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Enterprise mobile costs 'out of control'

By Shaun Nichols
Jul 10 2007 10:28AM
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Analyst warns of money wasted on inefficient systems.

Enterprise mobile costs 'out of control'
Many enterprises are paying top dollar for poorly managed, inefficient mobile phone systems, according to an analyst.

Dustin Kehoe, principal analyst for telecom services at research firm Current Analysis, declared in a recent report that the costs for enterprise mobile services have spiralled out of control. 

One of the major problems is employee behaviour. The analyst claims that as much as 20 percent of all mobile calls made on business phones are personal, and that most expenses occur outside normal business hours, between 5pm and 7pm.

Employees may also be too dependent on mobile phones. The analyst cited one survey in which it was estimated that half of all mobile calls were made from a desk or within reach of a less-expensive landline phone.

The end user, however, is not alone in driving up mobile costs, claimed the analyst. Enterprises opting for a single big-name provider may end up paying more than those that contract with several smaller local operators.

Kehoe also claimed that the common perception of large operators delivering better reliability is often false.

"Some global mobile operators can drum up strong marketing messages on 'coverage', and have many countries on the world map colour-coded accordingly," he wrote.

"But it appears that in reality they are no more capable of delivering a global service than a small, nimble operator with limited network assets."

Kehoe suggested that enterprises centralise the purchase of devices with value in mind to keep mobile costs in check.

The analyst advised companies to research carefully all providers and service claims, and to consider smaller mobile providers which may be willing to provide a better deal.

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