Value Sourcing Group

Telecom Audit (TA) is an in-depth look at historic and current telecom related expenses with focus on recovering past billing errors by vendors and identifying strategies for reducing future costs. TA takes a deep dive into your contracts and applicable tariffs and service offerings and all of the information that underlies your telecom invoices. For wireline service invoices this includes analysis to the U.S.O.C. (Universal Service Order Code) level, rates and rate applications for domestic and international long distance and rates and rate applications for each element of network services. Subscribed services are reviewed for opportunities to reduce cost through strategies such as service rationalization and contracting. Wireless invoices are analyzed for conformance to contracts, adherence to enterprise wireless policy, unauthorized features or services, feature cramming and cost reduction through Rate Plan Optimization and feature optimization.

VSG wants you to know that (a) you are in full control of a Telecom Audit and (b) you will never pay VSG until you have received documented and fully understood results of recoveries or savings from VSG. This means

  • VSG presents its findings and approvals to you and asks approval to proceed.
  • VSG proceeds only upon receipt of your signed acceptance of a recommendation
  • VSG manages implementation of that recommendation as a project which includes all elements required to bring about a successful conclusion
  • VSG Quality Assurance is a part of every implementation and documents the successful outcome (e.g., refund received, error correct, cost reduced, etc.)

Telecom invoices, tariffs and contracts are complex, can be difficult to understand, and are subject to frequent customer order activity which often does not have the needed quality assurance elements. Carrier failure to correctly implement contracts happens regularly.

Typically, Telecom Audit produces combined recoveries and future savings of 7% to 10% of annual wireline telecom expense. Unusual cases have produced savings and recoveries of more than 30%. TA wireless savings as a result of audit and optimization are usually in the range of 15% to 30%.

VSG begins to audit as soon as it receives billing information. Initial claims may be filed within two weeks of project commencement and refunds or savings realized in as little as 45-60 days depending upon the carrier billing cycle. Recovery and cost reduction findings are delivered throughout the process and may be submitted as they occur or at weekly or bi-weekly project meetings.

Typical areas of recovery from vendors include:

    • Services billed but not installed
    • Services ordered disconnected, but still billed
    • Services billed, but not ordered
    • Services billed contrary to tariff
    • Billing of services no longer offered
    • Billing in excess of contract
    • Billing errors in supplier accounting systems
    • Misapplication of taxes and surcharges
    • Cellular telephone features and contract audit

Typical sources of future savings include:

    • Services not used or needed
    • Excessive service (e.g., over trunked)
    • Trunk group optimization
    • Unused facilities
    • Incorrect call routing
    • Improper toll billing
    • Alternate services or service arrangement
    • Alternative technologies (services or equipment or both)
    • Alternative vendors
    • Negotiation or renegotiation of contracts
    • Cellular telephone optimization and continuing plan management
    • Cellular telephone audit
For recoveries, VSG obtains the carrier billing which contains the issued credit. For recurring monthly billing errors, VSG re-orders the carrier customer service record (CSR) and audits it to ensure correcting orders have been issued.

For future savings, VSG works with our client to establish baseline expenses. Following implementation, VSG measures the results achieved against the baseline and calculates the realized savings. VSG presents its documentation for review prior to billing.

There is no “out of pocket” cost for the Telecom Audit. All fees come from either the recovery of monies already spent or from the reduction in future costs for which you have already budgeted.