail. If it is necessary for you to change
telephones to get a voicemail light, we will waive the normal installation fee
and charge you only for the phone itself. (See pricing page for phone
prices. )
Can I change my old single line
desk phone out to the new basic telephone with speaker phone, speed dials, hold,
redial and message waiting light? Can I upgrade to a Digital (D-Term) phone now
that there is no longer a monthly rental?
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Yes you can. The price to
change to the new basic phone will be $75 plus $50 for the cost of the phone.
If you want to change to a Digital (D-Term) phone the cost will be $75 plus
the cost of the phone, $225 for
the 16 button D-Term or $275 for the 32 button D-Term.
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However, TNS encourages you to not
make wholesale changes in phone equipment unless you have real immediate needs. TNS is currently
in the process of selecting equipment for upgrading most of the voice
switching equipment on campus. Additional features such as Caller ID will
likely be available in 12 to 18 months. It is recommended that you wait to
upgrade new telephone sets until it is determined which sets will get you the
features that you want from the new switching equipment.
Will I still be charged
separately for ACD services and voicemail trees?
How were the amounts for the GEF
Budget Reversions calculated?
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Calculated total GEF voice charges
by Org
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Used last year’s long distance
data to estimate how much this year’s long distance charges would be at 5
cents per minute
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Left the projected long distance
charges in the unit budget
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The remainder was the reverted
budget amount
Why does the pricing sheet show
some changes to services as costing $75 and others costing $50?
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If the changes can be completed without
traveling to a customer site, the price is generally $50. If the change requires a
technician to go on-site, the price is $75. This helps to offset the increased
expense of dispatching a technician.
Who can I contact with
additional questions?
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