CASE STUDY 3

Independent ISP

One of Canada’s largest independent ISP’s contracted TelOptimize to conduct an audit of the Inter-exchange and Local Access facilities that they leased from one of Canada’s largest incumbent carriers in order to provision Internet Access services to their clients.

The audit required a detailed analysis of more than 300 circuits each comprised of at least 4 components and included both U.S. and CDN locations. Upon completing the audit, TelOptimize provided the client with a report that included the following findings...

  1. Client was billed for services that were cancelled 3 – 36 months prior. The carrier failed to process all cancel orders and continued to invoice Client for services that were no longer required. Fortunately, client logged all cancel requests and TelOptimize was able to demonstrate the carrier’s negligence.
  2. Client was billed in excess of Tariff rates for many Inter-exchange circuits that were not foreborne by the CRTC.
  3. Client was billed at Tariff rates or greater for services that were foreborne by the CRTC and contracted at customer-specific rates.
  4. Carrier failed to apply appropriate Volume and Term Discounts to numerous DS1 Accesses and Inter-exchange circuits.
  5. Carrier failed to cancel the U.S. portion of numerous cross-border circuits that were cancelled on the CDN side of the border.

Upon approval from Client, TelOptimize issued a claim request for refunds of $1.5 million and received the full amount in compensation for the carrier’s negligence. Additionally, TelOptimize achieved savings of $200,000/month on a monthly invoice of $1 million on behalf of Client.