Due to the proliferation of smartphones and tablets, and ever more data hungry applications, enterprise mobile data expenses are rapidly increasing. Data already accounts for 50% of all mobile bills and is expected to reach 70% within the next two years. So what’s causing costly and often volatile corporate mobile data bills?
The mobile data avalanche
Mobility Managers can’t afford to ignore the data avalanche. Strategically managing mobile data consumption independent of operator pricing plans will become an absolute necessity for any successful organisation.
Excessive roaming costs
According to research by Informa, operators write off 40% of data roaming charges as bad debt during peak months. Nevertheless excessive roaming charges are real and substantial. Enterprise mobile data expenses bill shock incurs hours of wasted management time.
LTE has arrived
Increased adoption of LTE means faster speeds and despite being in the early days of rollout, LTE can already provide downlink peak rates of around 100 Mbps, with current standardizations allowing for even higher speeds. This has a number of effects on usage but perhaps the most dramatic is the impact it has on mobile video. Compared to the average mobile user, LTE subscribers in the US are 33% more likely to watch a video on their smartphone. It is no coincidence then that 2012, the year LTE’s emergence, was the first year that video accounted for more than 50% of overall mobile data. This is set to rise to 70% by 2016.
Many companies allow some form of BYOD and operate on a variety of different models. Regardless of the model, enterprises are beginning to heed the warnings of unexpected bill fluctuations and many Mobility Managers are longing back to the days when they owned the equipment and were fully and directly liable for operator expenses. Regardless of the size of the operator bill, every enterprise values constant and predictable versus variable and volatile mobility costs.
The emergence of Managed Mobility Services
As mobile environments become more complex, operators and other providers are increasingly bringing services to market that support the complete mobile lifecycle including the operator contract, expense management and MDM.