Selecting a Mobile Service Operator

By Tom Taulli

continued >

Setup a Policy: It’s common for companies to allow their employees to setup their own mobile accounts. A company will then likely reimburse for the expense or have some type of standard allowance. “When companies allow employees to choose their own wireless phone and plans, the results are often messy,” said Stephanie Miller, who head corporate public relations as Vercuity, a telecom expense management provider. “There are complicated brews of various plans, which makes it a struggle to maximize efficiency, track costs, and budget for the future.”

Something to consider: Figure out what you are paying each month for wireless service and see if it can be done more economically on or centralized basis. Suppose you have five employees who all have different provider, but they all talk to each other a lot. There may be more savings by having a single carrier, as well as taking advantage of mobile-to-mobile free airtime.

“At minimum, every business -- large and small -- should have a standard policy governing wireless services,” said Miller. What should a policy include? Miller includes some key points:

  • Clearly define your wireless program
  • Assess the role and usage of wireless in your organization
  • Perform due diligence and assess risks to network security
  • Create the terms and conditions of service for employees
  • Define acceptable use, procurement and device selection process
  • Address key areas and develop language for legal exposure
  • Clearly identify penalties for breach of policy

Coverage: Interestingly enough, this is something that is overlooked. Of course, as for Blumenfeld, he needed the largest global footprint possible. As a result, he purchased a triband phone with Blue Tooth capability. Such a phone allows access to three wireless frequencies, which is critical for international travelers (and, yes, there are now even quad-bands).

“Even today, most providers in the U.S. offer shockingly poor coverage,” said Rita Gunther McGrath, author of MarketBusters: 40 Strategic Moves that Drive Exceptional Business Growth. She also consults to major telecom companies, such as Nokia and Deutsche Telekom.

She recommends that small businesses take advantage of the first-month-free trials that many providers offer and test the phones’ coverage in the areas that the phones will actually be used. “It doesn’t matter how cheap the service is,” said McGrath. “If the calls don’t connect, it’s useless,” said McGrath.

Services: As technology gets better and better, there are certainly many neat features that come with wireless devices. But, how many of these services will you actually use? No doubt, many extra services have a price – which can be a problem for small businesses.

Here are some of the questions to ask:

  • If you think you will be calling mostly locally, why do you need a nationwide plan?
  • If your calls will occur between specific times, why do you need free minutes at other points of time?

This is not to imply that extras are unnecessary. Rather, it’s important to think about the needs of your business and how extra features can help.

According to McGrath: “Some specific options that are useful for a small business person include various push-to-talk plans (which is free between phones that are on the same providers’ network), SMS and instant messaging, and in some cases on-the-go email to connect field staff.”

Go Online: The Internet can be a great way to research wireless service providers – as well as purchase phones and service. After all, there is no need to drive to many stories (which is particularly helpful with $3.00 per gallon gas). What’s more, there are more phones with more features than ever before. Physical retail stores simply cannot stock the full range of phones.

“Cell phone prices vary by retailer, but are almost always cheaper online,” said Allan Keiter, who is the president and founder of MyRatePlan.com.

On MyRatePlan.com, you can search based on phone, carrier, rate plan or feature. Inside each of these areas, there are tools to help create customized solutions for the user. For example, the rate plan calculator will estimate the monthly bill, or the interactive phone finder will help the user narrow down the more than 100 phones based on features they want. “The search for a new cell phone and plan can now be done, and done well, in a matter of minutes,” said Keiter.

Contract Terms: Reading the fine print is never fun. But, when selecting a mobile service provider, it definitely a must.

One issue to look at is replacement phones. No doubt, losing a phone is not something most people think about when signing up for a new service. However, with two-year service contracts and product cycles shortening (that is, phone manufacturers are introducing new phones with new technologies more quickly), there is a good chance you will need a new phone.

The problem? Well, the price you pay for a phone today is probably not going to be the same price you pay when you lose your phone or want to upgrade.

One approach is to sign-up for a one-year contract. True, the phone will often cost more. Then again, you will have more flexibility. It also helps that – with number portability – it is much easier to switch providers and keep your number.


Tom Taulli is an adviser to early-stage companies and is an adjunct professor at University of Southern California, teaching corporate finance and corporate law. He has written several books, including The Complete M&A Handbook (Random House) and Tapping into Wireless (McGraw-Hill). He can be reached at tom@taulli.com and has a blog at Taulli.com.
 

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