Are you ready to address the 4 BIG challenges of telecommunication lease administration?

Due to the ever-increasing need for better and improved networks, telecom companies have to constantly innovate in order to stay relevant with the changing technology and meet changing consumer needs. Due to this constant innovation and upgrading as well as the ease and affordability of leasing–rather than owning–many telecom companies are expanding their infrastructure by acquiring assets on lease. As a result, telecom lease portfolios are large and complex. But telecom companies have their fair share of struggles in terms of project completion, resource utilization, and untimely payments. Let’s look at some common challenges and how it can be resolved.

Lease expansion – A company with a massive portfolio will have leases and licenses spread across multiple locations. Organizing, managing and monitoring these leases and licenses is a significant challenge, especially where there is limited in-house support. Data consistency and accessibility should be a top priority for telecom companies to improve and maintain operational efficiencies.

Process & Technology – In the absence of an effective lease and license management process, as well as a centralized repository system to store, manage and monitor all the data, companies may struggle to maintain data visibility and consistency. Efficient and effective processes and a lease management system are required to capture and store information like lease amendments, lease renewals, rent management, lease buyout, lease bids, lease valuations, etc. These can also help organize billing and invoicing processes.

FASB 842 & IFRS 16 – With the introduction of the new accounting standards, leases need to be closely scrutinized to identify the lease and non-lease components that were not accounted for prior to the implementation of FASB 842. Lease management and accounting processes should be evaluated in light of the new guidelines. This evaluation and review require an expert team and telecom companies should keep these criteria in mind.

Human Resources – Telecom companies might not be equipped with the right resources to handle the abstraction and administration of lease/license data. They should hire experienced staff and if they want to cut down the operational costs, take help from service providers who are experts at handling telecom leases and licenses as well as experienced in all lease management systems.

If you have any questions about abstracting or managing telecom leases or licenses, email us at or call 412-567-0010.