TAG: A Wireless Twist on Telecom Audits

Posted: 9/2003

A Wireless Twist on Telecom Audits
By Tara Seals

Corporate America has a problem  a really dumb problem, proclaimed Forbes magazine in October 2002. Nobody seems to be keeping track of phones hooked up on the wrong rate plans, leading to punitive charges for extra minutes.

Hardly a new issue, but one that channel partners have been using for years to gain entry to accounts  by offering a telecom audit, agents can identify ways to save customers money and win the business (see related story on page 46). BBR Wireless Management gives the idea a twist in the wireless arena, and gives channel partners a new revenue stream: Agents can earn commissions on managed services for cellular usage.

BBRs Wireless Account Management Software (WAMS) automatically optimizes client wireless rate plans each month without changing carriers or phones, a process that can cut wireless expenses by as much as 30 percent, says BBR. WAMS offers several standard features, including rate optimization and bill audits, feature analysis, carrier analysis, a cents-per-minute analysis and a cost-per-user analysis. Optional features include policy review and development, carrier RFP coordination and strategic planning.

[Agents] can do a one-time optimization (audit), but the real key is the ongoing management service, which guarantees continual optimization  both pay agent commissions, says Stu Johnson, a spokesman for BBR and a user of its services. I have changed my cell plan three times in the last six months as a result of promotions (many of which are not made public) and changing calling habits. The BBR management software automatically captures the promotions and trends calling patterns to make sure the clients users remain on the best plan from their existing service provider.

John Singerman, founder of BBR, says there are 9,500-plus rate plans in the United States that tend to change every three months, confusing bills, little automation and hundreds of device choices and businesses spend at least $40 billion each year for wireless services. Nearly $13 billion  31 percent  of this figure represents excess charges spent because users are not on the correct rate plan, he says.

Our pricing model is fee-based, depending on the number of wireless devices  including cell phones, pagers and PDAs  our clients have, says Singerman. Our pricing model includes an initial audit (two of our founders are CPAs), which identifies erroneous charges and carrier compliance issues. We optimize rate plans, conduct a carrier RFP if necessary and write a corporate wireless policy for our clients.

The audit carries a one-time fee of $10 to $40 per device and takes between 30 days and 60 days to complete. In the third month of service the WAMS monthly fees begin, which include monthly rate-plan optimization, benchmarking usage and providing software reports to the client. The fees are $1 to $3 per device, per month.

This monthly fee creates continuous savings for the client and provides a residual revenue stream for the agent, says Singerman. BBR guarantees the savings to the customer from the service will total at least 200 percent of the fees.

Agents can make significant commission if they target the right companies, explains Johnson. An agent just signed Ryder Truck Systems as a BBR client, in charge of about 2,000 wireless phones. BBR, which also counts Transamerica, 3M and Tyco/SimplexGrinnell among its accounts, says WAMS is for midmarket and large companies. A typical client would have at least 300 wireless users, spend $250,000 per year on service, have multiple geographic locations and multiple carriers in the mix, be a sales and/or service organizations and is corporate billed.