What is a Telecom Audit? A Great Cost Reduction Opportunity A telecom audit is a comprehensive analysis of your company’s overall telecommunications expenditures, including: <ul><li>Local service </li></ul><ul><li>Long distance </li></ul><ul><li>Data (WAN) </li></ul><ul><li>Internet Services </li></ul><ul><li>Wireless (Cellular) </li></ul><ul><li>Conferencing </li></ul><ul><li>VOiP </li></ul>The audit process identifies specific areas that have been incorrectly billed, and where credits and refunds are due and where reductions can be made to existing services.
Why Should You Conduct a Telecom Audit? <ul><ul><li>The Federal Trade Commission estimates that 80% of all commercial telecom bills are incorrect. </li></ul></ul><ul><ul><li>*Common overcharges are from 15 – 25% of a company’s total annual telecom spend*. </li></ul></ul><ul><ul><li>The complexity of telecom billing rivals our Federal Tax Code. </li></ul></ul><ul><ul><li>Increasing challenges in carrier negotiation for refunds and credits due the telecom industry business policy and legal tactics to limit refunds due to their customers. </li></ul></ul><ul><ul><li>With the changing landscape in telecommunications, i.e. mergers, acquisitions, increased service offerings, convergence of services, and new service plans, staying abreast of changing business and billing practices is a daunting task. </li></ul></ul><ul><ul><li>(source*: Federal Trade commission FTC) </li></ul></ul>
… and a few more reasons. <ul><ul><li>According to CFO Magazine, telecommunications ranks in the top four of all company line item expenses. </li></ul></ul><ul><ul><li>AMI Research reports that telecommunications is the fasted growing cost per employee in business today. </li></ul></ul> Billing complaints Consumer billing complaints filed with the Federal Communications Commission in the first six months of the year: 2006 2007 Pct. change VERIZON 1,031 4,232 310% Sprint 397 993 150% Qwest 213 531 149% Verizon Wireless 240 425 77% AT&T 2,441 2,341 -4% Sources: FCC, USA TODAY research
Awareness: Most businesses and municipalities don’t realize there’s a problem <ul><li>Every business and municipality is looking for ways to reduce and manage operating costs, but how many are actually finding ways to reduce any of their operating costs by as much as 48% or more? </li></ul><ul><li>The problem with telecom is that most companies and municipalities can’t determine from their invoice if they are being billed correctly or not, and don’t have the internal expertise to effectively analyze it. </li></ul><ul><li>Most businesses take the approach that “As long as the amount due is about the same each month, then everything must be O.K”. </li></ul><ul><li>Many companies rely on internal resources to review the bills that are not trained in understanding telecom billing. </li></ul>
Key Indicators: A Company that needs a Telecom Audit <ul><li>Has never had a telecom audit </li></ul><ul><li>Rapidly growing or declining business </li></ul><ul><li>Recent or frequent acquisitions or mergers </li></ul><ul><li>Has Multiple business locations </li></ul><ul><li>When changes are made in service providers, or technology </li></ul><ul><li>Has Multiple service plans with multiple telecom carriers </li></ul><ul><li>Does your company fall into any of these categories? </li></ul>
Who is Tri-Solve?: Your Partner for Telecom Auditing and Cost Containment <ul><li>Founded in 2003 by industry experts in telecom billing (45+ years experience) </li></ul><ul><li>A staff of auditors who have been trained by the telecom service providers on how their billing system works </li></ul><ul><li>Leverages experience, with modern technology (software and web based tools) to insure a complete and comprehensive audit is conducted </li></ul><ul><li>Experts in determining if the proper taxes and surcharges are being applied to clients telecom bill </li></ul><ul><li>A proven track record of reducing our clients telecom expenditures by using proven methodology and industry “Best Practices” </li></ul><ul><li>Preserves the vendor client relationship </li></ul><ul><li>Single source for auditing, contract negotiations, consulting, RFP development and implementation, project management, and telecom services </li></ul>
City of Arab, AL City of Brookwood, AL Marshall County Commission, Alabama CLIENTS
TRI-SOLVE REPORT CARD FINANCIAL IMPACT TO SOME OF OUR CLIENTS Prior to Audit Post-Audit Client Monthly Telecom Spend Annual Telecom Spend Telecom Provider(s) % saved in first year First year savings Total Refund / Credit Total monthly savings going forward Annual savings beyond first year Travel Agency (FL) $31,505.02 $378,060.24 Sprint 48% $179,597.91 $66,179.91 $9,451.50 $113,418.00 Law Firm (B&B) $28,950.00 $347,400.00 BellSouth/Sprint 12% $43,160.71 $19,688.35 $1,956.03 $23,472.36 Lumber Company (MA) $5,499.76 $65,997.12 Bell/Verizon/Sprint 37% $24,388.08 $3,616.20 $1,730.99 $20,771.88 City Municipality (Brookwood) $998.00 $11,976.00 BellSouth/AT&T 45% $5,377.32 $0.00 $448.11 $5,377.32 Accounting Firm (WAK&M) $10,838.09 $130,057.08 BellSouth/Intermedia 34% $30,262.92 $6,995.47 $1,992.16 $23,905.92 City Municipality (Arab) $3,800.00 $45,600.00 Otelco & AT&T 24% $11,587.09 $531.61 $921.29 $11,055.48 Title Company (MS) $1,631.26 $19,575.12 BellSouth/MCI 36% $7,137.84 $0.00 $594.82 $7,137.84 Professional Services Firm $1,750.00 $21,000.00 BellSouth 14% $2,999.16 $1,229.16 $147.50 $1,770.00 Accounting Firm (ATL) $3,138.83 $37,665.96 Nuvox/Qwest 46% $17,469.36 $9,590.16 $656.60 $7,879.20 Car Dealership (Crown) $5,535.00 $66,420.00 BellSouth/DeltaCom 11% $7,393.26 $2,536.50 $404.73 $4,856.76 TOTALS $93,645.96 $1,123,751.52 20% $329,373.65 $110,367.36 $18,303.73 $219,644.76 These are actual results from audits performed by Tri-Solve. The customer did not have to change telecom providers to realize these savings.
SAMPLE Explanation of Tri-Solve Audit Results Provider Loc. Name Billing Issue identified Corrective action taken by Tri-Solve Monthly savings One-time credits CLEC Atlanta Tri-Solve discovered that the customer was supposed to get 5,000 free minutes of Long Distance each month, but was only getting 3,500. Tri-solve engaged CLEC, and brought the billing issue to their attention. Tri-Solve followed up to make sure the 5,000 minutes was implemented on future billing, and secured a credit for previous over charges $84.00 $450.20 CLEC Birmingham Customer was being billed for (3) "Idle T-1 recovery fees" which they should not have been billed. Each fee was $195.00, for a total of $585.00 per month. Tri-Solve engaged CLEC and formally filed a billing dispute. Tri-Solve provided CLEC with supporting documentation needed to support the dispute. Consequently the charges were removed from all future billing. In addition a credit was issued for previous billing $585.00 $9,260.04 CLEC Corp HQ When customer moved from old location, they kept a business line, and used "remote call forwarding" to send calls to the new location. Tri-Solve recommended that the business line be disconnected, and just use "remote call forwarding". Upon gaining approval from customer, Tri-Solve ordered the line to be disconnected, then followed up to make sure it was removed from future billing $24.00 Total $693.00 $9,710.24
The Audit Process: What’s Involved <ul><li>The client’s involvement in the audit process is minimal . The process involves several steps, and depending on the size and complexity of the client, it could take two to four months to complete. The following outlines those steps: </li></ul><ul><li>Kick-off: (Initial meeting with stakeholders) </li></ul><ul><li>Audit: (Done by Tri-Solve, at Tri-Solve offices) </li></ul><ul><li>Audit Review: (Present results of audit to customer) </li></ul><ul><li>Implementation: (Make changes requested and approved by customer) </li></ul><ul><li>Completion: (Post Audit telecom invoices reflect audit results, and customer is presented with a detailed inventory and analysis) </li></ul><ul><li>Ongoing maintenance of telecom billing and telecom assets: (Optional) Once the audit is complete, Tri-Solve offers a Telecom Expense Management (T.E.M.) solution where we continue to monitor your Telecom billing to insure on going accuracy, and updated inventory. Tri-Solve’s asset management tool allows a customer to view and manage their inventory via a web portal </li></ul>
Fee Structure: Performance based: Share in the Savings Our fee structure is a revenue share of the savings we find for our clients. This ensures a thorough analysis that maximizes savings, and minimizes the financial risk of conducting an audit. In short, we have a vested interest in searching for every possible savings and cost reduction we can find for you in our audit. For more information please contact Gina Pearce [email_address] 205-664-7978 or Craig Pearce [email_address] 205-222-3260 www.tri-solve.com
<ul><li>In addition to auditing services, Tri-solve also </li></ul><ul><li>Provides Contract negotiating services </li></ul><ul><li>Provides RFP development and RFP management </li></ul><ul><li>Inventory management </li></ul><ul><li>Telecom Expense Management (T.E.M.) </li></ul><ul><li>Telecom Asset Management (T.A.M.) </li></ul><ul><li>Project management services </li></ul><ul><li>Telecom services through our agent agreements </li></ul>