Billing
errors are well documented and perceived as the primary culprit in excess
telecom costs. But almost every audit yields additional savings by lowering
pricing with your carriers, modifying and/or canceling circuits and services,
and determining improper routing of long distance. True telecom expense
management requires rapid resolution of these findings, because savings
will not begin until the error is remedied.
Our
client made a significant number of infrastructure changes in a compressed
period of time. New facilities were opening while others were closing.
Telecom vendors were being evaluated and frequently replaced. And on top
of all this, they underwent key telecom personnel shifts.
The 25-page monthly summary invoice contained a significant amount of Frame Relay and ATM charges that were not grouped logically, making cost evaluation a nightmare. TelAssess first developed an accurate and complete network inventory. We made sure that every single charge was associated with a specific service, at a specific location, looking for overlaps in services that might be causing our client to absorb excess charges.
Our analysis identified duplicate services from multiple vendors, totaling $20,000 per month. TelAssess arranged to have those services cancelled the very next business day, effectively eliminating a huge expense which had gone unnoticed since our clients has switched vendors eight months earlier.
Our initial position was to request a refund, but further investigation showed that the excess services had never been cancelled by the client. Because they had since switched to another vendor, there was little motivation for the outgoing vendor to issue so much as a "customer service" credit. TelAssess was, however, able to negotiate a full cancellation of further contractual liability, saving the client $560,000 in contracted commitments.
Frequently
our clients recognize there are problems with their telecom expense management
efforts, but they can't always put their finger on what those problems
might be. The most common reason for this problem is because they don't
have the resources to perform the required anaylsis.
A recent TelAssess audit for a US airline began just that way. The client had undergone recent facility changes, and the newly hired telecom manager wanted to get his expenses validated and under control quickly.
Within 60 days of gathering our client's telecom information we were able to identify billing errors and arrange for credits of nearly $200,000. Large errors were found in T1 discount calculations, long distance rates, LEC services and regulatory charges.
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