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Business Mobile Costs: Are You Paying Too Much?

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Business Mobile Costs: Are You Paying Too Much?

A new report claims that the average business in the UK spends around £1272 per mobile device each and every year. On the surface, that doesn’t really seem so bad, but when we delve in a little deeper and break down that cost into its separate constituents, we realise that many of us are actually paying much more than we need to be. That £1272 per business mobile can be broken down into the following:

  • Operator Fees – 36 percent of the total cost
  • Hardware – 21 percent of the total cost
  • Unexpected Bills – 14 percent of the total cost
  • Security – 11 percent of the total cost
  • IT Resources – 10 percent of the total cost
  • Miscellaneous – 8 percent of the total cost

There are two aspects here that are particularly surprising. The first, of course, is operator charges. Towards the end of last year, Ofcom reported that the Government had increased the costs for operators to use the spectrum from a total of £64.4 million to a whopping £199.6 million. When the policy is rolled out in full from October 2016, it is expected that business mobile and consumer mobile users will be hit with additional fees as the operators attempt to reclaim at least a portion of the costs.

The second aspect that is very concerning is that, on average, 14 percent of our total business mobile spend is being used to cover unexpected bills. In fact, larger companies may be seeing nearly 22 percent of their total business mobile spend go on surprise calls, shock data usage fees, and so on. And this isn’t necessarily about cost exclusively. It’s about the fact that by paying over the odds for business mobiles and for any other mobile devices we own, we’re not making full use of our business mobile budget.

Maximising Your Business Mobile Budget
There are two ways that you can effectively maximise your business mobile budget to get the most from your devices. The first is to ensure you’re not paying more than you need to for your overall service, by comparing business mobile costs before signing on the dotted line. Taking control of the costs at the initial stage of device ownership helps to prevent any nasty surprises in the future. The second way is to understand more about true cost of ownership (TCO) and analysing which investments provide a more significant return. Keeping your business mobile costs down isn’t as challenging as you may think.

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