Record Or Refund

It is a pretty standard idea in accounting that businesses should keep records of all their sales. That way, if somebody complains that they were invoiced for something they did not want, did not order, or did not receive, the records should clarify who is right and who is wrong. One of the eccentricities of telcos is that they are sometimes very poor at keeping such records. The upshot is that more than one customer has used this to exploit telcos who cannot justify their invoices, and more than one business has used this to try to mis-sell services to customers. When regulators get involved, they tend to worry more about mis-selling than the dishonesty of a small proportion of customers. For this reason, efficient and comprehensive record keeping is vital for telcos. It enables them to substantiate their invoices, rigorously chase payment, and not be distracted by false accusations of mis-selling or over-billing. At the same time, it helps them with having good relations with regulators. The easier it is for a regulator to check that invoices are supported by genuine records of sales, the less likely they will be to press the telco to appease complaining customers. This has been demonstrated once again in India, where the regulator, TRAI, has demanded that Idea Cellular refunds charges to customers. Idea was unable to show any records that the customers had consented to purchase the services, leaving TRAI with little option but to direct Idea to refund any charges that were disputed by customers. As the news spreads, Idea is likely to find itself dealing with an increasing number of complainants demanding their money back. They will have no option but to concede the complaint, even if the complaint is bogus and the customer is taking advantage of the TRAI ruling. That is the risk telcos take whenever they keep inadequate records.