A telecom expenditure audit examines all of your company’s contracts, bills, and services related to telecommunications in great detail. What is the objective? Find ways to save money, services that aren’t being used, and billing mistakes. To put it another way, it’s the same as employing a private investigator to check your phone, internet, and mobile service bills for signs of overcharging.
Why Your Business Needs One
Many companies assume telecom bills are accurate. Unfortunately, that assumption often leads to wasted dollars every month.
Here’s why an audit is essential:
Identify Overcharges: Telecom providers are notorious for billing mistakes.
Eliminate Waste: Discover unused lines or services you’re still paying for.
Optimize Plans: Switch to more cost-effective packages.
Stay Compliant: Ensure your contracts meet regulatory and operational standards.
How the Audit Process Works
There are a number of critical procedures to follow while auditing telecom expenses. Here is the usual procedure, whether you do it in-house or hire a telecom expense management (TEM) company:
1. Data Collection
Gather all telecom-related invoices, contracts, and service agreements from the past 12-24 months.
2. Inventory Analysis
Audit teams identify all services in use across departments and locations.
3. Invoice Verification
Each bill is reviewed for discrepancies, overcharges, and non-compliance with contract terms.
4. Optimization Recommendations
Auditors suggest better plans, consolidation opportunities, or service removals.
5. Implementation & Monitoring
Once recommendations are approved, changes are made and monitored for effectiveness.
Key Areas Auditors Examine
Here’s a quick breakdown of what telecom expense auditors typically look for:
Audit Area
What’s Reviewed
Potential Savings
Voice Services
Landline, VoIP, long-distance charges
Up to 30% via plan restructuring
Wireless/Mobile
Data usage, roaming, unused lines
20–50% by eliminating inactive lines
Internet & Data
Bandwidth needs vs. current plans
15–40% through plan right-sizing
Equipment Leases
Phones, routers, PBX systems
Recover costs from outdated hardware
Contract Terms
Service-level agreements, penalties
Renegotiate better terms
Benefits of Conducting a Telecom Expense Audit
Conducting an audit offers both immediate and long-term business advantages:
Quick ROI – Many companies recover audit costs within 1-3 months.
Reduced Operational Costs – Lower telecom spend by 20–40%.
Improved Data Security – Identify vulnerabilities in telecom services.
Clear Reporting – Get transparency into monthly telecom costs.
Better Contract Management – Understand when it’s time to renegotiate.
Common Mistakes Companies Make Without an Audit
Avoiding a telecom expense audit could mean you’re falling into these costly traps:
Paying for duplicate services after mergers or office moves.
Case Study: Real Cost Savings Through a Telecom Audit
A mid-sized healthcare provider in Ohio conducted a telecom audit across their 15 locations.
Before Audit:
Monthly spend: $24,000
Multiple outdated contracts
18 unused phone lines
After Audit:
Monthly spend reduced to $17,200
Savings of $81,600/year
Consolidated services with 1 provider
Streamlined contract management
Result: 32% cost reduction without sacrificing performance.
Telecom Expense Audit
Conclusion
Telecom Expense Audit is about more than simply finding ways to save money; it’s also about taking back command of one of the most disregarded parts of running a company. A methodical strategy may help companies find hidden costs, renegotiate contracts, and prepare their communications infrastructure for the future.
FAQs
1. What is the average cost of a telecom audit?
Most TEM providers offer audits for free or on a contingency basis (they take a percentage of the savings). Internal audits may incur time and labor costs.
2. How often should a business conduct a telecom expense audit?
Annually is ideal, especially if your business experiences frequent growth, new locations, or service changes.
3. Can small businesses benefit from telecom audits?
Absolutely. Even businesses with under 20 employees often discover significant savings through an audit.
4. What tools or software help with telecom expense management?
Popular tools include Tangoe, Calero-MDSL, and vCom. These help track usage, flag anomalies, and manage vendor contracts.
5. What’s the difference between a telecom audit and telecom expense management (TEM)?
An audit is a one-time deep dive. TEM is an ongoing service that monitors and optimizes telecom expenses continuously.
