Telecom Expense Management Blog

Here's an article about the bandwidth metering from the New York Times. I particularly like:

The Time Warner plan has the potential to bring Internet use full circle, back to the days when pay-as-you-go pricing held back the Web’s popularity. In the early days of dial-up access, America Online and other providers offered tiered pricing, in part because audio and video were barely viable online. Consumers feared going over their allotted time and bristled at the idea that access to cyberspace was billed by the hour.

The more things change the more they stay the same. The carriers may be relegated to selling "dumb pipes" but they're pretty "smart" at making money with them.

Just another reminder on how important it is to monitor usage on phone bills. These fees weren't limited to consumers they also affected corporate owned cell phones. Even though you can block services it doesn't mean random charges for blocked services won't show up on an invoice.

As it states in the AP article on the AT&T settlement:

In some cases, Edelson said, charges for ringtones have shown up on bills for wireless laptop data cards, which have phone numbers but no way to use ring tones. That points to "cramming," or providers signing up customers without their knowledge.

And they also mention that these aren't just one time charges, like we find on local phone lines, a lot of these are recurring charges.

Vendors of ringtones and daily text-message services with horoscopes and jokes solicit customers to sign up by entering their phone numbers on Web sites or by sending text messages. The charges, which can be hidden or poorly explained, show up later on cell-phone bills, often as recurring charges.

Notifications will soon go out to 70 million current AT&T Mobility customers. To read the complete settlement: http://www.thirdpartycontentrefund.com/

What is Third Party Mobile Content? Third party mobile content is a product (such as ringtones, games, graphics and news or other alerts) that may be purchased and downloaded to your wireless device and is advertised, marketed and sold directly by a third party content provider/merchant other than AT&T Mobility. Third party mobile content is not advertised, marketed or directly sold by AT&T Mobility.

We routinely find these charges on invoices we process. All charges in this category would automatically be flagged for review by our software. Start a free trial today and see the results in 48 hours.

A while back I wrote an article entitled "Did TEM Software Kill the Manual Telecom Audit?". I received several comments from long established manual auditors Peter Eisenhut and Denise Munro, both of whom I respect for their knowledge and long standing careers in the telecom auditing worlds. Both Peter and Denise didn't think the manual telecom audit was on its death bed so I thought I might spend time evaluating the telecom audit process and discussing where technology fits in to the time tested telecom auditing process. Since we all agree there is a need for an experienced telecom or wireless analyst/auditor to understand and interpret the data I thought it might be beneficial for us to take a look at how data is extracted from a telecom or wireless invoice and then entered into a software tool for evaluation.

As Denise stated, "A software tool is only as good as the information entered into it and maintained. There still has to be experienced, knowledgeable people interpreting and managing the information." And we would agree, however the key part of that statement is "only as good as the information into it", as an auditor how do you get information from invoices into the tool you use for telecom auditing?

The main point of my first article was that as a telecom auditor, either employed at a company, or as an independent, you no longer need to manually key in data from invoices. Using technology you can now extract the necessary data points and fields from paper, CD-ROM, Web downloaded, PDF, XML and EDI invoices with 100% accuracy. Here's an example:

We took a stopwatch and compared the time it took to extract data from a 700 page AT&T ABN multi-service, multi-location paper invoice both manually and using our proprietary software, algorithms, and methodologies. We were able to extract all of the data points necessary to audit the invoice in exactly 12 minutes with our automation and it took 135 minutes for the data to be keyed in manually.

If you could get the necessary data points from a telecom or wireless invoice into a tool to audit invoices in less than 1/10th the time, and the data was as accurate with both the manual process and the automated process wouldn't you choose the automated process? If not, what would hold you back from using automation to replace manual data entry?

We look forward to your comments.

The next post will discuss the some methods and tools for analyzing the data once it's been extracted from an invoice.

If you had any doubts that billing errors are rampant in telecom and wireless invoices then the Fortune interview with Sprint Chief Service Officer Bob Johnson should eliminate any doubts.

Here's part of the Q&A. 

What is the number one reason customers call in and why is it so difficult to help them?

The highest volume of calls is for billing errors - these are typically generated through the account setup process... So it used to take an average of four to six calls to get a billing problem solved.

What are you doing on the “upstream” side — to make sure that subscribers have fewer reasons to call in the first place?

Many people call in with billing problems, especially overages [fees for using services like texting and data beyond what's allotted in their plan] so in March we launched “Simply Everything” [an unlimited voice and data plan that costs $100 a month], and throughout this year you will see more and more simplified pricing from us.

We have noticed a more proactive approach on behalf of Sprint when opening and resolving billing discrepancies for our clients. Have you had any billing errors on your Sprint invoices? Have you noticed any improvement in their ability to resolve complaints? In one call?

Some applications require lots of bandwidth. Hunter Newby of IP Business had a Q&A with Michael Sevret Vice President of Sales at 4Connections. They discussed how for many high bandwidth applications like algorithmic trading, medical imaging and records archiving dark fiber may provide the best cost/performance. They explain that enterprises are becoming aware of how optical works and detail some of the benefits of managing a dark fiber network.

Wave Division Multiplexing has increased the number of paths within a strand of fiber 100+ fold, and newer equipment continues to increase the capacity. Wavelength costs come down as the number of paths increase making it a viable option for enterprises when compared to the costs of Metro/WAN Ethernet (VPLS) or MPLS.

So what is the magic formula to determine whether Dark Fiber, Metro/WAN Ethernet or MPLS is best? Since no one carrier has an end to end network either nationally or internationally it requires a bit of research. Shop for Ethernet and Fiber Locator are both companies that help you find lit buildings, and if not lit, how far fiber is from your prem. Here's the criteria they suggest you evaluate.

The bottom line is dark fiber isn't just for carrier backbones anymore. If you have the resources to manage the equipment, or a good VAR to support you, it's increasingly becoming a cost effective alternative to carrier supplied services for certain high bandwidth applications.

Need help with dark fiber? Vocio has a portfolio of 80+ carriers to help our clients get the best cost/performance. Feel free to give us a call.

Many companies call us asking for help after they've reviewed their invoice and found several thousand dollars of international roaming charges, both for voice and more and more lately data. Sometimes we can use our years of experience to get a one time credit or get charges reduced but to truly lower costs enterprises should plan ahead.

Here are the quick tips:

1. If you have a GSM phone (AT&T and T-Mobile) get a country appropriate SIM card for voice and data while traveling internationally
2. If you have CDMA (Verizon and Sprint) get a Worldphone like the Blackberry 8830 or Samsung IA30 which can be unlocked and use SIM cards
3. If you have CDMA (Verizon and Sprint) and don't have a Worldphone capable of taking a SIM make sure you have an International roaming plan activated prior to leaving and placing calls in a foreign country.
4. If you have employees expense their cell phone expenses then set the wireless expense policy for international travel and appropriate usage along with the cap amount an employee can expense prior to any employees traveling internationally and making calls.
   
5. Get software to track all expenses so you can manage the users accounts proactively. Preferably from a third party not a carrier.

Planning ahead by Getting a SIM

Numerous companies like Brightroam (US based) and Sim4Travel (European based) offer solutions for global travelers and help with unlocking phones and getting country appropriate SIM cards which help enterprises substantially lower costs. Also you can buy SIM cards at almost any airport worldwide but you need to make sure your phone can take SIM cards and is unlocked.

Having people contact you when you're in a foreign country can be challenging when you have a SIM and not your main cell phone number. There are numerous work arounds that we, a techie friend, or your companies telecom/IT department can implement to make sure you receive those calls.

CDMA Users get a Worldphone For International Travel

Most of the world uses GSM which uses SIM cards for establishing a connection to the network. Most of the USA is CDMA based meaning you can not use a SIM card unless you have a phone like the Blackberry 8830 Worldphone or Samsung IA30.

Select an International Roaming Plan

Rates can vary by dollars or more per minute between plans so having the correct international roaming plan assigned BEFORE the trip could save you lots of money. Again we might be able to get a one time credit for a "lack of understanding" but the carriers know you have very little leverage (you'll pay because you want to keep your number right?)

When Employees Expense Phones

Managing international roaming is tough enough when the enterprise owns the device and pays the bill but things can get really challenging when employees expense their wireless usage but have a cap of say $100. If employees are on a business trip, making business calls, which are billed to their personal cell phone, that then gets expensed will the company cover the charges over and above the $100?

What if the employee incurs $3,000 in international roaming charges while on a business trip? Who's responsible? This is something that should be discussed and detailed in the wireless policy so there are no misunderstandings. We find many times companies fail to provide a written policy and when that $3,000 invoice hits the employees mailbox and the company says the cap is $100 things can get very heated.

Get Expert Help

International roaming is one of the least understood services with the highest potential financial liability. Having a team of experts, a strigent wireless policy along with Wireless Expense Management Software is a great way to control that financial liability.

Stuck in a cell phone contract? Well Trade My Cellular has come up a with a unique solution to help consumers get out of cell phone contracts. The concept is fairly simple. Since wireless providers let you transfer the liability of an account Trade My Cellular has set up a web site to connect you to someone who might take yours over. Has anyone tried this out?

Also Jeff Silva wrote an article yesterday detailing the Early Termination Fee Battle and associated lawsuits. A lot of money must be at stake as the carriers really don't want to give you a way to leave them. Wouldn't it be better for them to provide outstanding service and make you want to stay rather than force you? I can see the need to recoup any phone subsidies but beyond that you should be free to leave if you're unhappy. Wouldn't you agree?

Have you ever eaten at In-N-Out? If you haven't and you love burgers you should check them out. If you've been there you know they have a cult like following because of their amazing burgers and fries. Why else would you wait in line for 20 minutes when you could get a burger in 5 minutes at numerous other fast food joints?

What I like about In-N-Out besides the food is they have a secret menu. Items like a grilled cheese, protein style burger and animal style burger are only available to those "in the know". I decided to do a Google search to see if anyone had listed the "secret" items and I found In-N-Out's Secret Menu. I've eaten at In-N-Out for 20 years and found items on this list I wasn't aware of, I guess I'm not so 'in the know".

How does this relate to telecom and wireless services? Well many times the folks that provide quotes, place orders and service your accounts may not be familiar with, or not supposed to mention, a "secret" promotion, discount or tariff. They are only available to those "in the know".

For example AT&T has a promo for an Internet T-1 that can reduce costs as much as 30% simply by providing a competitive quote from a provider that has two words in its name that begin with T and W. There are lots of these little loop holes that can be used to drive down costs but you need someone "in the know" to help you find them.

Are you paying for employees "premium" text messaging and other "premium" services? I bet your answer would be a resounding no. You might say, "we have a corporate or government plan and the phones are owned and supplied to the employee for business use only." And while a reasonable amount of personal calls and texting would be ok, "premium" charges like ringtones, games, premium text messaging and other charges would certainly not be ok. You may even monitor it and/or have blocked access to those features but...

We process invoices, lots of invoices and we extract all those little granular details from the invoices and then run software to scrutinize every little expense for accuracy and to flag any "premium" charges. Guess what? We find lots and lots of "premium" charges. Most companies simply don't have the time to manually review every charge.

Here are a few "premium" charges from a recent invoice:

99 cents Deal or No Deal - There's now a class action lawsuit that's made its way all the way to the Georgia Supreme Court. The charges keep showing up on bills however.

$9.99 - Thumbplay - Internet Games

Some other usage charges:

Roadside assistance $2.00

International picture text - 35 cents

International text - 15 cents

And of course there's the old standard:

Directory Assistance - $1.49

Why not direct users to dial 800-GOOG411 (800-466-4411) or 800-Free411 (800-373-3411) instead.

Usage charges on this $14,000 170 user invoice amounted to over 15% of all charges. Many of those usage charges could be eliminated by simply blocking the service or educating users on alternative ways to dial calls.

Not sure if your being billed for premium services and other non business related charges? Then sign up for our free trial and find out. Just send us up to 3 invoices and we'll process them and post the results for free.

On my way to work this morning I was nearly hit by a distracted driver. I was stopped at a red light, the light turned green and I lifted my foot to hit the gas when I noticed an object moving in my peripheral vision. I quickly hit the brakes and watched a car sail through the red light, which by this time was beyond red. Running a red light is nothing new, but what alarmed me was why the driver ran the light. As the car passed in front of me, I noticed the driver's head was down and I could plainly see he was typing an e-mail or text into his phone.

Tragedy was avoided for me today but it served as a reminder. It also spurred me to get this information out because not only is it important for us as individuals to pay attention, it could have huge consequences for our companies as well. The fact is a phone or smartphone being used by an employee could not only cost lives if they get distracted and have an accident, but it could also cost your company a small fortune.

Here are two recent examples:

In December, McGrogan's employer, International Paper, agreed to pay $5.2 million to settle an accident in which a woman's car was forced off the road and her arm was later amputated. In February, Modern Continental Construction Co. agreed to pay $750,000 to a woman whose car was struck by Stasium. A jury was deliberating at the time.

Also stated in the article:

Recent settlements such as these and other big-money cases nationwide have caused companies to move to protect themselves from financial liability. With increasing frequency, businesses are mandating that workers not use cellphones when driving or at least employ hands-free sets.

"Sophisticated employers are saying, 'We need a policy,' " said Atlanta attorney Stephen Schatz, who defended Modern Continental. "In Georgia, if you're going to or from work [and you crash], your employer is not liable. But if you're using the phone for business purposes — even with your own phone — [the business] can be held liable."

What this means is a policy not only needs to be created, but just like all other policies on personal behavior it would be advisable to add a training session for new hires and existing employees and to document that training was conducted, along with a signature of the employee that they agree to adhere to the policy. It may not limit liability completely but by taking the step to educate your employees they will know the company is serious in protecting their greatest asset and making the roads a safer place.

How do you come up with a policy? Well a start might be to emulate the laws of a state that has a stringent cell phone use law, for instance in California laws go into effect July 1st, 2008. The policy can be downloaded here. Also we can help you as we not only help create policies for appropriate use, but lost/stolen devices, stipend or personal expense policies etc.

We'll all continue to use our phones but perhaps today we could all use a little reminder, and maybe pass along a little reminder to family, friends and colleagues. It just may make someone pay attention a little more over the next few days and avoid a tragedy like I almost had today.

Have you had any close calls with drivers being distracted? Let us know your story.