July 08, 2010
Switch Data
Having access to a detailed Switch Data database is essential to auditing usage invoices. The database could be used to verify volumes, PIU, CIC, DEOT and other billing errors. Invalid CIC billing is the example used in this blog.
Most audits starts with a change in the trend of the billing. This is the first problem with identifying a removed CIC. The billing trend may not change and the error in billing could continue indefinitely. The second problem is that some companies rely on manual updates to a spreadsheet or word document to track CIC changes. This is helpful, but manual updates always leave room for mistakes.
The best way to catch an error is for the CIC to be populated in a detail Switch Data database. An auditor can run various reports to trend the CIC traffic. By creating monthly reports, the auditor can identify the issue quickly, ensure that the CICs have been removed from your billing, and increase the chances of getting full credit from the vendor.
June 16, 2010
Understand Your Vendor's Billing Methods
When looking at invoices for multiple vendors, it is important to research and understand how each one breaks down the charges. This may seem trivial at first, but can cause dispute opportunities to be missed if it is not focused on.
Some vendors, like Qwest, have some of their USOCs broken down based on the term plan. For example, the 3 in FJCP3 denotes a 3 year plan while FJCP5 is a 5 year plan USOC. These are simple to figure out and don’t require much additional effort, making it easy to look for errors such as an incorrectly applied term plan rate.
However, vendors such as Pacific Bell and Southern New England Telephone can sometimes use summary USOCs. These USOCs are what show the amounts actually being billed, and can be composed of a single charge, or a combination of charges. The typical summary USOC for Pac Bell is P5FAS, and for SNET it is 1ZZPZ. These USOCs commonly combine channel terminations, muxes, and mileage, as well as other charges.
The reason these need to be understood is that they do not always have to combine all the charges on a circuit. They will always be listed on the CSR whether they are billing from the summary USOC or on their own. As a result, it is important to check these summary USOCs in conjunction with the USOCs they summarize, as double billing or the application of incorrect rates can occur.
Knowing the way your vendor’s system works allows you to figure out common errors in that system, which produces faster dispute findings and more savings.
June 11, 2010
ReDisputes: Don't Take No For the Answer.
When filing a billing dispute with a vendor, receiving a denial resolution can be a frustrating albeit common occurrence. Don’t allow the initial denial of a claim discourage you from seeking credits you are rightfully owed. Always take the time to carefully review any resolution notes provided by the vendor. It is important to do your own independent research to validate a denial, keep in mind that the vendor generally has little incentive to award credits or correct an overbilling.
In some cases, claims may be denied due to a lack of supporting evidence. You may not be explicitly told what documentation is needed, but it is your responsibility to make sure claims are not closed prematurely. Due to overwhelming volume, many large vendors today load disputes into their system where it is stripped of all but the most pertinent information. Therefore, if you submit a claim via email with supporting documentation attached, that supporting evidence is not guaranteed to reach the analyst reviewing the dispute.
Fortunately, nearly all vendors have a re-dispute process in place for denied claims. The process, as well as the window of opportunity to submit a follow up will vary between vendors. Therefore it is critical to maintain records of denials received and stay updated on the time remaining before claims will be closed. When filing a re-dispute, be sure to include the following items.
1. Claim number of previous dispute – If the original dispute was assigned a vendor claim number or file ID, include this information, it will be helpful in the long run.
2. Re-dispute amount claimed – Pending your review of a resolution, this may or may not vary from the original amount disputed. Provide this information at a USOC or circuit level whenever possible.
3. Re-dispute reason – The most important part of a re-dispute needs to be more than restating the original claim description. Supply specific information/tariffs/examples to refute the denial resolution received by the vendor.
4. Supporting documentation – If additional evidence was originally provided, it is a good idea to include this with all re-disputes to ensure the information is received and reviewed.
If a claim continues to be denied and your research validates your position, continue to re-dispute your position until you are satisfied with the response. A request to escalate a claim may be appropriate for certain items, but there is also no shame in admitting a mistake and closing an issue as a loss. Lastly, it is important to understand that the claim and re-dispute process is not always cut and dry. Negotiations between vendors and customers are ongoing, and disputes may be used as leverage for future savings, deals, or business opportunities.
May 28, 2010
Finding State Tariffs
Finding the correct intrastate tariff can sometimes be a difficult proposition. For larger RBOCs it is usually best to check their tariff website. Most provide links directly to their tariffs for each state in which they operate.
Where should you look when the tariff you need is for a smaller, independent company? A good place to check first is the PUC website for the state you need. Some PUC and PSCs maintain a good tariff database online where tariffs can be searched for by company name, type of tariff, etc. The Ohio PUC and the Arkansas PSC are just two examples of state regulatory commissions that provide an online database of searchable state tariffs.
While not every state utility commission provides an easily searchable database of tariffs, it is usually a good place to start when you are looking for that intrastate tariff that is seemingly impossible to find.
Posted at 10:59 AM | Permalink | Comments (0) | TrackBack (0)May 25, 2010
When Paying Longer May Be Paying Less
There are times when it may save a company a tremendous amount of money to delay disconnecting a circuit for a few days or months. Why is that the case? Some of the incumbent Local Exchange Carriers offer term plans that have early termination penalties that are calculated as a payback of savings. This means that if a circuit is disconnected prior to the end of the commitment period the vendor bills a penalty equal to the amount of money that has been saved while under the term plan. This means that the customer never pays a penalty that is greater than what they had saved under the term commitment, but it also means that the penalties grow larger over time.
Most term plans require customers to pay back a portion of the monthly recurring charges remaining under a commitment. So the sooner a circuit is disconnected, the lower the overall charges that are paid on that circuit. However, with term plans that are structured with penalties that are calculated as a payback of savings, the early termination liability on a circuit grows over time as the savings increases, often to amounts that are larger than the total of the recurring charges would be if the circuit were not disconnected until after the commitment term expires. It therefore becomes very important for groups that are in charge of issuing disconnect orders to be aware of the potential early termination penalties on circuits and to understand how those penalties will change if the disconnect order is delayed.
When auditing early termination penalty charges it is amazing how large these charges can become and how much of them can be avoided by delaying a disconnect order by a few days or months. In one extreme case I found term penalty charges of over $100K that could have been entirely avoided if the disconnect order had been submitted just three days later. Often a delay of a few months will shift penalties into another tier, greatly reducing the amount owed.
It pays to be aware of existing term commitments on circuits and understand how the early termination penalty structure can best be managed when disconnecting or rehoming circuits.
April 07, 2010
Checking Down Under
Here are a few tips how to work with Telstra:
Company Info: Telstra is an Australian telecommunications and media company, formerly owned by the Australian government and privatized in stages from the late 1990s. Telstra is the largest provider of both local and long distance telephone services, mobile services, dialup, wireless, DSL and cable internet access in Australia. Telstra Wholesale provides products such as Data, Mobile, Voice, and other Facilities (including Colocation and Duct Access) to other companies and organizations for re-sale. Telstra Wholesale also provides operational support for its customers, and facilities for international customers such as International Data Transport and IP Transport. Here is Telstra website: http://www.telstra.com.au/homepage/d2/index.html.
Access to Invoices: Telstra has E-billing system. So instead of asking your client to supply you with copies of invoices, ask them to provide you with Digital Certificate. This certificate will allow you to access Telstra billing website directly and view/download all data necessary for the audit.
Tariffs/Contracts: Telstra publishes their tariff on its website. It is called “Our Customer Terms”(http://www.telstra.com.au/customerterms/bus_government.htm). In addition your client and Telstra might have CRAs (Customer Relationship Agreements) in place. These CRAs contain regular and discounted pricing lists for services not covered by OCT.
Claims Submission: Telstra requires claims to be submitted on its claim form and will not accept any other format. Make sure you request this claim form from your client. All disputes need to be sent at the following address: Carrier.Disputes.Team@team.telstra.com. You will receive an acknowledgment within the next few days. It takes about two months for Telstra to work your dispute and advise you on resolution.
Good Luck!
Posted at 12:47 PM | Permalink | Comments (0) | TrackBack (0)
