Telecommunications companies are rapidly expanding fiber optic coverage, especially for homes. Unlike an excavator hitting a gas or power line, accidental disconnection of an optical cable will not pose a direct and obvious threat to public safety. However, the reduction of the optical fiber may have a significant impact on telecommunications companies. Here, we will explore five of these consequences and discuss how damage prevention software can help telecommunications companies predict and prevent fiber optic cable damage.
1. Service interruption
The telecommunications company promises its customers to provide fast and reliable services. Damage to the fiber optic cable hindered their ability to fulfill their promises.
Fiber cuts can make Internet or phone services unavailable, and rerouting services are not always seamless. Fiber optic hubs and VIP lines that fail are causing service interruptions that are particularly troublesome, due to their wide reach.
Some service interruptions are inevitable, such as service interruptions caused by equipment failures. However, fiber interruption can be avoided. Predictive analysis and damage prevention solutions use real-world and historical damage data to predict where fiber optic cable damage is most likely to occur, so telecommunications companies can implement targeted interventions to stop fiber optic cable cuts and service interruptions before they occur. Here are 5 common consequences of fiber optic cable cuts
2. Fiber optic cable damage repair costs
According to the North American Telecommunications Damage Prevention Council (North American Telecommunications Damage Prevention Council), the average cost of laying fiber optic cables in rural areas is $75,000 per mile. Repairing damaged telecommunications fibers is also expensive.
According to the 2019 DIRT report, the highest cost of repairing damaged telecommunications facilities reported that year was as high as 92,000 US dollars. In 2019, the median direct maintenance cost paid by telecommunications companies was US$600 million, and indirect costs such as closing the business were US$18 billion.
The reduction of optical fiber has brought huge losses to telecommunications companies. Damage prevention software helps telecommunications companies protect their underground assets from mining accidents. Fewer accidents mean less repairs and more money spent on other projects.
3. Customer’s loss
Competition in the telecommunications industry is fierce, and, in a world of seemingly endless promotions to change suppliers, customer loyalty can be elusive. If your competitor’s attractive new customer promotions don’t persuade your customers to quit, then the unreliable or slow service due to fiber cuts will certainly be.
According to the Harvard Business Review, the cost of acquiring a new customer can be 5 to 25 times that of retaining an existing customer, so customer retention should be one of the telecommunications companies’ top priorities. With loss prevention software, telecommunications companies can solve problems before fiber optic interruptions cause customers to lose.
4. Poor public image
Multiple studies have shown that image has an impact on customer acquisition and retention. Generally speaking, the higher the reputation of a company, the easier it is to attract and retain customers. The reverse is also true: the worse the image of a company, the harder it is to acquire new business and retain existing customers.
Customers who have lost service due to fiber cutting often complain online, and the media will report this story soon. Over time, negative emotions will gradually accumulate, which will eventually affect the bottom line of telecommunications companies.
Using damage prevention software can help telecommunications companies prevent interruptions caused by accidentally cutting fiber optic cables. Telecom companies with fewer interruptions will not receive much negative coverage.
Read: 4 fiber optic interruption shows that telecommunication damage prevention is vital
5. Fines and fees
According to a Deloitte survey, 91% of people are willing to accept the company’s legal terms and conditions without reading them. However, just because people don’t read the fine print does not mean they cannot benefit from it.
Some telecommunications companies choose or are required by law to compensate customers when their services are interrupted. The more power outages, the more credit owed to customers. Even a penny on a dollar will become a considerable sum over time.
Damage prevention software can help telecommunications companies reduce network interruptions caused by fiber cuts, thereby saving fines and expenses.
According to CGA, the loss of communication facilities increased by 30% from 2018 to 2019, but this trend does not need to continue. Implementing damage prevention software will help telecommunications companies reduce fiber cuts and their consequences.
