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Mobile Networks contains the following data: Mobile Phones

Why mobile tariffs need to be flexible

by Sara White

Choosing the right mobile tariff for business users is a minefield with so much choice and endless variables. This means that it is difficult to compare the tariffs on a like for like basis which makes the decision making process difficult. Here WTB gives an overview of the different packages on offer and looks at how the mobile network providers are responding to customer demand for flexibility and better value for money.

In these credit crunched times, flexibility is one of the important considerations when it comes to mobile contracts, and this is true as much for businesses as individual users. Cost concerns may be top of the agenda, but contracts need to come with reassurances about service levels and the ability to control costs with clear billing and billing analysis tools. Prices also have to be transparent and flexible contracts are a real advantage, particularly if phone usage fluctuates over a contract period.   

When choosing a mobile tariff, you need to consider a few basics upfront, such as the number of users, the volume and type of calls (mobile to mobile or landlines, national or international), mobile email and data requirements, and the length of the contract.

As customers look for more flexibility in business mobile rates, the network operators are offering a range of sharer schemes where minutes, text and data use are shared between multiple users, as well as some new pay as you use tariffs and flexible plans to allow companies to add temporary mobile accounts to existing contracts.

Value and cost priority for customers

There are few signs that customers are cutting back on mobile usage, other than a reduction in roaming revenue, but they are looking for better value. This is reflected in recent announcements by Orange and T-Mobile, both of which have launched new mobile business plans with a flexible approach to contracts and user profiles.

"Business 1-Plan gives customers the certainty of being able to see what they are spending," said Oliver Chivers, T-Mobile

T-Mobile's Business 1-Plan, which costs £20 for 1000 minutes, includes unlimited colleague to colleague and landline calls, unlimited text and voicemail, and unusually, international minutes to most of Europe and the US are treated as part of the UK bundle.

T-Mobile head of business marketing Oliver Chivers said: "Business 1-Plan gives customers the certainty of being able to see what they are spending. By reducing the complexity and cost of mobile communications wherever you need to work, we are confident that the new components of Business 1-Plan offer the most comprehensive and best value to the UK market. We know that business customers have other critical priorities, which is why we are pioneering clear value without compromising on service."

Orange focuses on sharers

As companies face increasing pressure to cut costs and improve efficiencies, Orange overhauled its business plans in February with the launch of the Business Sense plan, designed to offer more flexibility and better value. Business Sense is a tailored call plan where you can choose the number of sharers, price and minutes, then either qualify for a discount on the bill or choose inclusive benefits such as 3000 landline minutes or 1000 international minutes, on the 24 or 36 month contracts. Orange also offers a mid-contract review. Prices start from £30 for 500 inclusive minutes per month.

"Businesses are confused by what's currently on offer from mobile operators. Many plans have a large number of standard benefits included in them. Businesses feel that they are paying for them as part of the line rental, whether they use them or not," said Orange director of SME Martin Lyne. "With Business Sense we have built a package with everything they need and nothing they don't."

All Business Sense plans offer customers unlimited calls and text between their organisation's users, free itemised billing, free answer phone and inclusive phone insurance.

The 18 month plan offers unlimited calls and texts between sharers, free voicemail and itemised billing. The 24 month plan includes unlimited Orange to Orange calls, plus a choice of 3,000 landline minutes, 1,000 text messages or 1,000 minutes of international calls and a 15% discount on the monthly plan fees. The discount goes up to 25% if you sign up to a three year plan.

"Flexible Workforce addresses the need for small businesses to manage cash flow and cash management. It is increasingly important," said Darren Hopper, Orange

Dealing with a contract workforce

Another initiative from Orange is Flexible Workforce, which was launched in February. This is a pay as you consume plan, a flexible business tariff designed for companies with contract employees who work at temporary, fixed off-site locations or have unpredictable or low mobility requirements. Essentially you can extend your plan and add additional users as and when required and only have to pay an annual fee of £25 per user to activate the service.

Orange head of marketing SME Darren Hopper said: "Over the last six to nine months we have been looking at ways we can help businesses. Flexible Workforce addresses the need for small businesses to manage cash flow and cash management. It is increasingly important, cash flow and cash management is king. It allows customers to no longer have fixed line rentals. It focuses on businesses with temporary and seasonal staff and helps where customers do not want to pay for things they do not need. 

"The finance manager is able to flex cash flow. Flexible Workforce is not substitutional - the only restriction is that the business needs to have more monthly contracts than flexible contracts and there is a £25 annual fee for the service."

The service is available to existing business customers who already have two or more contract subscribers.

Mobile broadband making inroads

While mobile broadband is taking off, it is an area which should be monitored to ensure that costs are kept under control. There are also, of course, issues around the day to day management of devices and ensuring that network security is not compromised.

The T-Mobile 1-Business plan takes into account the increasing demand for mobility and flexible working, but recognises that cost concerns are a priority for customers.

"There is still strong demand for mobile broadband and mobile email but companies want to obtain cost efficiency," said Chivers. "The take-up of mobile broadband has not slowed in the current climate. It has allowed companies to be more flexible and it has been a benefit in terms of attracting and retaining staff, and reducing downtime.

"As with anything cost is more of a focus for businesses, the tools that are available to control costs are being taken up more such as online bill analysis."

3 Business, the small business division of mobile operator 3, has launched a number of business plans in the last few months, offering some attractive rates for business users. The latest 3 Business offer focuses on mobile broadband bundles, Broadband 5GB and Broadband 15GB, which more or less double current in-bundle data allowances. The company is also offering any small business buying an 18 or 24 month mobile broadband or voice package a second Mobile Broadband plan at half price.

3 Business head Renato Bottini said: "3 Business has always been focussed on offering small businesses a wide range of communications options at the best possible price. It is especially important in today's climate for small businesses to be able to work smartly on the go, without paying over the odds."

With an eye on mobile workers, the latest Orange promotion offers free access to the BlackBerry Internet Service (BIS) - mobile email and web browsing - free for the life of mobile voice contracts for new customers on select Orange business tariffs. The offer is valid until 31 March 2009.  

"We recognise the continuing tough times ahead for all our customers and the fact that mobile technology is actually no longer a luxury for many businesses but a necessity. With that in mind, this offer is designed to give our customers a bit of a financial break and help them stay in touch while alleviating the need of worrying about their bill for a little while," said Lyne.  

O2's Mobile Email Experts is a technical support service for small business customers using mobile email services. The service provides expert technical advice via a support line to help solve mobile email problems as well as on-site device set up, training and regular technical health checks. It is available as a monthly subscription or one-off payment.

O2 head of SME marketing Simon Devonshire said: "Small businesses are more likely to see the business benefit of a new technology and therefore tend to be the first to adopt and implement it throughout the company. Investing in technologies which increase productivity can help give businesses the edge in times of recession."

Getting to grips with the bill

Managing bills is perhaps one of the biggest headaches for companies. Itemised billing is pretty much standard with all business tariffs, but there are also some handy online tools to track expenditure and monitor usage patterns.

O2's Bill Manager is a secure reporting tool that allows you to view, analyse and manage company mobile spend and usage online. Bill details can be viewed by individual users or unused SIMS, and reports can be customised.  For individuals, O2 Bill Analyser is a simple internet reporting tool for mobile users. It allows you to quickly produce reports on mobile spending and separate business and personal calls for expense claims or project cost allocation.

Contact file

O2
Orange
T-Mobile
3 Business
Vodafone

For enterprise customers, Vodafone Global Enterprise plans to launch the first standardised global Service Level Agreement (SLA) to guarantee performance levels. The global SLA is designed to give managers greater transparency and predictability.

The SLA will give customers globally consistent and guaranteed performance levels for a range of communications services including device delivery and incident response, as well as access to reports on network performance and spend management trends across diverse markets.

Business rates comparison table 

For an overview of the latest business tariffs, including call plans, data bundles and mobile broadband costs, click on the link below to download a PDF.

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