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Study: Fax Transmissions Are 40 Percent of Fortune 500 Telephone Costs

March 23, 1995

STRATFORD, Conn. (AP) _ Faxes account for 40 percent of Fortune 500 companies’ telephone bills, but most don’t have policies to eliminate excess usage, according to a new survey taken for a fax machine maker.

Not surprisingly, Pitney Bowes Inc., which commissioned the Gallup survey, said companies can cut their costs by buying new machines that spend less time on the phone.

The survey, taken each year, said 70 percent of mid-size and Fortune 500 companies expect to increase their fax sending by 10 percent this year.

``The results of the study clearly demonstrate the need for aggressive and effective fax management,″ said Dennis Roney, president of the Pitney Bowes fax division. ``Simply by upgrading fax networks and using newer fax machines with faster modems, companies can save as much as 50 percent on their annual fax phone bill.″

Gallup did the study through random telephone interviewing of daily fax users at Fortune 500 and mid-size companies.

Large companies have an average of 374 fax machines, and fax charges account for about $13.6 million of their $34 million yearly telephone bills, the survey found.

In 1995, Fortune 500 companies sent an average of 41 five-page documents a day. Mid-size companies sent an average of 35 four-page documents daily.

The study said 56 percent of faxes were sent long-distance, while international faxes accounted for 11 percent at Fortune 500 companies and 8 percent at mid-size companies.