In a spate of early 2008 announcements, the big four US wireless carriers introduced various unlimited wireless plans. Verizon Wireless started the ball rolling by announcing an unlimited voice plan for $99.99/month. Not to be outdone, AT&T and T-Mobile instantly responded with matching plans. Within days Sprint Nextel upped the ante, introducing an unlimited voice and data plan – dubbed “Simply Everything” – for the same $99.99/month. While the unlimited plans aren’t for everyone, enterprises with high wireless usage should explore the options.
Pig Out on Wireless
Verizon Wireless tested just how competitive the US wireless industry was prepared to be. It didn’t take long to get the answer, which seems to be that competition is alive and well. This certainly seems to be positive for US wireless consumers, as long as it doesn’t go too far and make the market unsustainable. For the time being, enterprises stand to benefit and reduce escalating wireless costs.
The story is similar north of the border in Canada. While unlimited voice plans have yet to appear, two of the top three wireless carriers have introduced dirt cheap data plans. Bell Mobility introduced a $7/month unlimited e-mail, instant messaging, and Web browsing plan to promote a new mobile device. TELUS Mobility countered with a $15/month unlimited data plan available on all its smartphones (using the mobile device as a modem connected to a laptop or PC is not included, and data usage will be charged at very high rates).
Other than the device limitation, the only caveat on both plans is that the subscriber must spend a total of $45/month including the data plan, so a voice plan must be added. Rogers Wireless has matched the other carriers with a $15/month unlimited e-mail plan through its Fido brand.
Enterprise Implications
For enterprises with high wireless usage the implications of unlimited wireless plans could be significant. Consider the road warrior salesperson that is on the enterprise plan and consistently exceeds the voice minutes and data usage allocated. Assume there are ten people that fit this profile, and wireless bills for them are $300/month. Now consider that these same ten users go on a $100 unlimited plan. The company would save $28,800/year on wireless.
Unlimited plans will also make it easier for organizations to push the management of wireless services down to employees. The notion of allowing employees to select and manage their own wireless devices and plans – as outlined in the Info-Tech Advisor research note “Slash Cell Phone Costs: Stop Issuing Phones” – becomes even more palatable with unlimited plans. Employees simply expense wireless usage every month, and there is no variability in the cost. Every month the employee knows how much to expense, and the accounting department knows how much to expect.
Additionally, many users will now consider abandoning their personal landline home phones in favor of the wireless device. Some employees will likely be pleased that they can now use a single device with a single phone number for all personal and business communications. Many enterprises had policies that dictated that personal and business wireless usage be separated, and only the business usage could be expensed. In this case, it is now much easier for the enterprise to establish a maximum allowance for mobile costs. For instance, the company will reimburse up to $70/month for mobile usage and the employee pays the remainder.
Recommendations
Enterprises have long struggled with managing wireless costs. With the advent of unlimited wireless plans in North America, the chore of managing wireless costs for heavy users is being lightened. Consider the following when assessing the potential benefits to the enterprise:
- Move heavy wireless users to unlimited plans. Select all users that consistently exceed allocated voice minutes and/or data usage and move them to appropriate unlimited plans. Calculating savings will be instantaneous as it is not necessary to speculate about future costs, simply look back on historic costs.
- As contracts expire stop issuing new devices. When enterprise contracts expire, particularly if contracts are staggered, do not replace devices for heavy users. Let heavy users get their own devices with unlimited plans and expense the costs.
- Give lighter users an option. Allow lighter users to expense a portion of their cell phone bills. For instance, the company might pay $50/month toward the employee’s wireless bill, and the employee pays the balance. This could be a good deal for employees if they can eliminate the cost of their home phone and personal mobile phone.
Bottom Line
Until recently, North American wireless carriers had been reluctant to introduce unlimited voice and data plans. But competition has finally prevailed, and unlimited plans now abound in the North American wireless market. Learn what’s available, and take advantage of potential cost savings today.
