How to make sense of your wireless phone bill

How to Make Sense of Your Wireless Phone Bill by TelCon Associates

An important part of successful wireless cost-control is understanding the exact components that make up your monthly wireless bill. Admittedly, analyzing a wireless bill can be about as much fun as completing a tax return or watching paint dry. Routine analysis and auditing of wireless bills will help reduce overall telecom costs if you know what to look for - and if you know what actions to take in the case of billing errors.
It is important to understand that all of your wireless activities (i.e. making calls, receiving calls, text messaging, directory assistance, etc.) are meticulously tracked by telecommunications carriers' large computer databases.
At the appropriate time of the month, your recent cell phone activity is collected from the carrier's database by management software. The billing information for each component of the bill is then combined together to form your current wireless statement. Because these systems churn out hundreds of millions of wireless bills every month, it is easy to see why wireless bills are rarely "error-free."
Wireless carriers do not produce CSRs (customer service records) the way local phone companies do. The key to understanding exactly what is contained on your wireless billing statement is the account summary page. The following will give you a step-by-step explanation of the components that go into making up the typical wireless phone bill.
1) Number/Name and Plan
The area of the bill that contains the name and number of the account holder and the specific plan the phone is contracted. The number of minutes the plan offers is often contained within this column as well. Phones that are added to the account and/or are part of a "pooled minute plan" are listed as "add-a-phone" or a similar term.
2) Monthly Recurring Access Charges
This section states the monthly fee for the phone that is under contract. This is the typical "recurring" fee that does not change from month to month. Calling plans can vary tremendously and change constantly in the marketplace, but this number should stay consistent unless you specifically migrated to another plan the previous month. Additional phones added to a "pooled" plan are usually in the $10-20 per month range. This number usually reflects factored in discounts and/or service adjustments. (see next)
3) Service Discount/Adjustments
Service discounts and/or adjustments reflects the percentage that is "discounted" based on the wireless contract already in place. Always be certain that the percentage negotiated is correct. More importantly, be sure that the discount is properly applied to the monthly access charges. The amount of this discount can vary widely from contract to contract.
4) Cellular Minutes/Charges
This column lists the exact number of minutes used during the billing period, rounded up the nearest minute. Remember that wireless companies count incoming and outgoing calls as part of a wireless plan. The key here is to compare your typical usage during a 3 month period with the number of minutes that plan contains. Most wireless companies now allow plan adjustments (up or down), but be aware that making any adjustments usually means locking in for another year with that carrier. Under and over usage of minutes should be adjusted appropriately to maximize cost-savings.
5) LD/Other Charges/Credits
This column can include charges such as long distance calling, taxes and credits. This information will vary depending on the wireless carrier. For example, Verizon bills will include taxes on services and airtime, while Sprint does not. Long distance charges are generally not an issue since virtually all carriers include domestic long distance calling as standard on most calling plans.
6) Directory Assistance Charges
Directory assistance charges (sometimes called "related call charges") are listed in this column. Dialing 411 for directory assistance is one cell phone expense that can easily be eliminated. There are many free 411 services available now in the marketplace that retrieve information from the same databases used by the big carriers. For more information on using free 411 services, refer to this article: How to Get Wireless Directory Assistance Calls for Free
7) Equipment Charges
This column contains charges for handsets and other related equpment ordered for the previous month. In the corporate environment, wireless handsets come and go frequently. Oftentimes employees order phones on their own, only to expense them at the end of the month. The best way to control these types of charges is to insist that all equipment charges are handled by the corporate office. This is the only way to accurately track inventory of equipment as well. For more specific information, refer to this article and video: 6 Proven Strategies for Controlling Wireless Expenses
8) Direct Connect Services
Carriers (Nextel and Sprint) who offer direct-connect services to and from other subscribers will put those charges in this column. Direct-connect service is usually included in business plans so the use of this feature is the same as every other call. If charges occur in this column, make adjustments to your plan accordingly.
9) Text Messaging Charges
The amount of text messages made in the previous month and their total charges are found in this column. The popularity and wide spread use of text messaging by wireless subscribers has created a "cash cow" for the wireless industry. Text messaging is probably the most expensive activity you will engage in with your wireless phone. At 10-20 cents per message, these charges can really add up fast. There are plans available that allot a certain (even unlimited) amount of messages per month. If you engage in any amount of "texting", consider a plan that offers a small amount, then discipline yourself to stick with it.
10) Roaming Charges
Just a few years ago, roaming charges were feared by consumers. Making calls from outside your calling area can make your bills go through the roof in no time. These days roaming charges are not an issue as they have been in the past. Wireless networks are now much more robust. Unless you are subscribed to an economy plan, you should not experience excessive roaming charges when making calls from outside your calling area. If you travel often, be sure to check your wireless bill for any charges that might appear here and make a note of the location(s) from which they originated.
11) Data and 3rd Party Services Charges
As wireless technology evolves, so do the columns that contain billing charges. Since a majority of wireless phones today have internet capabilities, data transfer and internet usage charges are now a billing issue that requires diligent monitoring. The best advice here is to make certain the plan chosen will accommodate the internet usage that will be used. Data transfer is recorded in kilobytes and is rounded up the the nearest kilobyte for billing purposes. Data sent and received usually includes, but is not limited to, downloads, email, overhead and software update checks.
12) Taxes and Surcharges
A wireless bill would not be complete without excessive local, state and federal taxes and carrier surcharges. Keep in mind that some bills will separate these charges into specific columns. There is not much you can do to eliminate these annoying charges other than complain to your state and/or local government representatives about the escalating taxes placed on wireless bills. Here is a list of the top 10 states for wireless taxes.
Wireless usage is the fastest growing segment of the telecommunications industry. As cell phones become more feature rich, the probability of errors only increases. The time spent becoming familiar with usage patterns and billing will pay off in the long run.

TelCon Associates helps businesses gain more control and reduce telecom spending. For a free e-book entitled Telecom Tips and Strategies, visit http://www.telconassociates.com

Mobile device management: the next big thing in Telecommunications

Mobile Device Management: The Next Big Thing in Telecommunications? by Peter Verhoeff

Mobile device management (MDM) is a relatively new development in telecommunications. This article explains what mobile device management is and how it relates to telecom expense management (TEM). Mobile device management is generally understood to be the distribution of software, data and device settings from a central server to a number of mobile devices, with the purpose of optimizing the functionality and security of these mobile devices reducing costs and downtime. These devices would include laptops, PDAs, cell phones and smart phones. Ideally, IT personnel would be able to upload software updates and the like to mobile devices with the same ease as to desktop computers physically connected to the network. Further, it would be desirable to be able to do so, regardless of the type of device, its service provider, its operating system, and so forth. And if a device is lost or stolen, it should be possible to disable it remotely and remove any confidential data in the process. Providing updates to mobile devices in the past required either a direct connection to the network or installing a SIM. The drawbacks of that process are obvious and many devices would never be updated. The next step in the evolution was where users of mobile devices could download the updates from the server, which was better, as the device did not have to be brought in, but many users would not bother to request the updates, so problems persisted. The final step is where the server broadcasts the updates to all of its mobile devices, which then are updated automatically. The administrator also has the capability to address a subset of its mobile clients, or even a single one, as in the case of disabling a lost or stolen device, or the cell phone of an employee who has left the company. Troubleshooting and running diagnostics on mobile devices from the central location is another useful capability to have. The challenges to achieving these results are considerable. For example, a remote device might be out of range or turned off. In addition, different devices need to be addressed differently, because of differences in hardware and/or software. Because this is a new concept, there are no manufacturing standards yet in this regard. Mobile device management is expected to grow in leaps and bounds. According to ABI Research, MDM services are projected to grow from $583 million in 2007 to over $20 billion by 2013, which translates to a growth rate of about 80% per year. A logical outgrowth of MDM is telecom expense management (TEM) applied to mobile devices, also referred to as wireless expense management (WEM). For example, with cell phones, call data records (CDR) can be generated, just as with landline phones, that record the origin, destination, duration, date and time of calls. Having this capability allows the containment of the soaring mobile telecom costs, as well as improved mobile security. Increasingly, TEM providers are offering wireless expense management features. One such provider is Telsoft Solutions. For more information visit the Telsoft Solutions website at www.telsoft-solutions.com.

Author, Peter Verhoeff, writes articles on the business benefits of telecom expense management systems and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Centralizing is key to significant telecom savings

Centralizing is Key to Significant Telecom Savings by Peter Verhoeff

Enterprises that seek to reduce telecom costs should find out what they are actually spending, as an initial step. A company that does not know what it is spending on telecom will not have an accurate picture of savings realized by implementing a telecom expense management (TEM) system. Interestingly, Edge Research recently conducted a survey, which found that only 59 percent of participating corporations knew the total cost of their network services. While it is possible to collect cost information in corporations where telecom invoice processing is decentralized, this task is made much simpler when all telecom invoices are received and processed at one central location. In the Edge Research survey, 81 percent of the companies that knew their total telecom spend figure had centralized management of telecom spend. Another advantage is that a centralized system to manage telecom spend lends itself to processing electronic invoices, which by itself can be a tremendous money saver, requiring much less skilled labor, compared to manually processing them. Telecom spend does not consist of just paying telephone bills. There is the procurement of equipment and services, for example. This too, if centralized, offers great advantages over the decentralized model. The individuals entrusted with the task of telecom procurement will quickly gain expertise in doing so and can secure better prices through standardizing, bulk purchasing and negotiation of terms. On the heels of knowing what the company is paying for its telecom services, there should follow a knowledge of what telecom resources it has. An inventory should be taken of "who has what." It is not unusual for a company to be billed for services or equipment it does not have. With an accurate inventory these mistakes can be caught and corrected. An accurate inventory is especially important with mobile devices. These often are lost or stolen and sometimes corporations keep paying inadvertently for cell phones that were assigned to employees who have long since left the company. Keeping a telecom inventory current and accurate is no small task, especially with mobile devices. Here too, centralization pays off handsomely. In fact, keeping track of inventory changes would be almost impossible if not centralized. As a logical extension, this can also become the central authorization point for acquisition and changes in configuration. In companies where employees have traditionally had a free hand in ordering their own telecom resources, there is likely to be considerable resistance to centralizing telecom management. It is therefore vital to have the cooperation of top management and effective policy must be devised and implemented in appropriate stages. This can be a lot of work, but the results should be well worth the effort. Having all these pieces in place, the thing to do is to invest in a computerized telecom expense management system, which can do away with much of the drudgery, save on manpower, cut telecom costs dramatically, as well as provide useful reports, keep accurate records, assist in the allocation of resources and improve security. Before embarking on a project of managing telecom costs, it is a good idea to contact a reputable provider of telecom expense management systems and consult their expertise on how to go about implementing a TEM system that best suits your enterprise. For more information on telecom expense management, visit the Telsoft Solutions website at www.telsoft-solutions.com.

Author, Peter Verhoeff, writes articles on the business benefits of telecom expense management systems and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Wireless expense management: the challenges of managing mobile devices

Wireless Expense Management: The Challenges of Managing Mobile Devices by Peter Verhoeff

The need for telecom expense management (TEM) is especially pressing for mobile devices. The costs of mobile telecommunications continue to rise for some important reasons. More and more people avail themselves of recent technological advances that enable them to work away from their desks. The number of laptops, cell phones, PDAs, smartphones and similar mobile devices continues to go up and, as users become familiar with them, they tend to use them more intensively. In addition, as new features are developed (as with ring tones, for example), users sign up for them, which also drives up the costs.

There is also a lot of churn in mobile devices as users discard last year’s “obsolete” model for the latest and greatest new gadget. Many companies budget for a 20% or higher annual replacement rate.

In addition to rising costs, there is also a security concern. Mobile devices often contain company confidential data that can end up in the wrong hands when a mobile device is lost or stolen. The results of this can be disastrous. Of course, these mobile and portable devices run a much greater risk of theft or loss than a desktop PC. And the fact that these devices move around a lot makes them harder to keep track of, so they may not get inventoried and important upgrades may not be carried out. Further, mobile devices may pick up viruses or other malware and pass them on to the corporate network.

Managing mobile devices is a neglected area in many companies. According to a Forrester Research report, only about 9% of corporations surveyed are actually using mobile management tools. Many seem to believe that managing mobile devices is too big a job, if they think it possible at all. In reality, effective control is possible, both in terms of costs and security.

Among the first steps to take is to develop and implement effective corporate policy on mobile devices, covering such topics as who can have what, how the mobile devices are to be used, how confidential information is to be protected, what to do if a device is lost or stolen, etc.

A vital part of the move toward greater security and cost-effectiveness is employee education. Employees need to be aware of their responsibilities, as they cannot be expected to be vigilant about safeguarding corporate data if they do not understand its importance.

Controlling mobile telecom costs with a good telecom expense management system, which is capable of tracking mobile devices, is a wise investment to make. The TEM system is the tool of choice, not only for controlling and reducing telecom costs, but also to assist in reducing security risks.

These three things together: Corporate policy, employee education and telecom expense management form a strong basis for greater security and reduced costs.

For more information about telecom expense management, visit the Telsoft Solutions website.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Telecom expense Management: a corporate survival tool

Telecom Expense Management: A Corporate Survival Tool by Peter Verhoeff

Among the many ways corporations are cutting costs, telecom costs may well be overlooked. Because the cost of telecom services has seen some dramatic drops in recent times, the thinking is that savings in that area would be negligible. However, because of the tremendous expansion in new types of services, such as mobile and high-speed data lines, total telecom costs have increased for most enterprises, which has made telecom expense management (TEM) more important than ever before.

Keeping track of telecom expenses is no mean task. For example, in a recent report, Hewlett Packard was said to receive 2000 telecom invoices per month, adding up to a $250 million annual cost. Manually checking all telecom invoices was a virtual impossibility and would have been extremely costly in terms of manpower, due to their volume and complexity. However, periodic spot checks revealed frequent billing errors, such as continued billings for lines or equipment that had been ordered disconnected.

Company officials reasoned that even greater savings could probably be obtained by investing in a TEM system and they were right. After deploying a centralized telecom expense management system, the company saved over $3 million in the first year alone.

There currently are about 70 telecom expense management service providers in the US, according to Gartner, representing a market of approximately $500 million per year. Due diligence should be exercised in choosing a TEM vendor, considering factors such as capability, reputation, support options, customer satisfaction, price and fulfillment of corporate needs.

Telecom expense management software has call accounting as one of its underpinnings, which compares billed calls against actual calls, as measured by the corporate PBX system's Call Detail Records (CDR). Mobile devices can also be tracked on a similar basis. To be effective, the TEM system should be centralized for the entire enterprise, including branch locations. TEM systems also can be interfaced to the company's Accounts Payable and General Ledger software, which facilitates bill payment.

There are several varieties of TEM systems. One way is to get an in-house system. This will give the company full control, but the drawback is that skilled personnel are required to maintain the system and to take care of periodic upgrades. Another method is a password-protected Web-based system. A major advantage here is that executives can access the system from their desks or when traveling, to get the reports they need. In addition, the TEM provider takes care of the system's maintenance and upgrades.

The third method is complete outsourcing of the TEM system. This approach is gaining popularity. While the most costly, the major advantage is that the corporation can draw on the TEM provider's expertise. This expertise can be invaluable, for example in negotiating the most favorable rates for the company with telecom carriers.

For more information about telecom expense management, visit the Telsoft Solutions website.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Manage those invoices with Telecom expense management

Manage Those Invoices With Telecom Expense Management by Peter Verhoeff

Managing telecom invoices is a challenge for most businesses. Their volume and complexity can be overwhelming. Companies may receive many invoices and simply keeping track of them can be a major task. Telecom expense management (TEM) is the tool of choice in getting telecom invoices under control.

The first step in setting out to manage invoices is to establish a single control point for processing all telecom invoices. This should include all kinds of telecom: wireline as well as wireless, voice and data channels. All telecom invoices should be routed to this central control point for processing.

Manually processing the telecom invoices can be very labor-intensive and costly. There can be dozens, or hundreds or more invoices every month, so simply paying them all on time can by itself be a challenge, not to mention verifying them for correctness. Moreover, telecom invoices are complex. In fact, it sometimes seems that telecom carriers go out of their way to make them hard to understand.

In order to be able to verify the correctness of invoices, the agreed upon rates have to be known and recorded. So all contracts have to be gathered in one place. In addition, invoice line items have to be compared against actual usage. Any discrepancies should be noted and reconciled.

Actual usage can be measured on traditional voice channels, using Call Detail Records (CDR) that provide data for each call, such as where it originated, what number was dialed, the time and date of the call, as well as its duration and cost. These CDRs are generated by the PBX system and can be stored on a computer. Similar facilities exist for cell phones and other wireless devices.

Manually comparing all invoice line items against actual usage can be next to impossible and many companies settle for periodic samples. However, most telecom carriers now can provide electronic invoicing, which avoids the need for data entry. With electronic invoicing, telecom expense management software can store the carrier data and compare invoices against actual usage and alert personnel to any discrepancies or unusual activity.

The computerized TEM system not only will save expensive manpower in processing the invoices, but it can do it much faster and more thoroughly. In short, the TEM system:

- Automates and organizes invoice processing. By tying into the corporate accounting system, payment can be automated and late payment penalties eliminated.

- Verifies invoices against contracted rates and ensures the correct rates are being applied.

- Compares invoices against inventory. It is not uncommon for companies to be billed for facilities they no longer have.

- Compares billed line items against actual usage data from PBXs and wireless devices and reports on discrepancies.

In many companies telecom costs are the second or third largest expense item. A good telecom expense management system can reduce these costs by up to 25% or more and, even more importantly, keep future cost increases in check. With returns like these, a TEM system can pay for itself many times over. For more information about telecom expense management, visit the Telsoft Solutions website at www.telsoft-solutions.com.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Two areas of concern with Telecom expense management

Two Areas of Concern with Telecom Expense Management by Peter Verhoeff

It is true. Telecom carriers make errors in their billing and for some reason these errors more often than not are in the carrier’s favor. So it is the enterprise’s interest to check and verify the carrier’s invoice, for which the telecom expense management (TEM) system is ideally suited.

However, the other side of the coin is the company itself, where often even greater savings can be realized. Many times a corporation has only a vague idea of its total telecom costs, or of the effectiveness of its telecommunications network. For example, an enterprise may be paying for employees’ cell phones. Can it be confident that all of these cell phone users are still in the company’s employ, that they are using the phones only for the intended purpose, or that the company is paying the best rates?

Slamming is another potentially costly problem. Slamming is the activity of a telecom carrier other than the contracted company taking over the client’s telecom service, usually at much less favorable rates than from the original carrier. Even minor rate changes can make a big difference in cost. Does the company have adequate safeguards in place to detect and prevent slamming from occurring? A TEM system can alert management to this and other unpredicted changes.

Even without unauthorized switching of carriers, service providers sometimes add un-asked-for features that can cause a steep increase in telecom costs. And unless the invoices are closely monitored, these extra charges can go unnoticed. Due diligence is needed to guard against being charged for unwanted, unneeded or undelivered services or not getting the best deal, optimizing telecom resources for most efficient use, these can bring about a huge reduction in telecom costs.

While many times companies are overcharged for telecom services and bill tracking can pay huge dividends, getting one’s house in order can produce even bigger savings. Some areas where a company can benefit are:

Avoiding late charges by paying all telecom bills on time

Knowing total telecom costs and being alert for sudden increases

Informing carriers of discontinued lines and ensuring that they are no longer charged for

Centralizing procurement of telecom services and resources to avoid waste

Negotiating the most favorable contracts

Taking advantage of bonuses and special money saving offers

While this sounds like a major undertaking, with the help of a good telecom expense management system telecom costs can rapidly be brought under control and major savings realized.

The time is ripe for Telecom Expense management

The Time is Ripe for Telecom Expense Management by Peter Verhoeff

According to the Aberdeen Group, the average Fortune 500 Company receives 15,000 telecom invoices per year at an average processing cost of $12 per invoice. That adds up to $180,000 per year, just to process these invoices. Telecom expense management (TEM) is a set of tools designed to reduce telecom costs and improve control over existing resources.

The proliferation of telecom services has made it difficult to keep track of and control telecom costs. Executives are now asking themselves some hard questions, such as:

How much are we spending on telecom each year?

Are we getting the best rates?

Do we have and use the equipment and services we are being billed for?

Are the service providers charging us correctly?

Are we using our telecom equipment and services to best advantage?

If your company does not have ready answers to any of these questions, now may be the time to find out. A reputable TEM provider can provide invaluable advice on how to proceed and what solutions will work best for your company.

There are three basic approaches to implementing a TEM service:

Purchase the TEM software for in-house use

Lease the TEM Software as a Service (SaaS)

Outsource the whole TEM operation

Purchasing your own TEM software will of course provide you the greatest degree of control, but implementing it will require qualified personnel, that have to be trained on how to install and use the system.

These staff requirements also apply to SaaS, but with the added advantage that there is no major financial outlay up-front and you would not have to worry about periodic software upgrades, as these would be taken care of by the TEM provider. Authorized personnel would be able access the TEM service via the Internet.

The third option is to outsource the entire TEM operation to a qualified vendor, who will take care of the data collection, invoice verification and a great number of related actions. This option should be attractive to companies that so far have had minimal control over telecom costs.

In all cases, some up-front activities will need to be taken care of, such as establishing an inventory of current telecom services and equipment. Some policy may also need to be issued to centralize the telecom invoice processing and procurement of new resources.

In deciding what TEM vendor to select, there are some important factors to consider. To start with, the vendor should be able to offer all three of the above options and the TEM system should be capable of dealing with both wireline and wireless services.

Consider the TEM features being offered, such as Invoice Management, and whether the system will fill your current and future needs. Of course the same criteria apply with TEM vendors as with any vendor selection. Are they helpful, how long have they been in business, what is their reputation, can they present testimonials, what is their customer support like, do they provide good value for money? Talk to some of their customers and find out how satisfied they are.

For more information about telecom expense management visit the Telsoft Solutions website at http://www.telsoft-solutions.com/index.html.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Recession concerns emphasize need for Teleom expense management

Recession Concerns Emphasize Need for Telecom Expense Management by Peter Verhoeff

Despite dropping telecom rates, many companies have seen a steep rise in total telecom costs in recent years, sometimes as much as double. This is due in part to the introduction of new technologies. Also, in good times there is a mistaken belief that the economy will continue to expand indefinitely and fiscal conservatism tends to take a backseat to the promise of profits. With a declining dollar, the subprime disaster and soaring oil prices the fear of recession is raising its ugly head and corporate executives are scrambling for ways to economize on unnecessary expenditures. Unfortunately, for many enterprises this is not just a good thing to do, but essential for their survival. The good news is that telecom expense management (TEM) can assist greatly with this endeavor.

Telecom expense management can bring about substantial cost savings as well as assist in raising productivity and profitability. And, with telecom costs many times being among the top five corporate expense categories, telecom savings can have a dramatic effect on corporate financial health. According to the Aberdeen Group, annual telecom costs typically average between $3,000 and $5,000 per employee.

Surprisingly, many companies only have a vague idea of what their total telecom costs are. For example, one company, when asked about their T1 line replied that they did not have one, yet an examination of their telecom bills revealed that they had an unused T1 line for years, for which they paid over $500 per month.

Enterprises routinely spend 10% of their telecom payments on outdated or unused services, according to the Gartner group. For example, old expensive cell phone plans, or worse, cell phone service for employees who have longs since left the company. Or, the company or one of its branches moves to a different location and continues to get billed for the old location, either through the carrier's oversight or because they were never told to disconnect the service. One company found it was still paying for services at a location it had left three years before.

With the advent of cell phones, many people are no longer using pagers, yet many companies continue to pay for their unused pagers. With the proliferation of wireless devices and other technological innovations, it becomes progressively harder to keep track of telecom costs, let alone to reduce tem.

It is recommended that enterprises seeking to economize on their telecom expenditures consult with a reputable telecom expense management systems provider. Typically, such a consultation will lead to a review of the company's current telecom services and resources and what they are being billed for. This often will result in immediate savings that will justify the investment in a comprehensive telecom expense management service. Three areas commonly addressed by TEM systems are inventory management, invoice management and resource optimization. In addition to saving money, the system will also provide improved protection against unauthorized and fraudulent telecom use and maintain accurate usage and call detail records (CDR) that will assist in meeting legal requirements, such as those of the Sarbanes-Oxley act.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Telecom expense management and mobile devices

Telecom Expense Management and Mobile Devices by Peter Verhoeff

In the world of telecom Expense Management (TEM), wireless devices present unique challenges. Here is one scenario: Employees purchase their own cell phones, which they use, both for personal and business calls. The company figures out some fixed allowance to reimburse them. There are several problems with this. One is that one size does not fit all. Some sales reps might be heavy cell phone users, almost exclusively for business use and would have to pay for company calls out of their own pockets, while others would use their cell phone mostly for private calls.

Besides the unfairness, there is another problem with this. The IRS considers private use of a company-paid cell phone to be taxable employee income and thus needs to be reported as such. While it is possible to keep track of which calls are personal and which are business-related, it would be an accounting nightmare to keep track of thousands of cell phones that way, each of the cell phone users being reimbursed a different amount each month.

Another possibility is for the company to purchase the mobile devices for the employees, strictly for business only, and paying their phone bills every month. Aside from the employee’s inconvenience of having to carry two cell phones and the company’s inconvenience of paying a phone bill for every cell phone-issued employee, there is the added fact that it is very expensive to pay for individual plans.

One way to cut costs is to use rate pools, where the company pays a lump sum amount for all its cell phones combined. While this appears to be a good deal, there is yet another problem. For example, cell phone users might get an average allowance of 700 minutes per month for $50, which works out at about 7 cents per minute. That is a good per-minute price, but only if they use the 700 minutes and no more. If they use 250 minutes, it works out to 20 cents per minute and if they exceed the 700 minutes they might get charged a hefty 40 cents per minute.

According to the Aberdeen Group, wireless services and equipment cost about 10 times as much as wireline. So this is an area well worth controlling. While many companies are aware of the need to manage wireless telecom costs, they often don’t know how to go about it.

While telecom expense management for wireless services is more difficult than for wireline, TEM providers are developing methods to track and control wireless telecom costs. Features like rate optimization have come into being, where the system obtains usage data from the carriers and recommends the best available rate plan. By keeping track of inventory, the system can help insure that cell phone privileges for employees who leave the company are discontinued immediately.

Companies that are not yet effectively managing their wireless telecom and cell phone costs may find it advantageous to contact a reputable telecom expense management system provider for recommendations on how to proceed. It can make a vast difference in their bottom line.

Telecom Expense Management: a corporate necessity

Telecom Expense Management: A Corporate Necessity by Peter Verhoeff

A major requirement for any well-run organization is to keep track of its expenses. Telecom represents a major expense in most enterprises in the United States, as well as in the rest of the world. Even though the costs of telephone calls have dropped dramatically in the last decade or so, total costs have risen sharply for many corporations, due to increased use of mobile devices and high-speed Internet connections. New technologies have brought greatly increased usage.

It is not only in traditional businesses that there is a need for Telecom Expense Management (TEM), but also in other organizations, such as government agencies, colleges, hospitals, motels and many more.

Many companies have only a vague idea of their total telecom costs and how they can be controlled. This is all the more surprising, as telecom commonly represents the second or third largest variable expense for U.S. corporations. The proliferation of mobile devices, especially of cell phones, has contributed considerably to increased telecommunications costs.

Not only are companies wasting money in the absence of telecom controls, they are at risk. Hackers take advantage of lax security measures and the strict requirements set by the Sarbanes-Oxley Act of 2002 for publicly held corporations might not be met without it.

A first approach to telecom cost management is to find out what the company spends on telecom. In many cases, this is not an easy task, especially for enterprises that have branch locations, or even overseas branches. Some companies receive hundreds, if not thousands, of telecom invoices every month. This makes establishing a centralized receipt point for all telecom bills of vital importance. Having that in place not only provides an accurate picture of telecom spending, but also facilitates bill payments and lessens the likelihood of late fees due to overlooked invoices. A logical next step is also to centralize the procurement of telecom services and equipment, as well as contract negotiations. This will help secure the most favorable rates.

Of course, effective procurement requires that you know what you already have and what you need. Therefore, having an accurate inventory is also vital. It is not uncommon for telecom carriers to charge for resources the company no longer has. Knowing what you have and knowing what you are paying for and comparing the two, such mistakes can be caught and eliminated. As an illustration of the savings possible, one company discovered that it was still paying for cell phone services for thousands of ex-employees, some of who had left years ago.

Last, but not least, you need to know what the company’s telecom usage is. With that information resources can be shifted from lesser-used areas to where there is a greater need. Closed locations can be discontinued�"a detail that may get overlooked. Most of all, vendor invoices can be compared against actual usage. Vendors do make mistakes in their invoices, and usually in their favor, so that also can save a company much money.

Theoretically, all of the above functions can be performed manually, but doing so would take tremendous manpower. An automated telecom expense management system is essential. The information gathered is stored in a computer system and automatically updated from electronic invoices and other sources. Call detail records (CDR) are gathered from the company’s PBX. The software compares the information and issues needed reports and alerts.

The telecom expense management system can reside on company premises or can be leased as an Internet service. Yet another option is to totally outsource the project to a telecom expense management service that can take care of implementing and running the system. Regardless of preference, a telecom expense management system can provide excellent return on investment and is likely to pay for itself in short order.

For more information about telecom expense management visit the at Telsoft Solutions website.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

How telecom expense management saves companies money

How Telecom Expense Management Saves Companies Money by Peter Verhoeff

Third-party telecom expense management (TEM) is an attractive alternative for companies with call centers and wireless services that are often under weak organizational support and supervision. Telecom costs are a top-five expense and CFOs acknowledge that they don't have their arms around it. In simplified terms, the steps for TEM implementation are:

1. Gather all telecom invoices

2. Gather all telecom tariff and contract data

3. Take a complete telecom inventory

4. Automate the process of data gathering

5. Analyze and report the results, noting any anomalies

Many examples exist of companies achieving huge savings with telecom expense management (TEM). One large financial company had an annual telecom spend of $1.7 million. Initially, management had only a vague idea of their telecom costs, but that changed after they consulted a TEM provider, who did a thorough analysis of their telecom invoices and inventory. Implemeting the TEM system resulted in management now having a complete grasp of their telecom costs and a savings of $30,000 in the first month alone.

Another enterprise, a retail chain with many branch locations saved 15% on their telecom bills, amounting to about $600,000 a year. As a first step company executives decided to review the way their business was operating and concluded that the decentralized method of operating that was in use at the time did not lend itself to effective telecom cost control, especially as the number of branch locations continued to grow.

After doing this analysis, the company decided to centralize its telecom cost control and went on to do so. Next, they decided to deploy a telecom expense management system. In order to make the automated control of telecom costs more effective, they switched to electronic telecom invoicing from the earlier paper-based method. Most telecom carriers now provide that option. The advantage of electronic invoicing is that the data can be fed directly into the TEM system without manual data entry or other human intervention.

As a result of implementing these changes, the company saved about 15% on its telecom bills, amounting to approximately $600,000 annually. They have not yet implemented TEM control of their mobile devices, but are looking at doing so in the future and thereby further reduce their telecom costs.

In addition to cost savings, telecom expense management systems can provide other benefits as well. For example:

* Accurate records of what equipment and services are in use

* Complete historical records of each inventory item

* Usage can be broken down by department, project or employee, to allow chargebacks

* Early detection of telecom misuse, abuse and fraud Call tracking using call detail records (CDR)

* Greatly facilitated telecom audits

* Faster provisioning and troubleshooting

* The ability to optimize the distribution of telecom resources

* Reduced telecom personnel requirements

A telecom expense management system is a versatile tool that can produce a great return on investment. Depending on preference, a telecom expense management system can be purchased for in-house use, leased as an online application, or be completely outsourced to the software provider.

For more information about telecom expense management visit the Telsoft Solutions website.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Infamous tlecom scams stress the necessity for continued vigilance

Infamous Telecom Scams Stress the Necessity for Continued Vigilance by Peter Verhoeff

In today's business environment, security is vitally important, and security breaches across voice and data networks are growing by the day. One tool that can assist with security is a telecom expense management (TEM) system. Detecting internal or external toll fraud has escalated in priority for many CEOs in today's heightened security-conscious climate.

While new technologies like VoIP can improve phone systems performance, productivity and create massive cost savings for your organization, because it uses existing Internet infrastructure VoIP has the same vulnerabilities as data - it can be intercepted, captured or modified and must be secured.

According to a study by the American Society for Industrial Security, industrial espionage could account for potential losses for all American industry of as much as $63 billion. The actual dollar amount is heavily debated, but everyone agrees that the problem can't be taken lightly. Toll Fraud alone costs the American economy $5 billion annually.

Here are some scams that are currently in vogue with telecom scammers.

1. The do-not-call scam. The national "do-not-call" register was created to shield people from unwanted telemarketing calls. Now, however, some scam artists are using it to steal identities. Pretending to be from the registry, they call the person and claim they need to verify the person's identity and ask for a social security or bank account number in order to qualify for the registry.

2. The 809 scam. A person is contacted by pager, voicemail, fax or email and asked to call an 809 or 823 area code number. As it happens, these numbers originate in the Caribbean and are pay-per-call numbers, similar the 900 numbers in the U.S. These numbers can be set up to charge hundreds ort even thousands of dollars per minute! When you return such a call, naturally they will drag it out as long as possible.

3. The "cramming" scam. Cramming is where a phone company bills the customer for unwanted features or services.

4. The "slamming" scam. This is where the subscriber is switched to a different carrier without his consent. The client can then be billed for all sorts of extra features or less advantageous rates.

5. The call forwarding scam. The person receiving this call will be told he has won a sweepstakes prize. To claim the prize they are asked punch some numbers on their touch-tone phone. Unbeknownst to them this activates the call forwarding feature, which gives the caller free access to the victim's phone service, allowing him to make free long distance calls. The so-called winner now ends up paying for the scammer's calls.

6. The 9-0 scam. Businesses sometimes get called by someone pretending to be a telephone technician testing a new telephone feature, who asks to dial 9-0. This gives the scammer access to the corporate PBX system.

Clearly, telecom security is vital if a company wishes to protect its telecommunications. A telecom expense management system can provide valuable reports and alerts to detect and correct potential telecom abuse, as one of its functions.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Telecom expense network security concerns SMBs

Telecom Expense Network Security Concerns SMBs According to CompTIA Study by Lisa Santora

According to a recent study commissioned by the Computing Technology Industry Association (CompTIA) of 350 SMBs (of 500 or fewer employees), only 50 percent of respondents trust the security offered by IP telephony vendors. Telecom expense management networks are prime targets for hackers and companies cannot rely on IP telephony vendors for security; they need to employ their own security measures to protect their VoIP networks.

By installing today's sophisticated call accounting software systems, attacks on VoIP networks can be mitigated. VoIP Lowdown.com offers a 25 point list that can help organizations secure their VoIP networks. Included near the top of their list of recommendations is this advice: "Monitor and track traffic patterns on your VoIP network: Monitoring tools and intrusion detection systems can help identify attempts to break into your VoIP network. Scrutinizing your VoIP logs can bring to light irregularities such as international calls made at odd hours or to countries your organization has no ties with (toll fraud), multiple log-on attempts like in a brute-force attempt to crack a password, or a surge in voice traffic during off-peak hours (voice spam)."

A full featured call accounting system provides the capability to track all calls from every wireline, wireless, and VoIP phone across the enterprise. This comprehensive protection and the peace of mind it offers can more than justify the cost of installing the call accounting system. By deploying a call accounting system companies can track call detail records in real time so they can be alerted immediately to potential threats.

Real time call data also makes reporting easier as system users can run standard and custom reports either on the fly or per a set schedule. Reports can be scheduled to output to the user's screen, an e-mail list (reports can be sent as attachments to email), posted to a corporate web site, printed to a local or network printer, or saved as a file on the network. With the security and convenience features of today's telecom expense management systems, it is easy to see why increasing numbers of SMBs are turning to these systems to protect their telephone networks.

Author, Lisa Santora, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Telecom expense management can eliminate unused resources

Telecom Expense Management Can Eliminate Unused Resources by Peter Verhoeff

With the proliferation of mobile devices and new technologies like Voice over Internet Protocol (VoIP), the old ways of keeping track of equipment and services are no longer adequate. And even though communication costs have plummeted in recent years, demand has also increased, with new high tech devices being added almost daily. If anything, the need for telecom expense management (TEM) software has increased, particularly in the area of inventory control.

According to research firm Aberdeen Group telecom and related network services eat up 3.6 percent of enterprise revenues. Their report, "The Cost of Doing Nothing: The Total Telecom Cost Management Benchmark Report," is based on a survey conducted on various sized enterprises and how telecom expenses impact them. The report examined in-depth how and when enterprises engage in telecom expense management, and the impact that management has on cutting costs, by, for example, eliminating billing errors.

Tracking inventory can be a troublesome task. it's critical to have an up-to-date repository for all telecom and wireless inventory. A good starting point is to collect all telecom vendors' invoices and establish what is being billed for. This may not give an accurate picture, as billing errors are common.

Some TEM systems incorporate a cable management module that provides a firm basis for establishing what the communications network consists of. This feature greatly simplifies managing the physical layer details for any network. It documents the circuits and physical connectivity for all cable connections between voice and data equipment in single or multi-building network cable plants.

The cable network data must be supplemented with an inventory of mobile devices that are not part of the physical network. These mobile devices should be recorded, along with the names of the persons using them and tied to personnel records. The necessity for this is illustrated by the case of one large company that, after implementing a TEM system, found that 3500 monthly cell phone bills were still being paid for ex-employees who had long since left, costing the company in excess of a million dollars per year.

Once the inventory is complete and accurate, it should be inspected for any non-optimum utilization of resources. For example, it is not uncommon for telecom vendors to continue billing for branch locations that have been closed, either because they were not notified or because they failed to adjust their records. Modern TEM systems can automatically detect and report these unused resources. Any equipment or service that is not associated with an employee, department, project or profit center is likely to be unused and can be discontinued.

The telecommunications network is not a static entity and configuration changes are common. Any moves, additions, changes and disconnections (MACD) of service or equipment should immediately be recorded online, so as to keep the inventory up-to-date.

Telecom cost management, or its absence, depends on the extent to which enterprises prioritize this as a cost-saving activity. Cream-of-the-crop enterprises--those Aberdeen refers to as "best in class"--proactively manage 90 percent or more of their telecom expenses.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Telecom expense management innovator ezwim reports record international growth

Telecom Expense Management Innovator Ezwim Reports Record International Growth

Author: articlelink01@gmail.com

Growing interest of international organizations to reduce costs in today's economic climate fuels Ezwim's strong growth and increasing momentum.

Caused by a Worldwide Tendency to Reduce Telecom Costs

Ezwim, a leading Software-as-a-Service (SaaS) provider for Telecom Management Services to operators and enterprises, today reported results for the 1st half of 2008. The Monthly Recurring Revenue (MRR) has grown 22 percent in the first half of 2008. Ezwim expects MRR to grow over 50 percent for the full year 2008. Ezwim also enjoyed its 10th consecutive quarter of double digit net earnings.
Ezwim points to the releases of its MNC Portal and Telecom Service Management (TSM) services and adoption of the SaaS model within large enterprises as key growth drivers. Resulting in an increase of international revenues by 39 percent compared to the first half of 2007 and 17 contract signings.

"Our performance reflects a growing interest in services to optimize telecom expense management internationally", commented Ron van Valkengoed, CEO of Ezwim. "International organizations want to centrally view and analyze their mobile and fixed communications spending around the world. In today's economic climate, companies need to boost operational efficiencies and reduce costs. Ezwim's strategic decision to launch the MNC Portal; the multi-country and multi-currency telecom administration was received with overwhelming market acceptance."

Ezwim, a global leader in Telecom Management, provides telecom expense management and Telecom Service Management software to enterprises and operators. Ezwim's software enable global organisations to gain visibility into, and control over, the mobile and fixed communications assets and costs. This can cause then process efficiencies and dramatic telecom cost reductions.



Ezwim, a global leader in Telecom Management, provides telecom expense management and Telecom Service Management software to enterprises and operators. In addition to Telecom expense management services it is also a premier choice for the enterprises when it comes to operator services.

Article Source: http://www.articlealley.com/article_664106_15.html

Telecom invoice management- catch costly errors

Telecom Invoice Management - Catch Costly Errors by Creative Assistant

Large corporations are not surprised when their telecom invoice management department receives 1,000 to 2,000 invoices per month from their telecom service providers. Some of the invoices can easily include more than 100 pages. Large companies can spend over 200 million a year on telephone services. Unfortunately, some companies loose out every month on lowering their telephone expenses by not having telecom invoice management software.

Most auditors that manually perform spot checks on telephone service invoices claim they are only helping the company capture a small percentage of the savings that are available from catching telecom billing errors. Companies are routinely being overcharged and paying for phone lines or cell phones usage that the company terminated.

Businesses can simply hire more staff to review the telecom invoices but telecom invoice management software is much more efficient than humans at reviewing each invoice. The software generally has a short payback time period and provides significant savings for large, medium and even some small companies.

An auditor from one large corporation claimed his staff was catching invoice errors that ended up saving the corporation about 1 to 2 percent per year. However, the auditing staff believed that about five percent of the invoices included errors and a large amount of money had been wasted.

An effective invoice management software package will check all the telecom invoices for errors, not just periodic samples which typically occur with auditors. Large companies easily spend more than 100 million on telecom services annually and average size companies in telecom communication heavy usage industries often spend more than 25 million per year. The savings gained by utilizing telecom invoice management software is substantial.

Companies that don’t have effective centralized management structure and telecom expense management software have a difficult time checking each invoice for errors due to the huge volume and the complexity that characterizes most telecom service providers invoices. Most experts claim that the typical invoice contains 7% to 12% of charges that are mistakes. Some telecom expense management experts suggest that 10% to 20 % of telephone charges are errors.

Unfortunately for companies, more than 80% of the errors go in favor of the telephone service companies and this disproportionate outcome doesn't look it's going to change. More and more companies are relying on telecom invoice management software instead of waiting for the telephone service providers to eliminate the mistakes or for half of the mistakes to go in their favor.

An effective telecom expense management system combines all the telephone providers' tariffs and contract information into one database. Since a contract with a prominent telephone carrier can include over 2,000 rate categories, software is essential to catch all the errors. Without telecom invoice management software, companies are simply giving huge sums of money to telephone companies which they don't deserve.

For more information on telecom expense management visit the Telsoft Solutions website at www.telsoft-solutions.com.

Article Source: http://www.articlealley.com/article_623451_15.html

The need for telecom expense management: how corporations are duped

The Need for Telecom Expense Management: How Corporations are Duped by Peter Verhoeff

To illustrate the need for telecom expense management (TEM), here are some true horror stories that go around in TEM circles.

A national fitness chain one day received a long distance bill of over a thousand pages, raising their monthly payment from about $3,000 to over $11,000. An investigation revealed that the long distance carrier had erroneously raised their rate from 2 cents to 10 cents per minute, in addition to other billing errors. Fast action resulted in the company being re-credited an amount exceeding $24,000.

An airline company had moved to new premises and the newly hired telecommunications manager asked a TEM provider to check their telecom expenses. A large number of telecom billing errors was found, resulting in credits of almost $200,000.

One company with many branches found that its telecom carrier had erroneously billed them for several locations that had been sold to another company. The carrier had failed to transfer the billing to the new owners, resulting in an overbilling of more than $50,000. It took the company over two years to get this corrected.

A large grocery chain sold off some of its stores and told its telecom carrier to shut down all connections to those stores, but failed to ensure that all related charges were removed. Through this oversight, the grocery chain continued to overpay by $6,000 a month for three years before the error was caught and corrected.

Here is another way in which an enterprise can be overcharged. A company provided an 800-number for traveling employees. Mysteriously, some prisoners got their hands on that number and entertained themselves by using it to call their favorite 900 adult numbers. They ran up a bill of thousands of dollars before the abuse was discovered and stopped.

In another instance of telecom abuse, a team of janitors at a large financial institution routinely cleaned the premises late at night. Some cleaners took advantage of the staff’s absence by using the company’s phones to make unauthorized international calls. This cost the company in excess of $20,000 before this abuse was discovered.

There is an unethical practice called slamming, where the company's telecom service is switched to another carrier, without the company's knowledge. One company to which this happened was billed for numerous unwanted add-on services, with a resulting $5,000 in overcharges.

Another problem is failing to stay current. One company, after laying off over a thousand employees, discovered months later that they were still paying for their Internet access from home. A large corporation with many cell phones ran a check on their telecom inventory and found 3,500 cell phones still being billed for that belonged to ex-employees who had long since departed. These bills for former employees were costing the company over a million dollars a year.
The best tool to avoid paying unwarranted telecom charges is a telecom expense management system. TEM can keep designated personnel apprised of the status of the corporate telecom network and alert them to potential problem areas, such as billing errors, unusual call patterns, inventory changes, etc. Companies that want to control telecom costs and maintain security will find a TEM system invaluable.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.

Telecom security concerns alleviated with call accounting

Telecom Security Concerns Alleviated With Call Accounting by Peter Verhoeff

Ever since 9/11, security has been a major concern for governmental agencies and corporations alike. Telecom networks are particularly vulnerable to not only fraud and hacker attacks, but can also become the target of terrorism. Call accounting is a tool that may be used to combat these threats.

As is often the case with new technologies, the creative efforts of the innovators become the target of those who seek to destroy them. Most of us are aware of the threats posed to Internet communications, such as viruses and other malicious intrusions, and have taken protective measures with firewall and virus checking software. However, voice communications face similar risks and generally are not as well-protected. Yet, who would want their telephone network crippled in times of crisis, or worse being taken over by terrorists?

The FBI is aware of the telecom threats, but enterprises need to take their own measures to protect themselves. The traditional switched networks are subject to attacks, but the new VoIP (Voice over Internet Protocol) technology provides a whole new set of security challenges.

A good start to making your telecom network more secure is by installing a call accounting system. Call accounting software uses Call Detail Records (CDRs) to provide information about where a call originated, its destination, the date, time and duration, etc.

The call accounting software issues periodic reports about who used the telephone network and when, which can quickly show up any unusual activity and permit timely corrective measures. The system can even be set up to issue alarms when it detects any suspicious activity. It can detect calls of abnormal duration (too long or too short), wrong calling station, wrong destination, wrong time of day, etc.

Having a reliable call accounting system in place will not only provide improved security, it routinely saves the company money, because it provides a phone bill tracking mechanism and thus helps to prevent over billing by telecom carriers. This is all part of Telecom Expense Management (TEM).

In addition to providing reports and security alerts, a good call accounting system should be able to operate with the traditional switched telephone networks, as well as with the newer VoIP technology.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at http://www.telsoft-solutions.com.