Andrew Attalienti, director of marketing at MBG Expense Management (, says:

How much do enterprises spend on telecom?

Telecommunications continues to be a top three of enterprise expenses (behind payroll and real estate). Industry research by Aberdeen reveals network expense represent 1% of revenue for large enterprises over $1 billion in revenue, 1.8% for midsize enterprises with revenue between $999 million and $100 million, and 2.2% for small enterprises with less than $100 million in revenues. (Telecom is one area where economies scale work against smaller organizations.)

How can enterprises control spending?

Large enterprises can employ enterprise solutions called Telecom Expense Management (TEM) to automate this process. Smaller and mid-sized organizations do not deal with the volume of services or invoices that would make TEM worthwhile, but they can manually implement the strategies employed by larger companies. They can start by identifying and cataloguing current billing and contracts.

From there, companies can build an inventory and should work to centralize the provisioning process, along with conduct a yearly audit. For larger organizations, a telecom expense management platform will perform proactive audits on a monthly basis.