DEFINITION:

ASSET - Any equipment or services for which a one time or ongoing periodic expenditure is made. These expenditures are not trivial nor insignificant and should be managed as assets.

ASSET MANAGEMENT

Today's downsized business environment has significantly reduced the resources necessary to adequately track assets to control telecommunications costs in both the hardware and leased services areas. Invoices are paid each month if they are within reasonable limits of the last monthly invoices. There are simply insufficient Customer resources to provide ongoing oversight of these expenditures.

In the past, expenditures for telecommunications assets were considered to be insignificant in relation to a business unit's overall operating budget. Competitive market prices of telecommunications assets are continually decreasing and existing services should be analyzed on a regular basis to ensure that equipment and services are up to date and provided at the lowest possible cost.

Conversely, corporate telecommunications expenditures are remaining flat or in some cases escalating and should be reviewed and audited on a regular basis to ensure that equipment and services are up to date and are provided at the lowest possible cost. Outdated equipment should be replaced in order to reduce maintenance charges and down time and to improve workforce productivity. Leased services should be reviewed and upgraded to ensure that network throughput is adequate for business needs and that the service provider's offerings correspond to business needs.