Telecom Expense  Reduction Strategies

With  rapid  changes  in telecommunication  technology  and advances  companies   have  
adopted   these telecommunication tools  to  enhance information sharing , decision making
across  its  functions.

Following  are   telecommunication tools used  in small to large organisations

  • Land line phones
  • Mobile hand sets
  • Fax and telephone sets
  • Pagers
  • Desktops
  • Laptops
  • Video Conferencing
  • Tablets
  • Smart phones
  • Internet and intra net connections
  • Wireless Data  cards
  • Circuits
  • Data Plans

As  these services  involves  number of  service providers  handling of their invoices and
monitoring contracts  becomes  a bit  complex .

With these  comes  Telecom expense management  for better services  and  cost management .
Companies have seen huge rise in telecommunication  expense . Finance dept  has to depute
additional overhead   for  overlooking   telecom bill payment , contract renewals  and monitoring
where as few companies   have   asked existing set up to  look after payments .

These have created additional  load  on  payment processing and thus creating  loopholes in
telecom expense management  which leads to  many unwanted cost s  for example

Billing error
unwanted bills
Overused  or unwarranted cost  etc .

Few steps   on reducing  telecommunication expense

Companies  have  now realised  that  telecommunication expense  needs  monitoring through
experts  and have started hiring  third  parties  to monitor their  monthly  expense . Few
companies have spelt  out  telecommunication expense policy and limits  for its usage .Telecom
cost  control  needs focused attention .

Telecommunication Policy

Best  way is to clearly spell out  the  cost limits  for various function heads and executives . A
telecom policy  to answer  who , how  , what  and  expense limits .

Inventory  Management

Getting to know  exactly  how much  inventory  does  the organisation have . Telecom services
can be categorised into  wireless, voice and data usage. Record and store information at one
place for better monitoring  . Inventory management helps in

To Identify  and track users
To implement changes  in employee  status ( new , retired , fired  etc )
To monitor device status
To monitor procurement  of such  devices and plan .

Invoice  Processing

Getting electronic  invoices  and using software  for  bill payments . Tracking errors and issues
in invoices

Invoice  Auditing

To Audit  these invoices  on regular basis so as to keep a check  on  over  billed  /wrong  billing
Following can be  easily  audited  for  compliances and errors . Important tool  in telecom
expense management .

Long distance calls
Local call plan
Low and no usage lines
Inside wire maintenance
Rate compliance
Unauthorised calling
Installation and repair charges
Billing out of contract ie without your approval
Third party billing  without your consent

Issue Tracking

A  Good telecom expense management  program would include  software tools to monitor
issues and whether things have been done or not .

Contract  Management  and   Contract Negotiation

Negotiating  better  telecom plan  for  the  companies  with  comparative study done on several
service providers .


Getting  monthly reports on telecom  cost  to organisation can help  to check  cost  and
monitor  telecom expense . Hiring  TEM solution providers can be an good idea  for large
organisations .

Telecom Expense  Reduction  Strategies
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