Why Do You Need a TEM Solution?

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Why you need a TEM Solution

Five reasons you need a Telecom Expense Management – TEM solution

More than ever, enterprises need a TEM Solution. The reasons and justification for why enterprises need Telecom Expense Management programs extend beyond cost savings. Here are five of them:

1. Telecom bills are uniquely complex

Telecom service providers have a wide range of items that appear on a bill. The terminology and classification for billing components that appear on bills vary from one telecom service provider to the next.

Charge calculations vary for different items on a bill. There are one-time fees for installation, while some charges for services are calculated based on usage and/or where a call originates and terminates. Other services have a fixed monthly charges. Pricing can also be time-sensitive (peak vs. off-peak) and volume-sensitive (larger volume consumed in a month may be eligible for discounts and price breaks).

Understanding these factors and validating if the charges are properly calculated requires a dedicated staff with expertise. Alternatively, organizations can seek outside firms with specialists to manage billing complexity and other aspects of the communications lifecycle with a TEM solution.

2. Operational efficiencies

Ordering services from providers requires manual processes with few tracking mechanisms to ensure that orders are installed on time. Telecom bills are often delivered in a paper format that is time-consuming and difficult to process. Many enterprises do not have an automated workflow to manage orders and invoices. Failure to process bills on time can lead to late payment penalties and service disconnects. Organizations need an automated process to manage charge-backs and provide visibility into usage.

3. Cost savings – budget pressure

Billing errors can range from 2% to 20% of the total expenses depending on the network, contracts, service providers and other factors. A well-managed program will identify billing errors and save organizations money.

Organizations need a structured process to identify billing errors, submit claims to providers and follow-up to resolve billing errors. Processing telecom invoices in a central database that is specifically designed for telecom services is critical to organize, validate, and report telecom expense information.

In many cases, service providers limit how far back in time enterprises can go to submit claims. This means that organizations not only need to have a program that identifies errors, but it must ensure disputes are submitted promptly to avoid forfeiting claims and potential savings.

4. Changes to network technology

In addition to savings from billing errors, there are also opportunities to save money through optimization and cost avoidance. A good TEM program will identify underutilized services, devices, and applications that your workforce no longer needs. It will provide recommendations to disconnect these services. It can also find lower cost alternatives.

Data analytics and reporting feeds from the program can help:

  • Monitor key performance indicators
  • Improve visibility into service providers.
  • Match employees to the best service plans and devices for their work.

5. Security

Enterprise networks face a wide range of threats from hackers and cybercrime. TEM and call accounting programs can help augment other security measures. These programs can help identify spikes in usage that accompany theft and transmission of corporate data. An inventory built from billing records may identify long forgotten assets with obsolete security measures that should be retired and disconnected to the network.


Telecommunications networks are critical to all organizations. A TEM solution can provide specialized resources to manage complex telecom bills, reduce operational inefficiencies, find cost savings from billing errors, help organizations adapt to changes in its network and boost security. Now, more than ever, organizations need telecom expense management (TEM) programs to help reduce expenses.