Hey everyone - I've been auditing Alabama Power bills for three years and doing pretty well. A client just asked me to look at their AT&T telecom bills too. Where do I even begin with telecom auditing? The tariffs look completely different from electric utility stuff. Any tips for someone making the jump would be appreciated.
First telecom audit - where to start?
Brenda, telecom is a whole different beast but the money is there. Start with the basics - make sure they're on the right rate plan for their usage. I found a Hartford client paying business rates when they qualified for volume discounts. Saved them $2,800/month just on that. The FCC tariffs are your bible, just like PSC tariffs for electric.
Second what Vince said about rate plans. Also watch for phantom services - lines they're paying for but not using. Found a Vegas casino paying for 47 T1 lines when they only needed 12 after upgrading to fiber. That was $18,000/month in phantom charges going back 14 months.
The learning curve is steep but worth it. Richmond clients pay me 25% contingency vs 15% for electric audits. Key areas: phantom services like Kim mentioned, incorrect tax exemptions, overbilling on long distance, and equipment rental fees for stuff they own. Get familiar with USOC codes - that's how they itemize everything.
This is super helpful, thanks! Phil, what are USOC codes exactly? And Kim - how did you identify those phantom T1 lines? Did the client not know they had them?
USOC = Uniform Service Order Code. It's how telecom companies code different services and charges. Like 1FB for basic business line, 6FC for call forwarding, etc. Every charge on the bill has a USOC. Learn the common ones and you can spot billing errors faster.
Brenda - the casino had upgraded their network but nobody told accounting to cancel the old T1s. IT thought finance handled it, finance thought IT handled it. Classic left hand not talking to right hand. Always ask for a site survey and compare what's actually installed vs what's billed.
Great thread folks. One more tip for Brenda - get cozy with the telecom account reps. Unlike electric utilities, there's usually room to negotiate better rates if you know what to ask for. I've gotten retroactive rate adjustments just by asking nicely and showing usage patterns.