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June 30, 2009

Different Strokes. TDS’ Unique Term Penalty Rules

When you are billed Early Termination Charges on a TDS invoice and need to verify if the Early Termination Liabilities being billed are correct there is a simple way to determine these charges:

1) If the circuit being disconnected is a DS1 and is on a 36 or 60 month term plan; multiply the non-discounted rate (Section 17.3.8(c) of the JSI tariff – TDS Telecom) times the months remaining on the circuit times .15 (Section 7.2.8 (A) (3) of the JSI tariff – TDS Telecom).
2) If the circuit being disconnected is a DS3 and is on a 36 or 60 month term plan; multiply the non-discounted rate (Section 17.3.8(c) of the JSI tariff – TDS Telecom) times the months remaining on the circuit times .50 (Section 7.2.8 (A) (3) of the JSI tariff – TDS Telecom.

Using the non-discounted rate to calculate the term liability is unique from many other tariffs and something of which to be aware.

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June 15, 2009

LERG 7 and LERG 7 SHA

The Local Exchange Routing Guide (LERG) is a very useful tool for Auditing Usage. End Office audits require knowing the various capabilities of the End Office. You will also need to know the related switches (tandem, host, remote, actual switch, etc) for the End Office. LERG 7 and LERG 7 SHA are two tables that provide this essential information.

LERG 7 is a great tool for understanding the function of the switch you are auditing. I use this LERG to determine if a switch is a Class 4/5, a Host or a Remote. One can also determine if a switch has Wireless, 800 or Directory Assistance capability. And, of course, using the Vertical and Horizontal Coordinates, you can calculate the mileage between two Switches.

LERG 7 SHA helps one to understand the relationship between switches. After using LERG 7 to identify if a switch is a Host or Remote, you can use LERG 7 SHA to determine the actual 11 digit CLLI of the Host or Remote. I also use this LERG to see if other End Offices of a tandem have the same issue as the End Office I am disputing. Thus, understanding how an End Office relates to the other switches can help you not only narrow in on your issue at hand, but will also help you find more disputes.

Usage auditing can be complex and daunting. Understanding LERG and its various tables helps unwrap a degree of complexity. Having processes and tools in place that support and define these relationships puts you well on the way to successful auditing.

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June 09, 2009

Discount Plans

Many vendors offer discount plans for use of their special access services. These discount plans are outlined in the vendors’ tariff, usually under section 7 (Special Access) or a separate discount plan section. Most discount plans are centered around DS1 and/or DS3 circuits, however, some vendors also offer discounts on higher level circuits. Typically, discount plans offer the customer a specified percentage off of the month-to-month rate if the customer keeps the circuit in service for a specified term. However, some vendors have other plans that might offer a reduced rate based on rate zone, price band, or commitment level. Vendors often use a designated USOC to differentiate the discounted rates with the non-discounted rate. Easy auditing can be done to verify the correct discount rate if you reference the tariff and then build a simple report to pull in the circuits with the non-discount rate USOC. You can determine whether the circuit billing the non-discount rate should be billing the discounted rate.

Also, discount plans may offer additional discounts to the customer for non-recurring charges, early disconnects, and other penalties. For example, Verizon offers a reduced non-recurring charge of $1 on an install of a channel termination if the customer participates in their CDP or NDP discount plans. In addition, for the Verizon CDP plan, the customers are not assessed a termination liability charge for an early disconnect. However, if the circuit disconnects before one year of service, a minimum billing charged is assessed. As with the MRC for the circuits on the discount plan, NRC’s are usually billed with a designated USOC which also makes for easy auditing.

Some disadvantages of discount plans are commitment terms, true-ups and shortfalls. Usually the discount plan calls for the circuit to remain in service for a specific period of time (term). The terms are typically 1, 3, 5, or 7 years. If the circuit disconnects before the end of the term, then the customer will be assessed a penalty (usually a term liability or minimum billing charge). Also, some discount plans require a certain commitment level to be maintained throughout the discount period. For example, a vendor may offer a discount based on the number of DS3’s in service for a particular rate zone. The vendor will do an annual “True-up” to see if the correct number of circuits were in service throughout the year. If the customer failed to meet the quantity outlined in the discount plan, then the customer will be charged a shortfall. This shortfall can be validated by running a report to count the number of DS3’s that were in service during the annual review period.

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