Call Accounting Featured Article

Telecom Audits Can Result in Big Value

January 04, 2018

Sometimes, when things get busy and we are juggling a lot of work, the basic purpose of what we’re trying to achieve gets lost. In business, the key goal is to make money. But, when you’re overpaying for resources, you lose money. So it’s important to do what my dear old dad always advised me to do – check your bills to make sure they’re correct. For business, that includes checking your telecommunications costs and charges to make sure they align with expectations.

This is important because sometimes telecommunications services providers overbill. And telecom audits can help your organization recognize such discrepancies, seek remuneration for them, and avoid them in the future.

A 2016 Network World article suggests that 10 to 20 percent of telecom charges are mistakes.  

“On any given monthly statement the items being over-billed run the gamut of services delivered by the provider, and can include charges for invalid circuits, billing disputes, contractual issues, fraudulent charges, set-up fees and improper rates,” the article says. “These charges can appear on the invoice or can be buried within the bundled services comprising monthly recurring charges. 

“Over-charges, to a large extent, reflect the byzantine complexity of telecom agreements,” the piece adds. “While carriers don’t intentionally doctor their invoices, they’ve done little to improve their billing and invoicing processes or to facilitate customers’ ability to identify and recover costs.”

And their mistakes can add up big for their business customers. As a recent article notes, Aberdeen (News - Alert) Group suggests the average Fortune 500 company spends $116 million annually on telecommunications services.

“According to several telecom sources, telecom costs have jumped into the top three line items for most companies.,” the March 2016 piece reports. “In addition, up to 12 percent of telecom service expenses are erroneous. Such errors result in an estimated $8 million a year in lost profits per company, according to Aberdeen Group.”

Edited by Mandi Nowitz