Let’s say it’s time to renew your mobile service contract and you receive a proposal from your provider advising you to switch all your company mobile phones from rate plans or pooled plans to unlimited data plans. It sounds like a smart idea, right?
No more worrying about data limits and overage fees. Unrestricted services can free your team from monitoring data consumption, so you no longer have to dodge unnecessary fees. In fact, unlimited plans leave decision makers feeling relieved from the watchdog duties. Some even believe that utilization means they no longer need a mobile expense management system or service.
Buyer beware! Sure, go for the unlimited plan, but don’t let your guard down. Unlimited plans are not a substitute for comprehensive mobile financial management. Financial oversight should lead every corporate mobility program – regardless of your plan type.
Here are the little-known downsides of unlimited data plans and a few things to consider before throwing the baby out with the bath water.
Endless Data Shouldn’t Mean the End of Expense Management
One of the biggest misconceptions about unlimited data plans is that companies can shed their mobile expense management solutions upon adoption. It’s easy to see where this assumption comes from. Software and services are frequently associated with the more traditional work of data usage monitoring and the need to reconcile consumption against the allotted pool of data. However, solutions aid in more than just cost avoidance.
Only a mobile expense management solution can:
- Create one source of truth for mobility teams, tracking all devices, users, and data usage habits alongside invoices, contracts, and spending trends
- Offer holistic views of spending across multiple carriers, helping IT and financial leaders see macro trends and build financial reports for forecasting
- Offer cost optimization recommendations, including a prioritized list of ways to increase device utilization, reduce waste, and improve contract rates and terms
- Integrate with HRIS systems, so device assignments and reallocations become an automated step during employee on-boarding and off-boarding procedures
- Integrate with corporate financial systems, making mobile management practices seamless and compliant with financial management practices including Accounts Payable, General Ledger files, and cost allocations
- Automate cost allocations, enabling IT and mobility departments to charge mobile devices and services back to the business units that benefit from them
- Offer additional services to offset the burdens of management, including bill pay, mobile device management, inventory management services, Help Desk services and more
Carrier Dashboards Won’t Save You Time & Money
Mobile carriers and their service dashboards weren’t designed as out-of-the-box solutions for cost optimization. While carriers may offer e-bonding services (API integrations) allowing clients to capture invoice and device information, this does little in the way of putting dollars back into IT budgets and time back into the hands of mobile teams. Not only will clients need to use their own time and resources to connect to the available APIs, they will also need to build a streamlined process to capture, analyze, and manage that information in ways that will drive desired outcomes. Storage may also be an issue.
Unlimited Data Plans: Here’s What They Don’t Advertise
These plans are an easy solution to prevent overage fees, but there are drawbacks. Despite the name, unlimited mobile data plans are far from being truly unlimited. Furthermore, all plans are NOT created equal. Here’s what you should know.
Plans Don’t Guarantee Savings
Many companies are drawn to unlimited plans because they suggest predictable billing and appear easier to manage… but at what cost? What seems like the best bang for your buck could be a money pit if you get roped into the wrong plan. Data usage is not uniform from company to company, nor is it uniform from employee to employee. Thus, these plans can lead to overspending. Learn when an unlimited plan may be the wrong choice for your company.
Tangoe’s mobile cost management consultants advise hundreds of companies on this subject and evaluate $34B in IT spending trends. For the record, we recommend pooled or shared data plans for large enterprises, as they generally save more money when compared to unlimited plans.
Data Throttling can also be Unlimited
Most plans give the mobile carrier the ability to throttle client data usage, and the conditions under which this happens might surprise you. Data usage throttling can happen:
- Once data consumption has reached a certain point — even when the network isn’t congested
- When the network is congested with NO regard to how much data the user has consumed
These dirty details can negatively impact business continuity.
Obscured Decision-Making and Contracts that Lock You In
Price disparities between unlimited plans and pooled plans are narrowing, which makes it harder to know when to opt for each type of plan. Decision making can also be blurred by the fact that carriers are moving away from 2-year subsidy models, spreading device costs over 3-year terms and offering credits against installment plans. All of this can make cost evaluations and purchasing decisions confusing. Additionally, the contract may restrict your ability to switch between plans, making service quality improvements impossible until terms are met.
Getting unlimited plans right requires digging into these details, choosing carefully among tiered unlimited plans, and being fully informed so you can make the most educated decision. When you have an expense management platform in place, it’s far easier to navigate mobile plans, letting detailed usage data be your guide. Plus, with Tangoe, you can leverage market price intelligence thanks to our industry expertise and negotiate contract renewals with the help of professional negotiators.
Unlimited Plans are Beneficial but Can’t Replace Financial Oversight
Switching to unlimited data plans is a straightforward way to avoid overage fees, but it shouldn’t be a replacement strategy for mobile financial oversight. These plans often come with limitations and hidden disadvantages. They aren’t for everyone. To ensure true savings and drive efficiency, mobility leaders should continue to leverage mobile expense management software and services, which offer deep financial insights and optimization paths that carrier dashboards simply cannot deliver.
Ready to weigh the pros and cons of an unlimited data plan or use an expense management platform to guide your mobile purchasing decisions?