Just closed the biggest telecom audit of my career! Knoxville hospital system was getting absolutely destroyed by AT&T billing errors. Found phantom MPLS circuits, incorrect mileage charges, wrong tax classifications, and duplicate installation fees. Three years of overcharges totaling $180,400. Client is over the moon and I'm buying dinner tonight!
Big telecom audit win - $180K recovery from AT&T
Holy cow Dale, that's incredible! $180K is huge even for a hospital system. How did you identify the phantom MPLS circuits? I've got a Charlotte healthcare client with similar AT&T complexity and I'm drowning in their tariff structure.
Wayne - the key was getting a complete network diagram from their IT department and comparing it line by line with AT&T's billing. They had 23 MPLS circuits billed but only 16 actually installed. The others were old circuits from locations they'd closed 2-3 years ago but AT&T kept billing. $4,200/month in phantom charges right there.
Dale, what was your approach on the mileage charges? I'm seeing that a lot with AT&T in Idaho - they bill point-to-point mileage but seem to just make up the distances. Did you actually measure or use their tariff methodology?
Pete - I used AT&T's own mileage calculator from their tariff and compared it to what they were billing. They were using airline miles instead of their required "standard mileage" calculation. Difference was huge on long circuits - one 47-mile circuit was billed as 73 miles. That's $890/month difference per circuit.
Outstanding work Dale! I'm just getting into telecom auditing here in Rochester. What percentage contingency did you charge for a recovery that size? And how long did the whole audit process take?
Tom - I charged 25% contingency, which is my standard for complex telecom work. The audit took me four months part-time, but I was learning AT&T's tariff structure as I went. Could probably do it in two months now. The key is being methodical and documenting everything because AT&T will fight you on every penny.
Congratulations Dale, that's an amazing recovery! For the newer folks here, Dale's approach is exactly right - get the network diagram, compare to billing line by line, and document everything. AT&T has deep pockets but they'll pay up when you show them clear evidence of billing errors.
This gives me hope! I've been avoiding telecom because it seemed too complicated, but $180K recovery speaks for itself. Dale, any tips on getting started with AT&T tariffs? Their documentation is like reading Greek to me.
Ted - start with AT&T's General Subscriber Services Tariff and focus on the sections relevant to your client's services. Don't try to learn it all at once. I keep a spreadsheet of common USOC codes and their meanings. Happy to share if you're interested.
Dale, I'd love that USOC spreadsheet too if you don't mind sharing. Working through my Charlotte healthcare audit and could use all the help I can get. This thread has been incredibly valuable.
Wayne and Ted - I'll clean up my spreadsheet and post it in the resources section. Give me a few days to make it presentable. Glad this thread has been helpful - we've all got to stick together when dealing with these telecom giants!
Dale, that spreadsheet would be a fantastic resource for the community. Consider making it a pinned post in this topic once it's ready. Resources like that are exactly what make this forum valuable for all our members.
Just wanted to circle back and thank Dale for the inspiration. Started my first major telecom audit last month and already found $12,000 in phantom charges on a Rochester manufacturing client. The methodical approach you described really works!