Maximizing Carrier Profitability & Efficiency

Measuring Success - OSS Reconciliation Activities

Mere days following implementation of the BDS Solution, a number of equipment and circuit data mismatches begin to be recognized between the virtual representation of the Carrier's network and the actual network configuration ('As-Built'). First, equipment and circuit data is corrected in the Provisioning/Inventory Management System (i.e.: MetaSolv, Granite, TIRKS), which begins to improve the accuracy and usefulness of the OSS data. However, these errors also have downstream ramifications that produce real money - or 'hard dollars'.

There are a number of tangible and less tangible ('soft dollar') benefits associated with having the OSS match the true network. However, the significant hard dollar contributions that reduce costs and/or increase revenue fall into six reconciliation categories:

1. Spares & Excess Equipment: as the crews (via polling and/or site visits) inventory the network locations, spare cards and excess material is identified that is not visible centrally. Here too over carded shelves are noted. Instead of purchasing new material to meet existing demand, this equipment can be used to turn up new service, redeployed to higher demand areas, sold and/or written off.

2. Stranded Capacity & Related $MRR: commonly, high demand buildings/areas are targeted early in the process in order to locate stranded capacity that could be used to fill held orders and get revenue in the door quicker. We define stranded capacity as equipment and circuit paths (cabling/connectivity) that could be used to turn-up new service and generate revenue. Stranded capacity is often the result of an incomplete disconnect process.

3. Stranded Equipment: two of the major contributors to OSS data not matching the 'As-Built' include the broken feedback loop between Operations and Engineering, and incomplete disconnects. Disconnects often stop at turning down service and frequently valuable equipment is left behind and/or not placed into inventory. Overbuilding of capacity can also cause this phenomenon. The result - new equipment is continually purchased unnecessarily, wasting time and money.

4. Billing: during reconciliation, circuit exceptions are matched against the applicable billing system(s). Although the method for tying inventory to billing varies by client environment, detailed information is produced that can be used to identify customers receiving service who may have never made it to billing. In addition, customers with improper billing charges and billing cycles are also recognized.

5. Offnet/COGS: here, the physical and logical inventory points to leased circuits that have been disconnected with the LEC, but continue to be paid by the Carrier's COGS (leased line accounting) organization. The Carrier then has the detailed data necessary to stop paying for disconnected Offnet (off network) lines, while also recovering overpayments from the LEC.

6. Fixed Assets: construction work in process (CWIP) network locations and the associated equipment becomes fixed assets (from an Accounting perspective) following activation of service. Commonly, this equipment status change is not communicated back to the Accounting group - resulting in an inaccurate fixed asset picture, inexact depreciation schedules and erroneous tax payments. An inaccurate fixed asset record can contribute substantial errors to all major corporate financial statements including the Balance Sheet, Statement of Operations, and Statement of Cash Flow. And now with the passage of the Sarbanes-Oxley Act of 2002, the accuracy of corporate financial records is more important than ever.

The above reconciliation activities do not always apply to all reconciliation projects - some Carriers may choose to forgo fixed asset reconciliation in favor of getting their Provisioning System in order. Others may choose to focus on Provisioning and Billing, but wait on COGS reconciliation until a later date. No matter what the project scope may be, significant ROI benefits are delivered in each of the six reconciliation categories.