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May 06, 2009
No Tip for Extra BIP
The majority of telecom analysts have a working knowledge of what BIP is. However, in the event that you are new to the telecom industry, here is a brief overview. BIP, which stands for Billing Interconnection Percentage, is a billing arrangement that applies when two or more LECs in the same LATA are used to complete a call or private line circuit. This charge pertains to transport rate elements, therefore many analysts verify BIP when performing channel mileage audits. It is always a good idea to verify BIP on high-mileage and high-rate circuits.
Occasionally, a carrier will not only charge the wrong BIP, but also charge another carrier’s BIP. The result: your carrier could be the one getting double-billed.
Example: Let’s say you are performing an audit on behalf of a Client. The Client completes a call/line and requires the resources of two additional carriers, Carrier A and Carrier B. Carrier A bills the Client for the correct BIP. However, Carrier B charges the Client for its respective BIP and the BIP of Carrier A. Confirm any suspicions of wrongful billing by requesting CSRs from both carriers. The CSRs will serve as proof of incorrect charges if a dispute arises. Investigate how long these charges have billed incorrectly and you might have a lucrative claim for your client.
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