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What is Telecom Expense Management?

What is Telecom Expense Management and How Can it Benefit Your Business?

With rising costs and complex telecom bills, companies are looking for ways to take control of their telecommunications spending and mobile workforce management. Telecom expense management (TEM) is an approach that can optimize the costs and value of your business's phone, Internet, wireless, and other telecom services. Here is an overview of what TEM entails and how it can significantly benefit your organization.

What is Telecom Expense Management?

TEM is the process of managing, controlling, and reducing the costs of an organization's telecommunications network infrastructure. This includes expenses related to phone lines, mobile devices, data networks, calling plans, conferencing solutions, and cloud communications. The goals of TEM are to make spending more accountable, cut unnecessary expenses, improve usage monitoring, and leverage telecom costs for maximum ROI.


A TEM provider implements this through detailed auditing of telecom bills, asset tracking, usage optimization, contract negotiation, and ongoing expense management. Advanced TEM services also include technical functions like carrier circuit inventory, wireless traffic shaping, and telecom lifecycle management. The overall focus is strategic cost reduction and improved operational efficiency.

Key Benefits of Telecom Expense Management

When effectively implemented, TEM can deliver significant cost savings and value to an enterprise, including:

  • Reduced telecom costs by 15% to 30% through better rate negotiations, eliminating unused services and wasteful spending
  • Centralized visibility into telecom spending across the organization, enabling smarter budgeting
  • Improved policy enforcement and asset management over telecom services and inventory
  • Better leverage of overall telecom investments for supporting business processes
  • Proactive monitoring and management of telecom expenses and contracts
  • Enhanced decision making around new telecom solutions and carriers
  • Increased staff productivity through automation of telecom management activities

A high-value TEM program optimizes telecom spending to align with overall business goals. Companies can maximize their ROI on telecom assets for competitive advantage.


As telecom networks grow more complex and mobility increases, the need for telecom expense management software becomes even more critical. TEM provides the visibility, control, and cost optimization that allows businesses to thrive. By partnering with a trusted TEM provider, organizations can effectively contain this key area of expense.

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