KuTh Consultants (Pty) Ltd

Corporate & Business · NPO & Social Impact · Telecommunications & Technology

A cancelled service cannot also deliver an ongoing tariff saving

Which is why 31.3% plus 14.3% plus 10.1% is not an additive 55.8% of separate benefits. Old lines stay active, broadband overlaps, tariffs vary by service, and branch records do not match the provider's billing estate.

55.8%
gross modelled opportunity, not realised
31.3%
of baseline on no-use services
43.2%
of records on the signed cancellation schedule
~30%
modelled usage cut from rate alignment

Proof context: A legacy multi-site fixed-line estate of 37 active service records

The situation

Lines that outlived the reason they were installed

Legacy fixed-line estates keep charging for services that no longer support an operational requirement. Multi-site organisations are particularly exposed: old lines stay active, broadband services overlap, call tariffs vary by service, and branch records do not match the provider's billing estate.

The review was performed at individual service-record level rather than at account total — 37 active records, of which four turned out to be zero-spend administrative entries that needed classifying rather than being mistaken for chargeable lines.

The opportunity

Three levers, and why they do not simply add up

Scroll table sideways →

LeverShare of baselineEvidence position
Dormant / no-use cancellation31.3%Recurring charges on services with no operational usage. A signed cancellation schedule supports action on this population.
Overlapping service removal14.3%Services where a second communications arrangement already existed. A gross modelled lever that overlaps other categories at service-ID level.
Call-rate alignment10.1%Usage repriced by call category at aligned effective rates. Modelled, not provider-confirmed.
Gross total55.8%The source workbook headline — and not a sum of mutually exclusive realised savings.

Why the 55.8% is published as gross and modelled

A service that is cancelled cannot simultaneously deliver an ongoing tariff saving. Services selected for overlap cancellation also contribute to the call-rate alignment model, so those two levers compete for the same money.

One service record appears in both the no-use cancellation population and the usage-bearing analysis, so the categories are not fully mutually exclusive.

Different workbook generations use different averaging and annualisation bases for usage, which moves the usage-cost result between versions. A later worksheet labelled as a short-period saving calculates a spend proxy rather than a clean before-and-after delta.

Some derivative spreadsheet totals contain broken formula references. The published result therefore anchors to the final source summary and to line-level controls, rather than accepting every workbook formula chain at face value.

Estate metrics

What the register actually held

Scroll table sideways →

MetricResultInterpretation
Active service records37The review ran at individual service-record level, not account total.
Records on the signed cancellation schedule16 (43.2%)A large part of the estate had no sufficient continuing operational case.
Usage-bearing lines in the cost comparison18Subjected to recurring-charge and usage modelling. One also appears in the cancellation population — which is where the overlap comes from.
Non-billable PBX-related records4Zero-spend administrative records needing classification, not cancellation.

What KuTh did

Six controls that make the estate auditable

  • Service estate reconstruction. Active lines, service types, recurring charges and site ownership reconciled into one auditable register.
  • Call-rate economics. Local, national, mobile and other categories normalised, to expose inconsistent effective per-minute pricing.
  • Usage validation. Billing-cycle usage tested, so genuinely operational lines separate from dormant or low-value ones.
  • Overlap testing. Connectivity or voice services already supplied elsewhere isolated before any cancellation decision.
  • Cancellation governance. Authorisation, supporting identity documents, service schedules and provider forms assembled as a controlled execution pack.
  • Post-change verification. Bills re-tested after cancellation or re-rating, so a modelled saving becomes an evidenced one. This is the step the retained records do not complete.

What is claimed

That a defined group of service records was formally put forward for cancellation, evidenced by a signed schedule and provider cancellation form. That approximately 30% of modelled usage charges could come out of the analysed estate through rate alignment.

Not that any of it was realised. Complete provider confirmation and post-change billing for every action is absent from the retained evidence, and without it the gross figure stays gross.

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