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.
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