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Telecommunications Cost Management Auerbach Other 7/31/02 2:44 PM Page 1 AU1101 half-title 7/29/02 1:32 PM Page 1 Telecommunications Cost Management Auerbach Other 7/31/02 2:44 PM Page 1 OTHER AUERBACH PUBLICATIONS The ABCs of IP Addressing Information Security Management Gilbert Held Handbook, 4th Edition, Volume 4 ISBN: 0-8493-1144-6 Harold F. Tipton and Micki Krause, Editors The ABCs of TCP/IP ISBN: 0-8493-1518-2 Gilbert Held Information Security Policies, ISBN: 0-8493-1463-1 Procedures, and Standards: Building an Information Security Guidelines for Effective Information Awareness Program Security Management Mark B. Desman Thomas R. Peltier ISBN: 0-8493-0116-5 ISBN: 0-8493-1137-3 Building a Wireless Office Information Security Risk Analysis Gilbert Held Thomas R. Peltier ISBN: 0-8493-1271-X ISBN: 0-8493-0880-1 The Complete Book of Middleware A Practical Guide to Security Engineering Judith Myerson and Information Assurance ISBN: 0-8493-1272-8 Debra Herrmann ISBN: 0-8493-1163-2 Computer Telephony Integration, 2nd Edition The Privacy Papers: William A. Yarberry, Jr. Managing Technology and Consumers, ISBN: 0-8493-1438-0 Employee, and Legislative Action Rebecca Herold Cyber Crime Investigator’s Field Guide ISBN: 0-8493-1248-5 Bruce Middleton ISBN: 0-8493-1192-6 Secure Internet Practices: Best Practices for Securing Systems in Cyber Forensics: A Field Manual for the Internet and e-Business Age Collecting, Examining, and Preserving Patrick McBride, Jody Patilla, Evidence of Computer Crimes Craig Robinson, Peter Thermos, Albert J. Marcella and Robert S. Greenfield, and Edward P. Moser Editors ISBN: 0-8493-1239-6 ISBN: 0-8493-0955-7 Securing and Controlling Cisco Routers Global Information Warfare: Peter T. Davis How Businesses, Governments, and ISBN: 0-8493-1290-6 Others Achieve Objectives and Attain Competitive Advantages Securing E-Business Applications and Andy Jones, Gerald L. Kovacich, Communications and Perry G. Luzwick Jonathan S. Held and John R. Bowers ISBN: 0-8493-1114-4 ISBN: 0-8493-0963-8 Information Security Architecture Securing Windows NT/2000: Jan Killmeyer Tudor From Policies to Firewalls ISBN: 0-8493-9988-2 Michael A. Simonyi ISBN: 0-8493-1261-2 Information Security Management Handbook, 4th Edition, Volume 1 Six Sigma Software Development Harold F. Tipton and Micki Krause, Editors Christine B. Tayntor ISBN: 0-8493-9829-0 ISBN: 0-8493-1193-4 Information Security Management A Technical Guide to IPSec Virtual Private Handbook, 4th Edition, Volume 2 Networks Harold F. Tipton and Micki Krause, Editors James S. Tiller ISBN: 0-8493-0800-3 ISBN: 0-8493-0876-3 Information Security Management Telecommunications Cost Management Handbook, 4th Edition, Volume 3 Brian DiMarsico, Thomas Phelps IV, Harold F. Tipton and Micki Krause, Editors and William A. Yarberry, Jr. ISBN: 0-8493-1127-6 ISBN: 0-8493-1101-2 AUERBACH PUBLICATIONS www.auerbach-publications.com To Order Call: 1-800-272-7737 • Fax: 1-800-374-3401 E-mail: [email protected] AU1101 title 7/29/02 1:33 PM Page 1 Telecommunications Cost Management Brian DiMarsico Thomas Phelps IV and William A. Yarberry, Jr. AUERBACH PUBLICATIONS A CRC Press Company Boca Raton London New York Washington, D.C. AU1101 FMFrame Page iv Wednesday, July 31, 2002 1:35 PM Library of Congress Cataloging-in-Publication Data DiMarsico, Brian. Telecommunications cost management / Brian DiMarsico, Thomas Phelps IV, William A. Yarberry, Jr. p. cm. Includes bibliographical references and index. ISBN 0-8493-1101-2 (alk. paper) 1. Telecommunication--Cost control. I. Phelps, Thomas, IV. II. Yarberry, William. III. Title. TK5102.5 .D457 2002 384'.068'1--dc21 2002071716 This book contains information obtained from authentic and highly regarded sources. Reprinted material is quoted with permission, and sources are indicated. A wide variety of references are listed. Reasonable efforts have been made to publish reliable data and information, but the author and the publisher cannot assume responsibility for the validity of all materials or for the consequences of their use. Neither this book nor any part may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, microfilming, and recording, or by any information storage or retrieval system, without prior permission in writing from the publisher. The consent of CRC Press LLC does not extend to copying for general distribution, for promotion, for creating new works, or for resale. Specific permission must be obtained in writing from CRC Press LLC for such copying. Direct all inquiries to CRC Press LLC, 2000 N.W. Corporate Blvd., Boca Raton, Florida 33431. Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation, without intent to infringe. Visit the Auerbach Web site at www.auerbach-publications.com © 2003 by CRC Press LLC Auerbach is an imprint of CRC Press LLC No claim to original U.S. Government works International Standard Book Number 0-8493-1101-2 Library of Congress Card Number 2002071716 Printed in the United States of America 1 2 3 4 5 6 7 8 9 0 Printed on acid-free paper AU1101 FMFrame Page v Wednesday, July 31, 2002 1:35 PM Dedication To my loving wife, Sheila, for being patient, understanding, and always supportive of what I do for a living. Brian To Seung-Jin and Martin, for their loving support. Thomas To Carol, Will, Libby, and my parents. Thanks for your understanding and patience. Bill v AU1101 FMFrame Page vi Wednesday, July 31, 2002 1:35 PM AU1101 FMFrame Page vii Wednesday, July 31, 2002 1:35 PM Contents 1 Introduction to Telecommunications Cost Management ......................1 How to Reduce Telecom Expenses (The “Cliff Notes” Version) ................................ 2 Why Telecom Costs Are So Difficult to Manage.......................................................... 3 Drivers for Customer Demands...................................................................................... 4 Carrier Challenges ........................................................................................................... 6 Summary........................................................................................................................... 8 2 Vision...............................................................................................................9 Develop a Cost Management Vision ............................................................................. 9 How Do Organizations “Make It Happen”? ........................................................... 10 Looking for the Quick Fix....................................................................................... 11 Special Needs and Groups within the Organization............................................. 12 Incidental Revenue ................................................................................................... 13 Preliminary Information Gathering .............................................................................. 13 Getting the Numbers — First Cut ................................................................................ 15 Sample Reports and Forms...................................................................................... 18 Summary.........................................................................................................................20 3 Telecommunications Auditing ..................................................................27 Reasons for Telecom Bill Discrepancies ..................................................................... 28 Telecom Service Providers....................................................................................... 28 Overly Aggressive Competitors ............................................................................... 28 Business Customers .................................................................................................. 29 The Telecom Service Ordering Life Cycle .................................................................. 32 Two Approaches to Paying Bills ................................................................................. 33 Components of a Telephone Bill................................................................................. 34 Sources of Billing Information ..................................................................................... 37 Getting Down to the Details: Audit Steps .................................................................. 37 Review Contracts ...................................................................................................... 38 Obtain Raw and Summarized Data......................................................................... 39 Findings Analysis ...................................................................................................... 41 Summary.........................................................................................................................55 4 Wide Area Networking ...............................................................................59 Wide Area Network Technology Options................................................................... 59 Frame Relay .............................................................................................................. 59 vii AU1101 FMFrame Page viii Wednesday, July 31, 2002 1:35 PM viii Global Information Warfare Voice Communications Networking ........................................................................ 62 Virtual Private Network (VPN) ...............................................................................
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