Telecom Expense Management Overview Fortune Consulting 20151

What is Telecom Expense Management? Telecom Expense Management (TEM) is a specialty financial discipline involving the application of systematic analysis to telecom service orders, inventory and bills regarding telecom services. Source -Wikipedia Fortune Consulting 20152

Industry Profile  The Providers / Suppliers Over 70 different TEM suppliers The top tier amount to about 21 providers  Breakdown of services 37% of enterprises use their TEM provider for both fixed and wireless 40% of enterprises use their TEM provider only for wireless telecom management 24% of enterprises use their TEM provider only for fixed telecom management Source: 2011 AOTMP Industry Report Fortune Consulting 20153

Most Common Selection Criteria and Core TEM Activities  Invoice Processing  Reporting & Analysis  Auditing  Optimization  Asset / Inventory Mgt.  Service Inventory Mgt. Source: 2011 AOTMP Industry Report Fortune Consulting 20154

Enhanced TEM Activities  Policy & Governance  Help Desk Mgt.  Mobile Device Mgt.  Risk Mgt.  Security  Sourcing & Procurement  Service Ordering  Change Control  Contract Management  Etc. Fortune Consulting 20155

About Fortune Consulting  Fortune provides a wide range of IT/Telecom Consulting Services Currently 50 % of our Practice is dedicated to Customized Expense Management Programs Product set varies by client – financial vs. technical activities Small/medium enterprise focused  Some spending < $500K annually on services under management TEM not necessarily our first or only client engagement Fortune Consulting 20156

Why TEM – Per Our Clients  They don’t trust the service provided to engineer, implement or bill properly.  Can’t afford the distractions necessary to effectively deal with the administrative burdens associated with IT finance management.  Most can’t afford internal talent to do everything the supplier should but won’t do. A soundly managed TEM can be a cost effective alternative.  The desire to aggregate service providers/invoices under one entity, not necessarily one of the incumbent service providers.  They want an independent providers of expense management services, will assure rate accuracy and contract compliance without obligation to the underlying service provider(s). Fortune Consulting 20157

Anecdotal End User Experiences  What they don’t know does hurt them  Not sure if they have contract or not knowing the terms  Don’t understand the entire cost base  Lack of time and or experience to address unpredictable outages and/or requests  How to effectively escalate to resolve outages  Unfamiliar with the current state of technology Fortune Consulting 20158

The TEM Challenge – from our perspective  A properly managed standard TEM program diminishes its value over time As costs are stabilized and brought into line, TEM becomes just another expenses item ripe for elimination  Our answer: CTMS - A holistic approach that broadens our support capability thereby allowing us to maintain/enhance our value to the client Pain Point focused – if they have a specific one we focus on that Various product verticals  Strategy & PM support  Engineering, Design & Optimization  Financial Management, Cost Containment & Recovery  Service Level Requirements, Definition & Compliance  Productivity Tool & Monitoring Services  Mobility Application Development, Deployment & Management  Across multiple disciplines Hardware Software Network Infrastructure H/R Other Fortune Consulting 20159

 For end users it will still be required While some service providers are getting better at invoicing, most are not. The larger carriers are looking to implement “tariff protections” from historic audit liabilities, driving the increased need to stay on top of invoice accuracy. Multiple suppliers/invoices will continue to be the norm in most environments. Reduced internal headcount will drive supplier consolidation along with the desire to identify a common management point of focus. Change control will still be a critical component in managing inventory and cost of ownership accuracy.  For service providers The field of players will consolidate. Need to continually reinvent the offering to stay in the game. Where do we think TEM will be in 5 years Fortune Consulting

 Providing IT and Network Management Solutions since 1992 Engineering & Design Procurement & Contract Negotiation Implementation Planning & Support Project & Financial Management Audit Services and Contract Compliance TEM/TLM/CTMS Fortune Consulting Fortune Consulting

George Giardelli President, Fortune Consulting Fortune Consulting