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March 12, 2010

OC&Cs: More Than Meets The Eye

While auditors may focus on monthly recurring charges to save their client’s money on a go-forward basis, taking the time to audit charges in the OC&C section can be to your company’s and client’s benefit. Here are a few items to look for:

Backbilling in excess of two years – It is standard practice in the telecom industry that carriers backbill for unbilled or incorrect charges for no more than two years. As stated in an earlier blog post, this is provisioned by the FCC Act of 1934 in Section 415. Smaller carriers in particular will occasionally backbill more than two years.

Changes in MRCs – From time to time, carriers will adjust the MRCs and provide credit in the OC&C. For example, let’s say a carrier was overbilling mileage on a circuit because the incorrect rate was applied. It’s a good idea to research how much credit was issued. The carrier may have only given credit for one month when your client is actually due credit for 24 months.

Installation and ETLs – Be sure to investigate high-dollar installations and early termination liabilities. You can recover overbilled charges on installs by verifying what was ordered on the ASR and the ASR due dates. The same applies for disconnects and regrooms when ETLs apply. Check the disconnect or regroom dates as well as the term agreement start/end dates as well.

March 04, 2010

Why read a blog about managing telecom costs?

Why read a blog about managing telecom costs? On average carriers are overbilled 10 to 20 percent on their telecom invoices. That’s 10 to 20 percent of one of the largest expense items on a carrier’s income statement. Using the tips and tricks that can be found in a blog like this can help you make a serious impact to your company’s bottom line. In today’s economy that can mean saving jobs and who knows the job saved might be your own.