Are Telecom Expense Management Systems a Fit for IoT Business Models? A Deep Dive

Telecom expense management reduces a company’s expenses by integrating billing automation and data analytics into a single portal. In the telecom, cellular connectivity, and IoT management industries, access to data-driven metrics and transparent cost assessments are essential for sustained growth, effective monetization, and optimal performance. By centralizing this information in a single platform, telecom expense management solutions offer holistic visibility into operational efficiency, productivity, and financial investments.

IoT device manufacturers often turn toward traditional telecom expense management solutions for IoT use cases. However, these vendors’ solutions are typically not designed to support these applications fully. While some of the core functionalities of telecom expense management remain relevant, like adjusting data plans and reducing billing errors through invoice automation, these systems are not conceptualized to repackage connectivity and offer it as a monetizable service. This element is crucial for managing IoT expenses efficiently and monetizing IoT technologies. Comprehensive billing platform alternatives, like that offered by Zipit Wireless, are designed to combine billing and monetization into a centralized hub.   

Below, we’ll explore telecom expense management, its benefits and challenges, and how the IoT ecosystem benefits from customized billing solutions tailored to meet the unique challenges posed by IoT devices, like those offered by Zipit.   

What is telecom expense management (TEM)?

Telecom expense management (TEM) optimizes a company’s expenses by streamlining data collection, analyzing usage, eliminating unnecessary spending, automating invoices, and simplifying processes and reports. These solutions are designed to provide granular insight into every aspect of telecom expenses, reducing bottlenecks and facilitating the flexibility required to stay competitive in the swiftly evolving network connectivity landscape. 

Without a centralized billing and data platform, companies must rely on multiple channels of information to manage their expenses and plan deployments. As a result, projects can easily become overcomplicated, inflating budgets and draining valuable resources and time. This limits scalability and product development, stalling progress and revenue expansion opportunities. 

Telecom expense management platforms unify cost reduction strategies with real-time analytical insights. This helps organizations promote efficiency, control costs, manage assets, and ensure regulatory compliance. 

How do typical telecom expense management solutions work?

Telecom expense management solutions offer various features to help companies track, manage, and control their entire service stack. These usually include billing automation, contract and inventory management, usage monitoring, invoice auditing, and data analytics.

As telecom companies look to scale deployments globally, they need to integrate data, monitor performance, ensure invoice accuracy, and optimize expenditures. TEM provides these companies with a strategic framework and practical toolset to approach cost reduction and capitalize on growth opportunities. 

Learn more: What is a Billing Solution and How Can It Grow Your Business?

What are the common selling points of telecom expense management platforms?

Telecom expense management systems provide a structured approach to automation, analytics, and security measures that streamline processes, drive cost savings, and promote increased efficiency. By consolidating data channels into a single analytical dashboard, TEM solutions give businesses enhanced visibility, allowing them to eliminate unnecessary spending and ensure regulatory compliance.

1. Cost savings and waste reduction

Telecom expense management is designed to save your business money. Through invoice automation, these solutions ensure on-time, accurate billing. Usage tracking enables you to identify redundant and superfluous services, eliminating unnecessary costs and ensuring your offerings align with your customers’ needs. TEMs correct billing errors, perform routine audits, and avoid late penalties. 

Traditional telecom expense management providers can also negotiate more favorable contracts with telecom providers and offer more cost-efficient rates, though this feature often has limited use cases (like a business managing their workforce smartphone data plans). TEMs are usually not equipped to negotiate contracts with carriers for the complex demands of IoT data plans. 

2. Centralized analytical insights

TEMs consolidate multiple channels of data into one hub. This centralized view of inventory, administrative information, and data improves budgeting and forecasting. From usage trends to expense tracking, TEM arms you with the knowledge needed to make informed decisions and remain responsive to the ever-changing demands of the market. By analyzing data trends and user patterns, your business can more reliably predict and plan for the future, all while mitigating expenses. 

3. Improved efficiency and visibility

Well-implemented automation is critical to any TEM solution. By reducing the amount of manual labor required for billing, auditing, and analysis, TEM saves businesses administrative costs and adds an added level of scrutiny to internal processes. Telecom expense management also standardizes workflows to maintain consistency. 

TEMs further improve operational efficiency by increasing visibility into all aspects of a telecom company’s expenses, users, and carrier contracts. The consolidated data platform allows for smarter and speedier decision-making and eliminates the opacity created by numerous information channels.

4. Refined vendor and inventory management

Telecom and IoT businesses need precise information about the location and performance of their assets. They also need oversight on the expenses incurred by these assets to better optimize offerings, eliminate unused services, and account for data usage. TEM can also help companies track vendor performance against established benchmarks. These solutions can track renewal dates and encourage accountability and transparency. 

However, TEM’s inventory management offerings are usually not robust enough for IoT applications. Inventory monitoring and insight are especially pertinent to IoT use cases. IoT companies need to track data for a large number of devices that are often mobile and globally positioned. Gaining clean, synthesized data on these devices allows businesses to understand the scope of their needs better and position themselves to scale their deployments effectively. 

5. Security and compliance

TEMs provide elevated security and ensure regulatory compliance with industry standards. This is especially crucial for telecom businesses operating in healthcare, finance, and government services. Telecom expense management platforms can identify unusual spikes in usage, preventing unauthorized usage, SIM fraud, and security breaches. They provide audit-ready compliance reports that align with both industry regulations and corporate policies. 

Telecom expense management services can function as policy enforcement, triggering alerts when data usage exceeds established parameters.

Does traditional telecom expense management meet all the needs of cellular IoT solution providers?

Traditional telecom expense management alone is often not suited to maximize the potential of IoT device monetization and management. The IoT ecosystem presents a particular set of challenges, as these deployments must manage thousands of devices with different activation dates, varying data usage rates, and unique SIM requirements. 

IoT OEMs must also navigate the relationships between multiple carriers across the globe and repackage connectivity into a monetizable service that generates recurring revenue streams. Some TEMs may be able to offer aspects of IoT device management, but few are designed to reduce expenses while nurturing growth potential.  

IoT expense management requires a more sophisticated approach than what is typically offered by telecom expense management. Telecom expense management is more narrowly focused on reducing waste and administrative overhead and automating processes to manage expenses. IoT manufacturers also need to consider ongoing monetization models that include subscription tiers, device activations, and plan renewals. Distilling this extensive data into a single dashboard provides clearer insights as IoT businesses scale and deploy their technologies globally.

TEM was not designed with downstream customer billing in mind, an essential element of IoT use cases. Packaging and reselling connectivity as a service to the customer and end-user is the backbone of IoT companies. Wi-Fi hotspots at an outdoor solar-powered bench, streaming service applications in connected cars, and photo packs for remote trail cameras all require a subscription model of billing and expense management that traditional TEM does not cover. 

TEM offers tools that are crucial for efficient expense management. However, in isolation, they lack the complexity to enable ongoing revenue generation and capitalize on IoT market opportunities. IoT businesses greatly benefit from more advanced billing solutions and connectivity management like those offered by Zipit Wireless. These innovative platforms not only control costs but simultaneously facilitate revenue growth. Zipit’s billing solutions are also flexible: we adapt our services to the needs of your business. We have solutions for those who only need the core features of telecom expense management as well as those looking for full Subscription Enablement.  

Learn more: How to Cost-Effectively Manage IoT Data Plans

Case study: TEM for an IoT telematics service

A telecom business could offer tablets and smartphones to a car manufacturer’s employees. In this use case, they would primarily need to focus on managing voice, text, and data usage. The telecom company does not need to repackage or monetize these services, they need to mitigate overall costs and negotiate data plans. 

However, if this car manufacturer also provides wireless services for non-traditional IoT devices included in the cars, their data needs would become more complex. They could offer tablets that use data for car telematics, OBD devices, and diagnostic applications. They would now need to consider both data usage and expanding monetization opportunities. 

For example, they could expand their revenue channels by offering services like in-car Wi-Fi hotspots and advanced telemetry functions. They need a platform that can also manage SIMs, device usage and status, carrier selection, and other IoT-specific needs in addition to automating billing and optimized efficiency. 

Zipit Wireless’s billing platform is tailored to fit the needs of IoT OEMs. Subscription billing is consolidated with automated customer data usage, SIM management and activation, and flexible customer plan management. Zipit’s platform incorporates traditional elements of telecom expense management, like reducing manual billing errors, measuring device cellular usage patterns, and automating invoices. However, we elevate our offering by enabling recurring revenue opportunities through seamless subscription management and connectivity resale strategies. 

Learn more: IoT Monetization: 5 Best Strategies to Monetize Your IoT Solution

Zipit Wireless’s billing platform: an alternative to TEM systems

Zipit Wireless offers a proprietary billing platform tailored to meet the unique challenges posed by IoT devices. Our payment portal combines automated invoicing and analytical insights with flexible data plans, subscription management, simple API integrations, and global carrier connectivity options. This billing platform offers the same features provided by telecom expense management but focuses on maximizing the recurring revenue prospects that drive IoT innovation and success. 

Detailed expense analysis

Zipit Wireless’s subscription billing platform elevates the analytical billing dashboard by providing customers with insight into how their costs are allocated. Rather than merely providing a list of expenses, our billing platform offers insight into which devices are on what plans and how much of that plan’s data has been used in a given period. The billing platform’s specificity helps customers make the right decisions to maximize their profits rather than just displaying an aggregated view of expenses.

Strategic monetization and subscription management

Zipit’s billing solution is designed for IoT use cases and subscription services. Our platform leverages inventory monitoring and asset insights to strategize downstream customer monetization opportunities. Zipit also provides other user-friendly solutions to complex IoT demands, like multi-carrier SIM management and multi-network connectivity management. Zipit’s 

Cost-saving contract negotiation

Zipit Wireless is an MVNO in addition to a billing platform company. We negotiate our contracts directly with carriers to provide fair, consistent pricing to keep our customers’ operations simplified and reliable. 

Should you buy or build your billing platform?

Outsourcing your billing platform is a strategic decision for most businesses looking to optimize their efficiency and reduce costs. Managing a billing platform internally is a daunting, resource-draining undertaking that requires a high degree of in-house expertise for success. Unless your business is equipped with a robust team of developers capable of creating a bespoke expense management platform, it is unlikely that an internal solution will offer the same level of actionable, data-driven insights. Instead, you’ll rely on manual processes, databases, and an enormous amount of spreadsheets. This will rarely achieve the desired cost optimization and improved efficiency. 

Partnering with a billing platform provider gives you access to pre-built expense tracking and analytics reporting, as well as established billing automation. Billing solution providers like Zipit often have pre-existing relationships with networks that can help with contract and vendor management.

However, some businesses may be fearful of surrendering control to third-party operators. Choosing a trusted provider that values security and regulatory compliance can mitigate concerns about data security and information breaches. Businesses that find their needs are too complex to fit the portals offered by TEMs can achieve their goals by choosing a more flexible and comprehensive solution, like Zipit's billing platform.

Whether your business needs billing automation or turnkey subscription billing capabilities, Zipit offers customizable billing platform options designed for IoT use cases and downstream monetization.   

Maximize your IoT monetization with Zipit Wireless’s billing solution platform

Zipit Wireless’s proprietary billing platform helps businesses control costs while simultaneously repackaging global connectivity as a monetizable service. Traditional TEM billing solutions rarely take into account the unique use cases presented by the IoT ecosystem and don’t offer customers the ability to market their cellular services. In addition to the cost-saving features of telecom expense management services, Zipit offloads the intricacy of building and managing in-house subscription billing software.

Our billing platform offers a single dashboard encompassing all cellular connectivity services, including payments, analytics, and SIM management. We offer flexible plan creation, giving you the freedom to create tiered solutions that best suit your unique needs. Our billing solution automates data usage tracking and invoicing, and, as a provider of merchant-of-record services, we can handle taxation on your behalf.

Zipit’s platform allows your customers to activate their devices and upgrade their data plans, providing your business the opportunity to scale quickly and seamlessly. Our platform’s billing cycles can be tailored to invoice customers on fixed schedules or based on data usage, a flexibility essential for IoT devices. We also offer a white-label checkout portal that’s fully customizable, providing your customers with a frictionless experience that enhances your brand identity. 

This innovative approach to billing—including analytical tools, expense management tracking, and subscription opportunities—makes Zipit the ideal billing platform partner for device manufacturers and IoT solutions providers.

We are committed to helping your IoT business unlock its full potential by streamlining subscriptions, adding revenue channels, and scaling globally. Contact us and learn more about how our billing solution can help you control costs and elevate the monetization of your IoT technology. 

Learn more: 

• 10 Key Features of an IoT Connectivity Management Platform
• How to Sell a Subscription for Your IoT Product
• 14 Challenges with IoT Billing and How to Solve Them