| U.S. businesses lose billions of dollars in telecom errors | | | | the client over $100,000 before we put a stop to it. |
| and wasted overcharges. These telecom audit war | | | | Had we not intervened and investigated, the scam |
| stories provide examples as to what can happen | | | | might still be going on today. We continue to provide |
| when no one is watching the store. | | | | telecom cost-control services for this client. |
| Phone bill review: I was looking at some odd-looking | | | | These are just a few examples of many cases of |
| AT&T equipment bills in 2006 that belonged to a | | | | cost overruns in the telecommunications industry over |
| large city government entity. At first I thought they | | | | the years. According to a recent study by a industry |
| were for invoices for routers or data equipment. There | | | | leading research think tank, "When it comes to |
| were about 30 of them. I called AT&T and asked | | | | telephone and data bills, an estimated $13 billion in |
| them precisely what the charges were for and what | | | | overcharges will be generated in the next 12 months, |
| kind of equipment was being leased. They explained | | | | and less than 2% of these telephone billing errors will |
| that the monthly charges (about $25 for each device) | | | | ever be identified." Telephone bill auditors often |
| were for rotary dial phones at each of the client's 30 | | | | recover three to five years' worth of refunds and |
| locations across the city. Armed with that information, I | | | | eliminate future billing of identified telecom billing errors. |
| asked the client when they stopped using their rotary | | | | If you do the math, the cost of some diligent telecom |
| dial telephones. Their reply was, "around 1990!" Had | | | | cost management by just the large companies in the |
| they cancelled the rotary dial telephones in 1990, they | | | | U.S. would be incredible. Keep in mind also that the $13 |
| would have saved $144,000 over those 16 years. We | | | | billion dollar savings number is an estimate of only a |
| immediately cancelled the phone leases, and | | | | year's worth of overcharges by the phone companies |
| AT&T also graciously granted us a 6-month | | | | due to identifiable telecom billing errors. In the telecom |
| refund of $4,500. | | | | audit industry, it is quite common to gain client refunds |
| Unused cell phones: We found that a large corporate | | | | of 3-5 years back in billing history. But don't neglect the |
| client/wireless customer had about 40 "ghost" cell | | | | fact that -- just as important -- you should take into |
| phones out of a few thousand on their wireless | | | | consideration the next 3-5 years in future recurring |
| account that showed no usage. They were assigned | | | | telecom savings for the corporate audit client. If we |
| to long-departed employees who turned them in; | | | | look at a 6-year savings model based on these |
| however, the client never formally cancelled the | | | | statistics (telecom savings 3 years back and 3 years |
| phones with the wireless provider. Each phone was | | | | forward) the actual savings numbers are phenomenal. |
| billing about $27 a phone per month over several | | | | The telecommunications cost management savings |
| years. We cancelled the phones and saved the client | | | | number is actually 78 billion dollars in potential recouped |
| $1,080 per month. We then negotiated a new cell | | | | telecom expense savings for U.S. companies just on |
| phone contract with the same carrier, who -- to the | | | | their 6-year likely recovered telecom billing errors. |
| delight of the client -- included a year's worth of credit | | | | Also consider that the $13 billion dollar amount for |
| on the unused cell phones of $12,960. | | | | telecom billing errors cited in these studies does not |
| Phone fraud: During a recent telecom audit, we noticed | | | | include other forms of telecom audit savings. For |
| unusual calls overseas to the Dominican Republic and | | | | example, actual savings from physical inventory |
| the Philippines. We traced the call times to a company | | | | findings (phone lines, cell phones and data circuits that |
| switchboard operator who was unknowingly | | | | exist in billing but are unused and unaccounted for) and |
| transferring a hacker claiming to be a board member | | | | telecom contract negotiation savings are not included in |
| to extension 9-00 (the public operator who was able | | | | the research study. In summary, telecom audit |
| to facilitate the transfer of the hacker to the public | | | | companies and their clients have the potential to |
| operator). We shut down the outside transfer function | | | | recoup 78 billion dollars in savings! |
| from that extension and ended the scam, which cost | | | | |