Wireless telecom costs are rising. While the price of a cellular minute hasn’t grown, businesses are increasingly adopting mobile devices, applications and data plans for their employees.
“The voice side of wireless is staying pretty consistent, but the data side, being SMS and e-mail and Internet browsing, is increasing…your telecom cellular expenses are going up because you’re adding more traffic to the data side,” said Roberta Fox, senior partner at Fox Group, a management consultant and analyst company based in Mount Albert, ON that specializes in technology, telecommunications and call centres.
Fox used to pay roughly $100-120 in monthly cellular costs per consultant. After adding data and Internet plans, her bills increased an additional $100-120 each month. But according to Fox, the offsets are worth the costs. “Do I mind the cost going up? A little bit, but the business benefits are certainly there.”
Being able to keep in touch and stay connected has lead to increased productivity and better customer service, she said.
Mobile devices are also extending the life of her in-house computer hardware. “The consultants are getting more of their e-mail on their Blackberrys, rather than buying new laptops and upgrading my PCs,” said Fox.
While businesses may justify their cellular expenses by recognizing the benefits mobile devices bring, they aren’t necessarily getting the most for their money. “From a cost perspective, [cellular] is the least managed and least scrutinized of any IT telecom expense,” said Fox. “It’s really quite bizarre that companies will scrutinize, get the best cost on computers, best cost on software and very few take a look at, and effectively manage, their cellular expenses.”
The average business user is looking at $100-120 a month in cellular expenses, said Fox. “That’s a lot of money that isn’t necessarily being effectively managed.”
According to Fox, businesses can save generally 15 to 20 per cent by effectively managing their wireless telecom costs.
Complexity in billing is often an obstacle to businesses getting the best rates. “We’ve done lots of audits and every time we do them, we can save clients money,” said Fox. “They can do it themselves, they just don’t know how to because the bills are very complex.”
A plethora of plans adds to the confusion. According to Fox Group research, there are more than 2,000 different cellular price programs from the various providers in Canada. “If you take a look at your bills and you have 50 people, you could be on 10 different plans,” said Fox. “To consolidate, you have to read through the telecom jargon and it’s not easy for regular business customers.
“Make sure you’re not spending more money managing the costs than the potential savings,” said Fox. For example, if it takes an employee one half hour each month to analyze their bill, highlight expenses, fill out the necessary form and have the form processed, it may cost the company $75 to save $12, she said. “It’s a delicate balance between managing your costs effectively.”
Companies often provide their employees with a $150 monthly reimbursement to avoid spending time analyzing the data, said Fox. Any expenses above that amount are the responsibility of the employee to pay.
Mismanagement of cellular expenses may not be the IT department’s fault. Cellular may not even be included in a company’s IT budget, said Fox. Some businesses feel cellular is a responsibility of the HR department, or facilities.
Fox offered three strategies for businesses looking to reduce their wireless telecom costs.
First, perform a thorough audit. Many companies across Canada have individual cellular plans rather than a corporate plan, she said. “A cellular price plan billed to each individual is not as cost-effective as getting a plan from a carrier for 20, 50, 100 or 1,000 people…take advantage of the company buying power.”
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