Telecom Expense Management occurs either by using a SaaS based TEM (Telecom Expense Management) tool or manually leveraging in-house/external experts.  Reducing Telecom Expenses is the #1 request of the C-level in 2021 within corporate WANs.  Why?  Many organizations have reduced their Telecom footprint to the office with a shift to Cloud Connectivity.  As a result, implementing a well-orchestrated telecom expense management process for your organization will achieve savings & improve your network posture.


Five Key Tips all organizations can leverage immediately to reduce Telecom Expenses.


Telecom Expense Management Tip #1

Re-architect.  Did you know some USF charges on Private connections are over 30%?  Utilizing other WAN technologies can lower Monthly Recurring Expense by half just on the Tax plus boost your network to compete for needed Cloud Connectivity.  Look at next-gen services which will support your cloud needs.

  1. Do you need SDWANpost Covid as all of your corporate apps reside in AWS & you have adopted UCaaS?  Perhaps removing SDWAN for a Zero Trust network is more appropriate, secure and less costly?


Telecom Expense Management Tip #2

Accept that your invoices have a 10-15% chance of incorrect billing which is not your fault!  That’s right, billing discrepancies within carriers is common and very annoying.  Understand you are not alone and the best way to tackle is a two-step process.  First, audit your first (2) invoices for any Telecom service that installs.  Fighting for changes and credits early is more likely to be fixed vs. asking for cost recovery 12 months later.  Some carriers even have built into their contracts the prevention of bill dispute past a certain point in your contract.  Second approach, Compare your first Invoice at start to the current Invoice & they should match (minus taxes).  If they do not, open a billing ticket with the carrier immediately, even if you are incorrect.  They will simply close the ticket if you are in the wrong.


Telecom Expense Management Tip #3

Incorporate a central Database of your Telecom inventory including:

  1. Master Services Agreements
  2. Contract Monthly Cost
  3. Circuit Expirations
  4. IP Information (if applicable)

This Database should be accessible even if Read Only to the Finance Organization


Macronet’s Telecom Expense Database SaaS Tool


Telecom Expense Management Tip #4

For organizations with larger environments who need to manage Telecom Expenses with over 100 Nodes or $100K Monthly Recurring Cost, we always recommend a TEM option.  We have implemented various TEM options for clients who need:

  1. Inventory of all Telecom Expenses
  2. Proactive Notification of billing increases
  3. Reporting of costs & GL Accounting integration
  4. ACH Bill Pay
  5. Collect all invoices, electronic and paper into one platform automatically


Telecom Expense Management Tip #5

Telecom Expense Management should be brought into your Cloud Expense Management practice, namely FinOps.  Most organizations have not built out a FinOps teams just yet, it’s a newer concept but one that works.  More of your Telecom Expense for Network, Voice/Unified Collaborations, Security, and IaaS will connect with network.  FinOps will play a critical role in this expansion and organizations who are balancing their Cloud Spend and Telecom will benefit most in FinOps.


The number one reason organizations do not look at the above is time and resources as there are bigger fires to put out.  Plus, technology refreshes, auditing etc. sometimes happens once every 3 years for your team and the industry changes.  Do not let this reduce your proper telecom needs to run the business.