Control of Telecom Agreements: The Madrid City Council overpaid 20 million.

In September 2018, Telefónica was awarded four of the six lots into which the Mixed Contract for Telecommunications Services and the Supply of Telecommunications Infrastructures of the Madrid City Council is divided, which amounts to €38,462,000 (excluding VAT) and is the bulk of the macro agreement.

Telecom agreement.

The services awarded consisted of managing the corporate municipal telephony platform and access to the Internet, switching terminals (fixed and mobile) and cybersecurity services, containing almost a thousand seats of the council, 4,900 mobile telephone lines and 15,000 fixed terminals.

Control of compliance with the agreement.

Another lot of this telecommunications agreement, which consists of coordinating and managing the entire agreement, that is, performing the role of control office ensuring that the contractors comply with the deadline established in the agreement, amounts to €1.2 million and was awarded to the consulting firm Deloitte.

Compliance with Service Level Agreements.

The IT Department of the Madrid City Council found some irregularities in the form of unsigned reports by the managers of the consulting firm or without its letterhead in 2019. When delving into its investigations they found that Deloitte was not assessing compliance with Service Level Agreements, neither in terms of quality nor availability of services.

Services that were invoiced but not implemented.

After the summer of 2020, the issue reached the Service Inspection of the Madrid City Council, a sub-directorate dependent on the General Directorate for Human Resources Planning, which opened an internal investigation and found more irregularities.

After analysing the invoices up to September 2020, they found services that were billed but not implemented yet, for a total of €10 million. The largest value of the total amount corresponds to the service lot including data interconnection, access to the public network fixed voice, Internet access and other related jobs, and it was awarded to Telefónica.

Detecting irregularities in telecom agreements in time.

The investigation has continued verifying data until the beginning of this year, amounting to a total of €20 million illegally invoiced. This figure was reached mainly due to the non-compliance of the monitoring parameters of the development of the agreement, and since the irregularities detected were not corrected in time.

How can we check compliance with telecom agreements?

The solution may fall in having a TEM Platform to control some aspects such as:

• Managing invoices.
• Managing the inventory, eliminating non-productive services and line, for instance.
• Managing that the conditions agreed are duly applied.
• Preparing telecom conditions.

Emprosoft TEM services, developed for more than 35 years, allow you to control the aspects mentioned above and other relevant aspects that provide added value. These aspects can fit the needs of each company by integrating them into your ERP or system. Moreover, they count on automated processes that allow you to control the system and compliance with the corporate telecommunications agreement at all levels.

Source: Diario Público