The 5 Components of a Typical Telecom Invoice

conducting a telecom audit

Understanding the fees and charges your vendor assesses is critical for reducing your company’s telecom expenses. Telecom invoices are confusing, and hidden fees are rampant. This blog will discuss the five main telecom invoice components to help you determine whether you’re currently overpaying for your services.

What Are the Main Components of a Telecom Invoice?

Below are the prime places to begin your search for unnecessary or hidden telecom fees within your telecom billing:

1. Monthly Recurring Telecom Fees

You will likely see an MRC (Monthly Recurring Charge) on your invoice, which is the base price for your telecom services. Keep in mind that your vendor may bundle several telecom services into a bulk, comprehensive MRC.

Have you noticed that your company accrues costs per minute for services in addition to MRC fees? These telecom charges are typically for long-distance calls and teleconferencing but can include inbound or outbound calls, toll-free service, and international calls.

Confusing, right? Telecom vendors are notorious for this. If you feel the costs per minute or other recurring telecom fees are an error, contact your telecom vendor to get a clear explanation of these charges.

2. Non-Recurring Telecom Fees

Occasionally, you’ll notice an NRC (Non-Reoccurring Charge) on your telecom invoice. These charges can range from installations to set-up fees, service calls, and other non-typical telecom expenses. Take special note of this section, as you can diagnose telecom billing errors quickly if you know your company hasn’t had any new activity surrounding installations or service requests.

3. Telecom Overage Charges

At this point, you’re aware that telecom vendors love to charge your company and keep you engaged with service contracts. Beyond your basic recurring telecom fees, you may find that you’re being charged if you exceed your maximum allowances.

Contact your vendor’s customer service center to inquire further if you see overage charges on your telecom invoice. Vendors will often add costs for services you may not know your company even had within these telecom charges. Understanding the overages and services can help you reduce your invoice.

4. “Other Charges” on Telecom Invoices

There has been an alarming increase in the number of “Other Charges” found in telecom billing, often for taxes and regulatory fees. Many companies don’t have the time or expertise to examine any increase in their invoice’s “Other Charges” section, so these telecom charges often go unquestioned.

Telecom expense management (TEM) software and manual telecom audits can help you identify hidden fees within your invoice. Contact a trusted telecom advisor like PAG to learn more about your options and see how a risk-free telecom audit can help optimize your billing.

5. Third-Party Billing

The most frustrating section of any telecom invoice is “Third-Party Billing.” These fees occur when your vendor acts as a billing agent and are usually for services your company doesn’t use.

Third-party billing fees are often referred to as “slamming” or “cramming” fees. Contact your telecom vendor’s customer service center to fight against third-party fees. They will be available for support and to answer questions regarding these fees.

Optimize Your Billing With a Risk-Free Telecom Audit From PAG

Sadly, many businesses overlook these telecom invoice components without questioning them. Errors and overage charges in telecom billing allow service providers to take advantage of companies, and these billing inconsistencies cost your business money.

Now that you know how to read your telecom invoice, keep a watchful eye to ensure you’re not falling victim to unnecessary expenses. If you have any questions about your invoice, reach out to PAG today for a risk-free telecom audit.




Stay up to date with ways you can save

More from PAG