Ok, where do you want me to begin? I will admit, this is one heck of a boring subject to write about, but I am going to work very hard, writing this article in a fashion to keep You, the reader's, attention span. I hope I will drive home one simple message; understand what you are paying, before you pay it! Studies have shown that the telephone bill is the least understood of any business expense, but at the same time usually the fourth largest expense in most businesses. So why is phone billing so misunderstood?

First, one must remember the "good old days". What was called pre-divestiture existed prior to 1984. Pre-divestiture was when there was one big, monopolizing phone company, generating one very expensive phone bill that encompassed everything from local telephone services, long distance, telephone hardware rentals, cabling and even wire and telephone set maintenance.

But with the court-ordered break-up of the Bell System, the "good old days" are gone. Sure we have lower prices for long distance services and now even local services in the metro areas, but there has been a price to pay. Many of the larger carriers, no names will be mentioned, but you all know who I am talking about, have billing systems that have been in place for over twenty years. These billing systems are plagued with deficiencies ranging from inaccurate rate tables to incorrect programming code.

On the other end of the spectrum, we have competitors in the local and long distance telephone business that do not have a clue about billing or true customer services. Their billing systems are newer, but not well maintained. In my 28 long years in this industry, I have yet to see a phone bill that "correctly and accurately" bills a customer.

So with all that in mind, here is a very long list of suggestions you should consider when reviewing your telecommunications costs. Remember, don't be afraid to challenge the carriers and demand the reimbursements and refunds that are due to you.

1. Begin by complying with a complete and current telephone line inventory.
2. Thoroughly investigate all charges on every local and long distance bill. Compare these charges to your contracted rate(s).
3. At the back of your local telephone bill watch for any charges or features that appear invalid or inappropriate. This is called "Cramming".
4. Make sure that you are not being billed in duplicate, especially if you have recently switched local providers.
5. Order your Customer Service Records from the Local Telephone Companies. These are the records the Local Telephone Company uses to bill you. If you can't figure them out, since they are usually written in some alien language, get some outside help and demand a breakdown from your provider. Make sure you create a list of all services and charges for each working telephone number in spreadsheet format.
6. Attempt to identify any lines that are unidentified or mysterious as a result of this analysis, and disconnect those lines, then re-use them elsewhere within your organization.
7. If you use Centrex, ISDN, Trunk lines, and DID (Direct Inward Dialing) lines, look for contract implementation and expiration dates, then document them.
8. Compile copies of all existing service contracts or term agreements with all local and long distance companies, then compare your current billing against the contracts to ensure accuracy. You might be shocked by what you find out here!!
9. Check the accuracy of all FCC line charges, taxes, and misc. billing charges.
10. If you are a non-profit agency, Federal & State tax exempt, challenge these tax charges with all service companies, and obtain the tax credits due to you. You can request credits going back as far as possible, up to eighteen months without documentation.
11. Make sure that all promised discounts and allowances on usage are figured accurately on all your calling plans. Make sure you are receiving all the proper rates, and if not, challenge the companies for credits due.
12. Ensure that your lines have the proper PIC & LPIC codes (interstate & instate LD carriers) on each line and trunk, to ensure that all lines are set up for usage with your authorized carrier(s).
13. Check to see if any of your telephone lines are billing "casual" long distance usage with other carriers at a higher rate per minute. If so, obtain credits and add the numbers back to the correct long distance billing plan ASAP!
14. Check your usage on all toll free lines, and make sure they are set up on the proper plans according to usage and rates. Make sure you are not charged for any additional fees associated with having 800 service that you are not getting.
15. If you are using calling cards, check the card numbers, usage, and rate.
16. Check your local service and determine whether measured or unlimited local line service is appropriate for the amount of current usage, if it is available in your area.
17. Check for slamming and cramming, unauthorized 900 calls, and third party calls, then request credits, if necessary.

Ok, are you brain dead yet? I am close to it just from writing this all out. Yikes! In closing, let me leave you with this. I have been auditing telephone bills for over 20 years and have yet to come across a client who has not been GROSSLY over billed. Good luck and buy lots of aspirin!