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What is Telecom Expense Management?

Blog Post
April 12, 2022

Telecom expense management (TEM) is the process of managing your telecom expenses to promote more significant optimization and efficiency. TEM can often be a complicated process due to the vast number of telecom-related services available today. Still, TEM is essential to getting the most out of your telecommunications services. Here’s what to know about the process.

What’s Included in TEM?

Several elements are included in TEM, and every business does things a little bit differently. However, it would help if you kept a few things in mind, regardless of your business model or how you choose to manage your telecommunications.

Cost Allocation

One of the most critical aspects of TEM is cost allocation—in other words, how to assign funds for maximum value. You may find that you make more phone calls than video calls, and in that case, it would make sense to allocate more money to infrastructure that supports phone calls. The key is to avoid overspending on tools and services that aren’t bringing in the most value.

Usage Tracking

Usage tracking goes hand-in-hand with cost allocation in that you’re identifying the tools or services you use the most. Keeping track of your most valuable telecommunications items is crucial to allocating your budget appropriately and planning for future purchases.

If you use one piece of tech more than another, you may want to consider investing more in that type of equipment. This is why it’s essential to sit down and assess what’s most applicable to your business and what would be done away with if need be.


Doing a deep dive into your billing process can reveal inefficiencies in your workflow. Some billing systems incur fees, and these can add up over time. Staying on top of your telecommunications billing can help ensure that you don’t overspend on unnecessary fees and services.

Wireless Management

Wireless management is another crucial aspect of TEM that should not be overlooked. It’s a great way to monitor connectivity across your systems and ensure that everything is working correctly. Pinpointing errors in your system early on allows you to start troubleshooting straight away so that you aren’t stuck with an even bigger mess down the road.

Additionally, wireless management can help you identify tools or devices that are struggling to connect to your broader network. You can either replace these devices or work to get them connected again.


Your telecom equipment won’t last forever, so it’s vital to include procurement as part of your TEM process. Figure out where and how you’ll procure new materials for maximum cost-effectiveness.

It’s also a good idea to look ahead. Is there a piece of equipment that seems to be on its last leg? If so, you will need to factor the replacement into your short-term budget. Staying one step ahead of the game can help you manage your funds and ensure that you have what you need when you need it. Trying to procure items at the last minute can create unnecessary stress.

What Are The Benefits of TEM?

Telecommunications involves several moving parts, and trying to stay on top of things without a defined goal or strategy can result in undesirable outcomes. TEM forces businesses to step back and take a long, hard look at how they manage their telecommunications services and identify areas for improvement. Without digging into the details and thoroughly assessing your process, it can be easy to overspend on things you don’t need and overlook places where you could cut spending to reduce costs.

TEM also helps companies eliminate fraud and catch unauthorized charges. If you aren’t regularly monitoring your TEM expenses, these things can go unnoticed. It would help if you worked to identify and resolve errors as quickly as possible to avoid further damage later on. In addition, TEM makes it possible for businesses to increase efficiency overall. There is no reason you should be focusing your efforts on tasks and procedures that don’t yield the best results. Telecom expense management provides the perfect opportunity to evaluate your current processes and determine whether or not you’re effectively hitting your business goals. You may find that there’s a better way to do things.

Teksetra is Here to Help!

Managing your IT department is the first step in implementing a successful TEM process. It’s essential to ensure that you’re using the right equipment for exemplary purposes. This can help you make more informed, data-driven decisions later on as you think about managing your telecom expenses.

Teksetra partners with leading TEM solutions providers in the industry to offer outsourcing services to help keep your business on track. Get in touch with us today to learn more about our services and how we can assist you as you think about better managing your telecom expenses!

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