Our glossary explains basic terms and abbreviations relating to mobile working, the use of smartphones and tablets in the corporate environment (Enterprise Mobility) and security aspects in the use of mobile devices.
Telecom Expense Management (TEM)
Cost management for telecommunications
Telecom Expense Management (TEM) is the term used to describe the cost and contract management required for fixed network telephony, mobile telephony and mobile end devices for corporate use.
The growing importance of stringent telecom expense management and the increasing focus on mobile communications can be explained by the steadily rising number of mobile devices in companies (enterprise mobility management).
Phone plans and hardware
From a narrower perspective, telecommunications management is usually understood to mean the optimization of existing mobile communications tariffs. Tariff optimization often offers substantial savings potential.
For a coherent overall picture, however, companies should take a holistic perspective and also consider the costs of hardware, software and apps for device management (keyword: mobile device management or unified endpoint management) as well as internal costs (effort in the IT department, help desk, etc.). In this respect, Telecom Expense Management or Telephone Expenditure Management includes the following cost groups.
|Cost group||Cost item|
|Devices||– procurement costs for hardware (smartphones/tablets)|
– maintenance and repair costs
– device lifecycle management (replacement device shipping, device upgrades, recycling, …)
|Mobile phone plans||– ongoing costs for mobile tariffs.|
– one-time payments/setup fees for mobile plans.
– identification of “high spenders”, i.e. users with particularly cost-driving communication behavior
– ffsetting of only supposed savings potentials such as bundle offers and techfunds
|Licenses||– ongoing costs for MDM software licenses|
– ongoing licensing costs for productivity apps
|Internal costs||– expenses for the procurement of devices and tariffs|
– efforts for setup/configuration and roll-out
– expenses for repair orders and maintenance
– expenses for tariff adjustments and new connections
– accounting/bookkeeping expenses
Telephone cost management-project flow
When companies project an improvement of their mobile phone equipment, typical process steps usually follow:
- as-is analysis
- needs analysis
- solution concepts
(e.g., tariffing models, procurement models, outsourcing, contract management, etc.)
- modeling of organizational adjustments
- pilot project
(e.g. proof of concept in individual department or branch)
- after validation: global roll-out
Telecommunications management can be supported by specialized TEM software.
An overview of TEM software providers can be found here: https://www.capterra.com.de/directory/30112/telecom-expense-management/software.
Everphone takes a holistic view of your mobile strategy. Our goal is to reduce efforts in your company sustainably and to save costs. In addition to corporate cell phone rental, we also offer our customers a free tariff service. Learn more about B2B rate support here.