Research Note 31 - Are Your Telephone Bills Leaking Cash?
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Are Your Telephone Bills Leaking Cash?
Tillotson Research Note 31, April 2003

Billing Complaints 1998-2002

"Bewildering Complexity Of Choice"

Companies today face a bewildering complexity of choice when purchasing their telephone, wireless, data, Internet and broadband services. A California Public Utilities Commission (CPUC) report*, in February 2003 states that there are 275 telephone, 197 wireless, 298 DSL/Cable telecom operators providing services to California businesses.

"Companies Spend 5% To 35% More Than They Need To"

Telecoms now ranks in the top five expenses for most companies, but many companies spend 5% to 35% more than they need to because of the difficulties in tracking and monitoring the costs. The (CPUC) report*, states that 54% of telephone, and 74% of wireless complaints were billing complaints. This high level of incorrect billing, in a situation of poor controls, tracking and monitoring is a sure recipe for major cash leakage.

"70% Of Bills In Error, 80% Of Errors In Favor Of Telephone Co"

Analysis of telephone bills by specialists such as Tillotson reveals that 70% of bills contain errors, and 80% of errors are in favor of the telephone company. The revenue leakage potential from billing errors is a serious concern because the loss can be considerable, and reduce companies profits.

"unknowingly throwing money away "

Many companies, large and small, are unknowingly throwing money away by routinely paying their telephone bills without understanding or verifying the charges. We have detailed some case studies on our website and invite you to read these in the library section.

Summary:
  • 54% of telephone complaints - billing
  • 74% of wireless complaints - billing
  • 70% of telephone bills are in error
  • 80% of billing errors are in favor of the telephone company
  • 700 different service providers in California
  • Multiple monthly bills, multiple errors
  • Billing is complex, hard to understand
  • It's not all the telephone company' fault!
  • Routine bill payment, poor validation
  • Lack of auditing of services and costs
  • Lack of in-house expertise or resource
  • There is a serious leakage of cash!
"regain control of your telecoms costs"

Companies need to allocate expertise and resource to auditing and validating their billing, and thereafter, put in place process and procedures that ensure ongoing and effecitve managenent of their telecoms costs. Whilst many companies do allocate staff for this purpose, often it is a secondary activity to their day-to-day duties, and thus full audit and control is rarely achieved. Our experts can help your company identify and eliminate the revenue leakage, negotiate credits where incorrect billing has occurred, document your system and help you regain control of your telecoms costs.

"Tillotson Can Help You"

We can operate on a contingency fee basis (if no savings achieved, you pay no fee, so there is no risk!), or on a flat rate basis, your choice. Do consider reading some of the case studies and articles in the library section, as we are sure you will find these most enlightening. Also visit our services section Details

We will be very pleased to respond to a request for additional information, and for the opportunity to discuss how Tillotson' can help you eliminate revenue leakage in your business and enable you to regain control of your telecom costs. Please remember our services are available on a contingency fee, no risk basis.

*Status Of Telecommunications Competition In California, second report for the year 2002, submitted to the California State Legislature, February 28, 2003.

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