Introduction

Every day, we use telecommunications products and services. We take for granted that we can pick up the telephone, dial a few digits, and talk to someone across town, or across the world. We have come to expect quality telecommunications services, and we are surprised, or even offended, when the phone does not work.

The cost of telecommunications is one of the top five expenses listed on the balance sheet for most businesses. But corporate users do not make up the largest slice of the telecommunications pie. About 70% of telecommunications revenue comes from consumer spending. It is not unusual for an individual to spend more than $250 a month on personal telecommunications services. This book is written for corporate users. Small businesses, large corporations, and everyone in between will profit from the information contained in this book.

The telecommunications industry is a unique mix of contrasts. Next-generation technologies such as asynchronous transfer mode (ATM), wireless access protocol (WAP), and digital subscriber line services are taking the market by storm but most phone calls still originate across plain copper wires. Mature carriers such as AT&T compete with upstart carriers such as Qwest for dominance in today’s fast-paced marketplace.

Those who cannot keep up with the pace are being left behind. Smaller carriers are being swallowed up by hungry “supercarriers” through a record number of mergers and acquisitions. If customers do not stay abreast of the market, they end up using outdated services and being overcharged. Customers have more service choices than ever before, and carriers are enjoying record revenues. One thing has not changed, however—few customers understand whether the charges on their phone bills are accurate and if the rates are competitive.

Every month, more than 10 million American businesses that do not fully understand their phone bills dutifully mail (large) checks to the phone companies. If they do not pay these bills each month, their services will be turned off, and no business can operate without phones.

Most carriers use billing systems designed in the 1970s. These “legacy systems” were designed to handle only a small number of service offerings. They cannot keep up with today’s complex telecom services, and they end up being inaccurately billed. Few businesses are assured that they are not overpaying. They do not know exactly how charges are calculated or how to verify that those charges are correct.