What is Telecom Expense Management?

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As a provider of both fixed and mobile telecom management, we freely use terms like TEM when we’re talking to potential customers. However, not everybody knows what that really means, even though most enterprises can benefit. That’s why we want to take this opportunity to step back and define some of the terms we take for granted.  Today we’ll focus on TEM, which has long stood for Telecom Expense Management but is also known as Technology Expense Management.  We’ll look at other terms in future posts. The following high-level definitions is based on content provided by TEMIA (Technology Expense Management Industry Association)…

While some readers may already have a Telecom Expense Management or TEM program in place, many enterprises are discovering the need for a TEM program. This series of posts will give you basic information on the subject. TEM programs were created to proactively reduce expenses, introduce new efficiencies, increase visibility and provide better control for telecom (fixed and mobile voice and data) services.

Several acronyms and other terms fall under the TEM heading. Wireless Expense Management or WEM focuses on mobile expenses with employee portals for procurement of devices and service plans, and emphasis on managing and optimizing pools of voice minutes and shared data plans. New terms have been introduced to address management of mobile devices and support including Mobile Device Management (MDM), Mobile Application Management (MAM), Managed Mobility Services (MMS) and Enterprise Mobility Management (EMM) and Mobile Security Management (MSM). We’ll explore some of these areas in future postings.

TEM has ten major focus areas:

  1. Inventory management and change control
  2. Sourcing
  3. Procurement and fulfillment
  4. Invoice management
  5. Expense management (including validation and optimization)
  6. Usage management and chargeback
  7. Bill payment
  8. Enterprise Mobility Management (EMM)
  9. Reporting
  10. Business Intelligence.

TEM Components

The diagram shows the domains and illustrates how TEM is an iterative process that requires technology, people and process to manage the full ongoing life-cycle of telecom expenses.


We hope this article is useful. Please feel free to browse our resource center for whitepapers, research and on-demand webinars to help you better understand different elements of telecom management.