Most organizations have a telecommunications network that consists of an accumulation of legacy technology, services that are no longer used and unnecessary expenses. One of the challenges that Telecommunications Expenses Management (TEM) programs can address is maintaining accurate and up-to-date inventory. Networks are dynamic with location moves, demand for additional services to support new personnel, changes from new communications technology, and disconnect activity due to downsizing. With all of this activity, if there is no TEM program with asset management software to streamline work order activity, it is difficult to ensure that disconnect notices are properly entered and old services are removed from billing.
Effective TEM programs reconcile assets with invoices and help identify services and items with no usage that can be removed from billing. These programs must start by collecting all telecom service providers’ invoices and Customer Service Records (CSRs). In the US, each service order and change placed with a telecom provider requires an update by the carrier to the Customer Records Information System (CRIS). The CRIS system information must be entered into a separate system that manages billing.
CSRs do not capture wireless devices and mobile services. For mobile devices, phone numbers, billing and the names of the employees using them should be reconciled with personnel records. After implementing a TEM system for one large company we found that nearly 500 monthly cell phone bills were still being paid for employees who were no longer worked for the company. This finding saved the company approximately $600,000 per year.
After the inventory is complete, it should be analyzed for further savings. Effective TEM programs can help identify equipment or services that are not associated with an employee, department, project or corporate location that can be discontinued. In one case the refunds were $400,500 for a client that had clear documentation of a request to disconnect services for a branch location that had been closed. In other cases where clients have no record of submitting a disconnect request to the service provider there will still be future savings after submitting a disconnect request and avoiding the cost in the future.
Telecom assets require vigilant monitoring. All moves, adds, changes and disconnects (MACDs) of service or equipment should immediately be recorded to keep the inventory up-to-date and reduce expenses.
