6 Proven Strategies for Controlling Wireless Phone Expenses

Wireless communication has become an integral part of almost every aspect of Corporate America. Stand on any street corner, or take a peek into any Starbucks in any major city and you will quickly see the extent that individuals depend on wireless connectivity.

The widespread use of an ever-increasing cache of wireless mobile devices has given a whole new meaning to the word "productivity". The ability to stay "connected" has given America's workforce the luxury of being able to work from anywhere at any time.

As convenient as it can be, the constant ability to stay connected carries with it a double-edged sword. The very same corporate enterprises that have embraced wireless technologies for their workforce, are beginning to feel the pain of increased wireless expenses throughout their organizations.

Wireless is the fastest growing telecommunication expense for most companies. And there seems to be no end in sight. Some telecom experts predict corporate wireless costs will double in the next few years as workers continue to rack up minutes and bandwidth on their powerful mobile wirelesss devices.

The good news is that although you may not be able to completely halt increases in wireless spend, you can certainly take a dent out of them by being proactive in your efforts to control them. The following are strategies you can implement immediately to help control and manage your wireless costs more effectively.

Strategy #1: Adopt a Corporate Written Policy for Wireless Usage

One key strategy for reducing and managing wireless costs is to prepare and maintain a written document that outlines acceptable wireless usage policy throughout the organization. This document can vary widely depending on the size of the company and the number of employees that utilize wireless devices during the course of their job work.

Minimally, you should have a complete inventory of wireless equipment that is currently in use, along with a list of the specific employees authorized to use those devices. For employees who use wireless phones, pagers, PDAs or laptops only occasionally for work duties, it is best to clearly specify a percentage for acceptable business usage. In addition, it is highly advisable to have a written process and/or checklist for terminating devices when employees transfer or leave the company.

Strategy #2 Determine Company-Wide Wireless "Profiles"

Every job function within an organization inherently calls for varying degrees of wireless usage. For example, highly mobile sales people or corporate executives may use wireless devices exclusively for domestic and international use, whereas an employee stationed in the corporate office may use very little comparatively. Compiling wireless user "profiles" for each employee or job position provides a wealth of beneficial information.

To determine a "benchmark" or baseline for wireless user activity, it is best to first calculate the average usage for a specific job title. For example, suppose the average usage for 24 field sales reps is needed over a 3-month time period. First total three invoices' worth of wireless expenses for all 24 reps, then simply divide that number by 24. This number represents the average usage for that job title.

Now closely examine this average usage as it relates to job productivity or sales results. A sales rep who racks up above average wireless costs may be using their wireless devices for extended personal use and not for business. Unless sales activity warrants this increased usage, this account should be reviewed.

Strategy #3 Own the Phone AND the Phone number

Mobile devices are generally put in place in either one of two ways: they are either corporate-owned or employee-owned. If devices and service contracts are employee-owned, the user (employee) who owns the device(s) is usually reimbursed by submitting monthly invoices for usage.

A large majority of businesses still allow employees to expense minutes used for business purposes on personal wireless devices. For those that do, very few place a cap on the amount that can be expensed back to the company.

Reimbursing employees for wireless usage may be acceptable for small businesses, or for those organizations that simply have a few cell phones in use, but it can spell disaster for midsize and large companies that are interested in controlling overall wireless spend.

Employee-owned devices make it very difficult for telecom managers to track and monitor usage and call patterns. Oftentimes employees combine wireless usage with other expense items such as entertainment, travel, or under miscellaneous expenses. These scenarios make it very difficult to track specific wireless expenses. It also opens the door for possible fraud and abuse as well.

One major and compelling reason to transition to corporate-owned mobile devices is the fact that both the device and the phone number are kept in-house. It only makes sense that the company own the most valuable asset of the equation- the phone number customers use to connect with the company contact person. In addition, company-owned wireless devices provide for centralized billing and superior inventory control.

Strategy #4 Pool Minutes Based on User Profiles

Once you have determined average user profiles for subgroups of employees, you can now match the appropriate wireless plans suitable for the wireless needs of that group. To optimize effectively, wireless plans should be chosen so that users can share a pool of minutes.

Knowing average profiles beforehand eliminates second guessing when choosing the appropriate plan for each group. This approach eliminates the need for all company-wide wireless accounts to share the same pool of minutes - a practice that, more often than not, results in poor efficiency across the board.

Strategy #5 Consider Contracting With Multiple Service Providers

There are literally tens of thousands of wireless plans available in the marketplace at any given moment - and they seem to change almost daily. As wireless phones begin to handle more text and data transmission, choices are becoming almost infinite in their variety of services and geographic coverage.

Now that your wireless user needs have been defined, it is much easier to seek out specific wireless carriers that offer the plans, pricing structures, and handsets that best fit these profiles.

RFPs can be very helpful in gathering information on a variety of wireless carrier offerings. They can also be an effective way to help refine the terms and conditions of contracts. Don't be afraid to query and/or contract with more than one provider. Make your decisions based on the specific coverage areas and service qualities you desire for each subgroup user profile.

Strategy #6 Take an Aggressive Approach to Contract Negotiation

It goes without saying that competition means better service at more competitive rates. Keep this in mind when negotiating wireless contracts. Competition is always cutthroat in the wireless arena. Taking the steps outlined in this newsletter will give you the knowledge you need to negotiate contracts more effectively and with total confidence.

A few points to keep in mind when negotiations begin however: 1) Typical wireless contracts are two years in length, although you can negotiate terms for longer or shorter time periods; 2) Be aware of early contract cancellation fees and handset costs when negotiating a final contract; 3) Remember that everything is negotiable - but be willing to meet carriers in the middle.

Successfully controlling and managing wireless costs requires a warrior mindset - not unlike preparing for battle. Leaving things to chance will ultimately result in overspending. A proactive and organized approach will help keep all of your corporate wireless spending in check.