12 Sep

Telecom invoices are notoriously confusing and typically filled with acronyms. Executives need to know these acronyms in order to best understand telecom invoices. This is the first step to lowering your telecom bills and not wasting money on  invoicing errors.

The following 10 acronyms are commonly used on telecom invoices. Do they look similar to what you see on your  invoice? Knowing the following acronyms will help you understand what your telecom fees, identify discrepancies, and allow you to negotiate for better telecom rates and services.

10 Telecom Acronyms You Need to Know:


Monthly Recurring Charge – The monthly fee that is charged for a product or service component.


Non-Recurring Charge – A one-time fee that can typically be attributed to an installation, a service set-up, or a service call.


Early Termination Fee – The fee that is administered when a contract is broken prior to the date the contract ceases.


Make Up to Minimum – You will see this charge when there is a shortage between the contractual minimum that was agreed to be spent in a month or a and what was actually spent during that month.


Minimum Annual Revenue Commitment – This is the amount of money that your company has committed to spend with your telecom vendor per year.


Minimum Usage Guarantee – This term is another way of saying an annual commitment or agreement of how much will be spent by a company for services.


Annual Revenue Commitment – Yes, you guessed it! Another way to express an annual commitment or agreement. Telecom vendors are big on your company committing to spend money.


Primary Rate Interface-  This is a type of local telecom service that is becoming antiquated because of outdated technology. Believe it or not, older technology is more expensive to maintain than infusing and maintaining new technology for your company’s telecom needs.

VoIP :

Voice over Internet Protocol – This is a newer and frequently much less expensive technology for long-distance calling. VoIP has been commonly seen as the replacement for LD T1.


Multiprotocol Label Switching – This is the primary type of data network, such as for office to office connectivity, that is being implemented and used by companies today.

Our goal in sharing these acronyms is to help you gain clarity into your telecom invoice. That is the first step towards savings!

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Posted by on September 12, 2014 in Uncategorized


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