Overcharging by telecommunications companies is rife, according to a draft discussion paper Hidden Overcharging in Telecommunications which seeks comment as to how to overcome overcharging in the industry.
Stratatel Limited’s discussion paper Hidden Overcharging in Telecommunications cites Gartner Research from March 2005 that around 80 per cent of telecommunications bills contain incorrect charges to organisations.
Stratatel chief executive Mr Matt Parry is seeking comment from both telecommunications suppliers and end users on the issue of overcharging.
“Managing expenses, particularly rapidly escalating telecommunications expenses are a critical activity for every organisation and overcharging is not in the interest of carriers or their customers. That’s why we are seeking comment from both sides of the fence,”
A case study in the draft paper also demonstrates how a large transport organisation recouped $225,000 after widespread overcharging to the tune of 24 per cent.
The draft paper claims telecommunications contracts are unlike any other contract large organisations have with their suppliers as new data and mobile services become more complex through convergence and collaboration technologies. As a consequence categories of products and types of expenses are becoming much more difficult to manage.
“Overcharging is rarely the result of carriers intentionally inflating their charges or negligent or incompetent management by the customer organisation,” Mr Parry says.
The complexity of both telco billing and procurement today, often including multiple accounts, hundreds of users and thousand of assets, makes the monitoring of accuracy extremely difficultly for both parties and the oversight of error an inevitable consequence.
“As the thought leader in this space, Stratatel is seeking comment from carriers, their customers and indeed our own clients on how overcharging in telecommunications can be addressed.”
“When all comments have been received and analysed, we will issue a revised paper designed to engage all stakeholders in overcoming the hidden costs of overcharging in telecommunications which is imposing a large and unnecessary cost on business,” Mr Parry concluded.
