Did you know that 12% - 20% of corporate telecom charges are in error and unfortunately for businesses, 85% of these charges are in the carrier’s favor? (Gartner Group) This is the time to take charge of your telecom costs - take a close look at these 5 Reasons Telecom Expense Management is Essential to Reducing Costs.
5 Reasons Telecom Expense Management is Essential to Reducing Costs: #1 - Telecom Asset Validation
You can’t determine areas of efficiency if you don’t know what you have. It’s not uncommon for…
- customers to be confused by carrier invoices and not understand what they are paying for
- circuits or lines to invoice at incorrect rates
- ongoing invoices after placing a service disconnection order
- unneeded or unused services and features to exist
- contracts to expire and corresponding rate increases to go unnoticed
- long distance casual billing
- 3rd party/slamming charges to be added without authorization
5 Reasons Telecom Expense Management is Essential to Reducing Costs: #2 - Dispute Tracking and Management
Chasing down billing error corrections and credits requires timely documentation and persistence. Most carriers have a formal process for submitting dispute and credit requests and submissions must include proper documentation. Carriers are rarely proactive in resolving these types of issues therefore the burden is on the customer to be persistent and follow up. Always obtain the rerate calculations to ensure you receive the full amount you are entitled to.
5 Reasons Telecom Expense Management is Essential to Reducing Costs: #3 - Regular Wireless Analysis
Within the telecom environment, wireless assets are often the most dynamic. Factors such as voice and data pooling, addition of new service, upgraded service, equipment changes, overages and other miscellaneous fees can all lend to significant monthly variances. Monthly analysis is critical in monitoring accuracy and ensuring optimization.
5 Reasons Telecom Expense Management is Essential to Reducing Costs: #4 - Monthly Invoice Audits and Cost Allocation
Comprehensive monthly audits are imperative in eliminating telecom cost creep. Pricing errors, missing discounts, incorrect service periods, excessive technician charges, unauthorized features and add-ons are all commonplace in the world of telecom billing. Identifying such anomalies requires attention to detail and diligence to locate an informed carrier representative who can validate the charges.
5 Reasons Telecom Expense Management is Essential to Reducing Costs: #5 Contract Negotiation
Contract negotiation should begin 3-6 months prior to the contract termination date to allow for a full evaluation of current market pricing and options. If your contract contains an automatic renewal clause and you wish to cancel service it’s often a requirement to provide written notice 30-60 days in advance.
As you can see, Telecom Expense Management requires diligence, expertise, and time. In addition to reducing costs, Telecom Expense Management is also essential in understanding what your true telecom environment looks like.
Unsure how to pursue Telecom Expense Management in your organization? Contact a trusted expert like Renodis to walk you through the details and show you how you can save time and reduce costs on your next telecom bill!
Diane Kisch is an industry leader in Telecom Expense Management and Practice Manager for Renodis Telecom Management.