Most businesses believe that their mobile contracts are generally fit for purpose and delivering good value for money. However, whilst the monthly invoices can be consistent, this often hides 20% or more in overspending and hidden costs.
In a recent survey, taken during Mobliciti’s Virtual Breakfast Briefing on Simplifying Enterprise Mobile Airtime Management, attendees shared a variety of challenges surrounding airtime, and how they felt they were impacting their business.
What do you consider to be your biggest challenges with regards to your mobile network contract? (FIGURES IN %)
These results were interesting, as they highlighted the symptoms; however few businesses saw their contracts as being part of the problem. In contrast, Mobliciti’s expense management specialists cite poorly negotiated contracts as the main reason why customers overspend on mobile services. In most cases it is not because the prices negotiated are poor, but rather the contracts simply didn’t build in suitable provisions for changing usage and requirements, and that lack of flexibility trapped customers into excess spending and inappropriate commercial terms.
Examples of mobile airtime cost management challenges:
Negotiating mobile contracts without a clear understanding of usage profiles or clear business requirements
This can often lead to the wrong type of mobile contract and terms being contracted, which cant adapt when usage profiles and data usage change over the term. Mobliciti often sees customers spending twice their target spend commitments as a result of these changes.
Data allowance unaligned to actual usage
It’s common for users to exceed individual data allowances or for shared data allowances to be breached; resulting in excess charges that are often disproportionate to the cost of data inside allowances. However, in many cases, this excess usage is driven by the behaviours of just a few users who could easily be migrated out of shared allowances and onto unlimited or higher capacity plans at much lower overall costs.
Mobile tech funds
Traditionally, businesses have purchased their mobile devices as part of their mobile network contract, typically using a type of ‘tech fund’, or ‘device subsidy’. If spend is constant and aligned with contract commitments, then tech funds can work well; however this is rare, and more often than not businesses either quickly spend these “use it or lose it” funds or reach the end of their contract with a large amount of the fund remaining. Both scenarios remove leverage from contract negotiations and mean that the business typically spends more than it needs over the term of the agreement.
Roaming Bill Shock
Pre-COVID-19, roaming bill shock was becoming more of a challenge for businesses, this is because globally mobile network speeds are increasing but the cost of roaming in countries outside the EU is not decreasing. Where there is a very slow 3G signal it’s difficult to create a large bill shock but where you have fast 4G download speeds, it becomes easy to rack up large bills very quickly.
In month usage alerts and data management
Whilst businesses expect some level of roaming charges from time to time, most have limited visibility of usage and charges during the month, and they don’t see the impact of roaming until the bill arrives. By using real-time management tools and enhanced alerting, most businesses would be able to minimise bill shock events without impacting the productivity of their users.
Inactive Services and Wastage
Wastage is where businesses continue to pay for rental charges on unused services and connections, or where tariffs could be optimised to reduce costs. Tracking these areas of excess costs requires continuous monitoring of mobile network bills.
To help optimise mobile telecoms expenditure, Mobliciti specialists recommend:
How Mobliciti can help
Mobliciti’s Virtual Mobile Manager (VMM) service provides enterprise IT teams with resources, tools, group purchasing deals and best practice advice, to ensure that you can quickly take control of your mobile spend and ensure budgets remain in check. Our VMM service includes monthly reporting and optimisation, access to the latest benchmarking data and pricing, along with resources to help you manage your mobile estate.
For more information on how Mobliciti’s VMM service can help your IT team manage your airtime and services, whilst reducing costs, get in touch.