Unfortunately, telecom billing errors rarely go away on their own. To combat them effectively, you should implement a step-by-step action plan for correcting and resolving errors at the time they occur. Doing so is the best defense against unnecessary telecom spending.

Telecom billing errors can be intermittent or recurring, usually taking the form of overbilling. The majority are uncovered after a complete and thorough telecom audit of voice and data services. Minimally, a routine check of the summary section of bills will reveal errors that could add up to huge amounts of unnecessary costs over a long period of time.

Correcting Telecom Billing Errors

Billing errors usually occur in three different ways:

1) When a user is charged for something other than what is or what was originally ordered;

2) When a charge is inadvertently omitted by a supplier; and

3) When charges for provided items are based on incorrect rates or calculations.

In order to maintain accurate billing records with your carrier, always strive to correct all discrepancies found - including underbilled items - as soon as you find them. Failure to correct all billing errors immediately makes it more difficult to make changes or report trouble later since these items may not appear on your accounts’ customer service records at a later date.

Telecom billing errors can be intermittent or recurring. For non-recurring errors, you will need to submit all over-billing claims with specific items that are identified and documented. For recurring items, document each discrepancy and submit claims for complete correction of each account. All but minor claims should be submitted in writing.

6 Step Process For Submitting Claims

1. Call the carrier or vendor to verify a contact person. Always verify a specific contact person by name to send error reports. You should get a fax number or e-mail address of the person who will ultimately have the ability to resolve your problem. At the top of your cover letter, simply include: ATTN: [the contact name]

2. Compose a cover letter that identifies the essence of the claim. The cover letter is the document that will list all of the specific billing errors that need correcting. Unless the claims are interrelated, it is a good idea to include one billing account per cover letter. This will avoid confusion and allow the carrier contact person to focus on one account only.

3. Attach an itemized detail sheet. The detail sheet should include such things as: the billed account name, phone number(s), date, item, rates, number of months error has occurred, monthly charges, the adjustments due, etc. Be as specific and detailed as possible when documenting the errors and any adjustments you feel are due.

4. Follow up to verify receipt of claim. You will need to follow up soon after submitting your claim to not only make sure the claim was received, but also that it was received by the correct person able to resolve the situation. Keep in mind that some carriers are notorious for letting problems be shuffled around until the customer either forgets or simply gives up. Staying on top of the contact person will ensure that your claim gets processed and resolved.

5. Follow up again and push for resolution. By now you have established the fact that you mean business and you expect your claim to be resolved and refunds or adjustments be made. Be sure to get an order number and the effective date of the billing correction during this step.

6. Verify errors have been corrected and refunds received. Errors that go uncorrected will continue to appear on telecom bills in subsequent months. The final step is the most crucial: be sure that the errors are removed and refunds are in your company bank account! Don’t be surprised if a similar or exact type of error suddenly appears again in 3-6 months.

No matter what the technology, telecom vendors and service providers will continue to makes mistakes. With the proper systems in place to identify errors, and the action steps taken to resolve them, you will be well on your way to keeping your corporate telecom expenses in check.

Submitted by: TelCon Associates

While the percentage of errors is high, billing errors usually account for only a small portion of total savings during telecommunications audits.

Nevertheless, it is a good idea to be familiar with the most common errors that will appear on your local telephone bills. Keep in mind that errors may take the form of “overbilling” and/or “underbilling”.

Routine examination of your local phone bills will, sooner or later, turn up the one or more of the following most common types of errors:

#1 - Intermittent Errors

Intermittent errors are just as the name implies - they appear on a non-regular basis. This type of error is usually associated with the “Other Charges and Credits” pages of the phone bill. Examples of intermittent errors may include:

• Other charges and credits for installation or changes are often found to be incorrect, especially for services provided under many negotiated deals or contracts.
• Incorrect applications for refunds or credit adjustments is another typical intermittent error. Surprisingly, you may find this error soon after your carrier representative has agreed to the refund or credit!
• Charges for uncompleted calls are sometimes found on billings from two types of vendors-resellers using feature group A connections to carrier central offices, and vendors that are reselling service from a virtual private network.
• Facility malfunctions can result in you being charged for lines that are not working resulting in higher charges for usage forced onto other lines or services.

#2 - Recurring Errors

Recurring errors are the result of incorrect information and data in the vendors’ customer service records. These types of errors can be very costly simply because they appear each and every month until they are corrected.

Examples may include: inventory discrepancies, contract discrepancies, differences in tariff or rating regarding grade of service, mileage charges, enhancements, etc.

Recurring errors are not as easily uncovered as are intermittent errors. This type of error can only be corrected through a thorough audit of customer service records. A routine examination of phone bills will not reveal all recurring errors.

#3 - Tax Errors

Tax errors are most commonly associated with exemptions or incorrect taxing districts. When facilities are taxed incorrectly, the associated usage charges may also be taxed incorrectly. Examples of tax errors may include:

• Taxes being collected after exemption has been filed (a copy of the applicable exemption certificate or earlier exempt billing will verify the overbilling)

• Exempt account without authorization
• Taxes applied for wrong jurisdiction
• Taxes applied despite statutes or rulings exempting them

For more basic information on telecom taxes, refer to this newsletter article - Understanding the Taxes Imposed on Telecom Bills.

#4 - Metering and Database Errors

These types of errors are commonly associated with local and long-distance calling charges. They can occur through metering malfunctions or clerical transcription errors. Examples include:

• Double metering (easy to identify since each call is shown twice and in complete detail)

• Charges for incomplete calls
• Usage from a different subscriber (another easily identifiable error-charge for another individual’s line number will appear on carrier bill)

#5 - Telecom Agent Errors

Agent errors continue to be a problem as more and more agents are accepting either partial or end-to-end responsibility for service segments provided by vendors.

Agent misfeasance occurs when a supplier orders or assumes responsibility for service segments provided by several different carriers or vendors, then fails to exercise responsibility for those services. Examples may include:

• Local lines ordered and installed by equipment vendor or IXC. (In the event those lines are no longer needed, the agent is nowhere to be found to cancel the unused lines and services!)

• Excessive or sub-optimum facilities installed
• Promises of credits or changes that fail to materialize

Telecom billing errors will never disappear. However, even a little knowledge in what kinds of errors to look for can go a long way in reducing telecom expenses.

TelCon Associates, Inc.