Thursday, March 25, 2010

Wireless Flat Rate Plans

Wireless Flat Rate Plans are one of the many plans that you need to evaluate when conducting your wireless rate plan optimization.

Flat Rate Plans are negotiated plans with your carrier(s). You negotiate a per-minute rate. Depending on the negotiated rate, you may have a monthly access fee as well.

For example"
Monthly Access Fee: $4.99
Cost Per Minute: $0.06

With this example, if your users average 500 minutes, your cost per minute would be $0.069 per minute.

Benefits


  • A flat rate plan is good for organizations who don't want to actively manage their wireless program.

  • It provides a rate that you know your organization will not exceed.

  • Spend fluctuation is only due to changes in usage patters.



Negatives


  • You're going to pay for the convenience.

  • Carriers build 'cushions' into the flat rate plans to account for the loss in overage rates.

  • You can generally get to $0.05 per minute or less with a well optimized program. In the example above, if your organization used 1M minutes per month, it would equate to $240k in missed savings annually.




Make sure you consider the Flat Rate Plan when conducting your wireless rate plan optimization. In most cases your strategy shouldn't be a flat rate plan, but should incorporate them wisely.

Sunday, March 14, 2010

Wireless Rate Plan Optimization

Do you manage your organizations wireless program? How much are you spending in voice charges? What is your current cost per minute? Are you paying expensive overage charges?

If you aren't sure what you're paying, or you're paying expensive overage charges you need a wireless rate plan optimization.

A wireless rate plan optimization involves managing your entire wireless program from the top down. When optimizing, you aren't considered with the individual user, but the entire need. Voice costs have the most potential for savings, followed by text messaging charges. Data charges are usually unlimited for a fixed fee, so there is less room for savings.

You need to understand your contract and services to best conduct your wireless rate plan optimization.

Take a look at your invoices today to see how much you can save. If you aren't paying about $0.05 per minute, you're paying too much.